Redefine International has made some useful progress since its annual results, with a number of smaller debts repaid. But in a safety-obsessed market investors have been shying away from what amounts to a high-risk self-help story, so our tip (Buy, 20 Oct 2011, 40p) is well under water.
IC TIP:
Buy
at
26p
Redefine has to refinance two huge securitised loans by October. That should be possible with the aid of a share placement and open offer, which its largest shareholder, Redefine Properties, has committed itself to support.
Meanwhile, the market for regional office assets, which Redefine acquired in the reverse takeover of Wichford last year, continues to soften. Further valuation declines this year are likely.
