Category Archives: Special Situation

Ocean Wilsons (OCN-LN) Update – Error in the NAV calculation

Posted on by 20 comments

Disclaimer: This is not investment advice. The guy who is writing this has problems distinguishing USD and GBP. PLEASE DO YOUR OWN RESEARCH !!!

A friendly reader alerted me that I made an error in the Ocean Wilson Special Situation NAV calculation. I seem to have gotten confused by the fact that Ocean Wilson reports in USD. I did translate the Wilson and Sons stake into GBP but not the investment portfolio. Instead of 319,6 mn GBP, the investment portfolio is worth 319,6 mn USD which equates ~ 239,7 mn GBP

So the initial calculation should have rather looked like this:

The expected return is a full -8% lower than inititally (and wrongly) calculated. Still not bad, but clearly less advantageous.

Based on this, I reduced the positon to a ~1% position.

I am deeply sorry for this mistake and a big thanks to the reader who alerted me. Going forward I will need to be more dilligent for these calculations-

One other remark: A reader congratulated that my post has moved the stock price. This is not my intent for the blog. I try to avoid writing about illiquid stocks as some readers tend not to read the posts and seem to blindly buy. With Ocean Wilson, I was very surprised how illiquid this 500 mn Market cap stock actually is. For me this is a good lesson for the future that I don’t write much about illiquid stocks. I leave that to others.

Ocean Wilsons (OCN.LN) – Deep Value “Sum of the parts” Special Situation with a Catalyst

Posted on by 11 comments

Disclaimer: This is not investment Advice. Never trust an anonymous dude on the internet. DO YOUR OWN RESEARCH!!!

As always, I have attached a pdf with the full writeup and only focus on a few sections in this post. And the Sound Track of course.

  1. Elevator pitch:

      Ocean-Wilsons, a UK listed, Bermuda domicile HoldCo which owns a 56% stake in a listed Brazilian Port/Maritime company called Wilson Sons and an investment portfolio, is trading a a deep discount (-48%) to  its SOTP value. Now however it seems very likely that the Brazilian Asset will be sold by year end 2024, which could potentially trigger a re-rating of the stock on top of any premium paid in the sale. 

      2. Introduction:

        Longer term readers of my blog know that in addition to investing into boring GARP stocks, I also invest into Special Situations from time to time. A special situation is a more short term oriented investment with a clear trigger or catalyst. In earlier times, I did more of them, these days I have less time and only look into them if they jump at me but usually with a relatively small allocation. There are different types of Special Situations. This one is of the “Undervalued company sells major operating asset” type of Situation, of which I have done a few in the past. The last one was Exmar two years ago with a decent outcome.

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