xan way too cheap?

  1. 942 Posts.
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    I just bought a heap of Xanadu Wines (XAN) at 15.5c. This stock looks real cheap to me with a NTA of 26c and an underlying profitability (before one off charges from their recent acquisition of Normans and redundancies). They will have more than $6 million in the bank after the current convertible rights issue, so cash is not a problem.
    On July 4, Xanadu forecast a NPAT of $2.4 million this financial year. They remind me of Great Southern Plantations at 40c each at the height of the bad sentiment for the timber plantation sector.
    For comparison

    Evans & Tate $1.13 NTA 36c
    Cockatoo Ridge 49c NTA 19.6c
    Xanadu 16c NTA 26c

    Have I missed something? I’ve been wrong before.

    This is my opinion so do your own research.

    Tim
 
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