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This high-yield stock has more cash than its market cap

Simon Thompson: Investor in property and secured debt is a free hit for new shareholders
This high-yield stock has more cash than its market capPublished on November 25, 2024
  • Underlying pre-tax profit up 14 per cent to £3.1mn
  • First-half EPS of 5p
  • Net asset value (NAV) up to £125.8mn (208.8p)
  • 1p a share quarterly dividend
  • Cash and money market investments exceed market value
  • 46 per cent discount to NAV

It’s not often that a company’s cash exceeds its market capitalisation, but that’s the tantalising opportunity at Alpha Real Trust (ARTL:117.5p), a company that invests in high-yielding property and asset-backed debt and equity investments.

At the half-year-end, Alpha had a £55.1mn (91p) combined holding of cash, money market deposits and short-dated UK government securities, a sum that accounted for 44 per cent of net asset value (NAV) of £125.8mn and 80 per cent of its market capitalisation of £68mn.

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