Putting aside small issue of Greek self-harming politics…
HotStockRockets share tips of the year 2015 No 1 ? Buy Minoan at 10.25p
By HotStockRockets | Wednesday 31 December 2014
Minoan (MIN) shares have taken a Christmas beating thanks to Greece where the buffoons in charge have contrived to ensure that the country faces another General election in late January. The market has over-reacted and that makes the shares at 10.25p (a market cap of £17 million) the first HotStockRockets share tip of the year 2015.
Minoan?s Travel & Leisure business will not be affected by the comedy turned farce turned tragedy that is Greek politics. It is trading very strongly indeed and should book an easily well into 7 figures for the year to October 2015. On a low double digit multiple that underpins the current market cap. Moreover the company has the resource to complete more bolt on acquisitions this year which could add materially to T&L profits as the infrastructure is in place to almost double the size of the business.
Where Minoan has Greek exposure is via its ownership of the proposed resort at Cave Sidero in Crete. This has been subject to planning delays for so long that few can remember when the whole process started. It has been a sort of Greek classical story with twists turns, hydras and lions at every turn. But we are now almost at the finishing line. All that is now needed is Presidential sign off.
But bloody hell the Greeks are having an election. For an assessment of its impact see this bearcast from Tom Winnifrith (almost a Greek resident these days) which is HERE.
The key point is that Cave Sidero has all party support so whoever wins the decree should be given. This project is worth a multiple of the share price and as soon as final consents are given we expect Minoan to gain material interest from outside investors. Right now CS is in the share price at virtually nothing ? that will clearly change when consent is given which should be within months if not weeks.
What if Greece leaves the Euro? Well that might create uncertainty but we think it would be great news for Minoan. Suddenly holidays in a country which has returned to an ever devaluing drachma would be cheap once again and that would make CS an even more attractive asset.
We think the political jitters have been massively overdiscounted in the Minoan share price and at 10.25p it is our first tip of the year.