• ABOUT
  • CONTACT
  • DISCLAIMER!!!

Wexboy

~ A Value Investing Blog

Wexboy

Tag Archives: sukuk

EIIB – So, You Want to Run a Marathon..?!

11 Wednesday Apr 2012

Posted by Wexboy in Uncategorized

≈ Comments Off on EIIB – So, You Want to Run a Marathon..?!

Tags

Damille, DiamondCorp, discount control mechanism, doughnut boy, EIIB, HBG Holdings, Laxey, marathon, NAV discount, Qannas Investments, quid pro quo, QVT, Rasmala, share buyback, sukuk, tender offer, Total Expense Ratio, track & field, Weiss

C’mon, you’re kidding..? No, seriously, you’re taking the mickey?! In March, the European Islamic Investment Bank (EIIB:LN) (which I last wrote about here) share price looked ready to challenge the GBP 3.9-4.25p resistance zone. This has capped EIIB for almost 3 years now. But here we are, 1 month later, and the price hit GBP 2.8p just in time for Easter – off 24%! No change in volume, or holdings…what’s going on?! And it’s not clear the board have noticed… But I’m sure they’re well aware of EIIB’s intrinsic value, and are focused on the marathon task of their new operating strategy…

All very well but, as any health professional will tell you, before embarking on (and to be successful in) a marathon, you should first do a health check and then scale up with plenty of walking, exercise, jogging, running and even some fartlek. So health check first, then track & field, and then marathon..! But the current share price (and NAV discount) certainly don’t present a healthy diagnosis of the budding athlete…

Continue reading →

Advertisement

EIIB (EIIB:LN) – The Strongest Bank in the World? (Part II)

15 Tuesday Nov 2011

Posted by Wexboy in Uncategorized

≈ 2 Comments

Tags

activist investors, DiamondCorp, EIIB, Equity/Total Assets, HBG Holdings, Margin of Safety, Sharia'a, sukuk, value investing

European Islamic Investment Bank (EIIB:LN)

Mkt Price:  GBP 3.625p

Mkt Cap:  GBP 64.0 mio

Equity/Total Assets Ratio:  69.2%

P/B Ratio:  0.45  (adjusted)

P/C Ratio:  0.59  (adjusted) 

Fair Value:  GBP 8.09p

Upside Potential:  123%

Continuing from my previous EIIB post:     Let’s not forget that EIIB is a bank. Why am I re-stating the obvious? Well, I know it seems like banks are ten a penny (actually true in the US, with a recent count of 6,500 banks, if you can believe it!), but a new banking licence in the UK is a pretty rare thing. Especially an Islamic banking licence. I’ve no real idea of how much that’s worth, but it’s certainly a valuable intangible that isn’t listed anywhere on the B/S. EIIB presents a cheap entry to any financial institution who’s contemplating entering (or bulking up) in the UK and/or the Islamic finance market. When you consider the strength of EIIB’s B/S, the FSA licence (which would otherwise take at least a year to obtain) and the potential business contacts/opportunities gained, why not pay a premium to Book in a takeover situation? One should also consider the leverage potential implied – EIIB could almost quadruple its B/S, still be considered a very safe bank (with a near 20% Equity/Total Assets Ratio) and presumably achieve a radical transformation of its P&L and Return on Equity. Nobody’s cup of tea right now, and not a strategy that is being signaled by the company, but still something to consider…

Continue reading →

EIIB (EIIB:LN) – The Strongest Bank in the World?

14 Monday Nov 2011

Posted by Wexboy in Uncategorized

≈ 1 Comment

Tags

DiamondCorp, EIIB, Equity/Total Assets, Goldman Sachs, Margin of Safety, Price/Book, Price/Cash, Sharia'a, sukuk, Tier 1 Capital, value investing

European Islamic Investment Bank (EIIB:LN)

Mkt Price:  GBP 3.75p

Mkt Cap:  GBP 66.2 mio

Equity/Total Assets Ratio:  69.2%

P/B Ratio:  0.46  (adjusted)

Price/Cash Ratio:  0.61  (adjusted) 

Congrats if you guessed I was referring to the European Islamic Investment Bank in my last post! EIIB’s the first independent Sharia’a compliant  Islamic bank authorized by the FSA. Headquartered in London, EIIB offers Sharia’a compliant treasury, investment, private equity and investment banking services. Established in early 2005, their FSA authorization process took a little over a year to complete. The bank then immediately opened up for business, following up with an IPO a month later. Fortunately, these were the boom times (aah, remember those days..?!) and they raised an impressive  GBP 183 mio of Equity from a private placing and their IPO.

Continue reading →

Bullish on Oil? – Another Way to Play

12 Saturday Nov 2011

Posted by Wexboy in Uncategorized

≈ 2 Comments

Tags

Adam Smith, Brent-WTI spread, daily oil consumption, Guggenheim Solar ETF, Investcorp, oil, Qatar Investment Fund, recycling petrodollars, sukuk

I’m a long term bull on oil, and consider $70-75 as pretty much the lower bound on prices, coupled with frequent and ultimately sustained price spikes above $100. I see WTI at $98.99 right now, and it looks like it’s finally ready for another $100 break. This will probably further narrow the current $15.17 Brent-WTI spread. You know, I generally believe in the mean reversion of historical spreads and correlations, but the mind boggles at the history of this spread! For 10 years the spread averaged zero, with about +/- $5 of noise, and then it exploded in 2011! I shudder to think how much money has been lost playing against this spread – a real lesson in risk control – I’m convinced we’ll see the spread back to zero, but if you were in a trade like this would you bail out when the spread blew through, say, a $10 stop loss to avoid further pain, or grit your teeth and attempt to remain solvent through a $27+ peak?

Continue reading →

Enter email address to track this blog by email.

Join 2,324 other subscribers

Wexboy on Twitter:

Tweets by Wexboy_Value

Wexboy Top Posts

  • Hitting The Century (X – Distressed)
  • NTR plc - Breezin' Right Along...
  • 2022...Post-Pandemic Hangover
  • ABOUT
  • The New Vegas: US Oil & Gas (USOP)

Wexboy Archives

  • January 2023
  • January 2022
  • November 2021
  • July 2021
  • January 2021
  • November 2020
  • July 2020
  • January 2020
  • December 2019
  • July 2019
  • January 2019
  • July 2018
  • May 2018
  • February 2018
  • January 2018
  • September 2017
  • August 2017
  • July 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011

Wexboy Categories

  • Uncategorized

Blogroll

  • Above Average Odds Investing
  • Alpha Vulture
  • CantEatValue
  • Cheapskate Investor
  • csinvesting
  • Deep Value Investments
  • Element Value Investor
  • Expecting Value
  • Harriman Intelligence
  • Insider Monkey
  • Interactive Investor Blog
  • Investor Soiree
  • Long Term Value Blog
  • Mallet's Conspiracy
  • Mark Carter
  • Oddball Stocks
  • Philip O'Sullivan's Market Musings
  • Ragnar is a Pirate
  • Reminiscences of a Stockblogger
  • ShareProphets
  • Simple Value Investing
  • The UK Stock Market Almanac
  • Tom Winnifrith
  • UK Value Investor
  • Value Investing France
  • Value Investing Journey
  • Value Uncovered
  • valueandopportunity
  • valuestockinquisition
  • ValueWalk
  • Valuhunteruk

Meta

  • Register
  • Log in
  • Entries feed
  • Comments feed
  • WordPress.com

Create a free website or blog at WordPress.com.

Privacy & Cookies: This site uses cookies. By continuing to use this website, you agree to their use.
To find out more, including how to control cookies, see here: Cookie Policy
  • Follow Following
    • Wexboy
    • Join 2,324 other followers
    • Already have a WordPress.com account? Log in now.
    • Wexboy
    • Customize
    • Follow Following
    • Sign up
    • Log in
    • Report this content
    • View site in Reader
    • Manage subscriptions
    • Collapse this bar