Langbar International

People sentiments change on this board on a daily basis. If we read the published RNS's, there is not any doubt that NAV is 204p per share, however you want to read it. It is beyond me to understand the financial details of how the NAV is calculated, but there are clear RNS statements by Mr Pearson that 1) NAV is 204p and 2) The funds will be out of Brazil for good after the property deals are completed.

The only caveat is Rybak's stock sales. Elliot and Rybak have sold more than 20% of the company within less than two months without informing SP. IMHO he either doubts the company's assets or he doubts Mr Pearson's ability to increase the shareholder value over time. May be he is not happy to invest in AIM penny shares such as RAF and MOI. Whatever the reason I find it difficult to understand if NAV is really 204p why an ex-ceo and a co-founder of the company would settle at 60p per share! Hence the suspension occurs. The "independant verfication of certain of the assets" is making progress. We have to wait and see the results.

I suspect that an independant audit will take something between 3 to 6 weeks to complete. Mr Pearson has got an obligation to inform the market of the results regardless the outcome. Of course he and the board believed that accounts were (is) correct and NAV were (is) 204p per share. I suspect that even he does not know the results of the independant verification at the moment.

Whatever the outcome, I do expect the share price will be openned at 10% to 20% discount to the confirmed NAV. As a PI holder with my entire savings in LGB, I only hope that NAV is 204p and Mr Pearson has done a sterling job here. If so, I will trust him for another two or three years and I would hope that he can increase NAV to £4 or £5 by then. Obviously Mr Rybak did not have the same view!