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  5. LNF: Was reading about LNF venturing into real estate development, using already-owned lands which looks good on the surface. [Leon's Furniture Limited]
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Q: Was reading about LNF venturing into real estate development, using already-owned lands which looks good on the surface. What say you? Could this this a significant needle-mover for a company you already admire? Thanks
Asked by alex on January 30, 2024
5i Research Answer:

We consider it a very good move, but it is going to take time for the company to see benefits. Plus, it will have to spend a lot of money before seeing those benefits. Still, for a long time the company has had substantial real estate value, and this will go a long way in reminding shareholders of this value. The stock popped 10% on the news, which is probably about right, but it may drift a bit as investors realize the timeframe is still a ways off. But we like the company regardless.