Q: Good morning, what is your view of OCI? it is invested in many other companies but the stock doesn't move up at all. 14% of MIS, 11% AE, 3% of QCCU, 15% of ARIC, and 43% of Cuprum Corp. Some of this investments are interesting like AE and QCCU . The market cap of OCI does not match the value of its investments??
Thanks,
George
Thanks,
George
5i Research Answer:
OCI is only an $11M company. Most holding companies do get a discount on their assets, as the company typically has tax obligations, but also because shareholders really see no benefit unless assets are monetized. But, for a tiny company, it is just very difficult to generate investor interest. It is quite expensive to maintain a public listing, and the share price has declined 75% in four years. There is just not much interest in a 4.5 cent stock.