13 May 2016
By Maynard Paton
Today I’m reviewing one of my recent share investments.
The company in question is Daejan (DJAN), which you may recall I added to my watch list last year.
After monitoring the group’s subsequent progress, I decided to buy at an average price of £58 (including all costs) between November 2015 and March 2016. The share price now is £57 and the holding currently represents about 5% of my portfolio.
I have to confess, this new position is not terribly exciting. DJAN is a low-profile business that owns a variety of commercial and residential buildings located mainly in London and the eastern United States.
Nonetheless, I do feel this £929m firm offers many traits of a respectable investment.
Important attractions for me include an impressive record of dividend and net asset growth, a conservatively financed balance sheet, a boardroom staffed by veteran family management, and a modest share-price valuation.
However, I recognise DJAN is by no means a one-way bet.
An obvious danger here is a dependence on what could be a toppy property market. Another potential drawback is that the shares have always appeared ‘cheap’ — due mostly to the directors’ 80% family shareholding and their reticence towards outside investors.
Read moreDaejan: This 282-Fold NAV Gain Could Be Just The Beginning