Details at a glance:
- Company: Richfield International Limited (ASX: RIS)
- Market Cap:A$1.6m
- NACV: A$6.3m, mostly cash!!
- Business: It operates shipping services in Singapore. It used to operate trucking services years ago.
- Profitability: Mildly profitable or break-even most of the years.
- Dividends: Never in the last 8 years.
- Insider ownership: 72% controlled by the directors
What's the catch?
I have serious doubt the company exists mainly for the purpose of running a business. It looks more like the directors' tax shelter. It's basically their family's piggy bank. The most likely end-game I can foresee is, when the business dries out, they will shut down the operations and gradually draws down the cash pile as salaries until it reaches zero. Well, there is no certainty. They may declare a surprise special dividend or announce someone tendering for the company. But I won't bet on it.
(Disclosure: No position)