Shares digital

Analysts are asking whether the £31 million Close Brothers (CBG) paid for property loans business Commercial Acceptances Group points to rival Davenham (DAV:AIM) being heavily undervalued. That £31 million equates to a 1.3 multiple of Commerical’s net assets, which stand at £24 million. Davenham has net assets of £60 million and a share base of about 30 million so a 1.3 multiple should translate into about 260p per share compared with today’s 130p.

Shares says: Davenham may be suffering unfairly due to worries over property market but buying this stock on the off-chance of a bid is highly risky. SK