Noble Investments boss Ian Goldbart is building up a stake in medals and trophies supplier Toye & Co.
Last month, Goldbart moved above 3% and he has taken his stake to 4%.
Toye recovered from a loss of £186,000 in 2009 to a profit of £100,000 in 2010.
The discount to net asset value may be one of the attractions.
The share buying has pushed up the share price by nearly two-fifths. Even so, at 36p a share, Toye is valued at £810,000. That compares with a net asset value of £1.66m. Admittedly borrowings are rising and net debt was £1.85m at the end of 2010.
That NAV could understate the true value, though.
Toye owns freehold and long leasehold property whose deemed cost is based on a 1997 revaluation. The base value of the freehold land is £1.17m, or £928,000 after depreciation. The long leasehold property has a base valuation of £1.18m and is valued at £914,000 after depreciation. Management believes that the underlying value of the property is £850,000 higher than book value. That would mean that the shares are trading at one-third of their NAV.
Toye sold a long leasehold building in 2008. The deemed cost was £60,000 and after depreciation the book value had been £46,800. This building was sold for a profit of £80,000.
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