Neratel recently announced that they have come to an agreement with Ingenico Group S.A. to sell off their payments solution assets. This deal makes no sense to me given that their payments solutions wing is quite well established, and enjoys certain monopolies in neighbouring countries. Its also growing as a proportion of their overall revenues and profits, and part of the reason why Neratel was a compelling investment choice for me, with its stable income stream enabling the company to give a steady dividend to its shareholders. The other parts of Neratel's business in contrast have unpredictable income streams as they are largely based on projects, not ideal for an income investor like me. Sure, shareholders will be rewarded by the disposal of the asset, but its akin to killing the goose that lays the golden eggs.
It is likely that I would be disposing my shares, barring any further news between now and Monday. Thankfully, a recent price correction enabled me to reduce my average price to below 60 cents. With Neratel's price fluctuating between 69 - 70 cents, I am looking at capital gains of more than 20%. Not a bad investment if I could say so myself. Sadly I wasn't able to get more of their dividends though.
Now...what do I do with the spare cash....
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