ARG and AUI, both fine LICs, closed with almost equal share prices today (ARG at $5.99, AUI at $6.00). ARG's most recently announced NTA was $5.32, compared with AUI's which was $6.02. Since these NTAs were announced, the ASX200 has risen 2.9%, so assuming an equal rise in the NTA of the two companies, we can estimate the following:
ARG's current NTA: $5.47
Premium: 9.5%
AUI's current NTA: $6.19
Discount: 3.1%
Why buy $5.47 worth of asset for $6, when you can spend the same amount and receive $6.19 in assets? As Buffett says, "price is what you pay; value is what you get". For now, I'd put a HOLD on ARG and a BUY on AUI (though, of course, a 'long term buy' on them both).
arg vs aui
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Last
$8.85 |
Change
-0.060(0.67%) |
Mkt cap ! $6.762B | |||
| Open | High | Low | Value | Volume |
| $8.90 | $8.90 | $8.85 | $1.081M | 121.9K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 17 | 21264 | $8.85 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $8.88 | 4585 | 3 |
View Market Depth
| Last trade - 16.10pm 18/10/2024 (20 minute delay) ? |
| ARG (ASX) Chart |