With the stock price where it is recent buyers have been paying well above NTA. Why? because of the high yield and past performance. If you look at where the performance has come from it has been from a very large holding in RHG. Congratulations to Carl for sticking his neck out with such a large holding however be aware there is little else in the portfolio that is likely to support this level of past performance. Taking large positions in small caps is high risk. Watch the next dividend, I think if t is not reduced CDM will have to pay above earnings. You will see a few other LIC's have done this recently as the market has been chasing yield. Most of them were at a substantial discount to NTA this is no longer the case, seems to me the yield chasers aren't watching the bigger picture. Check this out for yourself you can see it in company announcements. I have sold my entire holding. Thankyou buyers. I do like the stock however not at this price.
CDM Price at posting:
$1.47 Sentiment: None Disclosure: Not Held
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