Here is why I think MVT may again soon trade at least back to NTA.
- potentially a bigger company if MMX investors accept scrip. - I don't know anything about Cashmere but others here have suggested value, MVT would now get more of a share of this, though I expect zero but could be a bonus. - INA would now represent a smaller percentage of a bigger company. Whilst I think it is an ok stock, I think potential investors in an investment company do not like such a big percentage in one stock. - tax losses from MMX. Would be interested in others thoughts as I am no tax accountant. But MMX has basically been all cash for a long time so maybe MVT can argue they are carrying out similar business and can use the big balance sheet losses? Then they can further reduce INA holding tax effectively. - other investment companies at premiums. PMC, MFF, Wilson funds, new activist funds TOP and SNC all at premiums, some very large. Why not MVT which has the performance on the board. - MMX was valued I think at 4.2 cents in the Feb NTA, INA at 46.5. Expect them to report a good March performance. - investors love divvies right now and there was a little hint in the MVT half year report that may occur down the track. - don't forget a couple of years ago MVT spent a few months near 12 cents when the NTA was only 8 cents. ( which I warned here the premium would not be sustained). NTA could be 16.5 cents soon. Why couldn't MVT get to 18 - 19 cents given some of those other premiums I mentioned above?
MVT Price at posting:
14.5¢ Sentiment: Buy Disclosure: Held
