Reports, page-8

No worries, was waiting a while for this one happy to look closer, although its beyond my skill to do a deep breakdown

Clearly the guy can make money. These are the base, base cruel accounting from KPMG. I am sure they went through this one with a forensic comb. I am extremely happy that they verified the trading and that is profitable. My fear was this was smoke and mirrors buying and selling from the left hand to the right, but it isn't. It doesn't have to be either if they can make those calls they have been making. So I am relieved there

I do like the Benj Hornigold thing he is doing, that is just the trading, none of this financial services stuff. That makes sense. I think he put his cart before his horse with the financials, but then, if the opportunity is there, what do you do, pass over it?

With JBB i can see KPMGs point. They can't look at the financials of JBB because it isn't a subsidiary where HML owns > 50% of JBB. They can't do consolidated so they have to go by IAS, which is where it is problematic.

To reset the NTA, HML should do what most companies who have investments in unlisteds do, they price it at the value at its last round of capital raise value. If JBB took another investor for say 5% at ths 15x $83m valuation, then HML can comfortably lock in their 10x booked value. But HML would still want to clarify how they got in so cheaply, which I would also like to know

And be more clear in the line items of the monthly NTAs what is investment portfolio and what are unlisted assets. Other LICs do that

So what am I to do? Will I have investments in 3 shares in 6 months?

1. HML- the financial services play + trading
2. JBBroking- the shares I received in that IPO
3. Benjamin Hornigold- the pure play trading with no fin services or unlisted?

Time will tell. I would probably also prefer to take the win from the JBB investment- assumign the IPO comes off, pay another dividend to shareholders, and roll that money back into the portfolio. If I want to go into the JBB float I will separately.

DYOR