flying on the back of zinifex allegiance, page-5

Circles and Papertigger......


True, people have been saying that for years but it is a fact. Also equally true is that price often does not equal value.

I've been a pretty substantial holder in AGM and GUL for a long time. Early on I used to always look at GUL and see it was trading at about 20% discount to its NTA, which was almost exclusively made up of AGM holdings. When it got even cheaper I would buy.

I erroneously thought that one day this value gap would close - it never has and in fact has got bigger.

The only way I could see that you would get real value was if GUL was liquidated and there is no sign of that. Even if AGM was bought over there would be a chance that the 21 million (thanks for working that out) would sit in the GUL bank account and eke away in costs.

I'll be looking to exit (definitely at a discount to NTA)my position in GUL now this takeover is on. This way I will be sure the money gets in my kick. I'll let AGM ride at the moment as I think they will eventually get more then $1.

GUL is a dog but every dog has its day.


Chinkiat