Good post. This speaks to the dilemma that a prospective investor (like me) has. When a company trades at a discount to peers, is it as simple as thinking “the market will correct this, eventually”, or is it trading at a discount because the market has already decided it is worthy of it?
I noticed this between the likes of YAL (also high Chinese ownership) and WHC in about May/June of last year. In the end I went with the company the market was awarding the premium too, and it paid off - the premium kept being increased. Sometimes it’s easier just to go with the one the market likes more (especially if it’s not a LT hold) than try to pick the undervalued play. The problem with tin is there really is no sensible ASX alternative…!
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