HM1's NTA fell by nearly a dollar during the six months from...

HM1's NTA fell by nearly a dollar during the six months from last December until May this year. Since then the NTA has levelled out, fluctuating around $2.90, plus-or-minus about 15 cents. The SP suffered more than the NTA. The NTA-SP premium morphed into a huge discount that at one time was greater than 75 cents.

The NTA-SP discount can improve for either of two reasons. Either markets become bullish, which would automatically tend to pull the NTA higher and the SP even higher. Or, the NTA could consistently rise due to good stock picking, even when markets are bearish or sideways.

I have bought back in again because I am bullish about markets generally. Also, HM1 will open up a new conference portfolio in November. This could be a major positive change. HM1's latest monthly report states that "As we approach the upcoming 2022 Sohn Hearts & Minds Investment Leaders Conference we continue to liquidate our current conference holdings ". Many must be wondering why the disastrous conference portfolio was not liquidated months ago. Better late than never. Maybe HM1 ought to use some of the proceeds to buyback stock while the NTA-SP is large, which would produce an instant profit to bolster the NTA.

When HM1's NTA eventually starts to move consistently upwards then it can be expected that investor sentiment about HM1 will turn positive.. Then the SP can be expected to rise faster than the NTA, causing the NTA-SP discount to gradually decrease. There are approx 70 cents worth of potential SP upside if the NTA- SP discount reduces to zero, plus however much the NTA increases along the way.