@marketmaker,,,, Disclosure... I am well known on this folder for bagging JB and his “muppets” so as long as you are aware....... JB has in effect been losing money for 5 long years, and has been supposedly preparing for this Armageddon for at least that period. And when Armageddon comes, he is as ill equipped as any other fund manager. Bring up a 5 year chart of ALF, and you have your answer. To try and catch a falling knife in this volatile investing environment is dangerous, but to buy ALF (in retrospect) any time in the last 5 years has been a wealth destroying strategy. JB is convinced of his own infallibility, and has proven to be inflexible and intransigent. Only once, in a long while have investors been given the opportunity to cash in 20% of their holdings, and that was approx a month ago at what turned out to be $1.10. Just before the crash. But that was investor luck, not JBs good planning. Have a look at almost ANY LIC and they are trading at a discount... look at WIC in which I have an interest. But look at the SP run up of WIC just before the fall and you can see a rising SP and NTA for quite a long period (indicating good stock picking and management) and then do the same with ALF ........and ? I have stated numerous times that buying simply because a fund trades at a substantial discount to NTA is dangerous, because you the investor is only ever going to make money if that gap closes. So, would you buy today on the premise that JB MAY initiate another buyback and give you NTA for your shares ? He’s done it once in 5 years, I think his management style is erratic, unpredictable and inflexible, which is great if you use those attributes to go against the herd and make money, but he hasn’t ! I was happy to participate in the buyback and only wish it had been 100%, rather than the 20%. Personally, I would not be a buyer, but unless you need the money (in this time of volatility) I think I would probably wait and see what they come out with in the way of the next report and to see if their strategy has changed along with any results. I can’t see any meteoric improvement based on previous results.
ALF Price at posting:
86.0¢ Sentiment: Hold Disclosure: Held
