Not like you to forget the CGT so only $1.14 but that is still a 12% advantage.
This gap really makes it look too small, the Market cap is under $50 million and I don't normally fish too much down here anymore only 2 other stocks in the same level. However, add back the discount and there is just under $58 million in the portfolio. If they keep going it will build nicely. I think the Dividend is at an appropriate level there is a huge need for a small-cap fund that splits its income. This could do it for me 5.6% (including franking but really say it's earning 12c and pays us 4c tax is 3.6c so they have 4.4cx to put into more stock and some of the profit won't be realised.
This for me is the sweet spot - the continued new money helps the manager and with the DRP they should generate more than $2,6 million of new money into the fund each year. That recycling is critical to the future value of the fund. You don't want to have to sell in order to take up new opportunities - especially given that they have a stock like Afterpay in their mix - its the perfect example of a stock you want to let ride but you also need cash to be relevant and yes each year some will be sold but having new money really helps.
GC1 Price at posting:
$1.03 Sentiment: None Disclosure: Held
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