Ann: Daily share buy-back notice - Appendix 3E, page-4

I don't think they are unusual in small LIC's at the moment. The current trend, amplified by fear surrounding franking credits, was a big move out of LIC's over the past 6 months. The gap to NTA is not the current issue it's the lack of buyers. I recently sold out of URB and they are around $68 million market cap on an NTA of $85 million. They also had volatility until a week ago someone stepped in and bought anything under 94c. However the moment they exit the scene the bid drops back to 91.5c. That isn't the only one. MIR has gone from $2.33 to $2.51 since 18 April and gyrated between these poles a few times currently drifting down to $2.42. They are however trading around their NTA but are a much larger fund around $386 million.

I Think you are correct though that we need better performance to get more people interested in the stock. The question is would you wish for the LIC ( meaning you indirectly) to pay a higher price for shares in a buyback to make you feel comfortable or would you like to see the LIC buy shares at the best price. If I read the notices here they seem, to enter the market around 82 to 82.5c and will clean those out. That makes sense to me and improves my investment over time.

As regards management and stock selection, research - I don't think there is anything wrong with that there has been a few changes but after speaking to the director in charge of investments I am comfortable that the changes that have occurred should avoid the events of the last half of last year. So I am relatively comfortable in a very difficult market at this end of town. Let's take APT - easy to own at over $5bn market cap but that has priced in a whole lot of blue sky. Much harder to hold something lower down that is struggling to hold it's share price but they are making good returns. We, unfortunately, only value our investment via its NTA - not its risk profile or its potential. So each month we smile or fret over a value in time. I am looking for stable income and a bit of exposure to smaller opportunities and GC1 provides that for me what I want to see each month is small gains, not gyrations but maybe that should be in the NTA not is share Price. I have decided that at 84c if I get a 4c dividend I will be very happy and that I would rather the portfolio was a bit more conservative rather than volatile. If they keep growing the underlying value over time I will happily keep this stock as a long term play. What will chase me away is volatility in NTA or a constantly declining NTA.

Whilst it would be nice to close the NTA to SP gap it doesn't affect me only my ego.