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clock Created with Sketch. 04/06/19
14:29
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Originally posted by joewolf:
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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.
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@joewolf .....I guess you are taking a more analytical view of the holding and are quite correct. Me ? A little more simplistically, just looking at the SP cause at the end of the day, that’s all we will get for our holding, not including dividends. So for me, the SP being higher would be a sign of confidence in the management, performance and returns for the fund.
