We have an audited NTA of at least $1.70 at Dec 31 ($53m / 30.5m shares). A few relevant points
KPMG would know the smell lingering on this. I expect that they would have been incredibly conservative and meticulous in valuing these business. We now have not 1 but 2 inspection and valuations by KPMG of the businesses (which 10 foot and others make me worry never existed)
Last year Dec 31 KPMG valued these at $1.20 (?) and then they paid a 20c dividend. I read in this report that they have valued the unlisted assets at $43.9m. This gives me confidence and I now wonder why I should be concerned. These are obviously real businesses. What it also means to me is we can now watch BDO come out with their report now. I expect they were waiting for this all along, for someone else to cover their backside rather than hanging their own backsides out in the wind. Their report can come out any time now and I expect it will be within 10% of KPMGs, depending on how conservative and what discount factors KPMG applied. I assume they have to be provided access to that report(?) Don't be surprised to see that come out pretty quickly now
Our/my greatest fear was a ponzi style smoke shop...with fake businesses. Ergo Mr 10 foot and co whipping up fear. KPMG have valued these businesses at $43.9m. If this isn't the best takeaway I don't know what it. It also means its looks realistic to be sold off and listed which is where we get our liquidity from in this
Increase in offer from $5.90 to $6.60. We aren't jumping from the rooftops for obvious reasons, but I would imagine JBL expect a $5.90 offer will come back from BDO as unfair and unreasonable. This must be closer
They trading portfolio made $3.5m. My calc said last year he did 100% on $4m for $8m in the trading portfolio. Here he's done another $3.5m in 6 months- is that on target for another 100% pa post fees return? How can I argue against that? Don't know what the adviser fees were or why he said that? Is that about BDO and their bill? Anyway, thank you for finally talking about your portfolio. Thank you for giving us a video to hear your voice as well
If I consider this like my other buy and hold positions then I'm fine with it. I guess this wasn't what I signed up for, the silence has been deafening and its all opaque. When this is over will I trust you with more money? I don't think so. Not unless you can promise it will be in a hedge style investment fund and not a higgledy piggledy frankenfund and you can get your Corp Gov ship together.
Summary, looks like we can release our clacker valves a little
HML Price at posting:
$1.99 Sentiment: None Disclosure: Held
