@Lobbster77. What are you missing ? What may we all be missing ? EZL is selling its two investment funds WIC and OZL at a 7 1/2% premium to pre tax NTA to WAM. WAM is trading roughly at a 25%+ premium to NTA. So EZL is effectively in the short term selling an interest ain both funds together with future management fees in return for WAM shares, which at some point in time, needs to be converted to cash. That means they have a substantial holding in WAM, that at some time in the future needs to be repatriated. The question is for what ? What are the plans for all their holdings in OZG and WIC, together with the loss of future management earnings for those two funds ? Their holdings were substantial, the two funds were absolutely kicking goals and that would have meant tha5 their management fees would have been increasing (as the value of the funds increased), and they would have been making better returns on their holdings within the funds. So what is the future of the repatriated funds ? What does EZL want the money for ? Give SH a big fat dividend ? If so why ? Or what other plans do they have to get a better return on the funds repatriated, that we don’t know about ? I was a happy SH in WIC, great capital gains and good dividend ; so I am naturally sceptical !
EZL Price at posting:
$1.72 Sentiment: Hold Disclosure: Held
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