Digging a little deeper 48% of HGV's NTA is in Weed Me, an unlisted weed company in Canada (I think). If book value is way above its real value then shareholders may have to say goodnight to some of their investment. The weed sector has been performing below par with many listed weed companies trading poorly for some time. This is why HGV "pivoted" away from this sector in the first place. I'm not sure if HGV's investment in Weed Me has ever been impaired by directors but if the trend is your friend directors may have trouble realising value. I think Weed Me's directors are keen to do an IPO but the weed market is not in favour at the moment.
I think directors of HGV abandoning the ship despite their apparent recent reports of a glowing future as a "leading edge" investment company may be a sign of troubled time ahead. I could be completely wrong but it would seem this abandoning the ship may be a sign of things to come. Will they be caught naked when the tide goes out. Stay tuned for the next instalment.
HGV Price at posting:
6.5¢ Sentiment: None Disclosure: Not Held
