While there may be a bit of post-allocation sell down by people rebalancing their portfolios, the market price discount to NAV has been in existence for some time. If I take 1 random date over the past 12 months and exactly 12 months ago:
Date: 7/8/20
Closing Price: $1.795
NAV: $1.8577
Discount: 3.375%
Date: 30/3/20
Closing Price: $1.57
NAV: $1.7422
Discount: 9.88%
My comment regarding a strategy to close this gap wasn't meant to be to do something "now" but to try to do something over the next 12 - 24 months, as you point out. Hopefully the buyback will help. A strategy that involves issuing new units to holders at a price of $1.7383 and then continuing to engage in a buyback that is buying back those same units at a current market price of $1.62 has some merit.
While there may be a bit of post-allocation sell down by people...
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Last
$9.54 |
Change
0.030(0.32%) |
Mkt cap ! $1.720B | |||
| Open | High | Low | Value | Volume |
| $9.68 | $9.72 | $9.44 | $4.651M | 486.8K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 10 | 359 | $9.54 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $9.55 | 973 | 15 |
View Market Depth
| Last trade - 15.25pm 11/07/2024 (20 minute delay) ? |
| MFG (ASX) Chart |