ALF (ASX) Ann: Net Tangible Asset Backing

Originally posted by adamwex: ↑

I sense a move away from LICs into ETFs trading at NTA. There seem to be less buyers for LICs so I caution anyone buying a discounted LIC hoping the discount will decrease. I think big discounts are here to stay unless the LIC gets taken over or wound up.

HM1 have massively outperformed the index since listing but only trade around NTA level. The future generation funds (FGG and FGX) now trade at a small discount.

APL and LSF are trading at nearly 20% discounts to NTA and IMO have better management than ALF. There is more competition now from other LICs and ETFs so I doubt ALF will ever attract enough buyers to narrow the discount even if performance improves.

I was once a holder of ALF. Sent a polite email with suggestions to management and never heard back.

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Originally posted by Just_a_guy: ↑

all true, but there’s a buy price for everything and at 20% below nta, that was it for me. Probably a hold now but On a probability basis I think the short term share price is more likely to go up than down with the tailwinds of the buyback, and the nta discount.

Forager was in a similar boat but I think slightly more of Steve than Justin so I bought in there at a 15% discount.

Jb clearly has had a bad three year period and I wouldn’t be giving him my money at nta, but to be fair there are very few managers I would give money to at nta.

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Just.... I agree with you about Steve over Justin. Steve communicates effectively and comes across honestly and openly. JB ??????? In Military terms.... “ Nothing heard.... Out !” !)
Adam.. I agree with your sentiments about LICs and ETFs but like most things I think that common sense will prevail and the tide MAY turn.... in regard to LSF, even though the fund started disasterously, I believe the managers are far better and have a better chance of turning the ship around than JB. My opinion is that the biggest problem with ALF is the distance between JBs ears ! (Or perhaps the connectivity in that area.
yep, a buyback will solve everything despite it not being likely !