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clock Created with Sketch. 09/09/21
15:54
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Originally posted by joewolf:
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Sorry but you are not comparing the NTA's as they should be - one does not fully reflect the market price but the assets used in the business as are disclosed in the balance sheet. Firstly the scrip transfer is locked using a price for SOL that is limited to $31.00 per share. In fact as a shareholder in both I think that I am unhappy that SOL shareholders don't vote - I strangely would vote no in SOL and yes in MLT. That decision would be hard for me. I don't know where you get the NTA value as SOL don't report at 30 June and the last report was 31 January 2021. At that time they disclosed the NTA in their balance sheet at $21.90 that reflects the cost or consolidated /equity accounted cost. This is not a LIC so they don't reflect the market price of those assets. They are truly a hybrid. If you took the MLT investments and looked up their balance sheet NTA and valued the shares at that and not the market price you would get a very much lower price than the NTA which is the sum of the market prices for MLT. Only LIC's mark all investments to market..
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To illustrate CBA has a share capital at book value of around $80 Billion but its market cap( Shares at market price) $182 billion. For most of SOL investments you are valuing them at the equity value but they trade at the market price which is how MLT value their investments. As SOL is much like a hybrid there are a mix of all this.
