big discount to nta, page-4

and what about ARG...

i have noticed a lot of the listed investment companies are trading below NTA....

I know a couple of them like MIR, and ARG have issued new capital through share purchase plans and dividend reinvestment, but they have all lagged the market in there peformance of late.

Either the Listed investment companies are going to trade at a discount to the market, or the market is going to pull back...

I suspect there is just a lag, once there next NTA reports are all released i think the revaluations on these investments will come through.

MLT, CHO, ARG, are all offering about a 4.3% dividend fully franked... so i'd say over a 2-3 year period even the dividends alone are going to match that of interest in the bank.

I have put a little bit into these LIC's with a view that over the 10 year period I should get a decent return with regular contributions and taking advantage of discounted purchased plans.

Also a lot of these LIC's are cashed up and will do share buy backs to reduce shares on market, making it easy for the shares to trade higher in the future.... pretty simple way of doing things really.