gnspa - gns could trump 1h if bought gnspa, page-7

  1. 180 Posts.
    Bulldust, zwu.

    I bought GTPGB at $5 and it was trading north of $6 when Great Southern went into receivership - that's 6c in the dollar. GNSPA is currently trading at 58c in the dollar - we have a long way to go before we reach a similar discount to GTPGA/GTPGB.

    I think that Gunns is priced for a suspension of distributions. If you really think that Gunns is going to the wall, then you are probably overpaying at $58. In a fire sale, Gunns' assets will be worth considerably less than book value.

    On the other hand, I also think that the price of hybrids tends to exaggerate the real risk. GTPGB was my only failure in a portfolio that also included GMPPA, MXUPA and PXUPA all purchased below $20 and even IANG at $59, now back trading at $100.

    One for the risk tolerant investor only.
 
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