Please hang on to these words: "The book value is just...

Please hang on to these words: "The book value is just undervaluation - clearly the company wont sell its assets in these markets at cost price"

As I predicted the net tangible asset valuation of the SDG is base on cost only, and the company will not be selling these assets on cost only basis - as highlighted in the latest announcement the co made 24% profit so realistically we can ignore the NTA altogether as the only basis of determination of the special dividends.

A good indicator however could be inferred from dividend payments thus far this year that is:

At the start of the year NTA was $2.56 per share;
SDG paid interim dividend of 30c and final dividend of 20c total of 50c per share and now
NTA is $2.36 or thereabouts.

Simple mathematical logic suggests : $2.36 in the remaining net asset value could be translated into $5.90 per share in remaining future special dividends.

2 .36 x 50c = 5.90
20c
of course there are other factors but these facts are quite telling and on these basis the SP at $2.75/ share is significantly under valued.


Please DYOR and feel free to comment if you disagree with these assessments.