re: sell down for alpha The company has about $100M (at market value) in about 15 companies, juniors, some with excellent prospects - MPM, WEZ, GGN, SPX, LAF, IRN...... The EAGM investment was definitively a jewel in the crown - pity that there was no float. This was mainly due to the fact that the other investors in EAGM were venture capitalists and banks and were not so eager to stick it out for the long term as LSG was. Nevertheless, they (LSG) made a nice $30M profit from their investment with the proceeds from the sale of its stake in EAGM adding 25cps to the NTA. (All up the NTA is about $1.45 atm.)
Forget about technical analysis with this stock. Watch the NTA. It (the share price) will fall to $1.27 if the NTA and market value of LSG's investments and cash fall to this level, or lower.
New investors should keep in mind that a nice tax free dividend awaits from the proceeds of the EAGM sale.
No CGT is paid on this stock either.
LSG
lion selection group limited
re: sell down for alpha The company has about $100M (at market...
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