under valued, page-9

If you guys were worried about the share price discount to the nta for a listed investment company then have a look at CTN.

In the six months to December 31 CTN has reduced their discount from 38.9% to 15.8%.

This indicates that if an LIC performs & establishes a track record the discount will narrow & could eventually go into premium.

The January 31 nta for WAA was reported as $1.192 pre tax & when compared to today's share price of $1.07 it is only a discount of about 10.2%.

After tax the nta was $1.168 a discount of about 8.4%.

As both WAM & WAA investments are both controlled by Wilson Asset Management the results should be relatively similar in regard to their capital base & percentage of cash not invested. Usually shares are purchased in a block then allocated to each company based on the reason for the purchase & the percentage of cash available.

Consequently if WAM reports before WAA & has a good result with an increased dividend then it would be a reasonable assumption that WAA would do likewise, as was the case recently.