Mick, I suppose you have to ask why it’s 79 cents ? At that price the yield sounds good, but personally I was surprised at the amount of the dividend. If the share price stays down, then Presumably that is as a result of the the dividend from the investment portfolio being down and chances are that the dividend could be cut.
I am always wary of the discount t to NTA as a reason for buying and would much prefer to look at the quality of management and their investment success as a measure of IF to buy or not. I did this quick assessment of CVF and GC1 and even tho they are both trading at a discount to NTA, their performance figures are good. You are probably quite correct about NSC being a “screaming” buy, but there is also the “carry over” by being in CTN, which were doing OK, becoming NSC who aren’t. Consequently, I am more than heavily weighted in NSC and couldn’t justify adding to my position. I guess with NSC being a fairly concentrated portfolio, when you get it right, the results are something to crow about, .... when you get it wrong, it has a devastating effect on the portfolio. I agree with you that if one wasn’t already in the clag (oops I mean NSC) then the current price would be a good entry point. Personally, I would prefer to be in GC1, and altho both managers have skin in the game along with their investors, I think that Michael is playing a “conventional” investment game but using better analysis (from what I can see) to get better gains. Michael appears to have had more experience in the investment game than young Sebastian and you wouldn’t know how much the older Evans is letting the young fella use us as the experiment to get experience. Geoff Wilson says that when buying and selling, he always looks for a catalyst on which to make his investment decision. He speaks about this in the recent podcast and so do his equity managers.... they talk about what went right and why, and what went wrong and why. The why is the catalyst.
At the moment I cAnt see what the catalyst is to enter NSC apart from the low price and the discount to NTA, especially if you perceive yourself as being overweight anyway.
Geoff talks about how long it would take his funds to get to an almost total cash position in the case of a significant fall. With the NSC portfolio consisting of more obscure and “alternative” stocks, I wonder how much of a hiding the NSC portfolio would get in a dramatic downturn, and how tradeable their portfolio would be if things went pear shape. I have previously repeated the adage that sometimes its not how much you make on a winning stock, but how little you lose in a loss making situation. The only thing I’m screaming about is the loss
From the transition from CTN to NSC, and that my bloody IPad has developed a fault in the keyboard and puts in things that I never intended.
Happy to be briefed about NSC if there is information about specific stock performance which I may be overlooking. Cheers.
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