year of the rat , page-23

am repeating my posts from the RJT thread as I think its relevant here too...

I believe that the speed of the fall in share prices of RAT and REU on the 15th caught them out. And to think this occured due to rivkin newsletter saying to offload RAT.

Basically they couldn't get the cash soon enough for margin call so they sold the most liquid of the 3 (RJT). I listened to the AFG call today and they are keeping the Rubicon stakes on their books at NTA rather than market price. The reasoning is they have no plans on selling the stakes and believe the NTA is a fair value of the 3. They also inferred that when the 3 report their results that there will be no suprises in strategy and likely to be just to slowly opportunistically reduce gearing in the 3 to please the market.

The thing to remember is this sale of the RJT stake does not change the value of the assets you can buy in RJT. What is does is explain the weakness in share price, enabling some comfidence to buy the stock now, rather than thinking the market knows something you don't.