Food for thought, page-14

It is interesting how the perfect storm has brewed for ALF. Even worse, is now tax loss selling may be occurring, as investors sell to write off losses. One seller sold around 300k today, smashed the price down to 1.08 briefly!

With a current discount to NTA of 13 pc, and a historical discount of 1o pc, I think there is way too much negativity, which always happens near a bottom.

The NTA should still be around 1.28, when the ASX has fallen 8 percent! Justin and his team may have got the market neutral wrong from Dec 14 to Apr 15, but it was the right call as we fell from 6000 to 5450.

As justbob notes, as long as Justin gets the bottom right (now IMO), and adds to longs, and closes shorts, I think things might be alot rosier. It is easy to pick up on the negatives when the SP is being smashed, but it has a good track record, has picked bottoms before during the GFC, and is cheaper than usual, and cheaper than most LICs.

Next NTA will tell alot, if they held strong during the 8pc correction, and close some shorts, then good. Liquidity is destroying the balance, and 1.11 is well oversold. I'll bet a bottom at 1.10.