Ann: Clarification of Market Value, page-10

Now that is a complicated post but then so is tax.
1. I do allow for tax. It is not immediately payable, can be minimised but in the end it is only payable on profits and you are allowed to keep some.
2. I doubt that TAS will pay tax for a very long time. Tax payable by TAS plays no part in my calculations for relative value. TAS will have a lot of past losses to offset against income.
3. My reasons for discounting the value of TAS have been stated numerous times and they have not changed. Here they are again;
a. EDE is where the profits are to be generated.
b. Any attempt by TAS to use EDE funds will be closely scrutinised therefore to distribute EDE profits to TAS must only be on the basis that TAS owns shares in EDE. Therefore any distribution will go to EDE shareholders. Evenly in cash per share.
c. In the possible case of a takeover it will be on a shareholding basis. This means that EDE shareholders get cash. TAS as a shareholder will get their share.
d. TAS will get their share through Noble with some deductions before it is passed on to TAS. TAS does not own shares in EDE. Noble does and TAS owns Noble.
e. TAS is not obliged to pass on all the cash received to TAS shareholders. It couldn't possibly afford to do so as it has costs to cover.
f. TAS has a record of considerable prospecting losses and has stated these are on hold pending the availability of finance for them to continue. The search for the elusive Eldorado will resume.
g. EDE should be included in the indexed list within the next year. TAS has little hope. When this happens EDE will be a preferred stock with positive results.
h. My gut feeling is that TAS will never be fully priced on its EDE shareholding value. a to g being the influencing factors.

This doesn't mean that the relative values will not change. They will and I will adjust to that.

Nothing wrong with investing in TAS. I expect the SP will double sometime this year. I expect to double mine and have more shares as well with no more cash contribution. Sometimes a two way trade doesn't come off then it is plan B. Luckily for me I used plan B a few days ago and bought CNZ instead. More than doubled their value so far.