Ann: Change in Portfolio Value, page-15

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llee7130

13 Posts.

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12/02/19

17:28

Post #: 37413658
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Originally posted by Stumpedup: ↑

I don't know llee . You could argue it either way. The investment rationale behind a share buy-back for a LIC is that "I can't find anything else in the market showing better value than our own shares". I think this is a lazy option, and very likely an incorrect one. And it still assumes the remaining investments in the fund will perform as expected. From the past 1-2 years it is evident the track record on stock picking is poor. It would be very different if the fund was in 80- 90% cash. Then the math stacks up. Will see at next report.

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Originally posted by Stumpedup: ↑

I don't know llee . You could argue it either way. The investment rationale behind a share buy-back for a LIC is that "I can't find anything else in the market showing better value than our own shares". I think this is a lazy option, and very likely an incorrect one. And it still assumes the remaining investments in the fund will perform as expected. From the past 1-2 years it is evident the track record on stock picking is poor. It would be very different if the fund was in 80- 90% cash. Then the math stacks up. Will see at next report.

Expand

I don't have any problems if they are lazy, if it means they are buying their best ideas (the current stocks in their portfolio) at a 20% discount to what they can buy them on the market - which is what they are doing when they are buying back their shares. If, they happen to find a better idea (which i admit they have been struggling to find for a while) they have plenty of liquidity to fund it.

ALF Price at posting: 96.0¢ Sentiment: Buy Disclosure: Held
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Ann: Change in Portfolio Value, page-15

Top Stories

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

Cyclone signs MOU with Vale for development of Iron Bear play

CuFe sells its Crossroads gold royalty to Northern Star for $4M cash; says better than waiting for mine launch

Blue Star Helium sees approval for five more wells at 'Galactica/Pegasus' project in Colorado

InhaleRX gains approval for clinical trial to test non-opioid therapy for cancer pain

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NT Gov't delivers environmental approval for Empire Energy's Beetaloo Carpentaria pilot gas play

Tyranna wraps up lithium drilling in Angola; says looking for other projects with different metals

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Auric sniffs gold up to 12.1g/t through drilling at Spargoville prospects