Great news when the insiders are buying up, page-5

Virtually every day we hear the refrain why is the price brutally discounted.
I looked at the subject in the previous thread and no one really engaged.
Cornerstone is being treated like a different species. If we compare CGPs price in relation to NTA it trades at 49 times its NTA of 0.01. DGRs NTA before tax which will change depending on the timing of asset sales and write off of expenditure is 0.43. So DGR trades at 30% of NTA pre tax.
Applying an NTA basis of comparison DGR should trade at 49*10/3 * 0.43 = $70.23
The justifications I have read on HC as to why DGR must trade at a discount amaze me. One argument is they are akin to a resource based fund manager. They are not. They have exponential more potential than a fund manager. They are run by geologists. They are explorers and are a resource coy factory.
Even the most optimistic commentators on HC at best will say the discount to NTA should improve. They will not allow any blue sky which every other resource coy on the ASX does. If the shareholders of CGP took this valuation approach the coy would trade for a fraction of a cent.
What if we said lets forget about all of DGRs assets apart from its interest in Cascabel owned through SOLG. DGR has 15% of 85% of Cascabel. Adding SOLGs interest in CGP we have DGR owning around 14.25% of Cascabel. CGP has 15% of Cascabel.
The Canadian dollar is nearly at par so DGR valued solely on their Cascabel interest should be trading in the high forties.
Some reasons for the undervaluation.
*Historically too many staff and management options issued. The best options are those issued pro rata to all holders at the same time as staff options.
*Shares issued were cheaply when funds ran out. Lesson learned.
*Directors should have anticipated the option holders selling to buy more cheaply.
The selling by option holders on market sends a negative signal. They will only sell above 0.12 otherwise not take up options.
*Directors have been absent from buying on market when price is deeply discounted.
The most significant action that caused a permanent rerate in share price occurred when Nick Mather exercised options at 0.03 cents above market price. Those actions give shareholders confidence.
The positive view. This is a wonderful time to buy.
A challenge. Come on Bill Stubbs our Chair. You believe we should trade above NTA. How about adding to your holding.
Come on all those exercising options this year. Mortgage the house, borrow off your father in law so you can hold your deeply discounted shares and exercise your options
Waiken