no brainer to be buying at these levels, page-4

The underperformance is why it is a bargain.
This is not a company where we have to guess at its real value. The NTA is published every month.

Argo last traded at a premium as recently as January 2011, and has spent a lot of time at a premium. It is currently at a healthy discount approaching 10%.

The premium or discount to NTA has nothing to do with company performance and is just about sentiment. Why are people selling $5.90 in NTA (approx) for only $5.35 this week?

In October 2009 Argo had an NTA of $6.26 and yet people were paying $6.82 a share. Equally weird to be a big premium as a big discount but I would argue equally temporary.

Much of the recent underperformance is probably tax loss selling, which will certainly end this week.

You might argue that LICs generally trade at a discount. This reflects the liquidity risk and specific risk of the LIC itself. Argo has great liquidity regularly trading $1m a day, and a long, proud history and outstanding governance arrangements.

It is a great buy long term with a real chance of a short term bonus as well is the NTA discount reduces.