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.
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Last
$8.83 |
Change
0.040(0.46%) |
Mkt cap ! $6.815B |
Open | High | Low | Value | Volume |
$8.85 | $8.85 | $8.80 | $585.8K | 66.25K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 150 | $8.82 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$8.85 | 6868 | 4 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 432 | 7.630 |
4 | 6421 | 7.620 |
10 | 28630 | 7.610 |
55 | 111350 | 7.600 |
5 | 2007 | 7.590 |
Price($) | Vol. | No. |
---|---|---|
7.650 | 16007 | 6 |
7.660 | 2220 | 4 |
7.670 | 3205 | 2 |
7.680 | 37046 | 4 |
7.690 | 2000 | 1 |
Last trade - 10.19am 07/11/2024 (20 minute delay) ? |
ARG (ASX) Chart |