@AllFuelledUp, I don't think you missed anything. The investment...

@AllFuelledUp,

I don't think you missed anything.

The investment managers of CTN sold themselves and their mates the asset previously owned by the CTN shareholders. Its not illegal.

The current price is interesting but the current price of CGA is hard to see justified. I would like to see the balance sheet of the new CGA. CTN sold the business a few days before the end of the financial year so we will not see the fund management business in CTN's balance sheet. I do not know if its usual practice but most new floats publish a pro-format balance sheet a few days after listing.

As I said previously, it would have been nice if the CTN shareholders would have been offered shares in the float in CGA. After all, they had no say in the business being sold. The independent directors did not appear to be worried.

Speculating, I would say the big names on the register may have added to the price so there may be more buyers than stags. There would have been a better market if small CTN shareholders had shares and sold for profit. The buyers today may be willing to pay around 3 times asset value for prospective earnings but we will need to wait for the balance sheet to guess.