The objective you hear from many value investors is to buy $1 of assets for 50 cents. The headline I used here is the opposite, what we should be avoiding.
Trading in a couple of wind-up situations I have observed this year has left me scratching my head. It has looked to me like investors paying around $1 for 50 cents of cash!
Continue reading “PAYING $1 FOR 50 CENTS WORTH OF ASSETS?”
I expect on balance discounts on LICs to continue to contract in 2021, mainly due to a lack of supply. It is therefore no surprise that I am not expecting a great deal of LIC IPO activity next year. There was controversy surrounding sales commissions and LIC IPOs that got plenty of attention in 2019. (This was after a flood of new issuance in the few years prior, with many poor performers). For this reason, I do not think financial planners and investors have great appetite yet to take the plunge into new closed end fund products.
Continue reading “ASX LIC TRENDS FOR 2021 IN TERMS OF DISCOUNTS / PREMIUMS & POTENTIAL IPOs”