Not exact matches
Funding its ballooning deficit, which can't be plugged with
asset sales and debt issuance alone, and improving its economic situation are partly why Saudi Arabia, the
largest producer in the OPEC oil cartel, disagreed to any cut in production
at the December OPEC meeting, and more recently has been
discounting the price of oil to its customers.
We believe Newfield sells
at a very
large discount to the field - by - field
asset value of its properties.
But we have 20 % of the Value Fund invested in US commercial property trading
at a
large discount to
asset value (via ASX listed trusts), are giving serious consideration to QBE Insurance and News Corporation and searching for others that are not correlated with resource prices or the domestic economy.
The problem is that robos tend to include more «esoteric» funds, ones that not only trade with a
larger spread between bid and ask prices (translation: higher cost to you), but also trade
at a
discount or premium to the underlying
assets in the ETF (translation: higher costs to you if the manager buys
at a premium or sells
at a
discount to
asset value).
Any value investor likes to pounce on a stock which trades
at a
large discount to
asset value.
Several banks in trouble have been bought — before any runs ensue — by
larger banks, attracted by the profits that can be made from obtaining
assets at a
discount.
Finally, closed - end mutual funds that trade
at large discounts to their net
asset values are also considered good investments.
Given the substantial
discount of INFS to its current
asset backing, any shares bought back
at these levels have a
large positive effect on the underlying
asset value.
Which puzzled me for some time after... Surely activists are a harbinger of a market bottom, when
assets / businesses are trading (on average)
at substantially
larger discounts?
The
larger REITs have seen
large buying for yield seekers, ETFs and
asset allocators that has driven the valuation of
large REITS like Simon Properties (SPG) and Mr. Zell's own Equity Residential Properties (EQR) prices up to 2 times book value and higher, while many of the smaller ones have languished and trade
at discounts to their
asset value.