Not exact matches
When a stock is selling at much less than its net
current asset value, this fact is always of interest, although it is by no means conclusive proof that the
issue is undervalued.
Since
issuing our December 22, 2008 letter to stockholders, your Board has maintained its commitment to implement a straightforward strategy to get more
value for stockholders than the company's
current cash
assets.
Since the book
value of stocks doesn't change that often (because it represents the price the company sold it for, not the
current value on the stock market, and would therefore only change when there were new share
issues), almost all changes in total
assets or in total liabilities are reflected in Retained Earnings.
One reason for calling such purchases bargain
issues is that usually net -
current -
asset values may be considered a conservative measure of liquidation
value.
There have been two
issues with
asset managers following a «
value» discipline that have «flamed out» during the
current crisis.
Under the SEC proposal, an ETF would be defined as a registered open - end management investment company that: •
Issues (or redeems) creation units in exchange for the deposit (or delivery) of basket
assets the
current value of which is disseminated per share by a national securities exchange at regular intervals during the trading day; • Identifies itself as an ETF in any sales literature; •
Issues shares that are approved for listing and trading on a securities exchange; • Discloses each business day on its publicly available web site the prior business day's net
asset value and closing market price of the fund's shares, and the premium or discount of the closing market price against the net
asset value of the fund's shares as a percentage of net
asset value; and • Either is an index fund, or discloses each business day on its publicly available web site the identities and weighting of the component securities and other
assets held by the fund.
We still think that cash burn is a significant
issue for ACLS, and we suspect that both the liquidation and net
current asset values will be lower at the upcoming reporting date.
A primary tax
issue for anyone inheriting an
asset both now and when
current law is repealed in 2010 is establishing the
asset's
value in the hands of the heirs.
Historically, all the monies of which I am aware have either had some nonmonetary
value, the best example being gold; were convertible into
assets with nonmonetary
value at a fixed price, such as notes
issued by banks that were convertible into gold; or were
issued by or on behalf of government, such as our
current Federal Reserve notes.