Synlait Milk to list on NZX
Quote:
Originally Posted by
000831
unlisted company shares should give significant discount in price due to the asset liquidition problem. When systemic risks comes, investos cannot get ride of the shares and convert into cash assets, simply not buyers in the market, or at very very low price, or limited volume from the buyers. Safety margin is key drive for those companies.
Additionally, the GDT milk price (TWI) seems to reach the peak and continues to drop. Look at the 2012 annual report, it is disgusting, cannot understand at least four things.
We cannot only judge the share price by its net assets/ share, we also need to look at its current performance (PE) and growth prospectives (PEG), and company governce. A company with negative return could lead its net assets/share going down for the next financial year.
Not surprised if SNL price is always trading below 1.00,far away from NET ASSET/SHARE. Personally I do believe that the price should go down to 75c / share to reflect all the current trouble that it has.
However, for long term investors (over 5-10 years) those won't be issues.
Synlait Milk to list on NZX probably by August .... Bright to get diluted back under 50% ... all very interesting !!