Shares trading below the net asset value

wallstreetguy · 1 Shares trading below the net asset value Tue Jul 05, 2011 9:18 pm

wallstreetguy

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Hello Investors,

I have noticed there are few shares trading below the net asset value.? Why is this. It seems to be good counters

early · 2 Re: Shares trading below the net asset value Tue Jul 05, 2011 9:27 pm

early

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FLCH comes to my mind. Can you name the others that you know?............

Rajaraam · 3 Re: Shares trading below the net asset value Tue Jul 05, 2011 9:39 pm

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There are many reasons for this. EG: Some plantation companies do not make profits but time to time they enhance their book value of the asseta ccording to the valuations which is also not wrong. Because of the increase of asests value, with the capital gain Equity value also goes up. Then naturaly NAV is also going up. But price of the share will not be increased since performance is not good. Some companies which own Commercial properties too may not attractive due to lower turnover and lesser profit. But with present valuation they enjoy a big capital gain and thereby enhance the equity value recording a higher NAV.

ShareShares · 4 Re: Shares trading below the net asset value Tue Jul 05, 2011 9:41 pm

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NAVF CINV GUAR , I am not so sure about RICH.

ShareShares · 5 Re: Shares trading below the net asset value Tue Jul 05, 2011 9:42 pm

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RICH after subdivision , figures need to be adjusted I suppose.

Last edited by ShareShares on Tue Jul 05, 2011 9:48 pm; edited 1 time in total

ipoguru · 6 Re: Shares trading below the net asset value Tue Jul 05, 2011 9:44 pm

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CTLD

Monster · 7 Re: Shares trading below the net asset value Tue Jul 05, 2011 9:53 pm

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FLCH, CTLD, TWOD, OSEA, LIOC, BALA, MADU, KURU. In certain companies thier net asset value is hidden. Ex: RENU, CABO, CFI, CIT

wallstreetguy · 8 Re: Shares trading below the net asset value Tue Jul 05, 2011 9:54 pm

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CHOT, SEYB.X

UKboy · 9 Re: Shares trading below the net asset value Tue Jul 05, 2011 11:31 pm

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KHC, TANG, OFEQ
CSD (I think)

seyon · 10 Re: Shares trading below the net asset value Tue Jul 05, 2011 11:35 pm

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SHAW

Antonym · 11 Re: Shares trading below the net asset value Wed Jul 06, 2011 12:01 am

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Monster wrote:FLCH, CTLD, TWOD, OSEA, LIOC, BALA, MADU, KURU. In certain companies thier net asset value is hidden. Ex: RENU, CABO, CFI, CIT

Nice list, Monster - All my favorites are featured here. At current prices, which one of these would you recommend?
General caution on below-NAV shares: There may be reasons why they are trading below NAV. Ensure that the company is making profits; check whether they could have overstated the values of some assets; ensure that their operating cash flows are positive...

Marketinvest · 12 Re: Shares trading below the net asset value Wed Jul 06, 2011 12:28 am

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What about the namal fund

ashlee · 13 Re: Shares trading below the net asset value Wed Jul 06, 2011 12:32 am

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LPRT

glwking · 14 Re: Shares trading below the net asset value Wed Jul 06, 2011 1:18 am

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BBH

aladdin · 15 Re: Shares trading below the net asset value Wed Jul 06, 2011 7:23 am

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be careful when u just think about NAVP because in some counters it wont reflect the true value of a share price. So it is risky if u take ur decision based on this only.

smallville · 16 Re: Shares trading below the net asset value Wed Jul 06, 2011 7:54 am

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Antonym wrote:

Monster wrote:FLCH, CTLD, TWOD, OSEA, LIOC, BALA, MADU, KURU. In certain companies thier net asset value is hidden. Ex: RENU, CABO, CFI, CIT

Nice list, Monster - All my favorites are featured here. At current prices, which one of these would you recommend?
General caution on below-NAV shares: There may be reasons why they are trading below NAV. Ensure that the company is making profits; check whether they could have overstated the values of some assets; ensure that their operating cash flows are positive...

Good point Antonym.. With TWOD and some other plantations trade below their NAV due to the risks those are exposed to.. TWOD is biological assets - lands with trees, if trees dont get matured in time or any crisis happens thats gonna hinder the profits for sometime. Similarly rains, bad weather are risks for tea plantations.. So they ought to be traded at a discount..

CLTD, OSEA is abt real estate - land values are in a rising trend due to developments.. A land u purchase 8 months a go values more than 3-4 times now if its on a exposed area to the new highways or otherdevelopment areas.. If a revaluation done the share prices may hit high for these.. But its unlikely these companies sell their assets Wink

so its a figurative value..

wallstreetguy · 17 Re: Shares trading below the net asset value Sat Jul 09, 2011 7:44 pm

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So I assume FLCH, CHOT , SEYB.X ,NAVF is a good option.

Anyone like to comment more deeply baout SEYB.Xand CHOT

vegasbabay · 18 Re: Shares trading below the net asset value Sat Jul 09, 2011 8:21 pm

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When you say NAV per share, you mean book value. is it?

ISURU · 19 Re: Shares trading below the net asset value Sat Jul 09, 2011 8:29 pm

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I think LOLC should go to the list.

ranesh · 20 Re: Shares trading below the net asset value Sun Jul 10, 2011 3:31 am

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price of NAVF = 0.69% of Net Asset Value
price of LDEV = 0.75% of Net Asset Value

these two shares have the largest discount.

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Shares trading below the net asset value

1 Shares trading below the net asset value Tue Jul 05, 2011 9:18 pm

wallstreetguy

2 Re: Shares trading below the net asset value Tue Jul 05, 2011 9:27 pm

early

3 Re: Shares trading below the net asset value Tue Jul 05, 2011 9:39 pm

Rajaraam

4 Re: Shares trading below the net asset value Tue Jul 05, 2011 9:41 pm

ShareShares

5 Re: Shares trading below the net asset value Tue Jul 05, 2011 9:42 pm

ShareShares

6 Re: Shares trading below the net asset value Tue Jul 05, 2011 9:44 pm

ipoguru

7 Re: Shares trading below the net asset value Tue Jul 05, 2011 9:53 pm

Monster

8 Re: Shares trading below the net asset value Tue Jul 05, 2011 9:54 pm

wallstreetguy

9 Re: Shares trading below the net asset value Tue Jul 05, 2011 11:31 pm

UKboy

10 Re: Shares trading below the net asset value Tue Jul 05, 2011 11:35 pm

seyon

11 Re: Shares trading below the net asset value Wed Jul 06, 2011 12:01 am

Antonym

12 Re: Shares trading below the net asset value Wed Jul 06, 2011 12:28 am

Marketinvest

13 Re: Shares trading below the net asset value Wed Jul 06, 2011 12:32 am

ashlee

14 Re: Shares trading below the net asset value Wed Jul 06, 2011 1:18 am

glwking

15 Re: Shares trading below the net asset value Wed Jul 06, 2011 7:23 am

aladdin

16 Re: Shares trading below the net asset value Wed Jul 06, 2011 7:54 am

smallville

17 Re: Shares trading below the net asset value Sat Jul 09, 2011 7:44 pm

wallstreetguy

18 Re: Shares trading below the net asset value Sat Jul 09, 2011 8:21 pm

vegasbabay

19 Re: Shares trading below the net asset value Sat Jul 09, 2011 8:29 pm

ISURU

20 Re: Shares trading below the net asset value Sun Jul 10, 2011 3:31 am

ranesh

21 Re: Shares trading below the net asset value

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