Allco Equity Partners

Allco Equity Partners (AEP.AX) stock price has tumbled to yesterday's $A2.23 (The IPO price was $A6.00!). The most obvious reason for this is their investment in 204.4 million shares of IBA. The share price of IBA has fallen from 92 Australian cents on December 13th to 62 AU cents yesterday. A loss of AUD 61 million to AEP. But in the same period, AEP's market capitalization has fallen by AUD 133 million. On top of this it was already selling at a discount to net asset value. I suppose the price has been pushed down this far due to the negativity surrounding its parent Allco Finance Group (AFG.AX). But AEP has no borrowings and there is no reason for it to collapse even if its manager AFG went out of business. This is one stock I plan to add to in the near future. I sold half my position at $A3.96 on 31st October. In retrospect, I should have sold the lot :)