Allco Equity Group continues to trade at a ridiculous valuation of $(A)1.75 per share while having net assets of $4.76 per share. The value of shares and convertibles it holds in IBA Health based on their current ASX listed price is worth $1.81 per share of AEP according to today's earnings release. The firm has $1.28 in cash and other marketable securities per share and its outstanding loan to IBA is worth $0.60 per share. The loan is due to be repaid in October. Its unlisted investments are worth $1.01 per share according to the company. Assuming these are worthless (which they're not - they earned $3.5 million in after tax profits for AEP this financial year while AEP's share of IBA's earnings was $4.4 million) AEP is still worth $3.75 per share. Obviously, we know that closed end funds can trade at a discount, but this is nuts.
The company is issuing a franked dividend of 6 cents per share in October (record date in early September) and will buy back 5% of its stock starting in mid-September.
BTW, I just created a new label category: "Private Equity".
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