ALF, MML & WOT
I'd like your thoughts on Alf ,mml and wot Many thanks Warren
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Answer
Hi Warren,
ALF is a listed investment company that has been a significant underperformer as can be seen in the chart below. They currently trade a 7% discount to their assets and are implementing a scheme of arrangement to essentially convert ALF stock into another Watermark Long/Short fund. Watermark is the investment manager of the listed vehicle. While we have no interest in ALF, holders, through the scheme should be able to cash out at NTA which is a good outcome in MM’s view. While performance over time of ALF has not been great, we do applaud their approach to helping holders realise an exit at or around NTA.
Medusa Mining (MML) is a $187m company that MM has no real insight into, so we’ll revert to technical
Wotso Property (WOT) was listed in 2017 when they raised ~$6m at $1.20, and today they trade at $1.30 giving them a market capitalisation of around $210m. 51% of the shares are held by insiders so the free float / daily liquidity is incredibly low. Last week their was a large buyer of the stock ($19m) however other than that, MM can’t add a lot of value in this illiquid property company.
chart
ALF versus the All Ordinaries Index – both excluding dividends
chart
ALF versus the All Ordinaries Index – both excluding dividends
