To me, 40c represents a premium to the NAV of 38.5c and personally i feel that a discount to the NAV is warranted in the first place for this counter. And moreover, the last result wasn't good. Next year dividend cut might even take place should the earnings continue this way. Long term wise i am still bullish on this counter, knowing where the bulk of its business lies in. However, the price of 40c is too attractive for me not to sell it to the next better investor. Put it in another way, i would not take lee metal private at 40c, but at a lower price than that.
The reason why i bought it at 30c a few months ago is because of its discount to the NAV and I feel that going forward 2c might be maintained. However with this sort of weak earnings, it becoming harder to tell. Personally i dislike buying and selling within such a short span of time and the reason why i had lee metal in the first place was to add 4 streams of dividends in the coming months. But things turn out the way it did and after careful consideration, for me, this is the best course of action.
Sure, i could still be entirely wrong in my thinking, And some billionaire could appear and take lee metal private at a higher price... I don't know
Disclaimer:
The above forms ONLY my own personal views.
