Brendan CaldwellUrbana Corp. (A Shares)URB.A.TOCOMMENTJul 17, 2015
It has been a closed end fund on the TSX, but has just decided to switch it to an investment company in order to keep current with current security regulations. Trading at an enormous discount to its NAV. What they have done to close that gap is to buy back 30 million shares to shrink the capital base back to about 50 million shares outstanding.
They have lots of investments in financial firms such as exchanges. It trades at a big discount. The real upside is if their Indian stock exchange were to go public. They buy back every share they can.
(A Top Pick Dec 12/07. Down 75%.) Fabulous ties to stock markets globally but it's a closed end fund. He has sold part of his position. You want to see Bombay go public and takeouts in the sector. This is not the time.
Disclosure: His company has a controlling interest. Trading at a discount to its net asset value in a sector that has been continually wildly oversold. If you want a participation in world markets, people will be happy in a year’s time.
Now is probably not a great time to invest in stock markets. He believes we are in the midst of a bear market in equities. In the latter stages of a bear market, there are significant declines in volumes and severe pricing pressures to do with trading commissions.
These are exchanges, which are great cash flow. The only people in the world that built up this quoted and unquoted stock markets. They even have Bombay. Did a very clever tax-free flow through to a shell that already had some shares. Has a good chance of sidestepping the mess out there.
Management knows what they are doing. They are buying into private exchanges and public exchanges. It is a great vehicle if you like this space. The question is, are you going to like the space it would go into a global slowdown with derivative problems and less liquidity.
It has been a closed end fund on the TSX, but has just decided to switch it to an investment company in order to keep current with current security regulations. Trading at an enormous discount to its NAV. What they have done to close that gap is to buy back 30 million shares to shrink the capital base back to about 50 million shares outstanding.