Forum Archive Index - December 2000

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

>
>While going through the charts at Access Brokerages site I checked
>up on the NTA of EVF. According to their last profit announcement
>25th August 2000 it was unchanged at 86c current share price is 52c,
>difference 34c In comparison most talk for the NTA of FFS is about
>50c, current share price 26c difference 24c. It would appear based
>on the above that EVF is the better buy.  
> 
Hmmm, I think it might be time for a little Maths lesson here.  

I'll take the figures you have quoted as given, Openmind, but you 
neglected to mention something critical.  Since FFS shares are only 
26c each, for every investment dollar you have, you can buy twice as 
many FFS shares as EVF which are 52c per share.

So buying EVF you get a discount of 34c from the asset backing as you 
suggest.   However, because you can buy twice as many FFS shares in 
the first place, your discount from asset backing is 24c x2=48c per 
*two* shares.

So on discount to asset backing terms FFS is definitely the better 
deal. SNOOPY


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