LIC & LIT EBI, anyone?

I have, to my shame, some money in EBI. Serves me right for listening to what Fat Prophets thought against my better judgement.

There's some fun & games going on in the sinking ship, with a group of majority shareholders wanting to wrest the fund management away from E B & B, appoint themselves as manager, and wind the thing up because the NTA is double the share price.

To counter this, E B & B are encouraging shareholders to convert their holdings to an unlisted fund managed by, er, E B & B.

It seems to me that option 1 sucks because the new manager has his own vested interest and has indicated it will take many years to liquidate the assets, during which he's probably going to bleed it dry.

Option 2 sucks because I'd be swapping a listed investment fund for an unlisted one, and E B & B's track record is such that I shudder at the thought of what they get up to away from daylight.

The third option, and the one I'm leaning towards is to sell the EBI shares and run like hell (licking wound and kicking self as goes).

So, yes I'm a goose for being in this situation in the first place, but I was just wondering if anyone else has been playing along at home, and if so what your thoughts have been on all this.

Thanks

-- Ian

 

"The third option, and the one I'm leaning towards is to sell the EBI shares and run like hell (licking wound and kicking self as goes)."

....and that is the best option you do have (IMHO).
Run fast with what is left...and prepare yourself to fight another day.

 

I also bought EBI at the float but sold it ASAP to cash in the bonus EBB shares you got with it.

I too thought it wasn't a bad investment, the managers seemed to have a good track record. But it has only dropped like a lead ballon since it listed.

Bad timing I suppose and LICs generally trade a discount anyway.

All the options barr number 3 involve a long drawn out process that will most likely result in you getting less than you money back.

In my opinion I'd chalk it up as a loss & carry forward the capital loss to hopefully offset some future capital gains in the distant future.

Have a punt on specky and hopefully get 100% - 200% return ! have a look at AGS, but thats not a recommendation.......

 

"Have a punt on specky and hopefully get 100% - 200% return ! have a look at AGS, but thats not a recommendation......."

Hmmm....Must be another hot day in Adelaide...

 

lol yeah I know the graph doesn't look so hot, but do some research into the company and you'll find it might be worth while.... maybe not 100-200%! but buying below 0.40 is good value

 

Yeh...‘worth while’ + ‘good value’ and rest of it....
A lot of ‘believers’ got caught in this and today most of them are...40% ~ 50 % down.
So - tell me...do you still believe in Santa ????...

 

don't belive in Santa, just research.....

as per my suggestion on the 16th you could have bought below $0.40 in January, February or March and you would now be sitting on a profit of about 67.5% considering the intraday price of AGS is about $0.67 now. not bad for less than 3 months work. might not get to 100% - 200% returns but over the long term it will do well.

 

So, did you get it around 40c?

 

bought in at $0.42 looking to exit very soon, they have an announcement coming up in the next month or so to re-evaulate the size of their uranium deposit which has been delayed time after time. I'll look to sell after this.

I don't bet the house on these type of companies so I'll have to keep working a little longer.

Would I buy it now at these prices? no, I reckon it'll fall back to 0.35 to 0.50 price range over the next 6 months, but blue sky from then on.

 

It is hard to predict what may happen with AGS in the next few months.
AGS moved up because market is in the bear rally mode right now...
Before selling check chart (AGS volume is not impressive!).

 

you've now offically doubled your money with AGS at todays close of $0.815 if you bought in at below $0.40 you would have a return of 103.75%!!

I sold mine at $0.72 and reinvested the proceeds into GGG @ $0.30. Check out GGG, that will propably trade up to $0.50 next week. One of the last rare earth element (REE) projects not owned by the chinese. Also has a massive uranium deposit as well. Resource upgrade expected within the next 4 weeks.

If you didn't know, China has 95% of the worlds REE's under its control and has a virtual monopoly over its production. REE are used to produce LCD & Plasma TVs, special batteries in those hybrid cars, in wind turbines, catalytic convertors etc.

China currently is exploiting mines outside of china and running down the worlds supplies, whilst maintaining their own resource. so in the future it will be next to impossible to buy a TV, Computer, green car or any other green energy concept that isn't produced in China! scary stuff.