Followers | 2 |
Posts | 553 |
Boards Moderated | 0 |
Alias Born | 02/17/2007 |
Sunday, November 18, 2007 11:03:55 AM
From 6/30/07 to 9/30/07 the NAV decreased from $11.15/share down to $10.54. That's a significant decrease of about 5.5%, and probably helps explains the recent share price decline. (I wonder exactly how they came up with those numbers? Could it have had anything to do with the Florida real estate holdings listed on their web site?) Investors want to see net asset values increase, not decrease, that's for sure.
ON THE OTHER HAND:
The NAV has actually INCREASED 12.31% over the last year, so in the face of that, a 5.5% decrease over the last quarter doesn't look so bad. Time will tell if this is nothing more than a small bump in the road, or the beginning of a downward trend. I guess we'll just have to wait until the next quarter to see for ourself.
The stock price has fallen so far, it is now selling at an incredible 40% discount to the net asset value. You could argue that the net asset value is rather subjective, given the nature of the small company private holdings, but a 40% discount really catches my eye. On the other hand the significant discount to NAV has been in place for a LONG time, and it would take a considerable change in investor sentiment to turn that around. In other words, don't expect to see this thing trading for a premium to its NAV anytime in the foreseeable future. A recent decrease in the NAV certainly doesn't help matters.
The other obvious attraction to this stock is the dividend. If they can maintain a 12.5 cent quarterly dividend, at today's stock price that equates to an incredible yield of almost 8%. That would make it very attractive for fixed income investors. I don't think the dividend is in much danger, given that they have about $4.08/share in cash. (Not bad for a stock that last sold at $6.29, eh? Maybe they're waiting on the sidelines to invest in the next big opportunity - not a bad strategy in today's volatile market.)
I don't know if I would touch this baby right now, but it looks tempting. We're going to be getting into tax loss selling season, and this baby is a prime candidate for year end selling, especially since we went ex-dividend on November 15th. The whole stock market is also very nervous right now, and small cap stocks haven't really gone anywhere this year. If we do get into a recession, the odds of which seemed to have increased lately, small company stocks could be hit even harder.
One thing for sure, this is a very lightly traded fund. On Friday there was only 6300 shares traded, roughly $40K worth. That makes it hard to place a big bet without driving the price up. On the other hand with such light trading, more tax loss selling could really have a further significant negative impact.
My own opinion is the juicy dividend is the only thing keeping this thing alive. I don't know when the best time to get into this stock is, but it would seem to me that if the markets remain volatile, the last week of the year might be a good opportunity, after the majority of tax loss selling takes place. But, at some point that dividend is going to become so attractive that investors won't be able to stay away from it. Hard to say.
Good luck to all.
Recent EQS News
- Form 8-K - Current report • Edgar (US Regulatory) • 08/20/2024 08:45:04 PM
- Equus Announces Second Quarter Net Asset Value • GlobeNewswire Inc. • 08/20/2024 08:30:00 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/19/2024 08:50:34 PM
- Form NT 10-Q - Notification of inability to timely file Form 10-Q or 10-QSB • Edgar (US Regulatory) • 08/14/2024 09:22:07 PM
- Form 40-17F2 - Certificate of accounting of securities in custody of management investment companies [Rule 17f-2] • Edgar (US Regulatory) • 08/02/2024 08:12:57 PM
- Form 40-17G - Fidelity Bond [Rule 17G-1(g)] • Edgar (US Regulatory) • 05/22/2024 06:50:51 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/16/2024 05:21:47 PM
- Equus Announces First Quarter Net Asset Value • GlobeNewswire Inc. • 05/16/2024 12:30:00 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/15/2024 08:11:44 PM
- Equus Announces Fourth Quarter Net Asset Value • GlobeNewswire Inc. • 04/03/2024 01:00:00 PM
- Equus Subsidiary Morgan E&P Provides Update on Reserves • GlobeNewswire Inc. • 02/14/2024 01:45:00 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/13/2024 09:24:57 PM
- Equus Subsidiary Morgan E&P Completes Two Horizontal Wells • GlobeNewswire Inc. • 02/13/2024 01:45:00 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/12/2024 02:20:53 PM
- Form 40-17F2 - Certificate of accounting of securities in custody of management investment companies [Rule 17f-2] • Edgar (US Regulatory) • 12/21/2023 08:57:11 PM
- Equus Subsidiary, Morgan E&P, Increases Net Acreage and Reserves in the Bakken • GlobeNewswire Inc. • 12/18/2023 02:20:51 PM
- Form 40-17F2 - Certificate of accounting of securities in custody of management investment companies [Rule 17f-2] • Edgar (US Regulatory) • 11/17/2023 09:34:02 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 11/15/2023 09:21:29 PM
- EQUUS ANNOUNCES THIRD QUARTER NET ASSET VALUE • GlobeNewswire Inc. • 11/14/2023 11:22:16 PM
- 2° Indagine sul Whistleblowing in Italia: A due mesi dall’entrata in vigore della Legge Italiana sul Whistleblowing (d.Lgs n. 24/2023), in che misura e come le aziende italiane si sono adeguate ai nuovi requisiti? • Business Wire • 10/24/2023 02:39:00 PM
FEATURED Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM
North Bay Resources Announces Mt. Vernon Gold Mine Bulk Sample, Sierra County, California • NBRI • Sep 11, 2024 9:15 AM
One World Products Issues Shareholder Update Letter • OWPC • Sep 11, 2024 7:27 AM
Kona Gold Beverage Inc. Reports $1.225 Million in Revenue and $133,000 Net Profit for the Quarter • KGKG • Sep 10, 2024 1:30 PM