A Dollar for 47 Cents

The Deeply Discounted Holding Company Hiding Gold and NAV Arbitrage

How would you like to buy a dollar for $0.47?

Now how would you like to buy a dollar for $0.47 and the underlying value of this dollar is backed by some sort of real asset?

And this real asset is trading at $0.50 on the dollar?

That is the situation that I am writing up today.

This company trades at a discount to its reported net asset value (NAV), but the reported NAV itself is likely understated.

That’s because two of its key holdings are trading at approximately 40% discounts to their own NAVs.

It’s a layered value play—cheap stocks embedded within an already discounted stock.

One of the most interesting parts about this investment is that one of their holdings owns a significant amount of gold miners.

This underlying is up 78% YTD and the parent company I am writing about is down 9.5% YTD.

If you guys have followed my X account, you know how bullish I am on physical metals in an inflationary environment.

You're essentially getting a double discount—owning a company trading below its cash and investment securities, while those securities themselves trade below the NAV of the underlying gold. It's a free play within a free play.