TAS EDE
TAS owns just over 40% of EDE, with no debt. Hence, its market capitalization should be worth at least 40% of EDE. Based on simple arithmetic, one TAS share should work out to be worth 150% of EDE share price. That also means that if the share price of EDE is up 2c, then TAS price should jump by 3c. This is very basic ratio!
But today, EDE is up by 2c and TAS is up by 1c. Why would anyone buy EDE when they can get a bargain with TAS? I have left my EDE shares alone and topping up on TAS. I put a low bid at 15.5c but it only dipped down to 16c in the last few weeks...
I can't say I am unhappy as the rise in TAS share price has made me profit out of severe loss in the last few years. Of course, the rise is based on EDE upwards trajectory.
posted by Club Mulgoa @ 9:16 PM
2 Comments:
TAS has been my most frequent topped-up equity.
Perhaps I am too optimistic. I am not.
Perhaps, basic arithmetic does not apply in equity investment in the stock market but I hope my primary school education was not wasted.
If one house on the street is sold at around 50% of its market value, it would be snapped up. In the ASX, it might be sold off at an even lower price!
Likewise, SYD is reporting increasing visitors to Australia via Sydney Airport. The increase in numbers has not tapered off ever since I started paying attention to the monthly announcements. It pays good dividend yet investors are selling out. Doing good business and paying out good return and investors are selling out???
I checked market capitalization of TAS and EDE today after close of business.
TAS = AUD$71 million
EDE = AUD$282 million.
If TAS owns more than 40% of EDE/EDEO combined, then TAS should be worth at least AUD$112. Both have no debt.
If Donald Duck (promoting infrastructure spending) remains President-elect and Colorado and Georgia continue to deliver positive news about EDE's EdenCrete, why bother with other investment?
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