Urbana…Sold because I screwed up.

Some lessons are expensive. I bought URB.to because it was trading at a discount to NAV and buying back shares. It seemed pretty good. I mean URB used to trade at a premium to NAV. Most recently NAV has dropped but the share price has dropped faster. So there is an even bigger gap. One would think that I should buy more, and maybe I should.

So it begs the question…”why?” Why would there be such a large gap between NAVPS and share price? I think there is no real confidence in management to execute or there is no real confidence in the sector as a whole. It may be true, things change and exchange market could look quite different from today.

I am selling because I blindly bought URB without dissecting why it was so cheap. I feel that the lack of liquidity has something to do with it. I also have no real opinion of the future of the businesses in the fund. So I feel that there are companies out there with clearer visibility. There has been around a 20% discount to NAV since summer 2008. I am selling cheap to buy cheaper.

More to come…

Dean

Disclosure: Author has sold URB.A

2 Comments

Filed under Company Updates

2 responses to “Urbana…Sold because I screwed up.

  1. shaun noll

    isn’t this thing trading at 50% discount to NAV? aka would have to double just to reach the value of the assets they hold and management is buying back stock? understanding exchanges is very important but I’m not sure you need a ton of conviction in the underlying names to make money here?

  2. Pingback: Urbana…Sold because I screwed up. - Petty Cash - B-Hive - WAGGLE

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