Curious if there are any AAB/AABVF followers here? They are a merchant bank, run by David Stein who was previously the gold analyst at Cormark. Portfolio is roughly 60% gold with an NAV around 1.50, yet trades for around .90 (and NAV includes 2 gold royalties which are still being valued at sub 1000 ounce). Mgmt has grown NAV up from roughly .90 cents in early '09. Unlike a mutual fund, Aberdeen places money into private resource start-ups, and then along with Forbes & Manhattan (AAB is like a public back window into F&M's deal flow) helps these small companies to prove up, list and ideally get taken out a few years later by a major. Lots of warrants and performance shares inside the portfolio, and they are tracking to have 3 of their private portfolio companies IPO by end of year. And they pay a divvy - one cent twice a year. Warrants strike 1 buck expiring June 12 also out there. Feedback appreciated.
New member, first post. Looks like not too much interest here on this one, I own some so thought I'd comment. Bought AAB about ten months ago and have added recently, also hold warrants, previously bought and sold PNP which I made money on but never seems to realize it's potential. My thoughts on PNP, too many holdings and requires a certain climate to do well, ie: a rising tide lifts all boats. AAB is a little bit of a different beast, has a smaller portfolio and as you say uses a different methodology for company investments. A good run up in a couple of it's holdings can really affect net asset value. Was happy to see the dividend, this always gives me a bit more confidence in my investments when there is a payout. Something you may wish to look at is FNR (49 North Resources), similar idea, based in Saskatchewan. It's had a good run over the last year but is still a good value play.
It's one of my biggest holdings, has been for two plus years. I have equal parts common and warrants. I have a little Pinetree, but as you said, the Aberdeen model is different and I like it better. Their track record alone over the past few years you would think would give them a premium for their deal flow....but very little love. I've talked with Stein several times, and he has impressed me as extremely savvy, except in the promotion department. Just not his style. He strikes me as the under promise and over deliver type. Unfortunately, the market wants the tape to do a little talking before they will start to pay attention, and AAB got stuck with RAB Capital holding a huge chunk when RAB imploded. They took forever to unload into a low volume market and it was a constant overhang for too long. I cornered Stein for about 45 minutes at a convention back in Feb. I had a million questions about how the Timujen deal came to be. I wish they would take more time to explain how they put deals together, they are an arm of F&M and hence under the Bharti umbrella. I have my issues with Bharti's style, but he does know how to work in local politics around the globe, it's one of his strongest suits and extremely important right now. I don't know if you've seen it, but there is a presentation on the website from the Richmond Club. If you hold warrants, it's worth watching. They want those warrants to be exercised as they see their sweet spot capital wise being 100 million or so higher than it is now. They want to IPO at least three portfolio companies before well before next July rolls around. With the warrants and performance shares embedded within their portfolio, if the juniors start rocking, they will get a boost of nitrous. Can't believe I never ran across FNR. I've searched through most of the merchant banks....they almost all offer a deep deep value proposition in my mind. Too rich for me now....I'm so damn cheap, irrationally so. Got any more under a buck? One more observation on Aberdeen. I've made a couple of contacts in the boutique fund business over the years. I've mentioned AAB. They've all been extremely impressed, but they won't buy it. AAB uses a 1 & 10 for mgmt, like all the rest, these guys use a 2&20. They don't want their clients finding out 1&10 exists. Crazy world.
First I attempted to post, but site logged me out in midst of it all and when I tried to save it, gonezo.
Typical of my Aberdeen experience. But I'm not giving up, yet.
I saw Aberdeen pitched by Dave Skarica, did my due diligence, liked what I saw and bought a starter position. And .... I'm down some. Yippee.
The disconnect between assets, potential, etc. and share price reminds me of a junior I also own, Evolving Gold (EVG). This is another management team that feels there is something wrong with telling a good story and promoting the stock, which has hamstrung the price, much to the chagrin of shareholders. I mean, EVG has a past relationship with Newmont, a cash injection from Goldcorp, and a JV with Agnico Eagle on a Wyoming property.
They spun out Prosperity -- at a measly .15 a share to the U.S. folks -- and it has traded near 1.50 before dropping back to current price a little over a buck. Prosperity couldn't wait to promote cores with "visible gold,." to the benefit of the share price. Evolving Gold would still be sitting on its hands awaiting assays.
I keep telling the EVG types, there is nothing illegal, immoral or unethical in selling sizzle when you have the steak. EVG bringing the IR function inhouse recently perhaps suggest that management perhaps at last has seen the light.
Now, the question is, will Aberdeen sell the sizzle any time soon? Thoughts?
Aberdeen used to be a whole lot worse at getting it's story out before Stein got there, they had the worlds worst website ever. I gotta look at Evolving Gold, everyone I've ever heard talk about it seems to love the potential.
My first post here. I like AAB's prospects too. One thing that helps along with the dividend is that they're buying back cheap shares. The dividend is about 2 1/2%, trailing earnings are what?- 2 or 3 times- and they hold a lot of exciting names. I don't think I've ever seen such a strong penny stock.
Stewart Thompson is really liking this stock. Think I'll get some.
Aberdeen Reports Shareholders' Equity of $1.42 Per Share and Second Quarter Financial Results
9/15/2011 7:01:08 AM - Market Wire
New positions in silver and platinum, plus more gold exposure mentioned in today's release. Have not yet gone to Sedar to peruse the MD&A and Financials.
Met, or others,
What's it going to take for this stock to go from its trading price (.76 U.S. as I type) to the reported $1.42 in shareholder equity? It's been trading at a substantial discount as long as I've been aware. My average purchase price was .916 U.S. which at the time was a big discount to shareholder equity, too.
It just seemed so promising when I bought, and continues to seem so. But I have to ask, what sort of catalyst will help us realize that value? Put another way, why isn't this double-in-waiting being snapped up and that discount rapidly disappearing?
Anyone similarly underwater? Are you adding here?
but I think that will eventually come, its the only reason I'm here in this sector. I bought AAB over two years ago, back around .30, and it had a nav closer to .60 back then, so money can still be made without the nav closing. I talked with Stein about a week ago. I inquired about the IPOs that have been mentioned in recent presentations coming to market before year end, or early '12. He's an ethical guy, couldn't shake anything loose. I told him I'd like my warrants in the money by June 2012. He's already on the record stating that is a top priority as they would like to have a larger capital pool, and the warrants are one part of that plan. Nothing wrong with slow and steady. It came down on little volume, so it shouldn't take much interest to move it back. If you are on twitter or facebook, they have pages on both they very regularly update with news on their portfolio companies, quite handy.
So, Aberdeen settles its dispute regarding the loan with Simmer & Jack and the share price tanks huge today.
The settlement didn't seem that awful to me. What am I missing, Aberdeen cognoscenti?