I agree with you that the expense ratio on MISEX is excessive and unjustifiable. I'm surprised there is any money left in the fund given its performance.
When the stock made a run in early March, it was during that short period of time when the opportunists were running small float stocks. I had other stocks which ran at the same time (TORM, HIHO, CULS come to mind).
The run that the stock made in mid May was on earnings, and those earnings were mostly due to the appreciation of BXL and TUX, in which they have significant positions.
It's true that their assets under management increased due to the gold market, but I don't think that had much of an effect on the stock, unless it was before I started following and trading it, which was last summer.
I agree that it would be nice if the company would do a buyback. At this point it would be even better if they would just take it private at 6 bucks, because I'm not sure it will be much of a trading vehicle as a pink sheet stock, and that's all it has been for me anyway. I wouldn't dump it here given the intrinsic value, but it may end up being a tax loss candidate by the end of the year. <g>
Perhaps the management is paying itself much more than the stated salary attributed to WNMLA by serving as paid advisors to the various funds, and if that is the case then I would agree that they are looking out for themselves more than I had considered. I can't blame them for choosing to delist, as another company I have spoken to told me that it will save them 400K a year to go private, so I would guess WNMLA will save a similar amount of money.
Thanks for your input, it will be interesting to see how this one progresses. |
