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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (31794)	8/18/2008 2:02:40 AM
From: Spekulatius	Read Replies (1) of 78734

The reason I prefer GBl over Pargesa is that GBL'is a simple holding company and hence valuation is more straightforward. Pargesa controls more than 50% of GBL but the net asset value of Pargesa is calculated using the look through value of GBL (which is higher than the current stock price). If Pargesa would calculate the NAV by valuing their GBL holding at the current stock price not GBL's NAV, Pargesa's NAV would be quite a bit lower. Using the look through value is partly justified since Pargesa owns the majority of GBL - nevertheless if they really wanted to make use of the higher NAV of GBL they would need to offer a premium over the current share price for GBL stockholders (which would be fine with me). Did you ever look at the Power Co. arm of this holding company jungle? FWIW buying GBL shares using an Interactive broker account is a breeze and commissions are very reasonable. Pargesa on the OTC is very illiquid with only about 200 shares trades each day. finance.yahoo.com

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