Robert, I agree that the reason AGRP is trading at such a discount is due to general ignorance, that is, that no one knows about the company. The embedded capital gains issue has been advanced as a reason for the discount, but I believe the tax issue is overblown and can be adequately addressed by management.
I believe the problem with valuation lies with management. Ultimately, it is management's responsibility to get the word out, and I do not believe management has been effective in this capacity.
There is a shareholders' meeting scheduled for June 3, 1999. These problems should be addressed at such a meeting. Unfortunately, the Berkmans control the vote, so I wonder if all of this noise is an exercise in futility.
It is surprising to me that the Berkmans, who have a huge stake in AGRP, have not done more to address the issue of the discount to NAV. After all, it is to their advantage to see this stock move higher. |
