RE: Bullish on TORO11 Jan 2024 23:22
Canetoad; you make a fair point, and one that I consider with ALL stocks that have a large concentrated holding. It is a possibility, but actually FAIR has a concentrated (concert?l holding too. With the exception of BGLF which has the least concentrated and most diverse (mainstream) shareholders, I think it's part and parcel of this arena.
Most of these stocks to my mind are set up for primarily for high net worth individuals/family trusts etc, pursuing tax efficient income through the long term and the likes of you and me are merely riding the coat tails of that expertise/oppurtunity. So yes they could low ball us, but the counter balance is what is the incentive when the mandate (high income) is continually delivered and to buy out would merely concentrate their risk?
What advantage is there to the concentrated holders over the status quo? To capture the NAV discount? Well they could do that by using the Company's own money (aka the FAIR way) rather than using their own money.
Yes, it's a risk, and an important consideration, in a number of stocks in this arena. Personally I don't see it