Fudamental and technical analysisLet's look at some fundamental and tehcnical stuff about AAB. First thing, the last financial report mention NAV at 0,50$/share.....try to find when it was at that level before and you will see it's been a long time so this is good news! So we are facing a NAV breakout and we breach the 0,14$ barrier.....this is good news!
Now why am I so excited about? Because this time the ema (exponential moving average) had the time to closely flatline before we broke a significant resistance (0,14$). Last year we had a nice volume when it breached but the problem was the consolidation wasn't done yet (ema were falling and distant between them). This time it look really good.
When we look at the fundamentals, the only thing really missing is some sort of cashflow to offset the daily expense like management fee,rent,insurance,etc. Why it's important ? Because then you have a growing compagny! Otherwise they need to divest investment to pay these fees. The NSR is one way to achieve but right now doesn't generate nothing until PLASA will produce. If they can manage to generate 300K$/month of revenu, there is no doubt in my mind this compagny will have a P/B above 1.
Public investment is around 26 million $ give or take. The private investment around 10 millions. What they could do is buy a compagny for a few millions dollars that generates cashflow and use this cashflow to help offset the general expense fees of AAB. It's nice to generate a capital gain on investment but it will be one shot deal, instead if they try to invest in something that generates dividends or revenu or interest it would help in the long run. This are just a few idea....
There is one very interesting fact: At this range a takeover could be done! Any investment compagny who want to add more in there portofolio for a discount price could acquire AAB and cut in expense as they don't need the current management because they already have there own fund manager!
This friday is an important day as it will close this week of trading when you look at a weekly chart. We will see who want to keep it for the weekend and who wants out!
If anyone want me to show chart with lines drawing and some information I can do it so it's more clear and easier to understand.
Go AAB Go
:-)