Mike Arnold
Long only, small-cap, tech, growth at reasonable price

Dundee Corporation: Discount To NAV And Cheap Way To Invest In Latin America

Dundee Corporation (OTCPK:DDEJF) ("Dundee" or "the company") is an investment holding company based in Toronto, Canada and trading at a wide discount to its net asset value ("NAV"). Dundee is currently valued at $1.1 billion CAD, but its underlying assets are worth far more (discussed below). Since the loonie and US dollar are basically at parity ($1 CAD = $0.97 USD), this analysis will just use the $ sign but investors should note figures are in CAD.

One source of market inefficiency is known as the "conglomerate discount" where the sum-of-the-parts are worth more than the market is pricing the whole. As such, closed-end investment holding companies are an excellent place to bargain hunt, especially when management has...

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