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...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
PRO Top long ideas returned 21.7% in 2016**
"As a PRO member, we get uniquely valuable perspective that go beyond our quantiative analysis... We rely on PRO to get beyond the numbers quickly and add much needed perspective. It keeps me ahead of the next big thing. - Mark Choate, Malaga Cove Capital"
Mark Choate, Malaga Cove Capital
"Contributors (writers and commentators), often have a long history in the secuirities they opine on and some are clearly well positioned industry participants with detailed industry views that can help provide color on where the skeletons are buried in a particular secuirity and/or industry."
Jim Roumell, Roumell Asset Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details