Misleading Direction, Imperfections, and Deep Price Reductions - Statement by Marc Hassenfuss
A Tumultuous Week
This week's been quite a rollercoaster ride, let me tell ya. First off, we bid farewell to David Thomas, the legendary frontman of avant-garage band Pere Ubu. His accordion riff-heavy hit Final Solution kept me going during those dreary days in that small industrial town in the early '80s. Rest in peace, Rock legend.
Next up, my daughter Sarah, freshly started her BCom studies, set up her EasyEquities account and roped me into her asset allocation plans. Unlike my son, who's been steadfast with investing his savings in his chosen sectors amidst the Trumpian market turmoil, Sarah assumed I'd know better. Let me tell you, this market's a beast to navigate. With her permission, I ended up playing it safe, allocating 60% of her tax-free savings to Reitway Global Property Income exchange-traded fund, and the rest divided equally between Sygnia Itrix MSCI Japan Index ETF, Satrix Resi, and Sygnia 4th Industrial Revolution Global Equity Fund.
As for non-tax-free assets, I went with investment companies, naturally, and threw in a couple of small-cap growth stocks for good measure. Here's hoping that, by the time Sarah tackles asset management courses, I'm not struggling to answer uncomfortable questions. My wife, who's taken to reading FM cover to cover these days, isn't making that task any easier with her pointed inquiries. But I'm not jumping on the gold or ArcelorMittal bandwagon for a 20-year-old yet.
Now, onto some controversial investment strategies. Small investment company, Astoria, took a hit in its portfolio value for the first quarter of its 2025 financial year, mostly due to persistent issues in the global diamond sector. This week, Astoria, whose main asset is its retail hub Outdoor Investment Holdings, reported a 8.69% drop in intrinsic NAV, from R11.70 a share at the end of December 2024 to R10.68 a share at the end of March. That might not seem alarming, but over a year, there was a NAV decline of 23% from R13.85 a share at the end of March 2025.
But hey, let's dig a bit deeper. According to available data, Astoria reported a revenue decline of USD 2.19 million for the first quarter of 2025, compared to USD 3.19 million in the same period last year. They also posted a net loss of USD 2.4 million, slightly better than last year's figure of USD 3.43 million. And the basic loss per share from continuing operations fell from USD 0.061 a year ago to USD 0.0386 this year. While these figures don't explain the exact reason for the decline in intrinsic NAV, factors such as decreased revenue, market conditions, and operational or financial challenges could contribute to this decline. For deeper insights, I'd recommend reviewing detailed financial statements or management discussions from Astoria Investments Ltd.
- Companies like EasyEquities offer easy platforms for investing, as seen with Sarah setting up her account for her BCom studies.
- In the finance world, having a strong understanding of investing, education-and-self-development, and trading is crucial for navigating the market.
- Despite the Trumpian market turmoil, some individuals choose to invest in specific sectors, such as my son who invests in his chosen sectors.
- The retail sector, such as Outdoor Investment Holdings, owned by Astoria, can experience difficulties, resulting in a drop in intrinsic NAV, as witnessed in Astoria's first quarter of 2025.
- Music is not just entertainment, but it can also serve as a source of inspiration, like David Thomas and his band Pere Ubu's song "Final Solution."
- Investing in music, however, is not as straightforward as investing in companies or ETFs, and it comes with its own set of risks and rewards.
- By 2025, some companies may experience financial challenges, such as Astoria's reported decline in revenue and NAV, which underscores the importance of careful analysis and due diligence when making investment decisions.
