Anodyne
Sunday, March 24, 2019
 
A Note from Urbana Corporation to Anodyne Capital

(via Blackberry)

"Thank you for your note. The primary impact on asset value last year was the the significant decline in Real Matters and the Bombay Stock Exchange. Both suffered 50pc plus declines shortly after becoming publicly traded companies. The 2018 asset price decline was our first in six years and not widely out of line with similar entities. Urbana's long term asset per share growth remains over 14 pc.

Also the December market decline in our liquid holdings did not help, but we had made some previous sales and paid off our loan prior to that market debacle. We have since recouped somewhat with our asset value per share up 4.6pc since Dec 31 [through] Feb 28.

The asset/share price gap is in part a reflection of smaller companies suffering more during market declines and a large seller currently in the market (people rarely sell on the way up).

We have been massive buyers of our own shares (approx 50 pc over the years) and do not have any philosophical objection to doing so in the future. Timing, however, is everything. We must maintain a balance between liquid and illiquid holdings and at present we must build our liquidity before buy backs. The discount will be there at some level in the future and, when appropriate, we will recommence buy backs.

I hope this is helpful. Please feel free to call me or email at any time."
- posted by cjb @ 8:40 PM


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