AABVF is selling for about 18 US cents. The last annual report seems to indicate that it has assets,
mostly cash and short term investments, in excess of liabilities of over 100 US cents. Why the discrepancy between market value and price? What am I missing? Is this a classic Benjamin Graham situation, where,
if the shares were available and I had the money, I should just buy it and liquidate it?
AABVF has traded for less than its reported net asset value for most of its history. Since the biggest part of its investment essentially functions as an ETF (equity holdings for various public and some private companies, as you noted), the discount is based on a) sentiment towards natural resource companies, and precious metals miners in particular (which has been dreadful for years), and b) faith in the ability of AABVF management to find the best investment options. Right now, it is clearly out of favor. PNPFF is a slightly larger Canadian company that has a similar business model. However, I do like that AABVF has some gold streaming rights (similar to SND or SLW) and pays a divident - which is actually pretty hefty at the current price. Hopefully they can maintain it. It seems they aren't fearful as they have re-authorized share re-purchases.