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I think misalignment of interests between minorities and substantial shareholders(SS)/mgt is the biggest cause of value traps. Esp in Asian companies where families control absolute majority >50%. E.g. The interests of SS may be slowly extract value from salary/directors fees for the whole family get rather than to pay dividends. This is a problem in small caps.
About wait how long. Don't know. But I think it is best to get paid while u wait. In form of dividends or incremental growth in NAV. Specifically for LTC, I mentioned why it is very difficult to increase NAV from redevelopment. Additional NAV likely to be from Property revaluations from rental increases or indu prop prices. And also from other SG/MY property devt. Provided the steel-making subsi negate the increases.
Is catalyst important? Yes for me. Coz I don't want to tan ku ku. Long investing holding period affects returns and has opportunity cost. Investment holding period cannot be forever for some stocks. Eg industrial property has decreasing lease and building get old. property cycle will affect the property valuations.
Besides, undervaluation is usually well known by enough knowledgeable investors with money. Why would they bid up the share price ie closing the valuation gap when it is the status quo for foreseeable future. If they don't, how do one unload at a higher mkt price?
About wait how long. Don't know. But I think it is best to get paid while u wait. In form of dividends or incremental growth in NAV. Specifically for LTC, I mentioned why it is very difficult to increase NAV from redevelopment. Additional NAV likely to be from Property revaluations from rental increases or indu prop prices. And also from other SG/MY property devt. Provided the steel-making subsi negate the increases.
Is catalyst important? Yes for me. Coz I don't want to tan ku ku. Long investing holding period affects returns and has opportunity cost. Investment holding period cannot be forever for some stocks. Eg industrial property has decreasing lease and building get old. property cycle will affect the property valuations.
Besides, undervaluation is usually well known by enough knowledgeable investors with money. Why would they bid up the share price ie closing the valuation gap when it is the status quo for foreseeable future. If they don't, how do one unload at a higher mkt price?
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster