“Exor NV (EXO): The Massive Discount Continues To Widen”
Exor's massive discount to NAV presents an asymmetric investment opportunity with potential for returns via Ferrari compounding and eventual NAV normalization.
Xer is definitely continuing to trade at this massive discount to its net asset value. But as long as Exo doesn't drastically close the price and value gap, and as long as things are going well for Ferrari, we don't really see much of a reason to sell this business.
And even if it stays at a massive discount, well, Exor stock will increase as its NAV increases. The downside being that the discount widens even more. But I think it would be really unprecedented for the discount to get much wider for this type of situation where there are real valuable assets on the balance sheet that cannot be entirely written off.