Sure it's greedy to demand a double discount but if the market is silly enough to give it, then maybe you'll just have to take it.

It's one thing for bank shares to be marked down by the credit crisis but listed investment companies investing in them have been marked down again. Talk about gilding the lily.

Take Milton Corporation: with almost one-third of its investments in banks, it's trading at less than they're worth. Go figure.

But don't think the dip makes them a good speculative play.

These companies are for patient, income-hungry investors. Over its 50 years, Milton has never cut a dividend and has lifted it for each of the past 15. Its fully franked dividend yield of about 5 per cent isn't the best you can get but then again it would have to be one of the most reliable.

Come to that, it isn't a bad yield when you consider you're getting a diversified portfolio. Milton's investments tend to be finance-sector heavy - something you might have enough of or perhaps have had enough of - and it also has joint property developments in Perth.

Listed investment companies have two big advantages over managed funds in a bear market. Their expenses are low (Milton's is just 0.17 per cent) and they don't have redemptions as panicky unit holders rush to the doors. That makes them well placed to snap up bargains.

One drawback is it's harder for these companies to raise funds without a rights issue or placement. But Milton does a nice line with its share-purchase scheme for its shareholders, which raises about $23 million a year.

And it's been buying private investment companies with its scrip, which gives it more shareholders to tap. Oh, and as a listed investment company there's a tax break - the 50 per cent capital gains tax concession on assets sold that have been held for more than a year is a deduction. And the proceeds are franked.

The only snag is Milton never sells.

Advantages

* Discounted price

* Track record

* Low fees

* Tax breaks

Disadvantages

* Liquidity

* Analyst disinterest

* Perth property falling

* Slow capital gains growth

Verdict

* Over 10 years has out-performed the market by 2 per cent a year but is still a stock for income seekers, not speculators.