BRM - New Warrant Issue for Barramundi

[Basil]

Latest NAV at close of ASX yesterday 79.09 cps, (ex divvy)

[Basil]

Latest NAV at close of ASX today 79.90 cps, (ex divvy) 

[Toddy]

What a week. The head share represents pretty good buying. The share buyback should ramp up to take advantage.

[Basil]

Fabulous week.   Not just the shares that are great buying.  I actually think the warrants are outstanding buying.  8.4 cents now and only 63 cents more on 25 October 2024, total 71.3 cents, and all the capital growth between now and then and you're only tying up 8.4 cents capital per warrant for now.  Disc: Bought another couple of hundred thousand warrants today and on the bid for a few more there.

[snapiti]

it's an interesting trade off, say $100k invested in head shares now @ 73cps plus 2 divi's between now and warrant issue date, or buy the warrant 8.4cps and earn interest on the money in the bank and exercise the warrants when due. I like the DRP adding small chunks of shares to my larger pile of shares

[Basil]

Very solid performance from BRM for February, up 5.2% against the benchmark of 0.7%
I think the Australian economy is much better placed than N.Z.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BRM/427725/414622.pdf

Really interesting to note in that Feb report, (bottom of page 3) that BRM has substantially outperformed their benchmark index over 1 year, 26.4% (10.9%) 3 years, 13.3% v (9.9%) and 5 years 17.5% v (9.2), (benchmark in brackets)  An outperformance of 8.3% per annum over 5 years in particular is deeply impressive and testament to not only the skills of the lead investment manager Robbie Urquart but also the other analysts in the team that support him.  Very happy to stick with the Barramundi team over the long run.  Disc: Substantial position in the shares and warrants.

[Toddy]

It looks like they have increased the investment in Wise Tech. Now showing 8 percent of the portfolio.

[Basil]

Maybe just the Wise tech share price increasing rapidly Toddy?  Curious what you think of their fund outperformance over recent months and years?  Impressed, super impressed or just meh ?

[Toddy]

I only entered the fund via the warrants during the couple of weeks after they were issued. Bought a million warrants. So minimal cash outlay. The timing was perfect issuing the warrants in the stressed market at the time.

Since then I have been following their fund and individual stocks with great interest.

They have done extremely well. It would have been nice if they had some exposure to the mining sector. But I'm guessing since they are a NZ fund manager they have to go for the woke, save the planet stocks.

Looking ahead, the portfolio is definitely geared towards current investment trends and should do well. And if Ift makes the ASX it's main trading board, then they could look at adding them to the portfio.

Some of their portfolio investments are probably 'take over' targets aswell.

[Basil]

Nice timing with the warrant purchase Toddy.

[Basil]

Latest NAV at close of ASX yesterday 78.77 cps.

[Basil]

Latest NAV at close of ASX today 79.07 cps.
I suspect, (don't know for sure), the company has been in a close out period with respect to buying back its own shares during the 5 day ex dividend period and normal operations might commence tomorrow or shortly thereafter.  Current discount is just on 9% and they can buy them back when the discount is >6%.
I bought a few more warrants today.

[Toddy]

With the US markets being positive overnight then we should expect another positive day on the ASX.

Yes, the discount at 9 percent is puzzling. The BRM fund manager should be buying up as much as they can at these levels.

Im sure that they have a plan, so maybe you are correct in thinking that there are some regulations that they have to navigate.

[Basil]

Looked it up.
Extract from page 3 of their Barramundi Share Buy-back policy documment.

The buyback programme may be suspended:
i. around key market announcements and where market price calculations are
being made (for example, in calculating the volume weighted average price
for the dividend reinvestment plan or prior to the exercise date for any
warrants);

Whole document is here https://barramundi.co.nz/assets/Uploads/Barramundi-Share-Buyback-Policy.pdf

Also confirming the 5 day close out period for ex divvy volume weighted average pricing calculations ended at close of trading yesterday.  Agree 100% with your first sentence.

[FatTed]

it's an interesting trade off, say $100k invested in head shares now @ 73cps plus 2 divi's between now and warrant issue date, or buy the warrant 8.4cps and earn interest on the money in the bank and exercise the warrants when due. I like the DRP adding small chunks of shares to my larger pile of shares

Is the DRP 3% discount on the share price or the NAV? clearly not worth it if based on the NAV?