BRM - New Warrant Issue for Barramundi

[Basil]

I think it moves around a bit Snapper, certainly that's what the corporate manager told me a while back but their normal benchmark is 70% hedged.

Fair bit of green on the screen today, stark contrast to NZX which in places looks pretty brutal.

Might revalue portfolio if I get time tomorrow.

[snapiti]

Thanks Beagle, I don't mind a bit of currency risk.
Yep many areas of the NZX getting beaten up.
I have 60% of my share market portfolio in BRM, only 15% in NZX stocks, another 10% in RF1 which is a fund on the ASX, rest spread wide, I believe ASX will outperform NZX in the forseeable future (2 years) 

[Basil]

76.28 cps as at close of ASX today.  Agree Snapper, NZX is bloody hard work.
Speaking of landing the big one, (Barramundi), did you see this  https://7news.com.au/news/katherine-teenager-becomes-millionaire-after-reeling-in-prize-fish-c-14495794

Got lots of these, mainly warrants now and lots of Marlin. 

[Basil]

I believe ASX will outperform NZX in the forseeable future

Very high probability of that occurring in my opinion.
Good day yesterday, NAV up 1.6% (1.24 cps) to 77.51 cps by my calculations.

[Basil]

NAV up 2.5 cps this week to 78.26 cps.  Very nice.  9.3% discount at 71 cents.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BRM/430833/418205.pdf

[winner (n)]

NAV up 2.5 cps this week to 78.26 cps.  Very nice.  9.3% discount at 71 cents.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BRM/430833/418205.pdf

Prob glad they have the likes of Carsales and Xero amongst their biggest holdings

[snapiti]

NAV up 2.5 cps this week to 78.26 cps.  Very nice.  9.3% discount at 71 cents.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BRM/430833/418205.pdf

One of the largest discounts on offer for a long time, BRM NAV outperforming the ASX

[Basil]

One of the largest discounts on offer for a long time, BRM NAV outperforming the ASX

Makes you wonder why they've stopped buying the shares back at this level ?

[snapiti]

Makes you wonder why they've stopped buying the shares back at this level ?

According to the buy back agreement there could be several reasons for this.
1. the company has reached 5% buy back (highly unlikely)
2. the company re visits it position of buy backs every 12 months and needs the board to meet extend it. This maybe due.
3. The monthly meeting of the board decide on many aspects of the buy back whilst the buy back is underway including how much to allocate for the next month.
Would be interesting to ask more about this at the annual meeting.
Happy holding

[Basil]

The simplest explanation is they are on autopilot and asleep at the wheel.

[winner (n)]

The simplest explanation is they are on autopilot and asleep at the wheel.

Maybe they are ....couldn't even beat the benchmark in April (unless -3.9% is higher than -2.7% lol)

But weren't asleep the whole month ....did buy some more of Johns Lyngs (who need more catastrophic events to happen)

[Basil]

To be fair they have soundly beaten the index in the last year, adjusted NAV up 15.1% v index 10.9% and 5 year performance 12.9% v 8.7% is very good too.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BRM/430960/418331.pdf

[Bob50]

In very simplistic terms.
If someone wanted a dividend stock to return 7% they would buy a share at $1 to get a 7 cent return.
If interest rates drop and that investor now only wants a 5.5% return they would now pay $1.27 for that same share.

Barramundi shares seem to be priced close to their current NTA of the time, less perhaps some discount.

My question is - Would falling interest rates increase Barramundi share price as much as other dividend stocks?

[thedabsman]

Yep when interest rates were close to 0% BRM had 10% or greater premium regularly

[Toddy]

Big day. It's been a while.