BRM - New Warrant Issue for Barramundi

[Basil]

Like you Snapper, I have most of my money offshore now. The weak and anemic N.Z market in terms of equities is less than 25% of my portfolio now. Have some bonds here and cash to exercise Barramundi and Marlin warrants here too.

Yeah Toddy, updated NTA is now 77.1 cps at close of trade.

[snapiti]

thanks for the update Basil, interesting BRM have a 70% hedge position NZD/AUD, whilst I think hedging is important the gambler in me thinks 70% is to high.
Has been trading lately with a 9% to 12%  discount to NAV which historically is at the very high end.
The warrants are interesting Basil, buying head shares lately @ 67cps has me fully loaded up so the warrant maybe sold.
Have you seen the list of warrant uptake from their many issues, even if the warrants are in the money only once have they experienced a high uptake.

[Basil]

I'm favorably inclined to exercise all my warrants Snapper and have maintained sufficient liquidity on hand to support that.  63 cents exercise price is simply too good an opportunity to pass up with NTA at 77 cents.

It was really good to finally see a strong week on the NZX...as well as on the ASX and other world bourses.  It's been a very long time between drinks since the NZX joined in the rally.  I think most people would have had a good week with value accretion in their portfolio.  Good stuff !

[Basil]

Plenty of nice looking green on the BRM watchlist screen today.  Looking forward to tomorrow's NTA update.

[snapiti]

me to, got a heap of the head shares and lots of warrants now, crickey the warrants have huge % moves, although not a lot of liquidity most days

[Basil]

I picked up some more warrants today.  NTA probably over 78 cents now, (haven't checked today, have been really busy and am very tired so I will let the BRM team calculate it tomorrow), and exercise price of 63 cents gives a delta of a whopping 15 cents.  Even allowing for the dilutionary effect on NTA of warrant exercise and the current discount to NTA of the head shares, that's a huge delta for the warrants and very inexpensive and strong leverage on the prospect of this global rally continuing in the months ahead.

[Basil]

There you go Snapper me old mate.  I know you can't wait for tomorrow and neither can I after seeing all that green on the Barramundi watchlist screen lol.
Estimated NTA now 78.8 cps 
(As always, it will be a bit different tomorrow with my spreadsheet estimate not picking up exchange rate differences from one week to another).

[Toddy]

Looking good. There is plenty of time to go until exercise date. The number could be compelling by then.

[Basil]

Estimated NTA now 78.8 cps 

Nice to see I am still getting the estimated NTA really close.  Actual NTA was 78.85 cps
https://www.jardendirect.co.nz/app/news/urn:dt:6745104  11% discount to NTA at 70 cents !

[snapiti]

wowsers all put 79cps NAV, warrents still look attractive at 4cps, hard to buy in meaningful numbers though

[snapiti]

I already have 650000 head shares and carry 500000 warrents so won't be converting that many, suppose that means I am cheering the warrents along and going along for the ride of the head shares, perhaps just convert my original free allotment

[snapiti]

 Basil, would it be possible for you to supply a NAV tonight ahead of tomorrow's one from the company, NZD weak over last 7 days

[Basil]

Basil, would it be possible for you to supply a NAV tonight ahead of tomorrow's one from the company, NZD weak over last 7 days

Hey Snapper.  My model doesn't include exchange rate movements as they hedge about 70% of them anyway from memory.  Current NTA based on watchlist prices on the ASX, (20 minutes ago) is 78.06 cps.

[snapiti]

thanks Basil, yep 70% hedging of the $ is quite high, probably expensive to have as well.
What do you make of the warrant price, currently trading at 4.5cps when actual value is more like 7.5cps allowing for one more divi of 1.5cps to come off head shares

[Basil]

thanks Basil, yep 70% hedging of the $ is quite high, probably expensive to have as well.
What do you make of the warrant price, currently trading at 4.5cps when actual value is more like 7.5cps allowing for one more divi of 1.5cps to come off head shares

Yeah, I'm planning on bringing up their hedging policy at the annual meeting.  We all know that with buying Barramundi we're investing in Australian shares.  Why is it necessary to have this expensive hedging all the time.  Surely having that in place and the net cost over time detracts from the performance of the fund.

Cheap as chips.