BRM - New Warrant Issue for Barramundi

[Mos]

Mos Its an income stock, no other company outside the Fisher group pays you 2% tax free each quarter, 8% tax free a year ~ 12% gross, ~13% gross if you buy the shares at a 8% discount to NTA and 13.4% gross if you take shares in lieu of divvy at the 3% discount.  You can't beat that on a consistent basis.  In addition, there is significant value unlocked over the years through the regular warrant programs.

Their payout is in the context of an Australian market that been ostensibly flat for many years.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BRM/423381/409435.pdf
Bottom right corner page 3.    NAV return after fees on average in the last 5 years 12.5% v benchmark 9.2%. 

Fair enough Snapper me ol mate and sounds like you have a decent sized shareholding.  I got just over 10,000 shares in the latest DRIP, next one will be more than 20,000 at my current significantly enlarged sized holding so we're on the same page with a significant holding in the shares.  Warrants, I agree are hit or miss instruments....I've made substantial profits on some of the warrant issues before and got flushed down the toilet on other occasions, so I get the whole bird in the hand thing which is why I'm weighted more towards the shares. 
"I couldn't possibly agree more!

Yes I see the income yield of circa 8% per annum. But the long term decline in NTA and share price  reminds me of the long term performance of another income stock - Kiwi Property. Investors holding since the IPO, or even from when Carmel conjured up the dividend trick in 2009, have not experienced great returns. The manager Fisher Funds however, achieved fantastic fee income. Not for me but good luck to holders. 

[snapiti]

Speaking of igniting....NTA was announced on Thursday afternoon as at market close of Wednesday this week.  Was just on 71 cents from memory but at market close Friday according to my spreadsheet I set up to track the value of their portfolio was just over 73 cents.  Up 2.8% in the last two days of this week is pretty exciting.  Not quite Turners exciting but I'll take it none the less.  Some idiot gave me a fill at 63 cents for another 100,000 earlier this week...and some people say they don't believe in Santa Clause lol

nice.....happy with a my 65 cps purchase this week.

[Mos]

BRM was at 60 cps beginning of August 2009, so 10% gain since then plus 8% per annum, plus interest on divi's or extra DRIP added to DRIP shares earned.
One must also calculate the 8% returns have been received on the SP fluctuation value which has average 70cps over the time you refer to, far better to get 8% off a 70cps ave than your initial 60cps @ 8%
I have a mandate to sell these sorts of investments after holding and being patient and the opportunity arises (and it has before and will) for a 12% over all return

Yes BRM was trading at a much deeper discount to NAV back then - 27% discount 30 June 2009 (share price $0.54, NAV $0.74), 16.5% discount 30 September 2009 (share price $0.76, NAV $0.91) according their quarterly reports. I can see the case for investing if the discount is ever that deep as it compensates for the high fee/cost structure.

I note the current share price of $0.67 and NAV of $0.71 is a much smaller discount and NAV is below 30 June 2009 level despite significant inflation since then. I guess the return is all the dividend yield over its long term history. And you could argue 8% less inflation is not terrible.

[winner (n)]

BRM share price about $1.10 not that long ago

Be good when it gets back to those sort of prices .....just needs a bit of positive sentiment

[Mos]

BRM share price about $1.10 not that long ago

Be good when it gets back to those sort of prices .....just needs a bit of positive sentiment

Now that would be an impressive result and astonishing premium to NAV of $0.71.

[winner (n)]

Now that would be an impressive result and astonishing premium to NAV of $0.71.

NAV will be over 90 cents .....and large premiums no unheard of with these things

[winner (n)]

Wisetech and Carsales will have a good year and help increase NAV

Shame they are so keen on holding Xero no water what

[Mos]

NAV will be over 90 cents .....and large premiums no unheard of with these things

Timeframe?

[winner (n)]

Timeframe?

Next year sometime .....but before warrant date

[Basil]

BRM share price about $1.10 not that long ago

Be good when it gets back to those sort of prices .....just needs a bit of positive sentiment

I'm calling it early, (you reading this Lounge Lizard?).  The trifecta is HLG, TRA and now BRM. 

[Mos]

Next year sometime .....but before warrant date

I like your conviction on this Winner but don't share it. How about a friendly wager? If BRM NAV is 90+ cents on 24 Oct 2024 or the share price is $1.10+ on the same date (day before the warrant exercise date), I will buy you a bottle of whiskey up to $100 (or your preferred beverage) and if neither of these thresholds are achieved, you buy me the same?

 

[Basil]

I could hold the whisky bottle and promise not to drink it 

[winner (n)]

I like your conviction on this Winner but don't share it. How about a friendly wager? If BRM NAV is 90+ cents on 24 Oct 2024 or the share price is $1.10+ on the same date (day before the warrant exercise date), I will buy you a bottle of whiskey up to $100 (or your preferred beverage) and if neither of these thresholds are achieved, you buy me the same?

 

Jeez, you not a friendly bookie ....offering evens on a bit of an outsider

And betting per se not encouraged on this site

[Mos]

No worries. Was impressed by your conviction on the outsider!

[Basil]

"I am a great believer the ASX will outperform the NZX over the medium term (5 years) Snapiti

Yes!!
Was digging around in my historical portfolio spreadsheets for some info and came across this from 2.5 years ago in mid 2021 which gave me pause for reflection about our "wonderful N.Z. growth economy". 
Prices end of July 2021.
GNE $3.46
WHS $3.45
ARV $2.10
HGH $2.05
PZL 0.90   (PAZ unlisted market).
OCA $1.54
TRA $4.27
HLG $7.33

Pretty shocking really. A lot of these stocks are MUCH lower today.  Just thought I would share....gives something on an insight into how a random few stocks 2.5 years ago have seriously declined in price.  The only one that's ahead is Turners and not by all that much.
Just as well I made a LOT of portfolio changes since July 2021...in fact Turners is the only one I've kept and added too.
This is why the NZX is so bloody hard work, not helped by having inept idiots in Govt over that time.