BRM - New Warrant Issue for Barramundi

[777]

Has the DRP strike price been announced

All announcements can be found here

https://www.nzx.com/markets/NZSX/announcements

[Basil]

https://api.nzx.com/public/announcement/443603/attachment/434020/443603-434020.pdf

Solid result for November and for the year, up 26%!
Well proven over the short and long term, (after fees and costs) to be able to beat the market and trading at 10%+ discount to NAV.  What's not to like?

[Basil]

Pretty slack that due to Waitangi Day they skipped this weeks NAV announcement entirely. Would have thought they should have done it on Friday but I suppose a lot of people took Friday off to make it a 4 day weekend.

Been a few good days lately and over a 20% bounce in Domino's yesterday so I wonder what NAV is now?

Been away on holiday all week and no access to office spreadsheets so I have no idea.

Anyone else still modeling BRM NAV?

[winner (n)]

That Wisetech seems to be up and down stock

Big chunk I of BRM fund ..... and Wisetech big down last few days

[Turkey]

A lot of the portfolio a bit sick winner, wtc got a bit going on with board and founder feud

csl, aub, ,dominoes, John's lying, next dc woolies


ASX just like NZX....a bit sad

[snapiti]

BRM NAV getting beat up, after the divi payment will be down to 70cps, interesting only trading at a 2% discount to NAV at the moment so buy back is not in play to support SP.
Can see the discount SP to NAV widening after it goes x divy tomorrow

[Basil]

https://api.nzx.com/public/announcement/450557/attachment/442131/450557-442131.pdf

Really bad, down 10% in the March quarter with the market being down 3%, a whopping 7% under-performance.

I am increasingly inclined towards managing my own investments in turbulent times.  As the share price to NAV gap closed last quarter to be basically trading at NAV, I sold out completely.

Not really impressed that they have not made more changes to the portfolio given their woeful underperformance.

[lorraina]

I sold the wife's last Wednesday for much the same reasons .
Like to have a higher cash position going into "The Trump Recession".

[snapiti]

probably more disappointing for me is the lack of cash they are sitting on after the recent warrant capital raise, only 4.2% cash so not much in the kitty to take advantage of lower prices.
Looks like all the warrant money got tipped into the markets at peak pricing.
Will make an adjustment in my holdings to reflect their mismanagement of funds

[Basil]

One of my concerns I articulated during the annual meeting last year is they keep sticking with the same stocks despite them reaching in some cases enormous price earnings multiples.  Xero and Wisetech were two examples I called out at the annual meeting. both trading on forward multiples in the 90's at the time.

Tech names are having a really tough time this year and I dislike investing in companies that are at extremely elevated multiples or are in confirmed downtrends.  Robbie Urquart was quite dismissive of my concerns and of course we know what's happened to Wishtech since then.
(Off Invest direct platform, current recorded PE XRO 123, WTC 91)  I get it these companies are growing but those multiples are eye watering for what I would describe as good growth but not the explosive growth those multiples imply.  Food goodness' sake, you can buy many of the constituents in the magnificent 7 for forward multiples in their 20's.

[winner (n)]

Basil — it's all about increasing positions in high-quality companies with operational strength and  reducing  or exiting poorly performing investments.

Conviction seems important ....no matter the high multiples in some cases

Interesting they exited Woolworths  ...poor management performace Robbie said ...just like you exiting BRM because of poor management performance lol

[Turkey]

This is an excellent point you make Basil and why I like BRM.

KFL is like a share for grandad...like wearing slippers and sipping whiskey in your rocking chair. KFL has very few global superstar shares...it has a few growth shares doing the heavy lifting surrounded by abunch of boring power companies and other defensives like ports, airports and retirement villages...

BRM is the sexy teenager...full of fast growing industry leaders...but like fast growing teenagers..they get a bit cocky and crash and burn...a little too often at present...lol

Unfortunately many of BRM shares have suffered from large M&A activity which hasn't quite come off.

CSL bought Vifor and never quite recovered from swallowing the elephant
Wisetech boss been fishing off the company wharf..shares get punished
Dominoes fell over trying to expand too quickly.
Even now we have James Hardy which was $30 a few year back, grows to $60 and trading pretty well ..then they announce an $8B takeover...markets thinks they overpaying and back down they go to $30..lol

This is how BRM rolls ..up and down volatility.

When I look at the growth companies in BRM there are many I would like to hold long term.
I agree its underperformed last couple of years but we still getting ASX exposure and pie income dividends at better than money in the bank while we wait for the teenagers to get their shit together...particularly the dude fishing off the company wharf.

Eventually some of these higher growth shares will kick some goals. I also like it's got a lot more holdings than KFL and a lot of shares with global ambitions and income from outside OZ


I'd hold a few BRM just for mcquaariebank...who doesn't want to own part of the millionaires factory...lol


There actually quite a bit of crossover between the KFL & BRM companies anyway

BRM has resmed, KFL has its competitor FPH
BRM has mcquaaries and next dc,KFL has IFT
BRM has brambles..the pallets and containers, KFL has MFT and freightways...the trucks
BRm has banks, KFL has power stations

Anyway horses for courses...I hold both BRM and KFL...but if I had a 10 year view ...I'd maybe hold more BRM than KFL.

Australia economy is also tracking to a different path to nz...we been dropping interest rates for a while, they haven't started

[snapiti]

BRM NTA has gone up 12% in 2 weeks........bit of a relief for this chunky Sher

[Turkey]

Good for you. I'm holding plenty too.

It look like they been selling down CSL...was 10.8% at 31 March report, 9% a few weeks ago and now 8% last couple of Weeks.

CSL was a great share early on but over last few years been a bit of a drag on fund as biggest holding.

[Basil]

BRM NTA has gone up 12% in 2 weeks........bit of a relief for this chunky Sher

NAV 64.08 24 April, latest 67.99 = 6.1% recovery in the last two weeks.
Still well down on where BRM started the year at 73.93 cents per share despite the ASX being flat for the year.  The 10% underperformance in the March quarter was a bloody shocker....worst underperformance in a quarter I have ever seen.  Shares are trading at 67 v asset backing 68 cents per share, just a 1.5% discount whereas KFL are at an 8% discount.  I think Robbie Urquart has lost his way a bit. Its overdue I start my own fund in Australia.  For starters I won't be holding companies on triple digit PE's who are only growing slowly.  I called him out publicly on this at the last annual meeting but he was tone deaf to suggestions of finding better value stocks for the fund to own.    If it gets to a 10% discount to NTA again, I wouldn't completely rule out being in for a discount to NTA normalizing trade but holding long term, I'm not so sure anymore he's really adding value.   Possibly worth noting their 5 year performance NAV to NAV is now 13.8% per annum v index 14.2% per annum.  3 year performance is 4.3% per annum v index 6.4% per annum.  https://barramundi.co.nz/assets/Investor-Centre/Barramundi-Newsletter-March-2025.pdf   Last 3 years returns in particular have been pretty pathetic.   Unfortunately I subscribe to the theory that the best guide to near term future performance is recent performance.  That 10% underperformance in the March quarter was a game changer for me.  More should have been done to protect the value of the fund.  Futures and options are out there as risk management tools but Barramundi never use them.