BRM - New Warrant Issue for Barramundi

[Basil]

i think XRO is way over priced and wished it was out of the BRM portfolio.
They do not do much shuffling of the portfolio

I told Robbie Urquart, the portfolio manager, exactly that during the annual meeting last year and also questioned Wistech's valuation.  He brushed off my concerns and said those two meet all their other investment criteria apart from PE.    I think he's barking up the wrong tree in terms of their prospects going forward relative to earnings but to be fair, they have had a pretty good run with those two over the years so far.

[keerti]

Another Warrant Issue...

The exercise price will be $0.70 less any dividends declared

The record date for the issue is 6 August 2025

[thedabsman]

I think that will be pretty lucrative in 12 months time

[Turkey]

I think that will be pretty lucrative in 12 months time

I thought this about the last warrant issue...about 12 months ago...lol...

Oh well at least the divi and drp discount have been acceptable

[777]

Due only 14 weeks after KFL warrants which is pretty close for those who have both.

[Basil]

looking forward to another feed of DRIP shares shortly, BRM has to be a long term hold to get the real benefits, 8% after tax returns very attractive especially if you are paying high % taxes. Good chance of a rise in the SP somewhere in the future.Also returns from DRIP are based on NAV and a 3% discount, so for those with a low entry point, mine is about 67 cps, returns over the last year with the NAV being   75 to 80cps returns have been higher than 8% return on my capital.
I received returns of 6.6 cps last year including DRIP discount, that equates to an  almost 10% tax paid return on my capital, if you include gains from warrants it would be over 10%
 

I did reinvest in a small stake in BRM a little while back.  Have held much bigger stakes in the past.  Currently just on 3% of my portfolio.  New warrant issue is an opportunity to boost that a bit higher.  To be honest, I'm not all that impressed with how lethargically they manage the portfolio and keep stocks on mega high metrics but the ASX has been doing a lot better than the NZX so hopefully they can at least pay the 8% tax free and the share price won't go down in the years ahead.    I'm taking the cash now rather than dividend reinvestment program. 

[snapiti]

I did reinvest in a small stake in BRM a little while back.  Have held much bigger stakes in the past.  Currently just on 3% of my portfolio.  New warrant issue is an opportunity to boost that a bit higher.  To be honest, I'm not all that impressed with how lethargically they manage the portfolio and keep stocks on mega high metrics but the ASX has been doing a lot better than the NZX so hopefully they can at least pay the 8% tax free and the share price won't go down in the years ahead.    I'm taking the cash now rather than dividend reinvestment program. 

I agree with that bazil, they get paid exceptional well for such lethargic fund management, essentially all they seem to do is put new funds into the same investments, however, like you, happy with the consistent 8% return with no capital loss

[Dolcile]

One of the really disappointing portfolio allocation is CSL.  Representing nearly 11% of the portfolio as of March and it is sitting at close to a 5 year low!

[Dolcile]

Domino's another shocker.  Down 15% today and at all time lows by the look of it.

[Basil]

One of the really disappointing portfolio allocation is CSL.  Representing nearly 11% of the portfolio as of March and it is sitting at close to a 5 year low!

Agree 100%.  Owning stocks in a downtrend is not a good idea. I'm really going to wind up Robbie Urquart the fund manager at this years annual meeting.  Huge underperformance in the March quarter.  What are you doing about it ?    Not drinking the cool aid here and not really all that interested in increasing my very modest 3% portfolio allocation.   This is a low conviction, small position hold for me.

[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 exposure to mcquaarie bank...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

Reposting the above for the BRM naysayers.

Yes CSl has underperformed...but only last 5 years. If you open up a long term chart you will see it lists for about $2.50......rose to $340 and now sits at $239....its a global leader in what it does plasma collection and I think they should hold it ..wide moat. BRM have reduced their holding % anyway


The problem with you trader fellas is you want up all the time and you want your return quickly before you move on to the next hit

Do you complain to KFL that they continue to hold MFT...I mean it's only $66 and was once $95. Ands it's about 10% of Kfl fund..same as CSL
That's a 30% drop from its highs...CSL is down about same % from its highs..think was about $342?

KfL is probably better for you...their last purchase was a huge growth opportunity...another NZ based power station...to sit alongside all their other defensive stocks...lol

BRM invests in some really interesting companies...Wisetech for one ..is the biggest tech stock listed on ASX... trying to crack a big global addressable market.




Personally I'm happy if the BRM share price doesn't go anywhere fast but keeps spitting out 8% each year...double my money in 9 years right? I think that's a reasonable return for a diversified fund.

To me KFL is the riskier fund. Much more concentrated holdings...FPH @20%..hmm...more companies dependant of local NZ market vs BRM more global businesses.

Discl. Hold both BRM and KFL as dividend stocks...hopefully some growth too..

[Bev]

Someone jumped the gun on BRMWI issue.  Documentation said that the record date was to be 6/8/25 and issue date 7/8/25.

[Otago K]

Someone jumped the gun on BRMWI issue.  Documentation said that the record date was to be 6/8/25 and issue date 7/8/25.

Bit weird all around, I think the market rolled it over a day ahead and then Invest Direct cancellations of my trades loaded yesterday were cancelled as ex the warrant issue, at around 10am by email advices, see on other site Invest Direct had loaded some holdings of investors with head shares rather than warrants yesterday also.

[Basil]

Yeah my portfolio value on Invest Direct's platform looked stunning for a while there yesterday morning.  They have it loaded up correctly as new warrants now.  It'll be interesting to see where they start trading. 

[Minimoke]

Yeah my portfolio value on Invest Direct's platform looked stunning for a while there yesterday morning.  They have it loaded up correctly as new warrants now.  It'll be interesting to see where they start trading. 

Mine did to. I thought I had become wealthy overnight. Sadly today its back to reality.