BRM - New Warrant Issue for Barramundi

[Basil]

"Goldilocks" economy for Australia in 2024 ?
https://www.theguardian.com/business/2024/jan/03/golden-zone-could-australias-economy-pull-off-an-unlikely-miracle-in-2024?utm_source=ST&utm_medium=email&utm_campaign=ShareTrader+AM+Update+for+Wednesday+3+January+2024

[Basil]

Expecting NAV of ~ 76 cents to be announced tomorrow, up nicely on last week.
Expecting warrant exercise price to be 63 cents on 25 October 2023, (9 months hence) 13 cents below the current NAV and the warrants are only 7.4 cents with 9 months of potential capital gain on the NAV still to come.  Hmmm  Whole bunch of them at 8 cents.  Opportunity knocks?

[Basil]

Latest NAV 76.51 cents up ~ 2 cents in the last week. Nice !
73 cents is a ~ 5% discount to NAV.

[winner (n)]

Hurt BRM NAV a bit

Shareholders have taken a massive bite off the value of Domino's Pizza Enterprises (ASX: DMP) shares as the Brisbane-based fast-food group flagged lower interim earnings for FY24 despite the company's business regaining some momentum.

Domino's shares fell $17.80, or 31 per cent, to a low of $39.50 within the first hour of trading, wiping $1.6 billion from the company's market valuation.

[Basil]

Updated NAV based on closing share prices today inclusive of Domino's fall and all other share price movements = 75.9 cps.
P.S. Latest newsletter here http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BRM/425319/411584.pdf

[winner (n)]

Dominoes 4% of fund .....bad update and shares plunge 30% odd ...so BRM NAV impacted about 1%

DMP totally oversold ... panic reaction. I hope that they buy heaps more at current price and be much better off in not too distant future

Robbie not adverse to trading opportunities ....from last update added and exited a position in double quick time ...we'll done Robbie.

Share price volatility provided us with the opportunity to add PEXA to the portfolio.
PEXA operates the only e-conveyancing property exchange in Australia. The vast majority of property transactions (sales and mortgage refinancing) are processed through PEXA's platform. PEXA also has a nascent presence in the UK market.

The market was disappointed by the slow pace of expansion in the UK evident in a Q4 trading update which led to a sharp fall in its share price. We bought shares following this fall. To help fund the PEXA purchases we exited our Westpac shareholding.

The investment opportunity in PEXA proved fleeting. The share price rapidly rose circa 20% after we began buying shares, to a level that we felt priced in a strong acceleration in UK growth prospects. We think this earnings growth is likely to be harder won and will take time. Unusually for us, we therefore banked the profits and exited the position after this rebound.

[Basil]

This capped a strong year for the portfolio which finished the
2023 calendar year with gross performance up +28.1%, well ahead of
the +13.6% benchmark index return.

Very impressed by this.  In 2023. they outperformed the index by 14.5% !
I'm expecting the ASX to strongly outperform the NZX for the foreseeable future.
Disc: Substantial position in BRM shares and BRMWH warrants.

[winner (n)]

Very impressed by this.  In 2023. they outperformed the index by 14.5% !
I'm expecting the ASX to strongly outperform the NZX for the foreseeable future.
Disc: Substantial position in BRM shares and BRMWH warrants.

And the share price went from 71 cents 72 cents in 2023

Went from 9% premium to 4% discount to NAV

[Toddy]

Tough week. A number of one off hits.

[winner (n)]

Tough week. A number of one off hits.

What's happened now?

[Toddy]

CCP result was soft.

[winner (n)]

CCP result was soft.

They fell in love with CCP and took their eye of the ball  ....should have sold when it was 30 bucks

Still in love ......buying more

Good luck to them I reckon

[Basil]

End of month NAV is 76.46 cps according to my spreadsheet up from 76.2 cps this morning.
(Actual NAV announced tomorrow afternoon will be slightly different due to portfolio changes since 31 December and exchange rate movements).
Discount to NAV at last traded price of 72 cents is just on 6%.

[Toddy]

That's good given the one off surprises.

[Toddy]

Basil

Did todays rally wipe out the mid week losses.