BRM - New Warrant Issue for Barramundi

[snapiti]

Basil me thinks you are cherry picking accounting
lets look at the last 10 years results.
BRM trading on this day 10 years ago closed @ $67 cps, today trading at 70cps (profit) plus the 8% yearly after tax  divi
KFL trading on this day 10 years ago closed $1.38 cps, today trading at 1.34 cps (LOSS) plus the 8% yearly after tax  divi.
 

[snapiti]

now lets look at it in real terms for this investor, on the days I entered my BRM share holding (Oct 23) I paid 64 cps to 68 cps with an average of 66 entry point, during the same period KFL was trading at 1.23 to 1.29 so lets call it an ave of $1.26.
Today BRL sp is 70 cps giving me a gain of 6% plus all the divi's @ 8%
Today KFL sp is 1.34 which would have been a gain of 6.3% plus all the divi's@ 8%.
So really nothing in it for my holdings but as above shows, BRM has a superior 10 year return to KFL.

[Basil]

Fair enough mate that you pick a time frame that suits you and 10 years is a decently long time frame.

I didn't cherry pick, All I did was look at each of the trio from the date each company first started it's 2% quarterly dividends to now. That tells the story over the longest possible time frame for each company in the group.  You could make a case that the most recent 10 years of performance is the most relevant and I accept there's a fair bit of validity behind that point of view and I concede, I often make the case on here that the most recent years performance is the best guide to the near future.  I was just really curious this morning how things had worked out over the long haul, hence why I crunched the numbers..  All good, good debate and food for thought for others as to what's the right timeframe for their thinking.

[Turkey]

This is why I still like a bit of BRM in my portfolio...hope its a good deal and they didn't pay too much... true global ambitions.


The logistics software giant surged over 6% after announcing its biggest-ever deal, shelling out $3.25 billion to acquire Texas-based e2open. WTC said the deal gets WiseTech closer to being the "operating system" for global trade.


Wisetech is biggest tech stock on asx...

[Otago K]

disclosure I am a bit of a BRM fan boy.

Think with a clear and consistent mindset around money psychology this unit has been a winner for me.

I am speculating that the "Closed End PIE" (not all PIEs are quite the same) effectively tax exempt distribution benefits might potentially endure as we face the prospects of a greater taxation possibility of what would be a capital gains regime, admittedly perhaps not quite so well for a more wealth taxation future possibility.

There is no shortage of theories on whether BRM is of real value merit and how you can outperform or increase your returns, and I hold it as true that there are drivers of the numbers.

It is what it is, and elements of it I say is the nature of the beast.

30 odd years probably of investing strategically I have to say was stress free and undoubtedly of current financial benefit for me.

[snapiti]

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%
 

[Dolcile]

I find it interesting that this "tax free" statement is thrown around without caveat.  The reality is that thr distributions (they aren't really dividends) from BRM are tax free once received by the shareholder.  However, the income generated in BRM (I.e. the company dividends received) are taxed at 28% without the ability to offset franking credits.   So tax is paid, it is just deducted from the NAV before BRM distributions 2% of the NAV.   

The 8% distribution is fantastic provided they can - minimise NAV volatility and at the same grow the NAV at 8% plus inflation.  All net of tax and the generous fees. 

If not, investors are taking distributions at the expense of depleting their capital.   

[Basil]

Holders might get a new warrant issue shortly as its been about 6 months since the last one was exercisable.   

[Otago K]

I find it interesting that this "tax free" statement is thrown around without caveat.  The reality is that thr distributions (they aren't really dividends) from BRM are tax free once received by the shareholder.  However, the income generated in BRM (I.e. the company dividends received) are taxed at 28% without the ability to offset franking credits.  So tax is paid, it is just deducted from the NAV before BRM distributions 2% of the NAV. 

The 8% distribution is fantastic provided they can - minimise NAV volatility and at the same grow the NAV at 8% plus inflation.  All net of tax and the generous fees. 

If not, investors are taking distributions at the expense of depleting their capital. 

As much as I agree with what you say I wouldn't quite draw the same conclusion line. It has indeed been around for quite some years at this point. It is very admittedly different things to different people, and I realise it is not a unit to be merely dollar cost averaged over time to garner the best potential return from holding it, you do benefit from a strategy and monitoring imho. Your franking comment holds for either direct holdings or say a BRM indirect exposure to Aussie equities

[thedabsman]

How can I claim franking credits? I'd love to on my bank holdings!

[Red Baron]

How can I claim franking credits? I'd love to on my bank holdings!

Easy to answer.  Move to Oz!

RB

[thedabsman]

Easy to answer.  Move to Oz!

RB

I'm not sure about that. I hear there are a lot of Australians in Australia? That is a huge problem. I do hear there are nearly as many Kiwis there so that is something!

[winner (n)]

This sounds ominious for ASX ...could fall 20%

Thanks to muse on other channel who said AFR story said

Australia's sharemarket is on the precipice of a near-20 per cent collapse as a downturn in company earnings delivers a brutal reality check to sky-high valuations and complacent investors who have been riding the wave of passive money flowing onto the bourse.
That's the ominous warning from MST Marquee, which believes that profits for the S&P/ASX 200 are on the verge of contracting for a third consecutive year, and that is at risk of extending into a fourth year.

Muse put a link up over there ..doesn't seem to work here

[winner (n)]

XRO making a $4 billion acquisition to make them great in the USA

Prob help BRM portfolio

[snapiti]

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