But alokdhir isn’t the NTA premium only here because rates have been so low? Like this stock is a retiree dividend stock and has a correlation to deposit rates.
If you are buying at a premium you must think rates won’t be increasing from here?
The other issue is paying a premium in a bear market
I’m with Mike and Tim, best wait and see. Probably see a discount like the old days soon enough
Guru Investment Managers, not the broker analysts but real investment managers, use a thing called the Z score to assess whether listed funds are under or overvalued
Haven't looked at it for a while but might update it while the races are on this arvo.... keep me occupied between races
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Mine was not a recommendation ....I am just getting back into my older position ....Also having MFT / IFT / FPH / SUM / AIA as top 5 not considered great stocks W69?
If buying into HGH at 1.80 was recommended or shall I say done by most knowing fully well what lies ahead then for me to get into KFL from 1.35 downwards is a lesser hazard ....Hazard it maybe I acknowledge but u need to do in a phased manner over range of prices and range of time and then let markets do what it wants to do ...KFL is an income investment not a get rich quick punt mates ...Want to stay invested till the next Inflation cycle starts ....lol
PS : Why KFL as income over GNE / HGH etc ....as I think ahead market will change theme from yield to growth stocks
But alokdhir isn’t the NTA premium only here because rates have been so low? Like this stock is a retiree dividend stock and has a correlation to deposit rates.
If you are buying at a premium you must think rates won’t be increasing from here?
The other issue is paying a premium in a bear market
I’m with Mike and Tim, best wait and see. Probably see a discount like the old days soon enough
As mentioned if one exited at 15 cents premium then getting back at par also seems attractive ....lol
But I do understand fully that it can become discount too, soon ....thats why I have a range of SP and time to complete my job ....maybe at 1.20 it will be 10 cents discount to NAV ....its not a very liquid stock so U need to get in slowly which helps overall always
As mentioned if one exited at 15 cents premium then getting back at par also seems attractive ....lol
But I do understand fully that it can become discount too, soon ....thats why I have a range of SP and time to complete my job ....maybe at 1.20 it will be 10 cents discount to NAV ....its not a very liquid stock so U need to get in slowly which helps overall always
Looks like the day might have arrived. We'll find out today for certain.
It's crazy that the stock is down 10% in the last week and might now be in the buyback zone.
If the current NAV is maintained the next quarterly dividend will be paid at 2.675c per share. Looking back to Q4 2021 that dividend was 3.67cps, and Q3 2022 was paid at 2.83cps.
A falling NAV means you need to reduce your dividend expectation, given it is calculated at 2% of NAV.
What can be looked forward to positively with KFL is that once the Warrants (KFLWG) expire on 18 November the stage is potentially set for a further issue of Warrants, as MLN did recently. There is a probability, depending upon the terms of issue, that the new warrants, which should then trade under ticker KFLWH, will have quite a bit of value as the KFL portfolio/share price should have more upside than downside from here and natural market volatility will offer opportunity to trade before the new exercise date.
These regular warrant issues are like bonuses to holders.
Fair call. If they trade at 10 cents and you buy at $1.25 that's a 1.25% bonus. I'm willing to call that a wash in todays market. It really does depend on where you see the market 6 to 12 months from now. Recession?
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Originally Posted by Rawz
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