Barramundi ( BRM )

[Joshuatree]

Great little" bank" to earn great "interest" on ,in the mean time.

[Balance]

Great little" bank" to earn great "interest" on ,in the mean time.

Heads they win, tails you lose.

Great 'BIG' bank actually - but for whom?

[Balance]

http://blogs.wsj.com/moneybeat/2016/...WJtF9R7fi5V5dA

“There’s been far, far, far more money made by people in Wall Street through salesmanship abilities than through investment abilities,” he said. “There are a few people out there that are going to have an outstanding investment record. But very few of them. And the people you pay to help identify them don’t know how to identify them. They do know how to sell you.”

As true as it is ever going to get - BRM, KFL and MLN are all about salesmanship, not about performances.

The salesmanship is about getting brokers, consultants, planners and small time investors to believe in the myth of diversifying with 'experienced' and 'specialist' investment managers - not about the fact that the performance of BRM sucks like a rotten lemon laying on manure. And it certainly is not about the lopsided management fee structure - heads they win, tails you lose.

[Joshuatree]

You have lost only if you were unfortunate to buy in at the beginning,Around current prices or below has worked for me, treating it like a bank but with FREE interest at junk bond rates without that risk..

[Balance]

You have lost only if you were unfortunate to buy in at the beginning,Around current prices or below has worked for me, treating it like a bank but with FREE interest at junk bond rates without that risk..

Haha - tell it to the majority of those who bought anytime in the last 6 years. BRM has done nothing compared to the NZX which has gone from strength to strength.

[Joshuatree]

I agree. But i use it like an on call bank deposit

[777]

Haha - tell it to the majority of those who bought anytime in the last 6 years. BRM has done nothing compared to the NZX which has gone from strength to strength.

Numerous purchases in past 4.5 years and averaging about 8% /year. High cash flow from dividends to reinvest where I wish.
Not as good as KFL though which is running at around 14%.

Haha to you

[Not too Flash]

Interestingly Warrants still trading - notice said

3. You can sell or transfer your warrants on the NZX until 5pm Friday 29

April 2016. This allows for the transactions to be settled by 6 May 2016.

Bought a few at .001 yesterday ??

[winner69]

Believe it not there are advisors/managers throughout the world who analyse investment trusts/funds like Barrimundi and use mathematical wizardry to workout if they are 'cheap' or not

One thing use is a Z score (not Mr Altmans Z score) which basically works out how far away the current discount to NAV is away from the average discount taking into account stand deviations and all that sort of stuff.

BRM current Z score is -0.62 which is 'cheap' but not that 'cheap' ......and it has been getting 'cheaper' over the last few months. General rule of thumb these gurus use seems to be to look for trusts/funds with a score of -2 and tout those as a good/screaming buy - that is BRM around 58 cents

Interesting eh - all that mathematical stuff when your guts came to the same conclusion.

That Z stat score is now just over zero implying that BRM is not a buy yet

Not surprising as trading at a 8.5% discount to NAV - much the same as the historical average

Discount been around that mark for a while - seems a pretty fair discount as it really is the present value of future management fees. Suppose $9m or so to Carmel over the next few years is fair enough reward to keep the fund chugging along

[Balance]

http://www.nzherald.co.nz/business/n...ectid=11723746

Excerpt : "Other examples of the worship of false gods abound: the NZX listed investment companies run by Fisher Funds long ago instituted a policy whereby each quarter the funds give shareholders back some of their capital.

Directors label this return of capital a dividend thereby giving investors the warm fuzzies. You can however see from the accounts of the Marlin Global Fund, for example, that most of the dividends are actually a return of capital.

For example Marlin Global pays a dividend of 6.88 cents per share which on a share price of 79 cents is a dividend yield of 8.7 per cent.

This of course looks fabulous to the naive yield crazed investor but the reality is that all of this "dividend" is actually a return of the capital of shareholders.

According to the Marlin profit and loss account for the year ended 30 June 2016 dividend and interest income of $966,000 doesn't even cover operating expenses of $1.65 million.

This latter figure is made up of a management fee of $880,000 and various other operating costs.

There is no actual earnings, in the conventional sense of the term, available to fund a dividend. One could take this capital distribution model to its ultimate conclusion by paying out all of the company's capital to shareholders thereby delivering a fabulous yield of 100 per cent."

FOOLS AND THEIR MONIES ARE ALWAYS PARTED.