And by the time worker confidence turns they aren't going to be wanting left holding the repayments on a $25,000 car.
(reserve bank reckons lower interest rates may be on the cards - what better time to be buying a well priced vehicle!)
Yes Turners will be "well positioned" for the spring buying season.
Take care buying a car in wet weather.Check it does not leak,however it is very difficult to check for panel damage that has been poorly repaired,or paint mismatches .These can only be properly checked in fine weather.
http://nzx-prod-s7fsd7f98s.s3-websit...253/284574.pdf
New bond issue contemplated at 5.5%.
Yes....so do I convert to shares ....current dividend slightly greater than 5% @301, but a chance of appreciation / depreciation ? Or go with the bonds at 5.5 %
Or take the cash and look elsewhere ? When I bought the bonds I had hoped the SP would be quite a bit higher than the current level where I am 1.5% underwater. I'm leaning towards taking the shares....given that was my original intention. I guess I will get a few more with the low SP, that's the silver lining to the current SP.
I am hoping for 17 cps in dividends this year up from 15.5 cps in FY18. These should be fully imputed, (yes I have checked their imputation credit account when making that assessment) so that's 17 / 0.72 = 23.61 cps gross dividends from the shares. .2361 / $2.92* = gross yield on conversion of 8.1%.
*$2.92 is my best guess of the conversion price based on a 5% discount to 90 day VWAP. Has been trading around $3.15 and more lately $3.01 so I have taken the average of the two = $3.08 less the 5% conversion discount.
I will exercise my right to covert the bonds into shares. Barring some major exogenous overseas shock I think there is limited if any downside from a conversion price of about $2.92.
Yes you can offset imputation credits to the effect that you will get some or all of the PAYE deducted from your super refunded. IRD will not refund imputation credits per se, as you know.
These bonds have been a big disappointment to me but its time to move on...you can't win every time !
Bemused as to why they should be such a disappointment. Great interest rate while they were active with opportunity of converting to stock or get your money back or roll over into new non convertible bond....your choice. Seems pretty much an OK deal from my perspective.
The disappointment for me is that the shares have not appreciated more. Maybe they will in the future and we will therefore be happy with the SP over the last 2/3 months. Am I missing something ?
The degree of disappointment depends upon what you paid for them. At one point they traded as high as nearly $1.10 on the prospect of them providing upside potential well above the $3.75 maximum conversion price. I'm not as disappointed as shareholders who bough the shares at ~ $3.90 though !
Wonder when this dog will start barking ?...(opps did I really say that out loud) :blush: For homework tonight I'd better write 100 times...I must not p inside the tent (pleased I sold half my shares at $3.16 in anticipation of this conversion)...sometimes you have to work the dog to make it bark a bit