Warrants?

[Snow Leopard]

Exhibit A:


The next dividend will lower ALL the NTA row values by the same amount so do not worry about it.
Otherwise we assume the NTA does not change.

The current exercise price of a warrant [$1.32 - 8.44c of divvies] is $1.2356, add in you 6c to buy the warrant and your total buy price is effectively $1.2956.

When those KFLWD all become KFL then the NTA of the KFL drops by
3c a pop [$1.3853 > $1.3559] and we will assume so does the buy and sell.

So maybe you can sell for $1.33 what you bought for $1.2956.

But prices rise and fall and there maybe other stuff involved because I am not up to speed on the KFL fee structure, etc.

Best Wishes
Paper Tiger

[macduffy]

But prices rise and fall and there maybe other stuff involved because I am not up to speed on the KFL fee structure, etc.

And you will need to make an assumption as to how many warrants will actually get exercised and how many will expire, worthless, in "bottom drawers".

[Not too Flash]

Thanks very much for your input - especially from the striped one who have enjoyed reading and has taken sometime to help.
I note that about 79% converted in 2015 when the difference was 5c so the dilution may not be quite as much as 3c
Might take a small punt on the warrants as the length of time between stumping up to exercise and the selling may be short

Cheers

[Snow Leopard]

Happy to help - I thought it might have been something I could use to make money myself but...

doing some more sums I do not see that the risk reward ratio particularly stacks up:

Buying 10,000 KFLWD gives a nominal weighted return on equity employed of 18.5% at $274.89 profit, which is not a lot [and you need another $12,100 for (say) a week in May]

Buying 170,000 KFLWD and those numbers are 20.7% & $5,132.21 but you would need $205,547 for May and that (for me at least) is awkward.

If the NTA (and the price you can sell for) goes up over the next three months then you obviously make more .

But a 3c drop in a realizable sell price and it is break even only .

So not a game I am going to play but well spotted.

Best Wishes
Paper Tiger