Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Do punters sell their warrants as soon as they get them because they are free and they in for a quick buck?
Or is it they just don’t really understand what’s going on?
U need to use them to manage your dilution risk of existing Holdings if u are not in a position to bring more funds ...so thats why I suggested is to keep them as close to exercise date but not that close also that technical selling pressure erodes too much value .
This time Fisher funds are trying to value them very close to present NAV as they also trying to take advantage of current 25% premium ...so may not lead to much dilution if NAV remains here or nearby ....only time will tell as they are one year Call options ...existing holders need hold them for 10 months to get better picture ...or exercise them fully . Thats the challenge for long term existing substantial qty holders of these securities .
Do punters sell their warrants as soon as they get them because they are free and they in for a quick buck?
Or is it they just don’t really understand what’s going on?
Also its not worthwhile to do that these days ...get in share to get this warrant and sell both to make money ...last 15 days MLN ( Cum warrant ) traded over 157 and now its 149 ...so they need to sell warrants at 32 cents to just break even
U need to use them to manage your dilution risk of existing Holdings if u are not in a position to bring more funds ...so thats why I suggested is to keep them as close to exercise date but not that close also that technical selling pressure erodes too much value .
This time Fisher funds are trying to value them very close to present NAV as they also trying to take advantage of current 25% premium ...so may not lead to much dilution if NAV remains here or nearby ....only time will tell as they are one year Call options ...existing holders need hold them for 10 months to get better picture ...or exercise them fully . Thats the challenge for long term existing substantial qty holders of these securities .
Sounds awfully complex these things called warrants
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Sounds awfully complex these things called warrants
Thats why many old timers are not happy ...not easy to manage unless u have small holdings then can bring in more funds to subscribe to all . Also many punters are making a killing on them at the expense of poor ill informed or just lethargic holders who are basically into them on buy and forget for regular income . These are instruments for the benefit of fund managers and punters ...exactly opposite to the kind of investors who are mostly the holders ...as they think paying high fund charges will ensure their interest is supreme for fund managers ...But alas ..." everyone plays the fool or trusting people in this world now "
Thats why many old timers are not happy ...not easy to manage unless u have small holdings then can bring in more funds to subscribe to all . Also many punters are making a killing on them at the expense of poor ill informed or just lethargic holders who are basically into them on buy and forget for regular income . These are instruments for the benefit of fund managers and punters ...exactly opposite to the kind of investors who are mostly the holders ...as they think paying high fund charges will ensure their interest is supreme for fund managers ...But alas ..." everyone plays the fool or trusting people in this world now "
The way you put it fund managers etc are playing games and screwing the unit holders
No wonder about 10% don’t get exercised
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
The way you put it fund managers etc are playing games and screwing the unit holders
No wonder about 10% don’t get exercised
I wont exactly say that ...but it turns out that these shares are not for passive investors ...they need to look after their investments by trying to figure out how to manage these regular warrants . Buy and forget will not work ...though may think so or actually hold them for that purpose only
Last Marlin warrants got exercised last Nov only .
I wont exactly say that ...but it turns out that these shares are not for passive investors ...they need to look after their investments by trying to figure out how to manage these regular warrants . Buy and forget will not work ...though may think so or actually hold them for that purpose only
Last Marlin warrants got exercised last Nov only .
And nearly 4 million didn’t get exercised even though new shares were 39% of prevailing price
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Helps also the cash merry-go-rounds for Fishers. Divvys paid out on one hand, But new funds coming in on the other.....
Their second most important priority is to increase corpus thus their own renumeration ...DRP @ 3% discount works as it increases shares issued ...around 46% elect for that as its lucrative ...get at 3% discount sell in the market that increases dividend value more then if u elect for cash ...so far it is always beneficial to holders .
These days as market SP way over NAV so DRP shares being issued at higher then NAV thus adding to NAV ...all win but for who elects cash dividends ie 54% ...buy and forget type
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Originally Posted by winner69
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