KFL - discount to diluted NAV

[ordop]

Not quite. KFL went Ex the bonus issue (i.e. the warrants) on the 5th of March and so holders needed to be long KFL by close of business Wednesday the 4th to receive the KFLWF. KFL on the 4th closed at $1.65. Everyone buying yesterday up to $1.70 is just participating in a fools rally - they will however be entitled to receive the 3.24cps div as that goes Ex on the 12th of March but they're paying a reasonable premium to get it. On Monday KFL touched $1.50 and yesterday $1.70 - interesting to see where it heads next week.

[Beagle]

Totally irrational exuberance in this. Should now be trading at a 3-4% discount to NTA to reflect the dilutionary effect of the warrants about to be issued but current trading ex rights to that issue. I see fair value after the drop on the Dow overnight at about $1.50. Fund manager at KFL is very good but they're not magicians.

[caveman]

Historically KFL have always seemed a bit dodgy with many past 'dividends' really being a return of capital (minus fees etc). However, in the last year or so, EPS have exceeded divs. The volume and premium recently paid in this current environment is still a bit suspicious. Probably time to get out of the DRP. Be interesting to see what happens ex-div.

Disc I have a legacy holding of these - did ok thanks to timing.

[justakiwi]

Out of curiosity, what price would tempt you to buy KFL currently? Not talking to anyone in particular - just looking for opinions.

[winner69]

Out of curiosity, what price would tempt you to buy KFL currently? Not talking to anyone in particular - just looking for opinions.

Bit below NAV today so reasonable price

Seems they can’t go wrong with ATM and FPH a big chunk of their investments

[Beagle]

Yeah they are doing well but an investment in KFL is likely to give you a slightly above market return but the likely return of the market in the near future makes the KFL warrants a better buy in my opinion. 6 cents of so gives you the option, (but without any obligation) to buy shares at about $1.51 ($1.64 less 4 quarterly dividends) on 10 March 2021. By March 2021 we might have a much clearer picture of where we are with Covid 19. Its a crapshoot though. Those warrants might be worth 6-50 cents or they might be worth nothing.

I bought a few warrants yesterday...ticker KFLWF.

[justakiwi]

Yeah but if things turn to custard and KFL decides not to pay one or more dividends, that will make the warrants expensive to exercise won't it? I doubt that will happen but who knows.

Yeah they are doing well but an investment in KFL is likely to give you a slightly above market return but the likely return of the market in the near future makes the KFL warrants a better buy in my opinion. 6 cents of so gives you the option, (but without any obligation) to buy shares at about $1.51 ($1.64 less 4 quarterly dividends) on 10 March 2021. By March 2021 we might have a much clearer picture of where we are with Covid 19. Its a crapshoot though. Those warrants might be worth 6-50 cents or they might be worth nothing.

I bought a few warrants yesterday...ticker KFLWF.

[Beagle]

They pay divvies whatever the market conditions.

[justakiwi]

I figured they probably would so good to know.

They pay divvies whatever the market conditions.

[Not too Flash]

Interestingly the top 5 holdings now make up close to 70% of the portfolio - FPH, MFT, ATM, IFT, SUM.