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19-01-2021, 12:20 PM
#431
Originally Posted by Beagle
Hindsight is always 20/20 and often as useless as a fortune cookie in predicting the future. All funds have well and truly beaten their respective indices after all expenses, fees and taxes over the last few years. You can't realistically ask for more than that. Posted 27/11/2020
Update. These have been trading at quite a substantial premium to NTA, latest share price $2.04 at time of posting and last reported NTA was $1.85 as at last Wednesday, (and the market has dropped a fair bit since then).
I do not feel such a premium is warranted. I would not be concerned if the premium was 2-4% but it is currently well north of 10%, (adjusted for warrant exercise) and I feel that is unjustified as KFL have not outperformed their benchmark as much as the other funds Barrmundi and Marlin. I made my own assessment over the holidays that the warrants were not worth the 44-45 cents they were priced at, (at one point), and sold them all.
I remain of the view that the Barrmundi warrants are an excellent hold at around 21 cents.
Good luck to holders.
Last edited by Beagle; 19-01-2021 at 12:27 PM.
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
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19-01-2021, 12:36 PM
#432
So you are choosing not to exercise any KFL warrants in March? If exercise price is around $1.51 as estimated, surely that’s a decent discount even if the SP was down to where you feel it should be?
Just curious as I plan to exercise the few warrants I have.
Originally Posted by Beagle
Update. These have been trading at quite a substantial premium to NTA, latest share price $2.04 at time of posting and last reported NTA was $1.85 as at last Wednesday, (and the market has dropped a fair bit since then).
I do not feel such a premium is warranted. I would not be concerned if the premium was 2-4% but it is currently well north of 10%, (adjusted for warrant exercise) and I feel that is unjustified as KFL have not outperformed their benchmark as much as the other funds Barrmundi and Marlin. I made my own assessment over the holidays that the warrants were not worth the 44-45 cents they were priced at, (at one point), and sold them all.
I remain of the view that the Barrmundi warrants are an excellent hold at around 21 cents.
Good luck to holders.
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19-01-2021, 01:09 PM
#433
Member
Originally Posted by justakiwi
So you are choosing not to exercise any KFL warrants in March? If exercise price is around $1.51 as estimated, surely thats a decent discount even if the SP was down to where you feel it should be?
Just curious as I plan to exercise the few warrants I have.
At what price is it better to exercise the warrants and sell the shares as opposed to just selling the warrants? Mr B told us he bought them at 6c
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19-01-2021, 01:34 PM
#434
If one had the money to buy up a large number of warrants @ $0.06 each, one could make a significant profit selling them down the track @ $0.41 (today’s price). Mr B no doubt did very nicely. But warrants issues can be risky and there are no guarantees the warrant price will do what these have. Having said that, I seriously wish I had bought a few
One could choose to do as you suggested - exercise the warrants, keep the cost of exercising, and sell the rest at a “profit”, but again, you need to have a fair few to warrant doing that. I think it is more about how many you hold than what the price is - if I were to do that with my very small number of warrants, I might make $250 profit, but keeping those shares would be more beneficial to me in the long run.
Originally Posted by FatTed
At what price is it better to exercise the warrants and sell the shares as opposed to just selling the warrants? Mr B told us he bought them at 6c
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19-01-2021, 03:55 PM
#435
At present with KFL current NAV around 1.84 ( coming Thursday's ) thus making its diluted NAV less at least 6 cents further ...total premium of around 25 cents via KFL shares and thru warrant route its premium of 12 cents !!
This is very steep premium to pay for trying to get regular income as when situation will change in about years time then SP of KFL will most likely revert to its long term ways ie 2-3 cents discount .
Loosing 25 cents for 12-15 cents of dividends doesn't look very appealing .
Warrants fair price should be close 30-32 cents IMHO
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19-01-2021, 05:20 PM
#436
FYI - I estimate the current NTA of KFL at $1.81, (market has moved down since last Wednesday) and fair value of the warrants is currently about 30 cents.
These are fair values based on NTA but the market is currently attributing a large premium to NTA to KFL shares. Whether this sized premium is an enduring phenomenon remains to be seen.
If I was in your situation Justakiwi it might be worth exercising them and seeing if the shares stay at about the current level in which case $1.51 + 0.41 = $1.92 and with the shares at $2.03,, you could do pretty well.
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
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19-01-2021, 05:26 PM
#437
That’s my plan. I am only exercising my allocated warrants - I didn’t buy any extra, so cost to me is just the exercise price. Best way for me to build my holding, along with DRP. I’m happy.
Originally Posted by Beagle
If I was in your situation Justakiwi it might be worth exercising them and seeing if the shares stay at about the current level in which case $1.51 + 0.41 = $1.92 and with the shares at $2.03,, you could do pretty well.
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19-01-2021, 06:20 PM
#438
Originally Posted by justakiwi
That’s my plan. I am only exercising my allocated warrants - I didn’t buy any extra, so cost to me is just the exercise price. Best way for me to build my holding, along with DRP. I’m happy.
A good way to build wealth over time.
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
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20-01-2021, 10:17 AM
#439
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
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22-01-2021, 05:01 PM
#440
Just checked again with company ....Warrant converted KFL not eligible for March divvy as allotment date is 17th March which is after ex divvy date of 13th March !!!
So thought to let all warrant holders and buyers to know this info ...divvy is expected to be around 3.75 cents for March qtr
Warrant converted KFL gets first divvy in June qtr
Last edited by alokdhir; 22-01-2021 at 05:04 PM.
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