IMO this warrant issue will be in the money big time by next July end 2024 ...Exercise price will be around 1.37 minus 4 dividends of about 12 cents = $ 1.25
KFL SP in July 2024 maybe around 1.60 ...just my opinion ...so DYOR
This warrants shud add 3-5 cents value to SP till 5th July record date
Agree with alokdhir. These warrants should definitely be "in the money" at the exercise date.
And the exercise price is NOT $1.37 as some have commented, but will in fact be very close to alokdhirs calculation above.
We can all have fun now speculating at what price the warrants will trade when first listed.
nice brought the stock recently before div ex . the stock take off when nz stock market starts moving higher again. its a laggard at moment compared to other markets maybe next yr be its time in sun again. after election ?
nice brought the stock recently before div ex . the stock take off when nz stock market starts moving higher again. its a laggard at moment compared to other markets maybe next yr be its time in sun again. after election ?
Chat gpt? This seems out of character bull. You know it won't matter who's in the beehive, the reserve banks next rise post election plus the rise in jobless will provide your prime opportunity here.
The KFL Board have certainly looked after holders with this warrant issue. Currently the last reported NAV is $1.3643. Holders taking the DRIP this week will be allotted shares at $1.2711 which in turn will be eligible for the warrant issue on the record date, 5 July. In the interim shares will trade on market reflecting terms of the warrant issue. I think the closing price yesterday of $1.33 is not yet fully reflective of the value which should be attributed cum warrants (at 1 warrant for every 4 shares) and the exercise price which should be around $1.26 in due course.
KFL is in large part a yield investment and interest rates should be off their peak before the exercise date which will enhance the underlying attractiveness of KFL so it's possible these warrants could have significant value by July 2024 without any allowance for NAV increase in the intervening period.
My view is the actual early warrant price on-market will be more than the 8c predicted by SPC once trading settles.
Last four dividends are 11.30 Cents ...then Exercise Price on 26th July shud be 1.37-0.11 = $ 1.26
But if they become 11.50+ then it can be 1.37 -0.12 = 1.25 ..
Hopefully NAV will be going higher in next 12 months ...so chances of little higher dividend are good ...$ 1.25 most likely exercise price ...most attractively priced from recent history , as they are making sure its a BIG Success after full failure of last one ...lol
But that makes these warrants very attractive ...its free one year + call on NZ market ...which hopefully will be much higher in 13 months ...KFL NAV will outperform NZX50G rise as it has growth stocks which took bigger hit then dividend stocks on way down because of higher rates ...so when rates reverse or LOOK to reverse ahead market will rerate growth stocks with PER expansion
My guess/ estimate of warrant's high is 40 Cents ...30-40 cents in next 13 months
Keeping in view huge prospects ahead for these warrants ....IMO they shud start trading 10-15 cents range .....soon we will know
Chat gpt? This seems out of character bull. You know it won't matter who's in the beehive, the reserve banks next rise post election plus the rise in jobless will provide your prime opportunity here.
chat gpt doesnt do financials
i brought for yield , i think they will do everything possible to make the warrant issue a success as there dividend's depend on it i reckon
Originally Posted by fastbike
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