wow doing buyback im in shock shock anyway if they dont raise the warrant funds they have to keep selling more portfolio to pay div's thus driving down nav and div's in an ever downward spiral. thats what happens in a flat market folks.
..only if they were cancelled, which isn't the case. Same number of shares still in existence.
They are merely owned by the company temporarily rather than another holder. They'll be reissued and back in circulation next week.
A truckload will be heading my way.
ONLY IF CANCELLED or issued in lieu of new shares for DRP purposes ....as DRP wud have been issued new now they will issue from treasury stock thus not increasing the corpus resulting in small uplift in NAV ...please dont confuse buyback objectives with DRP objectives both work and have seperate goals ...DRP does reduce NAV as they being issued at huge discount these days but instead of issuing new shares based on current NAV ...provide treasury stock of buyback bought at 8% discount to NAV ...it works better for shareholders
PS : You use to get cash dividend as per your previous disclosures as u use to say I buy at my chosen price ...seems to finally realised the value of opting for DRP or maybe for current times only ??
Alokdhir I think you need to understand some basic mathematics.
The ONLY way the Net Asset value - NAV of ANY share can increase is either:
- the underlying value of the assets apportioned to that share increases;
- there is a reduction of the number of shares on issue- ie a share consolidation or buyback and cancellation.
No matter what price any buyer pays for the shares 'on market'- Kingfish corporate included, the number of shares remains the same. So does the NAV. Kingfish never cancel shares, they reissue them back to holders. They buy them cheap and 'sell' them (shares in lieu of cash) even cheaper to DRP participants. All holders will carry the cost of reissued and new shares issued at less than cost or NAV as the company is subsidizing them. We ARE the company. Simple as that.
Regarding me? Yes for this divided I have opted for shares issued at $1.18 instead of cash. Usually I take cash. In fact I have taken so much cash that my entire portfolio of KFL has already been fully covered by dividends received since 2006 and a few sales north of $1.60 a couple of years ago prior to the slump. Prudent portfolio management. I'm buying them back now.
My KFL portfolio is freehold. I would suggest to you that the last few years of DRP issued shares are worth less today than when they were issued in a falling market?. The cash isn't.
I've bought alot recently from cash dividends saved. As I've said in the past I don't play the generic kingfish game. They are just another share. You need to be at the steering wheel not the passenger seat.
So you know what works for you and I know what works for me.
Over and out.
SPC I dont need to reply to your post as it shows your complete ignorance about how overall NAV is calculated ....but still for the benefit of others who may be inclined to go with your hypothesis ...I will like to illustrate with an example
DRP is always in operation ...just for example lets take this quarter's numbers ...NAV is $ 1.3137 ...DRP price is $ 1.1848 ....KFL issues new shares @ $ 1.1848 worth NAV of $ 1.3137 thus reducing overall NAV to some extent
Now if they give same shares bought at $ 1.21 or so then total loss to corpus NAV is much less as they used treasury stock bought at 1.21 instead of issuing new shares which cost $ 1.3137 to them or to overall corpus ...thus reduction effect of DRP is much less if discounted shares bought in treasury operations passed on .
Hopefully now wont be need to explain simple maths . Passing treasury stock in lieu of new issued DRP stock is always beneficial to overall NAV as it doesn't further dilute the corpus . Doesn't look like Rocket science to me
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im in shock shock anyway if they dont raise the warrant funds they have to keep selling more portfolio to pay div's thus driving down nav and div's in an ever downward spiral. thats what happens in a flat market folks.
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