KFL - discount to diluted NAV

[ronaldson]

NAV at $1.43, share price at $1.27 so over 11% discount. No wonder the Manager keeps buying on-market. A good entry point in my view given we have entered the era of falling interest rates which will ultimately buoy the market overall. Just need to see out the balance of the calendar year, when economic data will likely remain subdued.

[bull....]

getting savaged ... we all know why

[winner69]

getting savaged ... we all know why

Punters thinking no more rate cuts this year?

[Toddy]

getting savaged ... we all know why

Our exec mates down at HQ in Penrose won't give a toss as long as their Xmas bonuses are rolling in.

It doesn't make sense to sell good performing stocks to participate in a dog with fleas.

Take the hit on the FBU dilution and keep your secure investments that give your real returns. That's the money strategy in my opinion.

[mike2020]

KFL don't hold FBU. Why would they want to now? Are people selling KFL and other worthwhile investments to buy into the raise at FBU? I find that questionable if it is the case. Otherwise, I am missing something here.

[Toddy]

KFL don't hold FBU. Why would they want to now? Are people selling KFL and other worthwhile investments to buy into the raise at FBU? I find that questionable if it is the case. Otherwise, I am missing something here.

It's the wisdom of the investors. If you have ridden FBU for years then the same wisdom would be put in practice by those same blind investors. So yes, they are so emotionally tied to the FBU train wreck that they would carry on making irrational investment decisions and sell winners for, well, a loser.

Just my observation. That's my take on the negativity once again handed to the market by the FBU boys club.

[Ohdoyle]

NAV at $1.43, share price at $1.27 so over 11% discount. No wonder the Manager keeps buying on-market. A good entry point in my view given we have entered the era of falling interest rates which will ultimately buoy the market overall. Just need to see out the balance of the calendar year, when economic data will likely remain subdued.

Discount over 12 percent at close today by my calculations. Still less than the barramundi discount which is currently consistently over 15 percent.

I keep on piling in based on the discounts but if I don't stop soon they will end up my whole portfolio ......... Bit boring.

[bull....]

where's the money coming from to do buy-back's

[ronaldson]

where's the money coming from to do buy-back's

Good question. And if there is readies on hand why not apply more on-market on any given day?

Dividends might be one logical answer but would you not take the DRIP on every available opportunity if you were the fund manager? I didn't look at the "basket" to see which of the holdings do that but it should be some.

[Sideshow Bob]

where's the money coming from to do buy-back's

At 31/3/24 they had $4.9m in cash.

In the previous year they received $9.4m in dividends.

Sold $73.7m of investments. Bought $53.4m of investments. Paid out (net of reinvestment) $23.0m.