KFL - discount to diluted NAV

[mike2020]

Theoretically...yesterdays NAV is around 1.45. So, anyone buying at 1.27 had/has an 18 cent discount (fast numbers)

Say we get another 75 bp cuts by feb and the NAV goes up a humble 10 cents and the gap closes to 6%, which isn't unreasonable, and you get two 3 cent tax paid divs...what does that work out at from$1.27?

20% tax paid gain in 5 months. Idle speculation....

A genuine optimist might have extrapolated that out to a 12 month and added a comparison to TD rates.

[alokdhir]

Theoretically...yesterdays NAV is around 1.45. So, anyone buying at 1.27 had/has an 18 cent discount (fast numbers)

Say we get another 75 bp cuts by feb and the NAV goes up a humble 10 cents and the gap closes to 6%, which isn't unreasonable, and you get two 3 cent tax paid divs...what does that work out at from$1.27?

20% tax paid gain in 5 months. Idle speculation....

A genuine optimist might have extrapolated that out to a 12 month and added a comparison to TD rates.

U r right on all counts ...I didn't want to say the same thing again and again ...but coming from u makes it more valuable ...lol

Today's NAV will be recent record surely $ 1.45+ , makes $ 1.27 look very tempting and more then 12% discount ...unlike BRM no immediate dilution fear around rather a new favourable warrant issue soon ...maybe in next 2-4 months I reckon ...win + win + win ....



PS : I hope W69 noticed Vulcan shoot up yesterday ...he was not happy with this acquisition ...lol

[alokdhir]

KFL nav close to $ 1.47 ...SP at $ 1.27 .....

[777]

KFL nav close to $ 1.47 ...SP at $ 1.27 .....

Buy back continuing on all three funds announced today.

[alokdhir]

Record closing for KFL nav ...estimated over $ 1.475 ....

[mike2020]

Record closing for KFL nav ...estimated over $ 1.475 ....

I honestly can't remember if I said $1.50 by this Christmas or last, if it's this one then I might have nailed it.

[Kryptor]

I'm puzzled by the conversation in this thread with respect to NAV.

So called nav has nothing to do with the underlying value of the underlying holdings, it's just a measure of the current share prices of the holdings.

What if the share prices of the underlying holdings are massively overvalued? What if the share price of AIA for example is $100?. That would boost the so called nav but is no signal of whether one should buy KFL.

The only rational measure of what KFL is worth is the value of the holdings based on one's valuation and not the current share prices.

A conversation on the price of KFL compared to the prices of its holdings is useless.

[SPC]

The net asset value of KFL is the market value (liquidable) of the assets it holds. KFL can liquidate those assets at their market value. The stated NAV is correct.
Therefore the measure is correct.
This holds for the disposal of any asset on an open market. KFL can neither buy or dispose of those assets at the suggested 'undelying value' as no such market exists.
My car's value is the some of its parts on a open market not the individual value of those parts.
Problem solved.

[mike2020]

I'm puzzled by the conversation in this thread with respect to NAV.

So called nav has nothing to do with the underlying value of the underlying holdings, it's just a measure of the current share prices of the holdings.

What if the share prices of the underlying holdings are massively overvalued? What if the share price of AIA for example is $100?. That would boost the so called nav but is no signal of whether one should buy KFL.

The only rational measure of what KFL is worth is the value of the holdings based on one's valuation and not the current share prices.

A conversation on the price of KFL compared to the prices of its holdings is useless.

You should have stopped at I'm puzzled. KFL is a div payer and a growth stock that performs well in a low interest rate environment, which we at the beginning off, apparently. It has a history of trading either side of it's NAV. So current discount is of some relevance.

[ronaldson]

Agree with SPC.

And the conversation with respect to NAV is more relevant than in the case of most market holdings, because each quarterly dividend is always calculated based upon the then current NAV ( being predetermined at 2% of that calculation when it is announced).