Barramundi ( BRM )

[Beagle]

Fisher funds do a good job although I’m not so sure on ANZ! I used to own kingfish marlin and barramundi

What’s the advantage of warrants? Dead cost if you don’t exercise them. I must be missing something??? Can you please explain the logic behind warrants rather than purchasing shares directly

https://www.barramundi.co.nz/assets/...Terms-2020.pdf Warrant terms and conditions.

Note - The future exercise price will be adjusted for the dividends paid in the next year. Yesterday at the annual meeting the possibility of the exercise price in late October 2021 being 64 cents was discussed. Buying warrants now at say 11 cents plus 64 cents a year from now converts to shares and at a total cost of 75 cents this is considerably cheaper than buying the shares now at 82 cents.

There are other benefits such as leverage and risk management.
Outlaying just 11 cents now you benefit from all the upside potential in a share worth 82 cents over the next year, (leverage) but if the world goes to hell in a handbasket the most you can lose is 11 cents, (risk management).

I really like the diversification this brings to my portfolio. I also really like the risk management aspect warrants bring to my portfolio especially in these uncertain times.