Barramundi ( BRM )

[patsy]

quote:Originally posted by Bobby_Fischer

A 24.5% gain on IPO. Predicated on what exactly? They haven't invested in anything yet.

If this is true, then the market is very irrational given that KFL is trading at a discount. It seems that the market is inconsistent in attributing value to the management company.

[ratkin]

No doubt they have been buying but are yet to trigger the 5% on anything. Strange the sp keeps going up, maybe some people know more than us.

Im wondering if they may have bought into IBA in the last few days, was a massive clearout last few days, may be too high tech for fisher, although they went for Rakon

[croesus]

If not them, and probably not.. could be a bit spec for Barramundi.. I wonder who has been buying all those IBA, up 4c on good turnover today

[ratkin]

yep, sellers have been cleaned out now. Should be upward and onward for IBA
They not really that speccy though, may not be boring enough for fisher though. They have probably found a retirement home to invest in !!

[Footsie]

IBA is a great story... MBL have a few screws loose i think selling at this early stage

[Ttops]

quote:Originally posted by Bobby_Fischer

Managed to get a few of these in the IPO. On last sale price, one share plus 1/2 a warrant is worth 1.245. A 24.5% gain on IPO. Predicated on what exactly? They haven't invested in anything yet have they, and have 98.1 cents per share (+ 1/2 warrant) in the bank. Must be doing Carmel's ego some good, I reckon.

Have to say it's proving pretty difficult to resist the temptation to take the money and run.

Hi BF
98.6 cents excluding performance fees now. 99 cents diluted of course. Sp is oscillating wildly but a few intelligent punters have taken your advice. Wildly optimistic are the warrant holders buying at present imo. Still no idea what she has bought? KFL had a similar peak of suicidal buying which quickly subsided early on. Take your own advice and take the money and run for now.
TT

[COLIN]

I can't believe the irrational exuberance being displayed on this one, so I have done the sensible thing and sold both my BRMs and my BRMWAs. The premium to NAV (taking heads plus options)is totally unsupportable, given that they haven't yet even recouped the issue costs. Who is leading these investors by the nose? I have every faith that Carmel and her merry men will do well - for themselves and investors - with this venture in Australia, but why should the BRM package sell at a significant premium when the KFL package sells at a significant discount? People will say that BRM provides potential for forex gains when the NZD does eventually settle down to more realistic levels against the AUD, but there are plenty of other ways of positioning for that gain without paying an outrageous price for shares or warrants in an investment company. If BRM were planning a portfolio of speculative investments - in oilers or biotechs or whatever - there might be some justification for a 30% premium, but I see nothing in the prospectus that would lead me to believe that that is what they are planning. I suspect that the BRM portfolio will turn out to be similar to their existing Kingfish Aussie Growth Fund.
I bought KFL at a satisfactory price after all the hype had cleared away, and I can see myself getting back into BRM some day on the same basis. Meantime, I am happy to pass the baton to someone who thinks they can find someone who is even more stupid, in due course!

[Ttops]

[quote]Originally posted by COLIN

I can't believe the irrational exuberance being displayed on this one, so I have done the sensible thing and sold both my BRMs and my BRMWAs. The premium to NAV (taking heads plus options)is totally unsupportable, given that they haven't yet even recouped the issue costs. [quote]


Hi Colin
I wonder when we will get an indication of how much Carmel has bought and exactly what the securities are. Until then I guess the majority of shareholders who got BRM were KFL holders like yourself so are happy to wait and trust. I have heard of many who missed out and perhaps it is simply their frustration at the lack of sellers that causes the sp to climb irrationally? Who knows. Congrats on a rational decision Colin and a handsome profit which has been a bit of good luck. [^] I wish I could have predicted this but how can you predict irrationality?
TT

[ratkin]

See their three main holdings are

Arrow Energy (increase in value since purchase 28%)
- Credit Corp Group
- Vision Group Holdings

Pleased i didnt get any now as Vision group already a large part of my portfolio so would of been doubling up.

Interesting that ther holding of arrow energy has risen 28% yet their nav is still only 0.99

[gisborne_gold]

I still don't understand why BRM would be trading above asset value. Kingfish trades below, as do most other funds it seems. Supply and demand, yes I know, maybe they've tapped into an under-supplied demand amongst kiwi punters for easy access to Australian stocks. But the premium being paid seems extraordinary.