Barramundi ( BRM )

[Ttops]

]Originally posted by COLIN

quote:Original[quotely posted by 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.

I share your puzzlement, as per my posting of 24/11/2006. I do have a certain amount of admiration for the ability of Carmel and her team, and may be tempted to buy back in again, once (if) the price slips below NAV, but certainly not before then. There are better ways of hedging into the Aust. dollar.
[/quote]
Colin
By my calculations at $1.13 it is at a slight discount to dil NAV
Dil Nav is increasing rapidly at present. I note FF is buying BVA as it falls. Hope she knows what she is doing.
Lawso [:X] [:I]
TT

[Ttops]

Dil NAV about 1.13 down 1 cent.
BVA down 8% before recovering to be down 4%

[COLIN]

quote:Originally posted by Treetops

]Originally posted by COLIN

quote:Original[quotely posted by 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.

I share your puzzlement, as per my posting of 24/11/2006. I do have a certain amount of admiration for the ability of Carmel and her team, and may be tempted to buy back in again, once (if) the price slips below NAV, but certainly not before then. There are better ways of hedging into the Aust. dollar.

Colin
By my calculations at $1.13 it is at a slight discount to dil NAV
Dil Nav is increasing rapidly at present. I note FF is buying BVA as it falls. Hope she knows what she is doing.
Lawso [:X] [:I]
TT
[/quote]

TT - I am continuing to run with my investment in Carmel's Australian Growth Fund in lieu of BRM. With the managed fund I know that when the time comes to cash up I will get full NAV. The only attraction of the BRM route is to go for the leverage that the warrants provide, i.e. BRMWA, but I don't feel comfortable about the extent of the premium that these still carry - particularly when compared with KFL/KFLWA, even allowing for the longer term to expiry.

[Ttops]

Colin, Fair enough. Two questions if I may?
I thought the management fees would be comparable in BRM and FF? Is that what you mean by "full NAV"?

How do you calculate a premium for the BRMWA and roughly how much is it iyo?

I had assumed that less warrants (Half as many) might create more demand for BRMWA and account for the higher sp for BRMWA:BRM compared with KFLWA:KFL 34.5:114 cf 61.5:161 and also the time to run making holders less concerned about selling to preserve the market gains they have made. BRMWA have a 10:1 buyers:sellers on the depth

[lakeside]

I don't think the listed and unit trusts necessarily match eg KFLs equivalent has added
Infratil.

I notice Carmen doesn't invest in property stocks - not enough growth I suppose.

[Tim]

are their better listed trusts in aussie that covers smaller aussie companies

[Ttops]

Good Question? Dil NAV probably closer to 1.11 now. See tomorrow.

[rmbbrave]

Fisher Funds ups investment in Australia
3:30PM Friday June 08, 2007

Fund manager Fisher Funds has upped its investment in ASX-listed Australian growth companies five-fold.

In the past 12 months the firm says it has invested more than $350 million across the ditch, from $50 million in September last year.

It ranks as recent successes its stake in Credit Corp, a specialist debt collection business, whose share price has risen by over 240 per cent since the shares were bought in August 2005.

Coal seam methane producer Arrow Energy has also repaid the fund handsomely, with its share price rising from A55c to more than A$2.70 since March 2006.

Fisher's Australian Growth Fund has returned 19.4 per cent in the year to April 30 . The fund manager claims that when converted into Australian dollars, its performance would top all Australian-based equity funds investing in Australia.

Managing director Carmel Fisher said people were aware of the rise of the Australian resource sector in recent years, but there were also a surprising number and range of small, successful Australian companies .

"A lot of these companies are not well known, even to Australian investors, and therefore represent real opportunities for New Zealanders."

Growth companies, which historically deliver pay low dividends but deliver healthy capital gains, are thought to be especially attractive to New Zealand investors who cannot use Australian franking credits.

They also have stronger buying power thanks to the high New Zealand dollar.

http://www.nzherald.co.nz/section/3/...ectid=10444394

[rmbbrave]

07 Jun 2007 02:46
NTA: BRM: Barramundi NAV $1.1817 at 6 June 2007

The unaudited net asset value per ordinary share of the Company as at 6 June
2007 was $1.1817. The unaudited diluted net asset value per ordinary share
as at 6 June 2007 was $1.1211. This diluted net asset value describes the
effect if all warrants in existence were exercised today at $1.00. At 6 June
2007, 49,999,958 warrants remain to be exercised at any time between 26
October 2007 and 25 October 2009.

The net asset values above are after including accruals for any performance
fee payable to the Manager.

The unaudited net asset value per ordinary share excluding performance fees
as at 6 June 2007 was $1.2035 (fully diluted $1.1356).

The five largest portfolio holdings at 6 June 2007 are approximately as
follows:

Arrow Energy Limited 21%
Credit Corp Group Limited 10%
Aevum Limited 8%
Bravura Solutions Limited 8%
WHK Group Limited 6%

BACKGROUND
Barramundi Limited is a listed investment company investing in smaller
Australian companies listed on the ASX, and unlisted smaller companies. The
investment portfolio is managed by Fisher Funds Management Limited, a
specialist investment manager with a track record of successfully investing
in smaller company shares. Barramundi began operating on 26 October 2006 when
it allotted 100,000,000 shares and 49,999,958 warrants to applicants.

[Ttops]

BRM + BRMWA have put on 39% /annum, 26% in 8 months so doing well compared to FF Aussie fund imo noting that on April 30 the shares were 1.11 and .31 vitually the same as Friday.

I "think" they are at a slight discount to dil NAV at 1.11 as I get about 112+ on sketchy 2sf figures.

Anyway I'm interested in what the effect of our rising interest rates will be short term on BRM. It does appear that the NZ/Aus$ is more stable? They are still buying Aussie shares so this could counteract the exchange rate rate rising versus the Aus?? Any thoughts fellow ST's?

KFL seems to have suffered more than BRM and its at a clear discount to dil NAV. Better buying or worse in the current situation of rising exchange rates or is it really rising that much?? It was largely anticipated perhaps even if the economists didn't?
TT