Barramundi ( BRM )

[percy]

I can show you a way to get a much better yield from your bank term deposit.

1/ Invest $10,000 at 2% pa
2/ At the end of the year you have $200 in interest due (yay).
3/ Pull out $1,000 of your capital and just reinvest $9,000 for the next year.
4/ The yield on your $10,000 one year investment becomes:

($1,000 + $200) / $10,000 = 12% !!!!!!

Absolutely fantastic, and here is the rub. BANK STAFF WILL NEVER TELL YOU THAT YOU CAN DO THIS! I cal it 'Doing a Carmel'

snoopy

You would be a lot better off doing a "percy," and not only receiving a good divie,but enjoying a huge growth in your capital
Combined ,over 60% in the past year.
Always better to own the bank,than having money in the bank,when the bank is Heartland.
ps Figures used are from Yahoo finnance.

[Joshuatree]

I agree ; no comparison; hold heaps of Heartland.

[percy]

I agree ; no comparison; hold heaps of Heartland.

Therefore you are "well positioned."

[Balance]

I can show you a way to get a much better yield from your bank term deposit.

1/ Invest $10,000 at 2% pa
2/ At the end of the year you have $200 in interest due (yay).
3/ Pull out $1,000 of your capital and just reinvest $9,000 for the next year.
4/ The yield on your $10,000 one year investment becomes:

($1,000 + $200) / $10,000 = 12% !!!!!!

Absolutely fantastic, and here is the rub. BANK STAFF WILL NEVER TELL YOU THAT YOU CAN DO THIS! I call it 'Doing a Carmel'

SNOOPY

http://www.ebusinesspacific.com/inde...tes&Itemid=345

Fisher Funds could have done the decent thing and gave unit-holders their money back at NAV to reinvest elsewhere.

Of course there was NO way Fisher was/is going to do that and miss out on the juicy fees for mismanaging the fund with negative returns.

So much for 'really caring about her investors'.

[Bob]

Now have Xero in their stable a good share for newcomers to investing currently 28 Aussie companies well diversified earning you 9% four dividends per year with DRIP operating, no risk with this one at current prices

[Beagle]

I can show you a way to get a much better yield from your bank term deposit.

1/ Invest $10,000 at 2% pa
2/ At the end of the year you have $200 in interest due (yay).
3/ Pull out $1,000 of your capital and just reinvest $9,000 for the next year.
4/ The yield on your $10,000 one year investment becomes:

($1,000 + $200) / $10,000 = 12% !!!!!!

Absolutely fantastic, and here is the rub. BANK STAFF WILL NEVER TELL YOU THAT YOU CAN DO THIS! I call it 'Doing a Carmel'

SNOOPY

Now have Xero in their stable a good share for newcomers to investing currently 28 Aussie companies well diversified earning you 9% four dividends per year with DRIP operating, no risk with this one at current prices

Great a company that's not making money bought right at the peak XRO. They also have NAB as a much larger holding currently under the pump.
There is no evidence that this fund manager has added any value to unitholders. The SP of BRM has more or less been in steady decline for the last 5 years. I suggest anyone contemplating this company should bring up a five year share price chart and have a good long look. A picture speaks a thousand words ! 71 cents 5 years ago, now 59 cents. What Snoopy and Balance have suggested is how it really is. The dividend yield is artificially propped up through repayment of capital.
This will always trade at a LARGE discount to asset backing because it has incompetent heavily overpaid management who have dug themselves into an intransigent position from which shareholders can't extricate themselves without selling on market.

[Joshuatree]

Now have Xero in their stable a good share for newcomers to investing currently 28 Aussie companies well diversified earning you 9% four dividends per year with DRIP operating, no risk with this one at current prices

Certainly at THIS price its great yield play as are MLN marlin and kingfish KFL, take your pick. Xero has recovered Roger and looks to be on another up cycle, NAB will recover as the big 4 always do.

[winner69]

Interesting BRM hasn't traded at its current discount to NAV for zonks

Currently discount is 15% v the long term average of 8.8%

Believe it or not gurus who trade these sort of funds have a thing called a z-stat to see who valuations are going ....and on that measure BRM is a SCREAMING BUY at the moment

Historical chart below

Discount to NAV generally represents the NPV of future management fees. With BRM excessive fees say 6% to 7% discount seems fair ....which means that the market seldom rewards BRM a premium (over this) for their superior stock pricking skills

Then again this time it may be different ...a SCREAMING BUY .....pick up the difference to NAV and what it may go up by as well as the divie and maybe a few bonuses

[Beagle]

I would argue that if one looks at their fees of 1.25% per annum, (going off memory) and capitalize that by 10 then a discount to NAV should be 12.5% if you think they can match the Australian indices, more if you think they can't. I would therefore argue this is not a buy and feel sorry for investors silly enough to be duped into thinking the dividend yield is sustainable without ongoing capital erosion.
This is a classic value trap in my opinion.

[Balance]

I would argue that if one looks at their fees of 1.25% per annum, (going off memory) and capitalize that by 10 then a discount to NAV should be 12.5% if you think they can match the Australian indices, more if you think they can't. I would therefore argue this is not a buy and feel sorry for investors silly enough to be duped into thinking the dividend yield is sustainable without ongoing capital erosion.
This is a classic value trap in my opinion.

BRM underperformed (to put it mildly) the Oz market by 18.25% in the last 2 years.

In the last two years, S&P/ASX 200 up 14.2% (5351 to 6110), while BRM is down 19% (73c to 59c) & total dividends paid totalled 10.77 over the 2 years (14.75%).

Let's not go back to 2006 when BRM was issued for $1.00!

Only mugs invest in this kind of fund.