Barramundi ( BRM )

[alokdhir]

Very soon Head share may become cheaper then warrant's option ...lol

At present thru warrant route is 64+ 36 = $ 1.00

At NZX its $ 1.03 ....just 3 cents left to bridge ...

[Beagle]

VWAP of the shares so far today is $1.0479 which suggests a fair market value for the warrants of $1.0479 - 64 cents = 40.79 cents and no brokerage is payable by investors on the 64 cent exercise. Shares issued with the exercise of the warrants on 29 October will be eligible for the December quarterly dividend.

[alokdhir]

Keep watching this space for next 45 days till the exercise date of 29th October ...Then observe how the dynamics of that date changes SP of both Headshare and Warrants ....

Both will be at their lowest point 10 days before exercise ....IMHO

[Beagle]

Keep watching this space for next 45 days till the exercise date of 29th October ...Then observe how the dynamics of that date changes SP of both Headshare and Warrants ....

Both will be at their lowest point 10 days before exercise ....IMHO

Maybe, maybe not. Some hound has a lot of dry powder and thinks that Barramundi management are doing a fantastic job, the Australian market is fundamentally much better value than the NZX and these give an awesome tax free dividend yield.

[alokdhir]

[QUOTE=Beagle;909715]Maybe, maybe not. Some hound has a lot of dry powder and thinks that Barramundi management are doing a fantastic job, the Australian market is fundamentally much better value than the NZX and these give an awesome tax free dividend yield.[/QUOTE

In my numerous experiences with these warrant issues I have noticed that in the last 30 days the technicals of the demand and supply takeover fundamentals completely ...as too many are trying to complete their trades before expiry

[JeffW]

VWAP of the shares so far today is $1.0479 which suggests a fair market value for the warrants of $1.0479 - 64 cents = 40.79 cents and no brokerage is payable by investors on the 64 cent exercise. Shares issued with the exercise of the warrants on 29 October will be eligible for the December quarterly dividend.

Possibly a dumb question, but would not the Head Share be expected to fall a little once the warrants are exercised, to take into account dilution effect, especially as the shares are trading at a premium?

[Beagle]

Possibly a dumb question, but would not the Head Share be expected to fall a little once the warrants are exercised, to take into account dilution effect, especially as the shares are trading at a premium?

You would think so but that's not what I have observed over the years with various warrant exercises within the group. What I have seen suggests the exact opposite, that the head share price is not materially affected.

The market is saying that Marlin and Barramundi and also to a fair extent Kingfish's management teams are adding significant value with their consistent outperformance of the market over the last few years and therefore their shares are worth a material premium to asset backing based on the exceptional skills of the management team. I agree with the market's assessment.

One of my wealthiest clients (worth a heck of a lot of money), with decades of investment experience recently bought a sizeable allocation in Marlin based on their consistent and substantial outperformance over the years.

[Biscuit]

Possibly a dumb question, but would not the Head Share be expected to fall a little once the warrants are exercised, to take into account dilution effect, especially as the shares are trading at a premium?

The market will have anticipated the dilution by now, well before the warrants are exercised.

[alokdhir]

BRM buyers needed ...Mainly sellers only ...430,000 vs 18000 market depth in favour of sellers .

1.01 todays low ...Very soon Headshare cheaper then warrant route

[alokdhir]

BRM warrants dropping faster then Headshares ....If this goes for a week then we maybe able to get a deal around 25 cents on Friday ...