NZSX50 - Good News!

[waikare]

Yes agreed, I wonder why the NZX is so stretched compared to the other markets which are suffering from the same issues of lower returns on fixed income etc, after all this is a global issue.

Not that I wish to coattail the Beagle but how does one buy warrants on the ASX or even NZX for that matter?

BRM warrants (BRMWE) can be brought on the NZX up to the Wed 23rd Oct, final exercise date is 25th Oct

[Beagle]

Yes agreed, I wonder why the NZX is so stretched compared to the other markets which are suffering from the same issues of lower returns on fixed income etc, after all this is a global issue.
Not that I wish to coattail the Beagle but how does one buy warrants on the ASX or even NZX for that matter?

NZX is one of the highest yielding markets in the world. I guess its also seen as relatively politically stable too.

BRM warrants (BRMWE) can be brought on the NZX up to the Wed 23rd Oct, final exercise date is 25th Oct

Correct and final exercise price is 59 cents per warrant. At the last traded price of 3.4 cents, this gives warrant buyers entry into BRM shares at 62.4 cps, last traded price 64 cents and last reported NTA per share 71.55 cps. With movements in the ASX since last Wednesday I estimate the current NTA at about 72.5 cps so an entry at 62.4 cps is a very good delta to the NTA and a 1.6 cent difference to the share price.

I would buy more but for the fact that I have well and truly backed up the truck already.

[SailorRob]

NZX is one of the highest yielding markets in the world. I guess its also seen as relatively politically stable too.

Correct and final exercise price is 59 cents per warrant. At the last traded price of 3.4 cents, this gives warrant buyers entry into BRM shares at 62.4 cps, last traded price 64 cents and last reported NTA per share 71.55 cps. With movements in the ASX since last Wednesday I estimate the current NTA at about 72.5 cps so an entry at 62.4 cps is a very good delta to the NTA and a 1.6 cent difference to the share price.

I would buy more but for the fact that I have well and truly backed up the truck already.

Thanks Beagle, I'd never heard of them... Could you explain why on their own website their charts show their share price essentially flat for the last decade but when you look up NZX BRM on google for example it shows a very different trend with giant step changes upwards every now and then?

[Beagle]

Dividends will likely be the reason and BRM pays out huge ones. I hold for the reasons expressed in posts #649, (read whole post including the requote of the one I made earlier) and #652 https://www.sharetrader.co.nz/showth...420#post774420

There's probably not a lot of growth prospects here but the yield is tremendous and the value (both discount to NTA and the overall value proposition of the ASX relative to the NZX), gives encouragement to invest and diversify across the Tasman as well.

For me its about the exceptional yield. I can't change who I am and that's a dividend hound at heart
Heaps more about the company here https://barramundi.co.nz/

[SailorRob]

Great, yes I had just found that thread, will read both as you suggest. Thanks for the advice.

[Beagle]

https://www.goodreturns.co.nz/articl...or+15+Oct+2019

Top fund manager recommends being overweight Australasian equities. I thin k the ASX on a forward PE variously reported as being about 17 is good value for where the 10 year Govt bond rates are now (about 1%).

[Baa_Baa]

https://www.goodreturns.co.nz/articl...or+15+Oct+2019

Top fund manager recommends being overweight Australasian equities. I thin k the ASX on a forward PE variously reported as being about 17 is good value for where the 10 year Govt bond rates are now (about 1%).

Sure has/is a great long term ride, so long that there might be a few punters who’ve never experienced a decent reversal. The longer in the tooth are probably pretty clued up about getting out or riding it out and accumulating , Or getting back in when things improve. The queue at the exit when this turns to custard will be epic. I think the opportunity presented by a gut wrenching rout is becoming more appealing than chasing yields in an over priced and over extended market. I have no insights about when however, morseso just being prepared for what seems inevitable.

[Beagle]

For my money I won't buy excessively priced shares. If one concentrates on quality companies on reasonable multiples that's a lot more attractive than bonds or cash.
I refuse to pay excessive PE multiplies for moderate growth so avoid stocks that many other people think are a great bet like RYM, ATM, FPH, POT, AIA to name just five.
On the other hand if one is buying stocks like HGH with growth on a forward PE of about 12, SUM with strong growth on a forward PE of 13 to name just 2, with 10 year Govt stock at just 1% it would be a real stretch to say either of those stocks is overvalued. I think value investors will do much better when the market eventually corrects, whichever year that may be ?

Its all very well to be a prophet of doom but how are you going to get a return on your money while you wait and wait and wait, perhaps for many, many, many more years for the big correction you're looking for ? What's your strategy ?

[winner69]

CPI higher than expected and bank economists / commentators continue to talk up the need for more OCR rates next month ....and Orr will fall for it.

[greater fool]

Junk removed.