Bluestar Group (BLU020)

[Alan3285]

It is clear you paid the NZX amount per $100 on the date of interest capitalisation - 15 March 2010 and then paid the interest due up to settlement date (non-capitalised interest).

How did you get such a low trade fee? Is this standard?

On the trade fee, did you factor in the brokerage figure?

It looks about right if you add the two together?

Alan.

[Enumerate]

If I go to the NZX site, and check the current buy / sell offers, they are:

74% yield offers $31.156 per $100 nominal

61% yield costs $42.912 per $100 nominal

I think that is $35.156 (not $31.156)

Are you using the Reserve Bank bond pricing model in your calculations?

http://www.mngt.waikato.ac.nz/kurt/f...0Functions.xls

[Alan3285]

I think that is $35.156 (not $31.156)

Are you using the Reserve Bank bond pricing model in your calculations?

http://www.mngt.waikato.ac.nz/kurt/f...0Functions.xls

You are correct - a typo by me - apologies.

I am using the bond pricing model stipulated by the govt (treasury I think), which is what the NZX / Direct Broking etc all use (presumably to bring consistency into quotes).

I wasn't aware of the Waikato model you linked to, but I assume all they have done is taken the govt formula and restated it.

I would just note that I don't entirely agree with the 'standard' pricing model, since it does not properly take into account the time-value of money, but I fully support everyone using a standard model when discussing prices!

Alan.

[sleepdog]

does anyone know whats going on with BLU020 the value seems to be droping

[Enumerate]

What do you mean?

Are you referring to the calculation of the trade price from the percentage bid/ask quotes?

[Alan3285]

does anyone know whats going on with BLU020 the value seems to be droping

As of now, the best price you can purchase them at is a yield of 61%.

This is a higher price than the last few weeks, but still pretty good value perhaps.

Alan.

[sleepdog]

yes it seems to have taken a sudden drop

[Alan3285]

yes it seems to have taken a sudden drop

I'm not sure what you are looking at.

As I said above, the best offer today was 61%.

Last week, from memory, you could pick it up at 75%, so the best offered price on the board has gone up in the last week.

The last trade was actually at 60%, whereas last week, most trades were around the 75% - 80% (again from fallible memory), so everything is pointing to the price rising recently, not falling.

Depends on what period you are looking at of course. It is cheaper today than it was a year ago I think.


What are you looking at that is making you think the price has fallen?

Alan.

[Enumerate]

Remember - the quotes are given as a % return - a "drop" is in fact the price going up.

[Alan3285]

Remember - the quotes are given as a % return - a "drop" is in fact the price going up.

Yes, of course, but Sleepdog is saying that the value has dropped:

does anyone know whats going on with BLU020 the value seems to be droping

It doesn't look that way to me. It isn't even 'droping'

Might just be a misunderstanding you mean?

Post back Sleepdog, and reference the stats you are looking at, and we can work out what is happening. If it is dropping and I haven't noticed, then I would like to know!

Alan.