Well if everybody else wants a piece I'm sort of thinking stay away! Herd them lemmings up.!
I am with you Birmanboy on this. A projected yield of some 5% in what promises to be a manipulated market between milk price and added value to assure the survival of some overleveraged farmers does not sound attractive to me. I guess stick a credible brand name -Fonterra - on a proposal and some people will invest whatever the underlying fundamentals of the business proposition. It is a pity that more non-farmers did not get behind NZS which looks like it might be taken out by overleveraged farmer shareholders facing an uncertain milk payout in NZ having to sell down to ensure their own survival.
In just two years, and while acknowledging some development risk that has mostly been dealt with, the projected yield from dairy farmer NZS was going to be nearly double that of this Fonterra proposal.
There will be a time that these Fonterra quasi-shares will be worth looking at. But amidst the IPO hype is not that time.
SNOOPY
discl: Offered some Fonterra shares and declined the offer.
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
If you can get $10,000 worth of units, then you might make $500, then deduct commission, and then watch out for IRD wanting to take 30% of your stag.
Exactly my point $350 net for 1/2 hours paper work and thats if you only got $10000 worth!
The counter argument would take account of the risk involved - not completely risk-free however "certain" it may appear that the units will trade at a premium - plus the opportunity cost of not investing the $10,000 elsewhere for whatever period is involved.
the counter argument would take account of the risk involved - not completely risk-free however "certain" it may appear that the units will trade at a premium - plus the opportunity cost of not investing the $10,000 elsewhere for whatever period is involved.
Well my point is if you flicked them you've held for minimal time with a fair chance of a premium on listing what else can you invest in that compares with that?
I got my prospectus in the mail today and it said to call about getting a "firm offer".
I called up, got my firm offer and then posted away the acceptance form.
Now... what possible economic factors outside of the control of NZ exporters could make exporting substantially more profitable... I guess we'll just have to wait and see
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