Since you are looking for facts..here is the most important one for you. My return (dividends) on capital invested (including brokerage) in BRM is averaging at 10.06% per year AFTER TAX has been deducted. Its also holding a capital gain for me. So my opinion is, as I said, coloured by my facts. If you choose the appropriate set of facts and package them in selected circumstances its possible to make even TRS look positively wonderful and Xero the safest investment you could ever find. I'm sure you and Balance et al are right (in your own minds) but that particular location is for you and isn't my desired habitat so I'll leave you to your own devices and investment strategies. Ignore the noise and count the dollars is my way. Also bear in mind that a capital loss is not actually realized until its actually sold. I've had investments that showed losses for ages and 90% have recovered. In the interim they have continued delivering dividends. Its a big picture and change is always happening. You have to find your own way.
Quote Originally Posted by nextbigthing View Post
Thanks BB. It's going ok. I'm enjoying it and doing well. Cheers.

Here's some factual things I think are worth considering.

BRM started paying a regular dividend in Sep 2009 (http://www.barramundi.co.nz/barramundi-performance/)

The NAV of BRM has gone from approx 85c in Sept 2009 to 71c in Feb 2014, as per the NAV History link on that same page. A decrease of 14c.

During that period they have paid approx 30c in dividends (same initial link).

So 30c dividends minus 14c in capital value loss leaves a 16c overall gain for the period (of approx 4.5 years).

16c / 4.5 years = 3.5c effective return P.A. per share.

So if you had purchased the shares at this time (2009), the historical price was around 75c.

3.5c / 75c = 4.7% return.

Hardly spectacular IMHO. I have no doubt you could do better yourself BB!

Taking the situation a few years back to the initial price of $1 only makes it worse as you add many more years but only one extra 2c dividend payout.

As you say, timing is everything. Snapiti has done very well getting in at 37c. He is one of few though (well done Snapiti).

I'm happy to be proven wrong - given this very average historical performance and no obvious change on the horizon, sticking to facts not opinion, what makes you say this is a buy right now?

Cheers,

NBT

PS I appreciated you've previously said that 62c is below the average price and therefore it's cheap. Winners post earlier showed it is trading at its usual discount to NAV and therefore it's technically not cheap, it's exactly the effective price it always is on average (relative to current NAV).