KFL - discount to diluted NAV

**Sideshow Bob** · 08-12-2023, 09:42 AM

https://www.nzx.com/announcements/423146

DRP at $1.1308

**bull....** · 08-12-2023, 10:59 AM

Originally Posted by Sideshow Bob

https://www.nzx.com/announcements/423146

DRP at $1.1308

huge discount to NAV , what are these muppets doing they should close the gap instead of giving away free money

**ronaldson** · 08-12-2023, 01:04 PM

I have posted previously about selling sufficient shares each quarter once they go ex dividend to yield a sum equivalent to the cash dividend, whilst still participating in the DRIP programme and receiving shares at the discount rate.

I completed this exercise with two holdings managed by me in relation to the current dividend by selling sufficient on market after the ex date at $1.17 (allowing also for the Jarden trade fee of $29.90 incurred ) to yield cash equal to the dividend, and now that the DRIP price is ascertained it is evident one account is 51 shares better off (once allotted on 15 December) and the other 112 shares better off. In both cases with a T + 2 settlement the cash is received days before the actual dividend payment date.

May be only a minimalist gain but it is available four times a year. You need quite a number of shares as a holder for this to be reasonably practicable - say 100k or so - but it doesn't take much effort and is relatively low risk given the 3% discount rate.

**alokdhir** · 08-12-2023, 09:59 PM

DRP $ 1.1304 is even better then my rough calculations ...seems ma'am helped here too with her relentless selling ...hopefully she has enough cash now to celebrate her Xmas ...lol

**alokdhir** · 14-12-2023, 08:36 AM

Today is NAV day ...expecting $ 1.28+ ...which will still show more then 6% discount ...got no buyback yet from KFL ...shud start after divvy / DRP shares allotments done ...near term if market is supported which it seems it will ( Expecting a hugely positive Friday on index rebalancing day ) then SP shud move to 1.22 + to get below 6% discount to NAV ...if any can foresee ahead then I think they will agree that by next year this time we will have a much rosier NAV / SP

**bull....** · 14-12-2023, 10:52 AM

so no buyback purchases from them ever ?

**alokdhir** · 14-12-2023, 07:06 PM

No need buyback from KFL ...market will close the gap pretty soon ...today all KFL growth stocks big up ...I reckon NAV up 2-3 cents today itself

NZ 10 Y down to almost 4.5% ...US 10Y below 4 % ...this theme of rates coming down fast will get entrenched and markets will ZOOM ...KFL will outperform with its blue chip growth portfolio ....