Perhaps I should have added the premium for entertainment value of participating in the merry-go-round of artificially high dividends, dividend reinvestment plans, and warrant issues. Keeps life interesting, but there is a cost to all that friction.
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Yes....I've dined out extremely well indeed on Barramundi warrant issues over the years, fabulously entertaining stuff. Some very fond memories there.
P.S. and speaking of this...https://announcements.nzx.com/detail/391099
Exercise price of 89 cents (less dividends paid during warrant tenure), looks very ambitious to me but there could be something to "WAG" about at some point with these WG suffix warrants.
Interesting to note the fall in KFL NAV as follows :-
06/01/22 - $1.80
10/02/22 - $1.68
28/04/22 - $1.50
The bottom has now fallen out of KFLWG on the Buy side, with plenty of (unrealistic ) sellers remaining. While the head shares are still trading at over $1.70 given the underlying NTA and the geo-political and economic issues weighing on the market I would say the Warrants have done their dash for this cycle. The winners will be those who exited the Warrants early, and it has been and will remain all downhill from there.
It seems each quarter dividend is declared based upon 2% of NAV per share as at the end of the prior quarter period, so the June dividend is $0.0316cps based upon a NAV of $1.58 as at 31 March 2022.
The weekly NAV last reported as at 19 May 2022 has reduced to $1.4391 so it looks like future quarter dividends can be even lower and the aggregate 14.34cps paid as dividends for y/e 31 March 2022 will not be reached again for some time unless Mr Market ( at least the KFL component basket of it ) picks up substantially going forward. When you are paying a dividend on this basis in a falling market the dividend itself compounds the lowering of the NAV.
The low return delivered by the portfolio activated the management fee rebate, reducing the fee from 1.25% to 0.95%. The management fee is payable despite the Company recording an after tax operating loss of $17.3m for y/e 31 March 2022.
There seems no reason currently for KFL shares to trade at a significant premium to NAV as is the case at present. As alkodhir points out above dividends going downhill will not logically continue to support SP.
Kingfish Monthly Update - June 2022 (nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com)
Premium of 19.1% to NTA....!! :scared:
If KFL comes anywhere near its NAV then it can be great entry into a good growth portfolio which can do very well after this carnage is over
I think its present NAV is close to $ 1.30 ...its SP is moving towards it fast ...maybe in next big leg down it will catch up with NAV
Could see it trade at a discount like the good old days.
The higher rates go and the longer this downturn lasts the more selling pressure will come from the retirees moving to term deposits
But agree. Would like to add some KFL at a discount. Set up the dividend reinvestment and check back in 10 years.