I can think of a couple. Turners Automotive don't need new capital that much, to warrant a discount that high. And a 10% discount on new DRP shares would be stealing future returns from other shareholders who elect to take the cash dividend.
SNOOPY
Well if you bought shares cum dividend, with the specific intention of getting DRP shares, that you would then unload quickly for a profit then 'yes'. Any gains you made on selling those new shares -once sold- would be taxable. And sure a 10% discount might give some a better incentive to do this than if the DRP shares were dished out at a 2% discount. But what you have to remember is that the business does not fundamentally change at the ex dividend date. All that happens is that the same earning capacity is distributed over more shares. That means no value overall is created by the DRP, with the gain in value of any new shares being issued under the DRP exactly matched by an equivalent loss in value spread over the existing shares. IOW no gain overall. Nothing to tax.
SNOOPY
Never thought I would invest in a car dealer, but invest I shall- I like their expansion plans and they've done well in a difficult market
DRP announced in case anyone missed it:
http://nzx-prod-s7fsd7f98s.s3-websit...311/395629.pdf
Just to keep my (voluntary) disclosure up to date ...
It took me some time, but I managed by today to buy a M-sized parcel for a price I was prepared to pay.
Promise however to keep pointing out any risks I can see with the company - we certainly have already enough other cheer leaders on this thread.
Does this qualify me as supporter?
Good on you for disclosing BP!
Nothing wrong with pointing out the risks - that's what any objective person ought to do. There are many associated with this share.
You are well qualified as an objective holder.
I actually bought some as well. I wasn't intending too at all...I've bought TRA shares I think 7 or 8 times over the years. But after selling down a ridiculously priced lithium holding I had some spare dosh I split the winnings up and bought more TRA, GNE, CEN, and SKC over the last 2 days. Don't like this will have been my 2nd highest parcel (price per SP) that I've purchased in TRA, but wanted to convert some non dividend paying shares into divy yielding shares and thought TRA fit the bill. Was pleased the debt limit got raised so spent some that I had been holding back.
Keep us honest BP. No harm in that.
Yooooooo welcome aboard BP
Good on ya.