Is the negativity justified??, page-131

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chris1983

13,667 Posts.

1291

14/02/16

23:59

Post #: 17017844
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Originally posted by jordantravispyne ↑

Condescending mate.

Assuming no gain in share price from IPO level? Sure!

Based on Market Cap at $0.35 per share.

$127.13M * 0.175 * (0% - (-6.14%) = $1.36M performance fee

PLUS

Management fee:

0.75% (refer to post above for this number) * $127.13M = $0.95M

Total fees for steady share price: $2.31M

Or 1.8% of market cap.

Hence why I suggest in the current market they just sit the $130M raised in a term deposit! Earn risk free rate and distribute interest to shareholders. Market cap will never fall below the term deposit value of $127.13 when using DCF model discounting at Risk Free rate.

Easiest $2.31M ever made.

Really shows the absurdity of measuring the performance fee against the stagnant index. Measure performance fee against financial performance of assets being advised. Atleast that will somewhat break the conflict of interest. Reasonable thing to do.

Short.

Expand

Exactly my point so their interests are aligned to bring the share price forward and progress the company. Now work out the performance fee if we go backwards in share price like what many IPOs do.

I think I have proven my point.

BFC Price at posting: 45.0¢ Sentiment: Buy Disclosure: Held
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