The whole DRP is a total joke:
* On one hand, the fund states its desire and actions to reduce the discount that the units are trading to NTA (ok, this has been the plan for so long I forget);
* On the other hand, with the a distribution expected to be around 20% of current unit price it has been announced that the DRP will be in place at a 10% discount to the unit price despite the fact that the units are still trading at 25% or so discount to the NTA!?!
* The rationale for the DRP is to fund liquidity requirements to buy back up to 5% of capital at a 9.9% discount to NTA.
So, if I have that right, units issues at a 35% or so discount to NTA so they can be repurchased at a 9.9% discount. Ummm ... have i missed something?? No friggen wonder the units continually fail to get even close to NTA.
These guys treat unit holders like a bunch of idiots. I sent them communication regarding the above paradox and surprise surprise no response.
MJS
- Forums
- ASX - By Stock
- LRF
- dividen reinvesment pricing
dividen reinvesment pricing, page-3
-
- There are more pages in this discussion • 9 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add LRF (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
CCO
THE CALMER CO INTERNATIONAL LIMITED
Anthony Noble, MD & CEO
Anthony Noble
MD & CEO
Previous Video
Next Video
SPONSORED BY The Market Online