boring stock, but nice divie..., page-3

re: opinions welcome... It appears that I am the only one who can see the value here...

Or perhaps, the only one prepared to talk about it.

Anyway...

Another up day on the XAO and another up day (net) for WLS's portfolio, which I suspect should be reflected in a higher NTA in the upcoming March update.

Still plenty of trading before the April dividend record date, so no need to rush the stock.

Interesting arbitrage on the options; buy the options for about 2c, convert for $1 and sell on market for $1.03...or better still, if you hold shares, sell for $1.03 and buy back in via the options for about $1.02.

Given the shares are approaching a possible breakout, you could even end up doing much better than in the above illustration.

Until recently the options have been trading at a premium, however it seems there has been a rather large holder off-loading over the last month or so...I suspect he doesn't have the funds to convert. As a result, it has pretty muched killed the market for them, although I have noticed some recent interest returning, inlcuding my own.

Could also be other forces at play, possibly trying to flush out existing holders in order to grab the kinds of volumes not available in the fully paids.

Given they are about to pay a 5c dividend and have a current NTA of $1.18 and rising...the current price of $1.03 seems a little on the low side to me...even allowing for post tax, dividend and options dilution.

Prediction:

Very slow rise from current price of $1.03, over the next 2-3 weeks up to something like $1.07, then a last minute run up to about $1.12 just prior to the record date...followed by an ex dividend drop to about $1.07, at which point I suspect they will be carrying an NTA of at least $1.20.

I also suspect that WLS might be back in the market after the ex date, continuing their share buy-back...and while they're at it, increasing their NTA whilst at the same time, supporting the post dividend price.

The only thing that might through a spanner in the works would be a major correction, or conversely, a substantial rally of their portfolio...which would obviously impact on my predictions.

Finally, after the dividend related activity there will be the run up to the options conversion date...still not sure what to expect from this.

I would appreciate someone with dividend trading experience, giving me their thoughts on a possible short term price target for WLS given the upcoming 5c dividend.

Cheers!