Reasonable opportunity to buy CAMPA at current prices and profit from next years conversion.
Few basic figures:
CAMPA will convert into 1.39 Cam shares in April/May next year.
CAMPA pay a quarterly fully franked dividend of 4.5c per quarter.
Current Price of CAM: $0.78
Current NTA of CAM: $8.88 (as at 30th June 2016).
If one looks at the portfolio values as at 30th June, current NTA is around 5% higher.
Current Price of CAMPA: $1.18
At current share price conversions:
3 gross dividends of $0.0643 = $0.193
Current conversion price: 1.39x $0.78= $1.08
Total $1.27 against buy price of CAMPA of $1.18
At current NTA price conversions:
3 gross dividends of $0.0643 = $0.193
Current conversion price: 1.39 x $0.88= $1.22
Total $1.41 against current CAMPA of $1.18
(This does not include incurrent increase in NTA from 30th June to now).
Current share on market buy back in CAM will further increase NTA (due to share price being less NTA).
Hence represents a reasonable arbitrage opportunity.
I bought in
CAM Price at posting:
77.0¢ Sentiment: None Disclosure: Held
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