The WAM share price was as low as $1.395 on 12th & 13th December...

The WAM share price was as low as $1.395 on 12th & 13th December & has since recovered to $1.56 & currently $1.54. The December NTA was reported as $1.45 with the share price at a premium to the NTA. I would expect the share price to remain in premium & increase as we get closer to the ex-dividend date.

Watch the monthly updates with an eye on the NTA to give a clue to future movements in the share price. If the NTA increases sufficiently each month to enable earnings to cover the next final dividend, all will be okay but if retained earnings just cover the dividend, the market will anticipate a problem with the following interim dividend. For a number of years, the WAM share price has had a healthy premium to the NTA but if it struggles to cover the dividend, it is possible for the share price to go into a discount to the NTA.

Be aware & expect the share price to fall at least 11 cents when WAM goes ex-dividend in April.

I am only highlighting the possibility of a lower share price if WAM is unable to have the earnings keep pace with the anticipated dividends. This is why you should keep yourself informed of movements in the NTA & the number of cents in retained earnings, so you do not get any unpleasant surprises.

I am not saying the above will occur, I am saying look out for the signs that indicate the possibility.