Well, first of all and without lacking respect to anyone, it goes without saying that I am not travelightor.
That said, it is gratifying to hear that you have found my work useful.
I'm surprised at the extent to which you cite your existing position as having an influence on your decision whether or not to follow you rights, or to sell them.
In that light, two related questions for you:
1. If you owned no TCL shares, and someone offered you stock at $10.80, would you buy that stock.
At the risk of sounding flippant, I’ll say “No, I wouldn’t; for, as a non-holder, that offer wouldn’t be made to me in the first place. And, if I am a holder, the difference between 10.80$ and today’s market price will be paid to me anyway".
Therefore, it really is today’s market price that should be taken as a reference, from what I can see.
2. If the answer to Q1 is yes, then assuming you did own TCL shares, at what portfolio holding percentage would the $10.80 offer cease to be attractive to you?
My answer to 1. being “no”, the question for me becomes “up to what percentage of your portfolio would you allocate to TCL at today’s price if you didn’t own any shares?”
And to that I would answer that, despite the last two acquisitions (A25 and Westconnex) being a bit of a let-down, up to 5% of NAV into TCL still looks like a sensible allocation to me, at today’s price.
Because this is a relatively low-risk, highly Free Cash Flow generative business with virtually insurmountable barriers to entry, ultra-long duration and embedded inflation protections. And, notwithstanding all that, it still pays a fat yield premium to long-term inflation-linked government bonds.
And there isn’t exactly an abundance of such low-risk, enhanced-real-yield propositions, in today’s market.
Does this answer your questions in a satisfactory way?
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