(This is a bit of a negative for the options, but you will only miss the interim (4c) between now and exercising or selling the options in October.)
Hi the way I make it you will pick up dividend if you exercise before the the shares go ex-dividend which will be end of Sept. So the the trick is buy the options now @7cents exercise end of Sept @1.08 and pick up the dividend.
WILSON LEADERS LIMITED A.B.N. 64 106 845 970 WILSON LEADERS LIMITED (WLS) – JULY 2007 INVESTMENT UPDATE & NTA Wilson Leaders Limited (WLS) listed on the Australian Stock Exchange on the 10th February 2004 after raising $44.2 million. Wilson Leaders is a Listed Investment Company that invests in a portfolio of Australia’s leading public companies. As at 31 July 2007 NTA before tax 139.87c* NTA after tax and before tax on unrealised gains 138.02c NTA after tax 133.45c *This is after the provision of $2,083,916 (3.4 cents per share) in tax to be paid for the 2006/07 year. MARKET OUTLOOK Global equites fell in July in response to a sharp deterioration in credit markets. Risk spreads on all credit instruments rose sharply as losses on sub-prime mortgages spread to other debt markets. The repricing of risk has resulted in large losses for a number of leveraged investment funds holding these securities and the withdrawal of liquidity from debt markets generally. The Federal Reserve has estimated total losses on securitised sub-prime investments alone could extend to $US 100 billion. Financial institutions lead equity markets lower as investors re-appraised the outlook for these companies in a tighter credit environment. Financially leveraged sectors such as Listed Property Trusts and Infrastructure continued to struggle defying their so called “defensive” qualities. Australian companies with sizable offshore businesses performed poorly also with the higher Australian dollar threatening the value of translated profits. Shares that have benefited from corporate interest also struggled as the prospect of private equity activity diminished. Economic Data in July was mixed: softer housing approvals and retails sales data; stronger credit and housing finance data. The 0.9% (qoq) increase in the CPI was concerning coming in at the top of the Reserved Banks preferred range, the Australian dollar quickly moved higher in expectation of an increase in interest rates which was subsequently announced early in August. Valuations are starting to look more interesting following the recent correction, particularly for the better quality industrials with International operations. We have recently added Brambles to the portfolio and increased the funds investments in Resmed and Westfield Holdings. The portfolio held up relatively well in July as the short portfolio fell by 5% contributed to overall performance. We were short building material companies- James Hardie and Boral, both companies fell sharply on the back of ongoing weakness in US housing activity; the fund was also short a number of Australian manufacturers, including Bluescope Steel and Paperlinx which fell as these companies are impacted by a higher Australian dollar. Equity markets are unlikely to recover in a hurry as the full extend of losses in credit markets emerge. Once investors gain comfort with the extent of these losses and credit markets start to stabilise, International shares should move higher again in the final quarter of the year. DIVIDEND The interim dividend of 4.0 cents a share fully franked was paid on the 27 April 2007. OPTIONS ISSUE On 11th August 2006, the Directors of Wilson Leaders Limited announced a 1 for 2 bonus issue of options to its shareholders. The options were allotted to shareholders on 8th September 2006 and have been issued at no cost to shareholders. The options have an exercise price of $1.08 per option and can be exercised any time up until the expiry date of 31 October 2007. As at the 13th August 8,046,900 options have been exercised for a total consideration of $8,691,266.93 with a remaining balance of outstanding options being 18,106,713. The Board is focused on creating shareholder value. The Board believes that this bonus option issue will promote this endeavour and will reward shareholders for their loyalty and support for the Company. PORTFOLIO PERFORMANCE Gross Performance 1 month 3 month 6 month Financial YTD Wilson Leaders Ltd -1.0% 3.9% 6.9% -1.0% All Ords Accum -1.9% 1.1% 9.4% -1.9% Relative Performance 0.9% 2.8% -2.5% 0.9% PORTFOLIO STRUCTURE As at 30 June 2007 As at 31 July 2007 Investment Type $m % of net assets $m % of net assets Listed Securities 115.21 128.8% 118.32 133.7% Fixed interest and Cash 1.77 2.0% -2.57 -2.9% Gross Assets 116.98 130.8% 115.75 130.8% Short positions -27.55 -30.8% -27.23 -30.8% Net Assets 89.43 100.0% 88.52 100.0% The listed securities portfolio is detailed on the following page. For personal use only
WLS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held