6 thoughts on “Update No. 313 – as at COB 31/07/18”
Lee says:
Hi Tony. Does the ASX200TR allow for franking credits? Or is it just the reinvestment of the cash dividend with no tax or franking credit consideration?
Percentage equity weighting is the current value over the total invested portion (i.e. excluding cash holdings).
Percentage portfolio does not strip out the cash – Tony
Jackson says:
Hi Tony,
Would be interested in you thoughts on KPT and their last institutional capital raise (with management participating of course) at the expense of retail shareholder participation.
Although I appreciate their updates are clear and provide good level of detail its the old look at what i do not what i say issue in regards to their treatment of retail shareholders.
For such a small illiquid share stock surely pissing of a decent chunk of the the marginal buyer/seller setting the price is not smart capital management practice.
The above wouldn’t be an issue if it was their last capital raise but i dont trust it is. They have already shown they were naive in regards to their estimate around consenting and cost and id also guess they will underestimate the infrastructure cost and more importantly time to get this business off the ground and producing cashflow.
Directors of KPT tried to do the right thing with retail shareholders with the first capital raising and had next to no response in the retail component. Expediency resulted in them taking the institutional path last time as the cost and difficulty of including retail was not worth it after the first effort.
It’s possible they could raise further capital I guess, but there is ample bank debt in place once the wharf is approved and I’m confident they would require a much, much higher price of equity once the approval is granted – Tony
Hi Tony. Does the ASX200TR allow for franking credits? Or is it just the reinvestment of the cash dividend with no tax or franking credit consideration?
No, we weren’t allowed to use the franking adjusted index for the new fund. If you’re interested, the FC adjusted index is available here:
https://au.spindices.com/indices/equity/sp-asx-200-franking-credit-adjusted-annual-total-return-index-tax-exempt
Hi, as always, thanks for the update. Can you please clarify what the “Percentage Equity Weighting” means ? Is this based on original cost ?
Percentage equity weighting is the current value over the total invested portion (i.e. excluding cash holdings).
Percentage portfolio does not strip out the cash – Tony
Hi Tony,
Would be interested in you thoughts on KPT and their last institutional capital raise (with management participating of course) at the expense of retail shareholder participation.
Although I appreciate their updates are clear and provide good level of detail its the old look at what i do not what i say issue in regards to their treatment of retail shareholders.
For such a small illiquid share stock surely pissing of a decent chunk of the the marginal buyer/seller setting the price is not smart capital management practice.
The above wouldn’t be an issue if it was their last capital raise but i dont trust it is. They have already shown they were naive in regards to their estimate around consenting and cost and id also guess they will underestimate the infrastructure cost and more importantly time to get this business off the ground and producing cashflow.
Directors of KPT tried to do the right thing with retail shareholders with the first capital raising and had next to no response in the retail component. Expediency resulted in them taking the institutional path last time as the cost and difficulty of including retail was not worth it after the first effort.
It’s possible they could raise further capital I guess, but there is ample bank debt in place once the wharf is approved and I’m confident they would require a much, much higher price of equity once the approval is granted – Tony