LIC & LIT Whitefield Limited SPP

$6.50 from a wholesaler here for 3 days, gotta stockpile while the goings good!

 

Thought people were preferring ETF's over LIC's these days.Seems not enough punters are are taking note of this & 'doing the right thing'.

 

You need to buy at least three kilograms. The $9 in savings should mean you will able to buy another ARG share to add to your collection.

Maybe it's the Directors piling in before they delist WHF after taking it private. Who knows.

 

$6.50 / kg is pretty cheap! I must be shopping in the wrong spots. Organic chicken breast goes for $27 /kg and regular chicken breast for around $12 or $13 per kg. They're retail prices though, not wholesale so maybe that's where the extra cost is.

 

No, not the wrong spots but the wrong State.

 

I might be getting chicken-envy. Supermarket chicken is always tough and chewy but the price can be lower. Happy to pay a slight premium for a better product from the butcher but I think a happy middle ground is probably best - chicken and LIC-wise.

 

Buy more WHF or other LIC or even an ETF. Then you will be in a better position to purchase the more expensive chicken product. Simples.

 

Indeed. This would have to be some of the best investing wisdom out there.

 

If holders of WHF don't already know there is another SPP on the horizon. The record date for entitlement to the offer will be intriguing given WHF is in a trading halt until this coming Friday.

https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=02395217

 

As expected.

Institutional placement

https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=02396134

SPP

https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=02396144

 

Unsurprisingly WHF opens down 6%. I honestly shouldn't care as it's all being offered at NTA (including the insto placement) but for some reason I do. I'll take a chill.

I'm assuming with greater funds under management we'll see a reduction in MER. I'm not holding my breath with this lot.

 

In one way the fall in the share price is only relevant should this come into play



With some LICs it does appear that capping of the amount to be offered is becoming more frequent. If it was totally open, the amount on offer would be over $180m but in this case it is limited to $55.6m

Same happened with MIR which was capped at $40m, raising very close to that. I was informed the MIR investment team developed a proposal on where the funds would be placed and how much. Didn't want too much cash as it can be a drag.

Possibly the same applies to WHF.

Are you any good at holding your breath for an extended period by any chance?

 

Point taken. I'm over it.

 

It's good to have a rant. Cathartic.

And I had a closer read of WHF's announcement. It has given itself the option of using the funds to buyback the convertible preference shares.

 

Any thoughts on who will benefit most from that course of action?

 

To be honest, I don't know. They are classed as a liability in the accounts and that sits at $32m. It was posted somewhere here they are to be re-set soon.

And



Let the conspiracy begin.

PS: there is over 320,000 of them. Still nothing to stop tin-foil hats.....

 

I thought there was something odd about the institutional placement price and why the discount seemed large.

Estimated Pre-Deferred NTA.

 

Fired up the email and there are the SPP invitations.

Mulling over whether I would apply for $1,000 let alone $30,000. Old habits and all that. Very difficult to overcome but I'm tending towards No. Or maybe Yes.

 

Same dilemna here, was all fired up initially but discussions here re: WHF, has furthered my learning, thanks to all who helped, so thinking is I might just have a nibble rather than a great bite.
As for WLE, have sold down some WAM, which is trading at a big premium & will purchase some WLE at NTA from the proceeds. Interesting week (for me at any rate).

 

I'll just leave this here for you.

Co-incidental timing, CGC concluded a raising this week, they used the gold standard for looking after existing shareholders, a renouncable rights issue.

Share holders get first bite of the cherry with a pro-rata offer. Others get second bite through book build and any premium from that bidding process is paid to existing shareholder who did not take up their rights.



Is anybody going to ask WHF why the raised using a process that steals NTA premium from existing shareholders and gives it to others?

How many of these people getting preferential placements will be long term holder and how many are likely selling for low risk quick profit? Don't think WHF even gave transparency on who got placements. If placement folk are just in it for quick profit, expect market price to be back to NTA by time you get allocated your SPP, so no similar potential for quick profit to existing holders.

Does anybody even care? Is the love for WHF too strong.