Ye I agree mate, they have been taking decent sized chunks at > $1.07 lately. NTA last month was $1.14 so its trading at a slight discount but all of this buying from the Dir makes me think that the NTA this month is going to be substantially higher.
TBH i didnt know alot about water entitlements/allocations until about an hour ago what this says to me is:
80% of their entitlement portfolio is in the Murray region.
Government rose allocation levels so now they are able to sell 100% of the ML allocation of all of their entitlements in the region. (As an example, a dry year would only see entitlement holders allotted 50% of their allocation in ML)
Water Entitlement prices displayed continued strong growth of 5.7-12.2% last month. Which means the value of their entitlements goes us and hence their NTA also goes up.
They are anticipating the summer months to drive water allocation prices up so they will get more dosh for per ML of water they sell.
So with the Dir buying recently it pretty much says to me that they see the value of their assets increasing substantially over the summer months.
Not sure how the ASX blackout period for Dir buying would work in this instance but the NTA Monthly update usually comes between 11-14th of the following month. So about 2 months from now.
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The leverage on those oppies alone is worth the risk even without the Dir's all scrambling to buy more stock all of a sudden but them buying is a clear sign to me.
Nice play here, not often these sort pop up and def not my usual trade.
Btw was the tag on the other thread intentional or a mistake?
Cheers
(that was wayyyyyy longer than intended)
