KFL - discount to diluted NAV

KFL $1.34 up 7 or 5.5% KFLWA 37 up 3 or 8.8%

Did they read Lawso's comments early today and decide it was undervalued? ;) Perhaps they see more takeovers in it like WAM.
At $1.23 I recommended it to Lawso! ;)
There are many marauding funds, flush with cash and staffed by the smart operators, who prowl the globe looking for business to buyhttp://www.interest.co.nz/bennett-30Jun2006.asp

I believe it to be fully valued at last and perhaps it will be seen for what it is. A well managed diversified selection of midcap shares in one tidy little bundle that saves on worry and brokers fees. They must hate the thought!

[:X][:X]Carmel
T [^]

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quote:Originally posted by shasta

Treetops, the DGL purchase intrigues me as a KFL holder.

If they meet/beat there forecasts & the Oyster Bay type fiasco's are out the way, this could surprise in a year or two.

Personally, i question the DGL & RAK purchases [u]& am waiting to see what they do with the WAM money.</u>
The special dividend & share buyback has breathed some life into KFL recently, as its now at its 12 month high, where to from here though?

Disc: Happy holder

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The answer is in their presentation.
http://www.kingfishlimited.co.nz/reports.htm then open
ASM presentation 5 July 2006 Slide 14 [/b]More RAK DGL MHI and PPL
Slide 13 shows where their profits :) have come from in the last 3mths since bal date. Worth looking at.

What do you think of the rise today $1.34? :D
Treetops

Very worthwhile conributions, TT. I've read with interest and will keep an open mind about KFL but it probably is now fully valued. And I still prefer doing my own thing rather than paying someone else to do it for me.

I note that MET now makes up 10.4% of their holdings. That must be what a big chunk of their WAM proceeds went into. Other major holdings don't seem to have altered much.

I bought some of these first thing this morning at 1.25 - now they are at 1.34 - great stuff!

The depth was very interesting first thing this morning.

Someone had 100,000 for sale @ 1.25 but there were buyers for small amounts @ 1.26 and 1.27 and for 90,000 @ 1.25.

I can only imagine the seller put them up for sale yesterday and wasn't paying attention this morning.

Luckily I was. 7.2% profit in one day.

Thanks very much D Pick and Treetops for bringing this little gem to my attention.

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quote:Originally posted by Lawso

Very worthwhile conributions, TT. I've read with interest and will keep an open mind about KFL but it probably is now fully valued. And I still prefer doing my own thing rather than paying someone else to do it for me.

I note that MET now makes up 10.4% of their holdings. That must be what a big chunk of their WAM proceeds went into. Other major holdings don't seem to have altered much.

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Lawso
I think the increase in % is due to MET increasing from 4.50 to 5.90 and that is 31% over three mths making it second only to Ryman see slide 13 of the presentation which is well worth a look. See previous TT. They may have bought none in fact. When WAM dropped out Met entered the top five. Their weekly NAV release only gives the % of the top five shares. So their portfolio % changes as their component shares rise and fall. Rym has risen by 32 % as well from 6.60 to 8.70. If RAK keeps increasing in value at its current rate 5.9% today it may surplant one of the top five. You are right about fully valued as the component shares are. I think one of the reasons it is fully valued is it suddenly seems to be noticed at AGM time and forgotten by everyone except a few ardent fans [8)].The spec div also attracts some but that is only 2.5%. I think it KFL wasn't even mentioned on the ZB report tonight though and yet RYM was. It is hard to fathom. My ASB Sec online broker research section has nothing on its prospects either. I think the brokers don't like it either for obvious reasons. I personally think what you lose in management fees you gain by not having to pay brokerage at both the buy and sell. Say you buy RYM MFT RAK FRE PPL and then decide to sell up and splash out on a house or a holiday you cop five sets of $30 fees. Buy KFL once and sell once. It goes some way to mitigating the fees which are included in the diluted NAV.
Profit takers will come in tomorrow but I'm not a trader and I expect it to drop back to $1.28 -1.30 $1.26 would be a good buy now with the div.
TT

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quote:Originally posted by rmbbrave

I bought some of these first thing this morning at 1.25 - now they are at 1.34 - great stuff!

The depth was very interesting first this morning.

Someone had 100,000 for sale @ 1.25 but there were buyers for small amounts @ 1.26 and 1.27 and for 90,000 @ 1.25.

I can only imagine the seller put them up for sale yesterday and wasn't paying attention this morning.

Luckily I was. 7.2% profit in one day.

Thanks very much D Pick and Treetops for bringing this little gem to my attention.

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My Pleasure[^]
TT

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quote:Originally posted by Treetops

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quote:Originally posted by shasta

Treetops, the DGL purchase intrigues me as a KFL holder.

If they meet/beat there forecasts & the Oyster Bay type fiasco's are out the way, this could surprise in a year or two.

Personally, i question the DGL & RAK purchases & am waiting to see what they do with the WAM money.

The special dividend & share buyback has breathed some life into KFL recently, as its now at its 12 month high, where to from here though?

Disc: Happy holder

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Me too.:) How much they have invested in Rak and DGL I'm not sure but it will be small in KFL. Fisher funds probably has most. So far so good anyway.

You are right Shasta. A large component of the WAM money is still not revealed. The five largest portfolio holdings at 28 June 2006 ([u]just before the WAM payout</u>) are approximately as
follows:

Ryman Healthcare -17.7%
Mainfreight - 13.7%
Waste Management - 13.5%
Pumpkin Patch - 11.0%
Freightways - 9.6%
So it was 13.5% of the portfolio and a 2.5% spec. div. isn't much.
Some will go into the buyback. I guess its time for Carmel to show how good :) or bad [}:)] she really is. It's getting to that point where really good investments are few and far between. :( I liked RAK and DGL as exporters and our dollar still has further to fall. Rak in particular could be a real winner. Personally I couldn't take the risk with them as individual shares, but as a small part of a managed portfolio I'm more at ease. For the larger investor with more time and expertise I'm sure buying the individual shares is better. For me I'm very satisfied with the proportion of each share in the portfolio. Which is best out of RYM FRE and MFT. MFT and FRE today! :D

I would like to thank [u]D_Pick </u>for his original posting on 4/12/05 It alerted me to cash in. What the discount is now we will find out tomorrow.

Treetops

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Shasta
Looking at the profit KFL made from each of its Shares in its portfolio over the last 3 months from slide 13 in the presentation and if the vague chart is correct then about 1.2% came from RAK on a 20% increase and .75% from DGL on a 25.4% increase Since 13.5% was WAM perhaps about 7-8% RAK and 4-5% DGL the rest .5-2.5%in MHI and PPL is my guestimate. We can't know when they bought and therefore how much increase they got but I suspect that most was from the IPO with small topups since. Of course I may be totally up the booeye. I thought they would keep the proportion smaller in their nursery though. Can anyone help here. The % increases I used were judged off graphs from IPO to 30th June. The rest is largely intuitive ;)and if you want to know how I arrived at these figures I will have to kill you afterwards.[xx(] They could have more in cash but I think the ratio of RAK/DGL to be about 1.6 or roughly 3:2 lets not assume a great degree of accuracy.

I personally would be quite happy with those proportions. What do you think assuming they are roughly correct? [?]
TT

Does anyone know if KFL have commented on the proposed CTL merger yet?

Discl: I bought both KFL heads and options in March because I felt I was effectively buying a portfolio of the quality shares I wanted in the market at a substantial discount to buying the actual shares individually (due to KFL trading below NAV). This seemed like a no-brainer to me. Options now up 61%.

Thanks Treetops,

I believe KFL used there debt facility to buy in on both RAK & DGL IPO's, not sure they have bought any since. So now we know the WAM money was used to repay the loan facility, share buyback & special divvie.

Am liking the fact they are still working on the image/promoting themselves, as there results to date (& for the 2006/07 year) show that a well managed company should be at a premium not a discount!.

Looking for $1.40 short term

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quote:Originally posted by shasta

Thanks Treetops,

I believe KFL used there debt facility to buy in on both RAK & DGL IPO's, not sure they have bought any since. So now we know the WAM money was used to repay the loan facility, share buyback & special divvie.

Am liking the fact they are still working on the image/promoting themselves, as there results to date (& for the 2006/07 year) show that a well managed company should be at a premium not a discount!.

Looking for $1.40 short term

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Shasta, very concisely stated. I am a rambler.[:I]
All WAM holders take note how to exit and buy in before the crowd. A well managed company for sure. It could be the WAM people getting in to KFL now but a bit late sorry.

I still can't get my head around the fact that only four days ago it was a bargain at 1.22 and I had no money to buy. :( I still wonder how people rush in now at 1.32 when it was so cheap. Don't they read sharetrader!! [^] Let the over-optimism subside if you take my advice. No one can acuse me of ramping ;) But I will probably be wrong again as I was with TPW. It just kept rising on me.

I have too much in CEN and as CEN's a good buy right now I don't want to sell it. Who knows who might buy it for $9.50 +. I wonder what Phaedrus would advise? I'm going to get out of my AMP super instead and wait for another opportunity. It's always been a dud and their trail and management fees and exit fees are abhorrent compared to using KFL. I will be missing out again I guess but I will be patient. I actually think GPG is on a runner too and catching up fast. It is probably better value now for the WAM money. Hey should I enter the tipster comp. I'm just as good as MacDunk ;) I admit to not buying though. I'm not rich. Who is with kids! :)


Re CTL no comment above,as far as I know but looks like a lot want to sell, but the buyers are quite happy to come in at 21c so far which is in its trading range so there is no dramatic drop coming I hope. Perhaps the merger aint so bad after all although it did appear to favour the Aussie company. CTL appear to want to expand which I don't mind at all and that is why they merged. 10% of the world market isn't bad for a KIWI Company There is another comment about it wanting to merge again from their CEO


$1.25 buy does look like a bargain for you RMB! Well done you early bird [8D]

Treetops