KFL - discount to diluted NAV

[percy]

Kingfish NAV released yesterday $1.3896
50% of there assets being held in MFT, FPH, RYM, FRE and IFT
Warrants currently under 2c with a further payment due next week of $1.21

An entry into a basket of these shares at a substantial discount.

Realise there will be some dilution when warrants are converted

Apart from all the inevitable comments regarding Management Fees etc - seems to be a reasonable opportunity

Comments ?

Take a cold shower to clear your head.
Then read Balance's post #276.

[777]

Take a cold shower to clear your head.
Then read Balance's post #276.

Can't because he is on my ignore list and there he will stay.

[percy]

Cool melons on a hot summer day.

Who wants to get worked up about people who leave their doors open and valuables on display while they rush to the supermarket to grab some cheapo specials?

Even the most naive rookie cop will say 'serve them right' when they get back home and find they have been burgled.

KFL unit holders kinda remind me of people like that.

Meanwhile, same money invested in a no-brainer solid dividend yielding stock like AIA would have given you outperformance of over 200% (yes, 200%) against KFL with its self-promoting-'with your money'-glorified-management 'heads they win, tails you lose' structure.

ENJOY.

Spot on.! Great post.

[Balance]

Spot on.! Great post.

Thx, Percy.

BTW, notice how NTF brings up the same postings every time a Fisher fund wrrant is due for expiry and exercise? And gets the same comments back re discount for management fees etc?

Smells a Fisher plant on the site?

[kura]

OK, I will go against the tide of thought, & state my opinion that a 9% discount to NTA makes this a reasonable investment.
I also see that they have started to do the decent thing & buy back their shares (increasing NTA per remaining share ) Just a pity it's on such a small scale so far.

[percy]

Thx, Percy.

BTW, notice how NTF brings up the same postings every time a Fisher fund wrrant is due for expiry and exercise? And gets the same comments back re discount for management fees etc?

Smells a Fisher plant on the site?

I agree with you.
You have offerred sage advice,which has cost people who have ignored it, the opportunity to invest successfully.

[arc]

Suggested reading

http://www.nzherald.co.nz/business/n...ectid=11723746

[Balance]

Suggested reading

http://www.nzherald.co.nz/business/n...ectid=11723746

Excerpt : "Other examples of the worship of false gods abound: the NZX listed investment companies run by Fisher Funds long ago instituted a policy whereby each quarter the funds give shareholders back some of their capital.

Directors label this return of capital a dividend thereby giving investors the warm fuzzies. You can however see from the accounts of the Marlin Global Fund, for example, that most of the dividends are actually a return of capital.

For example Marlin Global pays a dividend of 6.88 cents per share which on a share price of 79 cents is a dividend yield of 8.7 per cent.

This of course looks fabulous to the naive yield crazed investor but the reality is that all of this "dividend" is actually a return of the capital of shareholders.

According to the Marlin profit and loss account for the year ended 30 June 2016 dividend and interest income of $966,000 doesn't even cover operating expenses of $1.65 million.

This latter figure is made up of a management fee of $880,000 and various other operating costs.

There is no actual earnings, in the conventional sense of the term, available to fund a dividend. One could take this capital distribution model to its ultimate conclusion by paying out all of the company's capital to shareholders thereby delivering a fabulous yield of 100 per cent."

FOOLS AND THEIR MONIES ARE ALWAYS PARTED.

[Beagle]

Suggested reading

http://www.nzherald.co.nz/business/n...ectid=11723746

Thank you for sharing. That is compulsory reading in my opinion !

[Balance]

https://www.nzx.com/companies/KFL/announcements/300392

The performance fee paid to Fisher Funds was $931,653 plus GST.

Sp as at 1 April 2016 - $1.32 (NAV - $1.3652)
Sp as at 31 March 2017 - $1.29 (NAV - $1.3854)
Dividends paid over year - 11.16c

So return = 8.16c = 6.18%

How is there an out performance (against Bank bill rate + 7%) calculated to obtain the performance fee if you are a unit holder?

Heads they win, tails you suck the lemon.