KFL - discount to diluted NAV

[winner69]

Reading Warren Buffetts letter to berkshire hathaway shareholders ..... he would obviously disapprove of what Carmel is doing

Not picking specifically on Carmel ..... a whole industry of them

[Tim]

What does he say winner69

[winner69]

Page 20 when he starts on about the Gotrocks family .... acontinuation of last years tirade

http://www.berkshirehathaway.com/letters/2006ltr.pdf

Also interesting comments about newspapers (as an investment) .... like future ain;t too good

.... and he made $100M on the $NZ as well

[Ttops]

Anyone else noticed the NAV reporting error. KFL undiluted NAV should read 2.180 not 2.108. I base this on the increase in diluted NAV to 1.63 so the undiluted NAV can't decrease. Am I correct?
http://www.kingfishlimited.co.nz/announcements.asp

Not corrected yet.

[oast]

quote:Originally posted by Treetops

Anyone else noticed the NAV reporting error. KFL undiluted NAV should read 2.180 not 2.108. I base this on the increase in diluted NAV to 1.63 so the undiluted NAV can't decrease. Am I correct?
http://www.kingfishlimited.co.nz/announcements.asp

Not corrected yet.

The $2.108 value could be correct, because of the 31/3/07 exercise of some of the KFLWA warrants which would have changed the dilution "factor" materially.

[COLIN]

quote:Originally posted by oast

quote:Originally posted by Treetops

Anyone else noticed the NAV reporting error. KFL undiluted NAV should read 2.180 not 2.108. I base this on the increase in diluted NAV to 1.63 so the undiluted NAV can't decrease. Am I correct?
http://www.kingfishlimited.co.nz/announcements.asp

Not corrected yet.

The $2.108 value could be correct, because of the 31/3/07 exercise of some of the KFLWA warrants which would have changed the dilution "factor" materially.

I see that over 5 million warrants were exercised, increasing the total shares on issue by 7.8%

[gisborne_gold]

quote:Originally posted by Treetops

Anyone else noticed the NAV reporting error. KFL undiluted NAV should read 2.180 not 2.108. I base this on the increase in diluted NAV to 1.63 so the undiluted NAV can't decrease. Am I correct?

Using the new ratio of warrants outstanding to shares on issue, by my calculation an NTA per share of $2.1089 corresponds to a diluted NTA per share $1.635. This doesn't quite agree the 1.6309 in the KFL announcement but it's possible they have done their calculation taking into account share buybacks and other adjustments which they haven't yet made public.

[frosty0612]

Given KFL are buying back shares and warrants at about current prices, would it be fair to say there is very little down side risk to buying into this company?

[gisborne_gold]

quote:Originally posted by frosty0612

Given KFL are buying back shares and warrants at about current prices, would it be fair to say there is very little down side risk to buying into this company?

There is most definitely downside risk. It's quite easy to understand in the case of KFL because they publish their market holdings; if the value of those holdings decreases, the KFL NTA decreases, and the KFL share price would be expected to decrease accordingly.

The most you should expect from a buyback programme, I suggest, is to narrow the share price discount to NTA per share.

[baxter]

Frosty...I have been with Carmel Fisher since 1998 when she only had the unit trust growth fund. She kept that positive right through the prolonged downturn and was generally rated the leading unit trust. My concern is that she is now attracting so much cash and becoming such a major enterprise. Can she continue to influence her rapidly expanding empire to maintain the same results she obtained as a boutique manager.