KFL - discount to diluted NAV

[Rif-Raf]

They are cheap, but not because of the PE which is meaningless. In any event the results are only for the interim so applying that logic you would need to double earnings and get a PE of 2!

I note the diluted NAV is $1.44 versus todays SP of $1.30 a 10% discount while I note BRM which is still just a cash box is trading at a 10% premium.

[Scrunch]

The thing that could would really get Kingfisher share price humming given the recent listing of BRM is to ease up its investing rules. If it say allowed they relaxed the criteria so that 33% of investments could be in Australia (possibly with justifications around how CER with Australia are making it increasingly one market), then this would increase the range of investment candidates and possibly narrow the gap to NTA that exists at present.

Just a thought anyway

[Deev8]

quote:Originally posted by Rif-Raf

They are cheap ... I note the diluted NAV is $1.44 versus todays SP of $1.30 a 10% discount ...

Not as cheap as they were a while ago of course. Today's 10% discount is a significant reduction from the 19% discount they were trading at last December.

[shasta]

KFL up to $1.36, & it seems CVT's sp rise has helped increase the NAV.

Not much on the sell side, so will we see $1.40+ again soon?

[KJ]

Yes-DGL & 6mth report probably helping too-I like the warrants.

[Ttops]

quote:Originally posted by shasta

KFL up to $1.36, & it seems CVT's sp rise has helped increase the NAV.

Not much on the sell side, so will we see $1.40+ again soon?

Hi Shasta
Good prediction again! They have so many good shares you could hardly be wrong for long. Rym and Mft Fre just for starters. Guess they will have to sell some of their Rym unfortunately to stay under the 20%?
1.42 currently
TT

[KJ]

I think that they hold only 10.86% of RYM so no need to sell.

[COLIN]

quote:Originally posted by KJ

I think that they hold only 10.86% of RYM so no need to sell.

I assume that what Treetops is referring to would be KFL's own investment guidelines, i.e. I think they stipulate no more than 20% of [u]KFL's</u> funds in any one company?

[Ttops]

quote:Originally posted by COLIN

quote:Originally posted by KJ

I think that they hold only 10.86% of RYM so no need to sell.

I assume that what Treetops is referring to would be KFL's own investment guidelines, i.e. I think they stipulate no more than 20% of [u]KFL's</u> funds in any one company?

Hi Colin and KJ
You are correct Colin but I think they can retain the blocking stake KJ by transferring the surplus back to Fisher Funds.I have noticed it in the past with no change in the Rym stake. It does mean that the potential of Rym to [u]KFL</u> is capped but each time they transfer shares they make a real profit and presumably not taxed on capital gains. It maintains diversity I guess but in this case disappointing. Does anyone know if they can break the rule or would it require shareholders to agree and would it then affect the special tax situation. [?] No apparent increase in Rakon by FF as well but the sp increasing as is DGL. Anyone know if Carmel is buying?
TT

[shasta]

Any change in shareholding of +/- 1% is required by the NZX once you are a SSH (5%+).

Watch for the SSH notices on the NZX!