KFL - Kingfish. What are your feelings for this?

[bonne vie]

Hi bonne vie.

Don't take this necessarily as "gospel" but my understanding is that a company may issue shares in lieu of cash dividends provided it has established a dividend reinvestment plan and doesn't exceed any statutory or NZX limits on issuing shares without specific shareholder approval. It may be different for investment companies such as Kingfish where the dilution effect might be more readily apparent but in principle, any issue of equity is dilutionary - is that a word?

The point of holding Treasury stock is to avoid the hassle of cancelling shares and then having to (possibly) seek shareholder approval in the event of needing to re-create them.
Clarification and/or correction of the above would be welcome.

Thanks Macduffey for the info re the Treasury Stock, I am still however unclear how KFL is managing its level of treasury stock for its reinvestment scheme. When I have more time next week I will see if I can find out either from KFL or its financials. One thing I have noted today from its fact sheet in the Investors tab on KFL's site is it appears the current buy back at higher than NAV is abnormal as mentioned by an earlier poster.

[777]

There is no current buy back. See my post #26.

[bonne vie]

There is no current buy back. See my post #26.

Sorry 777 I misread your posting to read that the last one was 11/4//12 before the current buy backs referred to by Anna Naum. Of course looking at the company announcements there have not been any recent buybacks - unlike BRM

[777]

NTA came out at $1.31 today.

Helped along by RYM I would say.

[voltage]

they sell capital to fund the divi. Sold half my holding today.

[777]

They distribute dividends which are sourced from dividends received and capital profit realised from investments. Just the same as any other funds. Otherwise how would you get any benefit from capital gain other than the fund continuing to grow and having to sell out to achieve some. In Australia it is a requirement for funds to distribute all profit.

I sold 50% of my holding yesterday at $1.31 but will buy back in the next day or two.

[blah]

I've sold all my KFL a couple of days ago, and I'm keen to enter again, but the share price will need to fall quite a bit before I deem it worthwhile.

Regarding concerns that they sell their capital to distribute as dividends - what exactly is wrong with that? I see no problem at all

[Sideshow Bob]

Recently issued one for four warrants, currently trading at 10c, exercise date 6th of November 2015.

They say:

The exercise price will be $1.29 less any dividends declared during the period up to the exercise date. The final exercise price will be calculated before the exercise date, and the company will advise warrant holders at least 20 days before the exercise date.


So if they pay 8cps divies before then, then the price will be $1.21? But could exercise now at $1.29?

They also say:

The Board believes the issue of new warrants will put Kingfish in a better position to grow, improve liquidity, operate efficiently and pursue other capital structure initiatives as appropriate.

Previous issues of warrants have been well received by Kingfish shareholders, and the new warrant issue provides an opportunity for our loyal shareholders to further participate in Kingfish’s growth.


And in an earlier announcement:


Kingfish Limited announces continuation of Share Buyback Programme

In accordance with Listing Rule 7.6.2, Kingfish announces its intention to continue its share buyback programme of Kingfish ordinary shares in compliance with section 65 of the Companies Act 1993.

The buyback programme is for the period of 1 November 2014 through to 31 October 2015 and will be for up to a maximum of 6,000,000 ordinary shares.


So bit of a share merry-go-round?

Cue a Balance-d Barramundi type discussion......

[Balance]

ARE u READY to RUMBLE?

[Joshuatree]

Always ready to rumble in the perfumed garden with pearls and curls