Ovets47
06 Aug 2015
Re: What's FKL Doing With Our Dividend? Yes, I believe the uncertainty reflected in the sp is because of the poor track record of the Rowlands and the inexperience of Rowland bRat.
Ovets47
06 Aug 2015
Re: What's FKL Doing With Our Dividend? El Kel,Your reasoning and arguments aren't helped by your rudeness.If you could find a way to express your views politely, you might discover that they carry more weight.
TX2
06 Aug 2015
Re: What's FKL Doing With Our Dividend? "The proof of the pudding is in the eating";FKL is now my worst performing share!It is not doing badly,in fact the performance of its various companies are as good as can reasonably be expected.At least as good as most of my other holdings which are at or near an all time share price high.Prospects for the Falklands division is good with the usual caveats over political problems over which it has no control.MOMART should be able to grow its niche business.The ferry business should provide an "annuity" income from its fairly static market which does not have any obvious competition.The company's finances are good,it is cash rich and its existing operations are cash flow positive.What's wrong?It's quite simple potential future investors which every company needs can't see how they can benefit from buying the shares.In their perception FKL has become a "private" company run to suit the Rowland family with its previous modest well covered dividend payout changed on a whim without another course actioned.Potential investors in small cap companies like to know what they are buying.The last two listed companies I can recall with Rowland connections,albeit the older brother have been total dogs.......This one seems to be anxiously waiting in the "dog pound" while potential new share buyer owners walk by & seek out better looking prospects that don't bite unexpectedly.
El Kel
06 Aug 2015
Re: What's FKL Doing With Our Dividend? corrieYou have given more meaningless flannel and not answered the question.That is no surprise.You constantly praise the 'leaders' to high heaven and I was slow to cotton on as to why.But I have now.Your latest statements are as laughable as usual;"They always provide more detailed information and timeously on the trading performance and financial position than absolutely necessary. ""They have meaningful share ownership to get it right."Meaningful share ownership?! Ffs!No wit. No guile. Just blathering management-speak nonsense.You've been sussed, m8.No-one likes a fraud. It's pathetically cheap.I'm looking forward to your future posts on fkl - you set 'em, I'll knock 'em down.
corriedog
06 Aug 2015
Re: What's FKL Doing With Our Dividend? Thanks El Kel.You have said that you are managing family money with investment in FKL but give no credibility to the Chairman.I have seen no obvious errors by the Chairman nor by the company's chief executive. They always provide more detailed information and timeously on the trading performance and financial position than absolutely necessary. The profits look robust and the balance sheet is strong.They have meaningful share ownership to get it right.You seem to mistrust them and their motives. If you do feel that strongly and think that there is too much risk then why hold the shares.The next step in this company's progress will be very interesting in terms of future value.I know about valuation of companies and I will say again that FKL is valued as a low/no growth private company. That is plain wrong.
Ovets47
05 Aug 2015
Re: What's FKL Doing With Our Dividend? TX2,I don't think there's much risk of FKL ever becoming another Tesco and Haldane wasn't suggesting all companies should reinvest 100% of their profits indefinitely, so I don't follow your post.BP is a good example of a company paying out more than is sensible for its financial good, increasing the dividend when facing unknown, enormous fines, but that doesn't necessarily mean that it shouldn't pay any dividend at all.As for FKL, it wouldn't make much sense continuing to pay a dividend, when the BoD know they need to fund some strategic expenditure (e.g. an acquisition) requiring a rights issue.What I'm saying is that if the BoD take a change in management style/direction, then the shareholders deserve to have an inkling of what's going on, even if the details have to remain confidential.
El Kel
05 Aug 2015
Re: What's FKL Doing With Our Dividend? It is down to the quality of the leaders ---------- --Hello corrieHmm, is that so.You do seem to be in constant awe of fkl's 'leaders'.Could you please inform us of the names of exactly which leaders at fkl you consider quality?Also, seeing as you have such high regard for them, perhaps you could provide some hard facts to substantiate your constant and geneflucting eulogies?Thanks!
corriedog
05 Aug 2015
Re: What's FKL Doing With Our Dividend? Last year's EBITDA was £5.2m and net cash £6.7m.. Today's market cap is £29m.EBITDA is pretty robust as it didn't include any 'specials' at Momart.Undervalued or what!
corriedog
05 Aug 2015
Re: What's FKL Doing With Our Dividend? Both arguments are right. In some cases, it is right to pay a dividend and in other cases it is best to not pay a dividend when the company needs the funds for sensible growth.It is down to the quality of the leaders of the company and their percentage shareholding in the business.FKL is now led by the biggest shareholder. They had most to gain by paying out ever increasing dividends.FKL is valued as a small private company with no growth potential. 5 times EBITDA plus the cash - or even a bit less than that now.I expect that the major shareholder wants to grow the company with a sensibly priced acquisition , reduce the cost by some synergies/cost savings, and get the company re-rated as a growth, public company. Maybe initially on an EBITDA of about 7.The major shareholder paid 320p per share. FKL seems to have strong financial management which personally I find comforting.The positioning and plans for FKL all look quite sensible to me. Lets see what this first acquisition brings.
TX2
04 Aug 2015
Re: What's FKL Doing With Our Dividend? Just LOL!Haldane's rather simplistic view as stated makes the assumption the every company has the ability to invest its entire profits for ever and continue to get the maximum economic benefit to the community as a whole by investing ever more capital in its business rather than paying out a portion of its profits to its owners who might have better and more profitable alternative uses for this capital.The money paid out in dividend does not vanish it is merely redistributed and available for use elsewhere.Why not extend Haldane's laughable argument to bank lending and suggest that a bank loan made to a company should never be repaid and any interest instead of being paid out be capitalised and reinvested in the business.The problem is if companies do not distribute at least part of profits fewer & fewer companies,as some at least will fail,will control more and more of the capital and may make less & less efficient use of the capital.Amazon may have for the present economic use for all the profits it earns;but as we have seen with supermarkets recently businesses can over expand.Imagine if once invincible Tesco had never paid a dividend and built another 500 out of town hypermarkets instead...it would be in even more trouble.
Ekati
04 Aug 2015
Re: What's FKL Doing With Our Dividend? One of these days the rabbit will come out of the hat.The radio silence can also be a good sign. We'll see in due time.
Ovets47
04 Aug 2015
What's FKL Doing With Our Dividend? Interesting Newsnight interview with Andrew G Haldane, the Chief Economist at the Bank of England and Executive Director, Monetary Analysis and Statistics, so not exactly a wally (one hopes).Mr Haldane's view is that the business model popular with investors, where considerable company resources are routinely distributed to shareholders, in the form of dividends, is no longer valid.He prefers the model where companies reinvest their resources in the company.Recent examples, such as BP, which increased its dividend to pacify shareholders, when facing catastrophic fines running into tens of $Billions, when it really couldn't afford to do this.contrast, Amazon, which funnels most of its resources into improving the business. No one considers Amazon to be a lost cause, even if the business model is unconventional.Assuming the FKL BoD has the company's interests at heart, then suspending the dividend may prove to have been a positive step. While I enjoyed receiving that dividend, I did wonder how it could be afforded and what provision FKL was making for business expansion.Well it now appears that FKL should have been thinking a bit more about the future. Let's hope that's what the new BoD is doing, perhaps in anticipation of the FI becoming a new oil & gas region, but as a shareholder, I'd like to be told a bit more.
doginafog
01 Jul 2015
Mercopress FYI Falklands will continue to develop its legitimate oil industry as it moves from exploration to production The Falkland Islands government has no doubts about its right to licence legitimate offshore oil and gas exploration activities in accordance with Falklands' legislation and will continue to support the hydrocarbons industry as it moves from successful exploration towards oil production.[link] dif
corriedog
09 Jun 2015
Director dealings Well done Mr Foster.A price of 5 times EBITDA plus cash is way too low for this company.
sunsandandoil
06 Jun 2015
Re: Investec out Thankyou for the clarification
