Isn't this a frustrating share! Since the fantastic new strategy of no dividends and making acquisitions one year ago - and there hasn't been any whiff of an acquisition - the share price has fallen from roughly 250p to 180p. Some way to increase shareholders long term value! Half of today's market cap sits in net cash. Next year it will be 75% I gave the major shareholder and chairman the benefit of the doubt a year ago but I was wrong. By contrast and in just six months, a shell company supported by Lord Ashcroft has set off on a buy and build strategy and the share price has doubled.
I was considering buying a few of these as a low risk punt on Falklands Oil. The way I see it the company is not currently highly rated, has a sound balance sheet and if there is substantial oil to be extracted around the Falklands then presumably their businesses there will benefit from the increased economic activity.
But then I did a bit of research into the colourful business career of the Rowland family and decided that maybe I would leave it alone.
Instead I bought into SNX at 125p as a company which is on a modest rating anyway but could potentially be very cheap if their oil and gas customers start buying again and has a strong balance sheet
I also bought a few PRES but have to admit that I didn't do my research properly and probably wouldn't have bought when I did if I had. I'm currently sitting on a modest loss including dividends. The balance sheet is not as strong as I would like.
Finally I have some HYDG, a recruiter which does substantial business in oil and gas, has a very strong balance sheet and appears cheap to me once the effect of downsizing has fallen through the books, yet a couple of years ago was making earnings of 10p a share against a current price of 30p. Unfortunately I bought in at over 50p and 40p so sitting on a substantial %age loss but currently confident that I am going to get my money back regardless of whether their O&G customers start recruiting again.
They're my 3 punts on a recovery in the oil price, none of them are out and out plays but they do offer substantial upside and they're are not entirely reliant on O&G.
Agreed Pond1. However the situation is even worse for me now as I have been told by Capita that the cheque sent to me has already been cashed.
So, I may well be the victim - not only of Capita's incompetent processes - but also of fraud and theft. Yet amazingly I have had to pay Capita so that they may "investigate" this loss.. Well, I posted that cheque to Capita nearly 2 weeks ago. Have I heard anything back ? Have I heck as like.
Has anyone else had these 'issues' - and does anyone know of a regulatory body I could refer to for such problems ?
Yep TX2. Not arrived, so contacted Capita. Apparently I have to pay for a replacement if it doesn't arrive after 21 days. A total disgrace really. As certificate holders, its seems we are responsible for the shortcomings of Royal Mail. Great.
I hold a round thousands number of shares held in two nominee accounts however my understanding of the fractional repurchase arrangement was that it only applied if you held less than 1000 shares and held them in your own name or within a nominee account that held less than 1000 shares in total.
So if you held say 3456 shares either in own name or via nominee you would still hold 3456 shares post share consolidation/split.
I think that you were right and I was wrong.
It's one where I would gladly have been wrong - may still be but most unlikely.
I have only myself to blame for my underwater positions.
I had been in and out of fkl for years and the constant div lulled me into a false sense of security.
It is an AIM share and so should have been accorded much less
This is now being run like a private company and I think that the trading cash is being accumulated in the company to help Rowland take it private.
There is no income on our investment and limited growth.
When Rowland's bid comes, he will only need 20% to get full control and take the company off the market. What price? 260p?
I have sold most of my FKL shares and bought into Premier Oil with the cash prior to its suspension. Lucky but a much better investment decision I think rather than hanging on with FKL. Time will tell..
The actual detail of this share consolidation & then split is on FKL's website.
The idea is to remove very small shareholdings by a forced buy out of the holders shares;apparently the company has 1600+ shareholdings below 1000 shares per holding(out of about 2100).Most of these shareholdings are of long standing and arose when the company was listed,it was spun out of another company.They claim these holdings are expensive to administer(posting annual reports etc I assume).
It will be done by consolidating the shares 1000 shares into 1 New share & then splitting them back into 1000 shares;if you have less than 1000 shares you won't get any new shares & your shares will be bought out at the prevailing share price prior to the split.
If you hold your shares via a nominee company this process will only apply to the registered holder of the shares(viz the nominee company) not each holder within the nominee company so assuming the nominee holder controls at least 1000 shares in total it will not affect any shareholders who have less than 1000 shares if they hold them via a nominee account.
Whilst I accept that there is some long term admin saving to be made;although this process will no doubt equate to several years costs of administering small accounts.I do take a somewhat cynical view that this is all part of what appears to be a policy of making FKL a very unattractive share to hold.
This is by far my worst performing share;thankfully in a difficult year for equities most of my other holdings have done reasonably well;the poor share price performance is due to the management.
Thanks for your good wishes which I return to all.The weather where I live in the Lake District is even more dismal than that in the Falklands at the moment!
Is our BOD waiting for the results of FOGL before going further with their plans lying on the table? Because with ( very ) good results of the drilling campaign they maybe have to address more funds to the island's infrastructure instead of putting the resources at other ventures they have an eye on.
Just thoughts coming to mind awaiting more news from our company.
Well, that's the problem. Depends which sort of investor you are. I am a LT investor here thinking more or less assured of a nice div for years to come. But that changed from one day to another. But at these prices I stay in. We'll see, I can wait some time.
Not good, not bad. But not very much at all. Basically, this is a share that passes on many value ratings, but whereby there does not appear to be any trigger yet that would justify a re-rating. So, looks like it is a decision as to whether you wait for that trigger, which could be some time, or move on.
I assume that you are serious.
I am only moderately serious. In reality, our posts on these BBs are probably not much more than mere flotsam and jetsam in the grand scheme of things so I'm not sure what value we can place on them in our lives.
However, while we're here, I am certainly agin' people posting on internet forums under an innocent guise when their agenda is anything but. I'm sure you'd agree that it's a wretched way to spend your time.
I do certainly question your motives for religiously lauding fkl's leaders without substantiating such deferential praise.
I can but hold your posts up for reference. I imagine that anyone reading your worshipful posts would have similar suspicions as to why you have such devoted faith in Rowland.
I'd really like to read your properly substantiated reasons of what exactly makes fkl's current leaders 'quality'.
Based on your posts below, that is a very reasonable question.
15.06.12 I think that we have a pretty good team of executives running this company. Well done to them.
11.07.12 This remains an excellent risk/reward play on the Falklands oil story. The Board have done very well so far.
21.08.12 Simple, transparent, balanced, complete and informative. Well done Mr Hudd. This is how a public company should be run.
I continue to view this as a well managed company and the best risk/reward play on the Falklands oil story...there is significant scope for the share price, and dividend, to increase significantly.
It is amazing that this company remains largely undiscovered.
05.05.15 I was concerned and emailed various questions to Edmund Rowland. He replied fully, promptly and sensibly.
12.05.15 I have had exchanges with the new Chairman to get a better handle on the prospects.
The CEO has been FD of two other listed companies. The finances are managed competently.
It is down to the quality of the leaders
I actually believe in the strategy that the Board are following because it can deliver significant value if they get it right. I also believe that the shares are significantly undervalued.
How can be believe in the strategy of the Board, we haven't got it yet!
Long ago ( can't even remember ) when it's was so busy here. :-)
We'll have to wait and see what the plans are. We can't say anything about it, we know nothing so far. I hope there is a damned good reason to take our div away! A bit of communication from the board, please!
You seem to have a lot of spare time to waste and want to have the last word.
You and the Tampon are rude to other posters with whom you disagree, a bit like Twitter, where the uneducated think they can get away with saying what they like. The Tampon also blatantly tries to manipulate the sp of RKH & FOGL, which contributes nothing of value.
As I said before, your views may have value, but try expressing them eloquently and they'll have more impact.
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