FKI Plc Share Discussion Threads

[csmwssk1] 12/3/2008 10:31

mike, I noticed them doing well lately, I bought in at just over £2 and ditched circa £3.75, a reason I would not hold out for fki bid to be finalised, however the longer this drags on the more likely credit crisis will go away, fki may be best holding out for a few months then tell melrose where to go..

[alitak] 11/3/2008 23:39

I was lucky and got in near the low, now out and do not mind giving up the last 10p, if it arrives. With current conditions FKI has too much debt for me to be holding for the maximum payout. GL to all those hoping for more

[mike456] 11/3/2008 23:03

I've been watching FKI for a while now and was getting tempted to buy when the share price was sub 50p, but held off as I thought it had further to fall unless a bid materialised. Unfortunately for me, but I guess not for a lot of poster's here, a potential bidder did surface.... but don't worry, I'm not bitter :o)

As this is the case, and it is looking unlikely that I will be investing in FKI I thought I'd take the opportunity to share a past experience of mine with another engineering company a few years back, which immediately came to mind when I was researching FKI.

I bought Charter at about £2 (it had been £10 a few years earlier) and saw a bid come in at £4 which I quite happily accepted and sent off my share certificate. The share price stabilised at about £3.90 for a while but unfortunately the bid disintegrated a few months later when accounting irregulaties came to light and by the time I got my certificate back it wasn't worth selling them. I'll point out now that I'm not for one minute suggesting that FKI has an accounting problem.

The share price continued to fall towards 50p and being an inexperienced investor at that time, I held on to them. Fortunately there was a happy ending to the story when I sold out last year for about £12, but I'm a lot more wary nowadays when a bid takes so long to materialise. If I was faced with the same situation again (like the current state of play with FKI) I would be selling.

I will reiterate again that I have no position in FKI and have no axe to grind either way but thought it worth spending a few minutes sharing my experience if it is helpful to anyone out there.

Best of luck

[csmwssk1] 10/3/2008 14:58

wyorke, most stocks in play will trade about 10 percent below expected take out price

[csmwssk1] 10/3/2008 14:57

Blackstone just put their results out, they wont bother here unless it is still here next year, share price is reflecting this, this could all go pear shaped, my opinion DYOR.

[skyship] 10/3/2008 09:58

wyorke - we only have an INDICATIVE / PART-STOCK offer on the table. Furthermore, the offer is not considered entirely credible as Melrose has to complete due dilgence & also successfully underwrite a share issue.

So it becomes an assessment of possibilities - and at the moment, quite plainly, one or more institutional investors have decided that at least for part of their holdings, 40% more than the 50p of January is fair value.

A few PIs (you & me), may take a contrary view, but the price of FKI will depend wholly upon the actions of the institutions.

Of course, we could see MRO, Blackstone, or indeed any other third party starting to accumulate a holding whilst the two-way trading volume permits meaningful purchase levels. We'll then see the share price flirting with 80p again.

[wyorke] 10/3/2008 09:41

why ?? bid is 80p, now price is 71.5P
please help exp...

[namrag] 09/3/2008 15:27

looks like blackstone are still keen...

[skyship] 08/3/2008 08:43

Melton - Thanks, will look at JIM

CSMWSSK1 - Exactly, but it requires a bit of imagination and a will to do right by shareholders. The current management don't display those characteristics, ergo - someone else has to do it for them!

[csmwssk1] 07/3/2008 21:45

I got out on weds at 77p, the melrose bid is kak lets face it, they are stealing this, the down side is the balance sheet if they do take it over, they will have fki debt plus another £250m that they gave to yourselves in cash, which will make it a weaker company, personally hope for those left that an all cash bid comes from peg but with price at circa 70p the market is saying 80p cash will win this, melrose would have been better off offering an all share bid as lets face it they cant do any worse than the muppets running the show at the moment, and at least the resulting company would have had a stronger balance sheet, cant believe they knocked 130p last year, greed, the idiots dont deserve to run another PLC, also if they did have any brains they would try selling GE the Energy Technology unit which could fetch £450m-£500m, selling the family silver yes, but clears the debt and the pension deficit and leaves them with around £20m which could be returned to shareholders (only arond 4p per share, but better than nowt), the main thing would be the share price effect as it would sky rocket and then could focus on turning round the other units and more

[melton john] 07/3/2008 19:20

Skyship, I hope i'm not butting into a private conversation, you might like to look at JIM on AIM. A cracking set of results, company buybacks, director buys, moved into larger premises for expansion, record trading month in Jan and still at a price below the peak 12 months ago. A picks and shovels company that makes money if the market moves up or down.

[a44] 07/3/2008 18:20

I don't offer advice but I do have my own watch list, but like today I held onto my cash.

I sold out of FKI back in November at quite a loss, but at present it was the correct decision.

I nearly got in on 27/02/08 and as of today I was regretting that, but another bad market day (good if you have cash) may prompt me back in here.

[skyship] 07/3/2008 17:02

a44 - I wish - no, only 15k at the moment though sorely tempted to make it a larger play. Still, as I am managing my SIPP which I am now drawing down, a certain amount of circumspection is required in these markets.

I only make overweight buys in asset-backed investements. That GLA to which I referred was a classic - one of those rare no-brainers - so 25% of my SIPP rested in there for a few short weeks. Some of that cash payout went into MERE (still yielding 8%), some into the silver etf - PHAG. Some topped-up a holding in TIR & some here into FKI. Any other ideas I can research over the weekend?

[a44] 07/3/2008 16:34

I though that was you SKYSHIP! On a day trade basis 69p was spot on when you got in? I am surprised how little effect the payroll data had.

[skyship] 07/3/2008 16:24

Someone seems to be hoovering up any loose stock @ 69p - see the daily chart at the top of the header...

[a44] 07/3/2008 13:45

And here is the payroll news effect!

[wyorke] 07/3/2008 13:37

maybe no bid at all ??
because now price is 69p,
bid is 82P. why ???

[a44] 07/3/2008 11:35

Well put Skyship although you are a brave man to have dipped in at this time. I have a feeling waiting an hour may have got a lower price and then when the US payroll figures are out who knows where the market will be, and hence FKI's price.

I am going to sit and wait a while before I decide to go in if at all. Certain agree cash is king at the moment.

[skyship] 07/3/2008 11:18

Personally I think there is an opportunity here. The Melrose team are not time-wasters and I suspect they know they can steal FKI on the cheap in these Markets.

So, if the bid does go ahead on these terms we get 43p in CASH + 0.277 of a new MRO share. The numbers therefore look like this:

MRO @ 140p. Bid = CASH of 43p + 38.78p MRO = 81.78p
MRO @ 135p. Bid = CASH of 43p + 37.39p MRO = 80.39p
MRO @ 130p. Bid = CASH of 43p + 36.01p MRO = 79.01p
MRO @ 125p. Bid = CASH of 43p + 34.62p MRO = 77.62p

Looked at another way, buying FKI @ 70p is the equivalent of buying MRO @ 75p.

PIs have been big losers recently and are totally scared of the markets; they won't even grab £notes when they are offered at 50p (as per GLA in January). That provides great opportunities for those with Cash.

Personally I've bought back in today - we'll see......

[scrapman] 07/3/2008 10:31

seems safe to say with a price now at 69p and the offer at around 80p a 20% difference implies the bids not going to happen and with the paltry volume I suspect a counter bids a non starter as well.

[crazy russian] 06/3/2008 11:15

yes but they all two years nearer to their pensions
all shortages in pension pots will have been topped up and in all probability new contracts will now be in force

so its a whole new ball game!

[orange5] 05/3/2008 21:19

This company and the people at the top are absolute nutters. I seem to remember them accepting an offer about two years ago when it was £1.20 and they turned it down. Since then there has been one poor trading statement after another. What a bunch of crackpots.

[a44] 05/3/2008 13:41

What's affecting the price at the moment?

[konkel] 05/3/2008 12:24

Well, given they've "opened the books" to Melrose we can only assume they'd accept what's currently on the table...that's also what the share price is telling us.