Falk IS. Hldgs Share Discussion Threads

[ifthecapfits] 15/4/2015 09:27

Licht - who is he and why is he selling?

[weatherman] 11/4/2015 21:24

This is where some of the money may be spent - they have land and plans in Stanley harbour to increase tourism.
hxxp://www.fidc.co.fk/projects/tourism/stanley-waterfront

If they want to increase growth they should sell low growth companies such as Momart and Portsmouth harbour imo.

[c2b] 11/4/2015 11:33

GhostofaHangman

Microsoft did not have an unbroken record of paying dividends going back years. FKL has no Intellectual Property unlike Microsoft. It has a few shops and rental properties on The Falklands and a squid packing business, but nothing that couldn't be replicated by others. In the short term its headcount has rapidly expanded, and cash flow from the Momart business is down (less lucrative exhibition contracts) and journeys on the Gosport - Portsmouth will be severely down with the closure of shipbuilding in Portsmouth. So classic cash flow problems just over the horizon, in an under-capitalised company, hence sale of FOGL shares and axing of the dividend. FID and first oil in the Falklands still years away, whilst costs continue to mount. Suggest we'll have "rescue placings" before any of the "investments" come to fruition. Financial discipline to run the business prudently for the benefit of the shareholders, rather than the directors and workers now completely absent with the axing of the dividend.

I'm totally shocked by the current news, but no company axes its dividend if it doesn't have to. If you still believe the story sell now and wait for the give-away placings.

[ghostofahangman] 11/4/2015 08:56

Agree Mr E, no dividends did not do Microsoft any harm

[eburne1960] 10/4/2015 21:11

I don't agree Hangers - the FOGL holding has not been significant for some time, it was merely the "icing on the cake", not one of the main reasons for investing in FKL. Any oil strike, whether by FOGL or one of the other companies, would benefit FKL's business interests on the islands far more over the long term than FOGL's shares increasing in the short term. I was initially annoyed about the axing of the dividend (and obviously the market was none too impressed either), but on reflection if the management do manage to turn FKL into a more substantial company then it would be worth the sacrifice. Maybe we are at a turning point, seeing a sleepy "safe" little dividend payer starting to turn into an exciting growth company......

[ghostofahangman] 10/4/2015 20:39

I sold out a few years back, but have sat on the sidelines watching, I could believe my eyes when I noticed the BOD had decided to sell the majority of the FOGL holding, 10 days before the Zebedee hit, the FOGL holding was one of the main reasons most investors are in here, giving us a low risk entry into exploration.but then there is the decent yield to fall back on, hang on...

[c2b] 10/4/2015 09:41

Weatherman

Unfortunately the directors can award themselves whatever salaries they like and bonuses, and dream up incentive schemes for themselves. Why would they actually want to spend their own money on buying shares, when they control the company, and have now decided they're not going to pay anything to the people who actually own it ! I also wonder what the write-downs will be at Results time !!!!

[weatherman] 10/4/2015 08:53

I hope to see directors buying at these levels....a cunning plan to hit the share price, then buy in. How committed are the directors to their own plan?

[ch1ck] 10/4/2015 08:50

Cb2This could be inspired if the directors he's the cash to invest in cash generating infrastructure in the Faulklands. They were using beached ships from the 19 hundreds to store supplies and ripped up a modern airport runway at Port Stanley.Modern facilities to support an oil terminal will generate millions

[c2b] 10/4/2015 08:40

I've sold, the shares held as certificates and the shares in the SIPPs. Market Makers doing all they can to hold the price up. But as Weatherman says, this is a tiny dividend, and the long term story should be great and they had very little trouble with the capital raising last time, so axing the dividend (lets not kid ourselves, it's never coming back) is madness. The company is either in serious trouble or it's being run by a mad man. Not something to keep in a portfolio of "safe" "growth" shares.

[weatherman] 10/4/2015 08:06

its now off nearly 30p for a suspended divi of 11.5p....and below net assets. If they are reinvesting the money in rentable housing etc. and other recognisable assets then the net asset value should grow along with profits.

I really invested for a long term growth story with a nice dividend. So disappointed, but not inclined to sell.

[c2b] 10/4/2015 07:59

I have no confidence in companies that "suspend" their dividend, chances are it never returns i.e. the infamous Griffin Mining. What happens is that the company just gets run for the benefit of the directors. If the current drilling in the Falklands is successful, I see no reason why the existing shareholders would not support a fund-raising for Falklands expansion and investment.

[whackford] 10/4/2015 07:03

I don't think Momart has been a great success and therefore agree need to be very selective on future acquisitions. Emphasis should now be on developing Falklands and not expanding elsewhere - Ferry & Momart already absorbing too much cash when next year we should see green light to Sea Lion.

[weatherman] 10/4/2015 06:38

Its already close to net assets, has higher cash levels and a healthy statement - so I don't see a fall coming. Accelerated growth sounds good, but it does increase risk. They need to be very selective in future acquisition. Disappointed about the dividend though.

[ch1ck] 10/4/2015 06:15

Possible down day today due to the suspension of the dividend. I will add more if it moves lower

[weatherman] 25/3/2015 22:52

MoD to spend £18m per year for next 10 years on infrastructure projects in the Falkland Islands. Some of this will benefit FKL.

[weatherman] 24/3/2015 15:16

Major military investment of £280m in the Falkland Islands announced over next 10 years

[eburne1960] 24/3/2015 14:53

About 4.5%.

[ghostofahangman] 24/3/2015 14:23

Anyone know the yeild on these now ?

[eburne1960] 24/3/2015 14:17

The way these are going, even if oil is found we're only going to get back to the price before the rig came along... :-(

[whackford] 19/3/2015 16:13

I was surprised by that.

[ifthecapfits] 19/3/2015 15:31

Selling down FOGL holding 1% retained.

RNS Number : 8984H

Falkland Islands Holdings PLC

19 March 2015

19 March 2015

Falkland Islands Holdings plc

Sale of Shares

Falkland Islands Holdings plc ("FIH" or the "Group"), the international services group which owns essential services businesses focused on transport and logistics, announces that it has sold 7.825million shares in Falkland Oil & Gas ("FOGL" ) for GBP2.3million, generating a profit of GBP0.7million for the Group. Following the sale, FIH owns 5 million shares in FOGL; representing 1% of FOGL's issued share capital. The funds generated by the share sale will be available for the development of the Group's businesses.

Chairman Edmund Rowland said "In the past five years the Group has directly invested over GBP8m in the Falkland Islands and remains committed to the development of its Falklands business. We look forward to a successful exploration drilling programme in 2015 and to the development of oil production in the Islands in due course, which will transform the value of the Falkland Islands Company. This latest sale of shares in FOGL will augment the Group's cash resources for further investment in its future growth."

- Ends -