Fletcher King Share Discussion Threads

[alansmith23] 17/1/2006 11:41

"Perhaps the recent action might attract a few more people here"

me for one, looks like a technical chart breakout so in for a small holding this morning.

[rivaldo] 17/1/2006 11:32

Absolutely right in being cautious Cornishman, but all the signs are that the commercial property market is set fair for at least 2006, in which case FLK should continue to thrive.

Perhaps the recent action might attract a few more people here, but I hope the thread will remain relevant with just a touch of exuberance - I'm usually a glass half full rather than empty type of person (hi GHF!).

Good to see the bid up again today and the spread closing to a decent 2p - might encourage a bit more buying.

[thecornishman] 17/1/2006 00:22

Hi Rivaldo

Yes one and the same Cornishman as TMF I am afraid (although obviously you only have my word for that). Never managed to get anyone there (except for WCB) interested in FLK, so after trying to get the action to come to me, I decided to come to where the action was ;-)

And what action - nice rise today - obviously not so cheap now as they were yesterday and I do worry whether now is roughly the time that things are as good as they can get in the commercial property sector. Am awaiting the interims - and especially the outlook statement - with great interest and will take it from there. Whilst it is nice to gaze toward the stars a while, I think it is always best to keep glancing to the ground, just in case one is about to fall off a cliff. No cliffs immediately ahead that I can see though, I am pleased to say, but one day there will be.

Please do keep up your good work - I enjoy reading this board a great deal - especially when everyone is discussing large price increases :-)

Very best

Dave

[miriam1] 16/1/2006 21:43

Thanks rivaldo for your comment. I shall carry on doing research and keep FLK in mind. Anymore comments in the future you have for me would be much apprecicated.

[rivaldo] 16/1/2006 15:07

I don't think Robbie "frequenttrader.com" Burns reads the free BB's any more, but his comments today won't do the share price any harm:


"Big star of today is Fletcher King (FLK) up more than 10% with I believe way more to come - it's now 65p and I expect a rise to around the 80p level - in fact I am tempted to buy some more though I am being cautious as it is a bit illiquid.

Commercial property should continue to be hot this year and a statement is due in the next few days - if it's good, this share could rise bigtime and quickly like it has today and my buy at 53p is starting to look rather good! A nice-looking share!"

[rivaldo] 16/1/2006 12:13

Patience is deffo the way to go imo - greater returns and less stress!

The price is still going up - I wonder if FLK might be a bid target, since it must be pretty attractive with a £5.3m m/cap supported by £2m cash and a highly profitable core business?

[glasshalfull] 16/1/2006 11:13

I don't pretend to know too much about this one and have a relatively small holding. Just seemed a very good value play.

Pretty stagnant for months and then....whoosh !

Nice to see that patience is now paying dividends.


Regards
GHF

[rivaldo] 16/1/2006 11:07

MMMM... :o))

Lauders, it seems your 3) may be right on the button.

[lauders] 16/1/2006 10:53

So we have:

1) Market sentiment on the back of positive trading updates from the sector.
2) Information about a bullish update from FLK reaching the market.
3) Both.

Hmm... I reckon mainly the first option, but it could be the third ;-)

Nice if we get an "expected to exceed" RNS.

[rivaldo] 16/1/2006 10:31

LOL :o)) Yep, been out this morning and just got back to review the scoreboard! Lovely...just waiting for BDI and PGB to pick up again now.

Miriam1, I can't advise - all I can say is read a few of the prior posts and draw your own conclusions. I certainly agree with your friend's view!

[glasshalfull] 16/1/2006 10:24

What a day Rivaldo.

Hard keeping up with the movement across my (our) holdings !

[glasshalfull] 16/1/2006 10:23

Nice rise.....no doubt buyoed by market sentiment.

Hope it continues.


Regards
GHF

[miriam1] 15/1/2006 19:29

Hello. I am new to all this share wheeling and dealing...My friend who thinks he knows alittle bit about shares bought FLK 3 years ago and thinks this is a very good company. What do guys and girls think?

[rivaldo] 15/1/2006 16:40

Thx for that Tole. IMO there's every likelihood of a similar outperformance in 2006 from FLK.

[tole] 15/1/2006 13:50

Property services companies top 2005 share league

DTZ, Savills and Fletcher King shares shine thanks to 'longest bull run since the 1970s'


13.01.2006

By Molly Dover

Property services companies DTZ, Savills and Fletcher King were the best-performing property shares of 2005.

DTZ has claimed first position in Property Week's property share performance league with a 123% rise in its share price from 199.5p on 1 January to 444.75p by the end of the year.

DTZ chief executive Mark Struckett said the increase was thanks to strong earnings growth and a rerating of the shares.

'We saw earnings-per-share growth of 86% for the full year, which has pushed the share price up,' he said.

'There was a significant rerating in the US last year of Jones Lang LaSalle and CB Richard Ellis. It has affected us and Savills this year as people here have started to understand our business more.'

DTZ outperformed rival Savills, which nonetheless rose 93%.

Savills chief executive Aubrey Adams said the increased share price was driven by a rerating of the company's income and the strength of the property market.

'Brokers are now expecting higher profits of about £53m,' he said. 'Earnings have been growing and are forecast to grow faster than before.

'There has been a genuine rerating of Savills' income as the quality of income has been recognised. It is not as volatile as people might think. The outlook is positive for the property market.'

The Real Estate Index failed to perform as well as last year when it hit a 10-year high and its 18% increase was matched by the All-Share Index.

Citigroup property analyst Mike Prew called 2005 'the longest bull run since the 1970s' in his research note of 8 December. He argued that although the Real Estate Index failed to outperform over 12 months, it outperformed by 10% over 13 months.

This discrepancy was because the sector started 2005 at an artificially high level, following a spike in share prices at the end of 2004 caused by a combination of strong results and REIT optimism.

'The first three to six months of this year saw an unwinding of that spike,' said Prew, 'amid fears of interest rates rising and the budget announcement stopping Stamp Duty relief in deprived areas.

'But over 13 months, the sector has been strong.' He remained positive about the property sector in 2006.

None of the majors outperformed the index in 2005. Land Securities, British Land and Hammerson all matched it with an 18% rise.

Liberty International fared the worst with a share price increase of 1%, because of negative sentiment on retail property.

Safeland improved its position, moving up 43 places thanks to its announcement last January that it was launching several Shell companies and listing them separately on AIM.

Only two companies – Minerva and AIM-listed Solitaire – failed to increase their share price in 2005, both falling by 4%.

Adams said he thought the outlook for property continued to be strong in 2006.

'Things that could go wrong this year are big external shocks such as a large rise in interest rates, which is unlikely, or something serious in the US,' he said.

'But there is so much money coming into property that it wouldn't have much of an impact. The strength of the property market is set to continue.'

[rivaldo] 14/1/2006 10:57

Hi Cornishman - are you the same C'man as on the legendary board on T.M.F? Good to see you here.

I agree absolutely about the indication from the Savills statement - everything points to FLK having had a continued great 2005, and prospects for 2006 seems just as rosy in the commercial property market.

With £2m of cash and a highly profitable core business on a £5m m/cap we could imo see another rise of anything from 30% to 70% in the share price this year. And the likelihood is there'll be a bumper divi too.

Results in the next couple of weeks and counting....

[kardiff] 13/1/2006 10:22

Amazed is an understatement particularly when Colliers CRE also announced most favourable market conditions yesterday.

This share price is significantly undervalued and should see good gains on the results.

[thecornishman] 12/1/2006 22:39

Hi Rivaldo

Been in these for nearly a couple of years now I guess.

You mention two reasons for confidence. Surely the Savills trading statement from yesterday counts as a third. Very bullish statement from them regarding trading conditions, incl. commercial property and asset management.

I was amazed at the FLK price reaction yesterday (or lack thereof). Looks like some sanity may have returned today. I still view FLK as potentially the cheapest of my present holdings though.

Looking forward to the results...

Very best

TC

[rivaldo] 12/1/2006 18:52

Keep the noise down GHF, what sort of a thread do you think this is? :o))

Last year's results were out on 21st January, so there's probably only a few days to go..

Two reasons for confidence:

- I spoke to the FD a while ago. He confirmed that they would announce at the AGM if anything had changed from their outlook statement. They said nothing, so the likelihood is that things have gone well.

- Take a look at Fletcher King Howard's web site. This is a new one on me and hasn't been mentioned here before. The news page is choc-a-bloc with projects, a number of which appear set for completion in 2006. For a small company like FLK, this is more evidence that trading is strong and continuing to be so:

[glasshalfull] 12/1/2006 14:03

Whaehae !!

[rivaldo] 12/1/2006 11:06

Factually correct maybe - but who cares about 1993?! The stock market (for the most part) looks forward, not back.

The two Investment Property Syndicates recently launched and the expansion of the Asset Management and Facilities Management departments are proof that FLK are moving ahead organically - and the advent of REITs will only aid that expansion.

Nice to see the price go up today on the back of one 7.5k buy. Can't be much stock around.

EDIT - seems like the later 42,500 trade was the one that caused the rise - clearance of a small overhang?

[meshiey] 10/1/2006 15:25

as i said, the share price has hardly changed since 1993, wasn't referring to the last 12 months!

[rivaldo] 10/1/2006 15:23

Fair enough meshiey. You must be a pretty demanding investor though - to say the share price has hardly changed when it's up around 70% in the last year...I'd love to have that kind of return on all my investments.

And that's without the huge divi yield!

[meshiey] 10/1/2006 13:25

rivaldo,

the primary reason i have pulled out is not necessarily because of the growth in the investment market but more because of management. the company has been listed since around 1993 and its share price has hardly changed. the management are not very good at making decent acquisitions in order to grow the company in the long term nor are they very good at growing organically. imo.......