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Disappointing results

lse:flk

#1

One week on and I am right so far as the price is down another 10% at 45p despite the market going north, but I realise I should have said I was not expecting the total dividend to be down from 3p the previous year to 2.25p this year. All the more unexpected given the interim dividend was doubled. So I reckon the drift down in price could continue some more.

However, who cares, I seem to be posting only to myself.


#2

I am listening Mr P. I took a few a while back, and am now underwater. It struck me as a play on London property without being in London property! The yield stands at 4%+, and there is cash in the bank, so I will not worry too much at the mo. The management are so tight-lipped it is nice to see some news, even if it is musings and speculation. Would you care to call a bottom on this?


#3

Blanketstacker,

Hooray, so I am no longer on my own.

In previous cycles, the buying area was when the share price equalled cash in the balance sheet so 28p, I think we would need a proper bear market to get down that far. Net worth and there is no goodwill is around 37p, I would be happy to repurchase at that level on a yield of 6%. Current yield is 5% and as you say too much cash in the bank and the cautious Mr Fletcher hints a better year in prospect. So probably a bit late to sell at today’s 43p, better to buy more if they fall further I suggest, but DYOR, WDIK etc and good luck. Perhaps profdoc will favour us with his thoughts at some stage.

.


#4

Thank you. I had been thinking of adding at 42, but I will drop that now. Thanks again.


#5

Hi Old_Punter,

I’m flattered that you are interested. I’m currently thinking and writing about FK - I’ll probably write about 2,000 words because it needs a difficult weighing of opposing thoughts and facts. I’m sorry I have not posted here recently, but ADFVN asked me to write a regular Newsletter last year (4 per week) which people pay a subscription for, so I’m not sure that I should be here also. However, I’ll try to summarise my writing and post something here - I won’t tell if you don’t!
Some early thoughts: Negatives: Managers who like to pay themselves well (one individual gets more than the PAT). Potential London downturn. Managers’ scant regard for shareholders who wish to attend AGM (I’ll have to get up really early that day! (from Leicestershire)
positives: Share price only a bit above NCAV. Cash nearly £3m (MCap £4m). Employee benefits: 2012 £1.67m 2013: £1.64m 2014; £2.01m 2015: £1.84m - so some degree of rise and fall with revenue. Operating profit (excluding impact of SHIP realisation) down from £0.509m to £0.444m (is that really so bad?)
Taking last 5 years: dividend payout ratio greater than 50% on average - giving shareholders a total of 9.75p or 33% for those of us who bought around 30p (22.7% on current share price) so company not guilty of gross hoarding but could be guilt of unreasonable hoarding (what does it need £3m in cash?)
Anyway I’ll write it out neatly in the next few days.
Glen