LIC & LIT BKI Investment Company Limited (BKI)

Discussion in 'Shares & Funds' started by Nodrog, 17th Sep, 2016.

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  1. twisted strategies

    twisted strategies Well-Known Member

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    absolute speculation here , ( not even the slightest hint is fact )

    what if Contact ALSO started to research for SOL as well , sometimes an eye catcher might get a chunk of cash from SOL ( and possibly ) a new director , and sometimes the eye-catcher will get a passive investment via BKI .

    SOL also owns Pitt Street ( capital or partners .. i forget which )

    make the Contact part a multi-task research unit .
     
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  2. Nodrog

    Nodrog Well-Known Member

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    Yes all possible. As mentioned in my earlier post a separate management company would enable them to be a service provider to external parties. Extra income.

    Rest assured the Millner family are looking to keep the wealth in the family so I'm sure there's a lot more going on behind the scenes with a long term plan. Rob's not getting any younger so Toms' next in line to take over. The cross holdings make it harder for corporate raiders to mess with the Millner group holdings.

    I saw it mentioned awhile ago that MLT and BKI might merge at some stage. Just like MLT and CHO (which we owned) years ago. Well maybe CONTACT can become the mgr for both. But no merger need, just a single management company for both LICs and maybe more.
     
  3. Il Falco

    Il Falco Active Member

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    Quite possible, saw Frank Gooch at Sydney Flying Squadron a couple of months back and he's not getting any younger either! (though cant say any of us are).
     
  4. Nodrog

    Nodrog Well-Known Member

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    Speak for yourself Old Falco:D. I'm feeling younger (mentally) the more time goes on.
     
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  5. Jack Chen

    Jack Chen Well-Known Member

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    I feel like my whole world is collapsing. How can this happen without any forewarning?
     
  6. Il Falco

    Il Falco Active Member

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    That's because you are losing your marbles old fella.
     
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  7. Il Falco

    Il Falco Active Member

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    Don't worry too much. I've had a quick look at the numbers and it looks a fair deal. They have set their management fee at a level that if BKI's other costs remain the same (directors fees,trading expenses, compliance, admin etc) that BKI shareholders will not be worse off. (MER would be still around 0.16%). Its not really a stitch up.
     
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  8. Nodrog

    Nodrog Well-Known Member

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    Yes @CatCafe, I was nearly ready to slit my wrists:D. It appears they have set it up so the MER stays around 0.16% as @Il Falco stated. Probably unlikely to reduce but who cares, it's cheap enough. So tragedy averted. All is fine once again in the world of low fee LICs:).
     
  9. 158

    158 Well-Known Member

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    ....then we see a massive SPP - increasing FUM (increasing total external management fees).........

    pinkboy
     
  10. Il Falco

    Il Falco Active Member

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    Just bear in mind who the major shareholders are, they wont be diluting themselves.
     
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  11. Nodrog

    Nodrog Well-Known Member

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    Bit like our home brew, why would you want to dilute it!
     
  12. twisted strategies

    twisted strategies Well-Known Member

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    i possibly will be accumulating outside of the DRP as well ,

    there will be a reason for this move and since the Milners have a multi-generational interest maybe a longer term view than my 5 year ( plus )one .

    even allowing for the paper loss in NHC ( down 50% ), riding the Milner/SOL coat-tails has done rather well for me

    i won't be following blindly , but do expect moments of opportunity
     
  13. Nodrog

    Nodrog Well-Known Member

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    NHC is a legacy holding from the Brickworks portfolio before being spun off as BKI. It's weighting in the BKI portfolio continues to reduce as FUM grow. BKI has copped some flak about it over the years. Hence I doubt Tom is intending to ever increase the holding but rather than pay CGT preferring to leave it be for now.

    At 2.4% of BKI's portfolio it's of little significance nowadays unlike when I first owned BKI years ago.
     
  14. twisted strategies

    twisted strategies Well-Known Member

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    but NHC is still growing in intriguing directions while others are cutting investments,

    i am not calling a raging hot buy , but may yet recover with the resource sector to be a much more diverse company , i am still watching for some contrarian top up opportunities here .

    but BKI is ( to me ) more a safe haven play ... a spread of disaster resistant companies that do not cycle in sync .

    since many are fascinated by NTA ( premiums/discounts ) a stable portfolio LIC like BKI will produce some nice top-up opportunities ( where NTA diverges from div. yield )

    while NHC will be dragging the NTA down it is still paying franked divs.

    NHC NEW HOPE CORPORATION ORDINARY


    Balance Date Dividend Type Cents per share Ccy Franked % Ex-Dividend Date Books Close Date Pay Date
    31/07/2016 Final 2.000 AUD 100.00 17/10/2016 18/10/2016 01/11/2016
    31/01/2016 Interim 2.000 AUD 100.00 18/04/2016 19/04/2016 03/05/2016
    31/07/2015 Final 6.000 AUD 100.00 16/10/2015 20/10/2015 03/11/2015
    31/01/2015 Interim 4.000 AUD 100.00 17/04/2015 21/04/2015 05/05/2015
    31/07/2014 Final 5.500 AUD 100.00 17/10/2014 21/10/2014 04/11/2014
    31/01/2014 Interim 6.000 AUD 100.00 11/04/2014 17/04/2014 06/05/2014
    31/07/2013 Final 10.000 AUD 100.00 16/10/2013 22/10/2013 05/11/2013
    31/01/2013 Interim 6.000 AUD 100.00 09/04/2013 15/04/2013 01/05/2013
    31/07/2012 Final 25.000 AUD 100.00 18/10/2012 24/10/2012 06/11/2012
    31/01/2012 Interim 6.000 AUD 100.00 11/04/2012 17/04/2012 02/05/2012

    while TPM just dragged the NTA down it is still paying franked divs .

    TPM TPG TELECOM LIMITED ORDINARY


    Balance Date Dividend Type Cents per share Ccy Franked % Ex-Dividend Date Books Close Date Pay Date
    31/07/2016 Final 7.500 AUD 100.00 17/10/2016 18/10/2016 22/11/2016
    31/01/2016 Interim 7.000 AUD 100.00 18/04/2016 19/04/2016 24/05/2016
    31/07/2015 Final 6.000 AUD 100.00 09/10/2015 13/10/2015 17/11/2015
    31/01/2015 Interim 5.500 AUD 100.00 10/04/2015 14/04/2015 19/05/2015
    31/07/2014 Final 4.750 AUD 100.00 10/10/2014 14/10/2014 18/11/2014
    31/01/2014 Interim 4.500 AUD 100.00 09/04/2014 15/04/2014 20/05/2014
    31/07/2013 Final 4.000 AUD 100.00 09/10/2013 15/10/2013 19/11/2013
    31/01/2013 Interim 3.500 AUD 100.00 10/04/2013 16/04/2013 21/05/2013
    31/07/2012 Final 2.750 AUD 100.00 10/10/2012 16/10/2012 20/11/2012
    31/01/2012 Interim 2.750 AUD 100.00 11/04/2012 17/04/2012 22/05/2012


    and a reliable source of divs ( income ) will do me just fine

    i have other stocks for the capital gains mission ( MOY , BPS , NSL , DNA , etc. )
     
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  15. Nodrog

    Nodrog Well-Known Member

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    I'm thinking of updating our Power of Attorney along the following lines. If ever my wife finds out I've purchased a direct resource holding :eek: I'm not allowed to have any further dealings with our financial affairs. And I'm to be put into a mental institution (or banned from our home brew) for rehab and not allowed out until I swear on oath never to do such a dispicable thing again for the rest of my days:D.
     
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  16. twisted strategies

    twisted strategies Well-Known Member

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    my estate will be a HUGE dog-fight

    i have stipulated a DNA proof of relationship

    and let them fight over the claims ( any genuine family have for the last one hundred years you would think they are holy relics )

    i only scored the last two estates because they couldn't find anyone else still breathing ( seems i was the last family member to ever get to see a cent of it. )
     
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  17. twisted strategies

    twisted strategies Well-Known Member

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    the new Quarterly newsletter is out .

    apart from a new holding in FLT more thought provoking than exciting

    ( i hold BKI and will buy more in the dips )

    ( DYOR )
     
  18. Il Falco

    Il Falco Active Member

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    I dont invest in LICs any more, but i'd be happy with management of Millner Jr and Culbert. I think that my investing style closely aligns with theirs. FLT for example is one that I was adding earlier this year with the same thesis Culbert briefly laid out and its 2% position for me.
     
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  19. twisted strategies

    twisted strategies Well-Known Member

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    just starting to accumulate ( 'average down ' ) as a safe-haven/yield play ( they are unlikely to be forced sellers , and the portfolio is fairly robust )

    i am hoping the boring yield will be less attractive to others .

    my style differs from theirs ( even when we both hold the same stock )

    not exactly complementary but we won't usually both win big on the same stock at the same time

    i got in TPM in 2011 ( @ $1.40) free- carried them and have taken extra profit
    TLS was only bought into this year and will average down in the dips to come

    as some examples .
     
  20. twisted strategies

    twisted strategies Well-Known Member

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    trinity168 ,

    regarding the management change the team seems to be just three stock selectors ( researchers ) Will Cuthbert being a new face in BKI.

    as set out in the report today , it is explained in a logical way ( only time will prove the change was wise or unwise .)