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Falklands Island Holdings. (FIH)     

greekman - 03 Oct 2007 08:11

NOTE that FKL are now FIH group plc. Epic FIH.

It is now over 4 years since I started this thread.
During that period a lot has happened (an understatement if ever there as one).
Several oilies have drilled numerous wells, most with little success as yet, although Rockhopper Exploration has made significant finds.
These finds are in the process of being updated and have drawn interest from at least 5 oil production companies.
The sp of FKL in Oct 2007 was around 400p, which is almost level with todays sp.
Due to many what I consider low risk factors, the sp is well below true valuation.
In saying that I am leaving all fundamentals out of my reasoning, and looking solely at potential.
Over the last few months, I have read numerous reports regarding how the current exploration will make the Islanders rich.
Of course that wealth will be passed along to the businesses that are situated on the Falklands themselves.
With Falklands islands Holdings being 'The Business' on the islands, with fingers in many pies, they are ideally situated to cash in on all the areas mentioned.

I suggest to anyone who as not been following the Falklands Story, or are new to this thread, to peruse the latest news releases of FKL. Also those of RKH (Rockhopper) Fogl (Falklands Oil and Gas) Des (Desire Petroleum) and Bor (Borders and Southern).
I am not pushing any of these other companies, but to post all the relevant updates on this header would take the whole page.

Remember who made steady big money during the Klondike Gold Rush.
OK some miners made fortunes, but the big steady money was made by those who saw the potential in suppling the essentials, IE those that supplied the tools to do the job.
I look at FKL as a sort of hedging to the explorers themselves.
But with hedging like this, we can all win.

Chart.aspx?Provider=EODIntra&Code=FKL&SiChart.aspx?Provider=EODIntra&Code=FKL&Si

cynic - 23 Jan 2012 09:09 - 94 of 174

agreed it's a tremendous rise - but on only 7,000 traded .... liquidity must be non-existent

greekman - 23 Jan 2012 16:41 - 95 of 174

Please note.

After a request from Markymar (thanks, needed a push) I have updated the header.

No doubt someone with decent IT skills (I am to IT what Pavarotti was to ballet dancing) could have done a better job, but at least it tells a bit of the current story.

I feel the number of posts on this thread, compared to the oilies threads themselves, says it all.
FKL are steady as she goes, regaining all that was lost during the last 4 years, and I am as certain as I can be, that the corner has truly been turned.
Once the big boys get involved in those lovely Falkland oil fields I can easily see the FKL sp doubling within 3 months.
What happens after that is of course anyones guess, but my guess is that those holding FKL will see a steady increasing sp over the next 3 to 5 years, coupled of course with the solid dividend.

cynic - 23 Jan 2012 17:03 - 96 of 174

greek - your logic for buying into companies that supply the picks and shovels is irrefutable, but as mentioned earlier, FKL is terrifyingly illiquid .... even today when there has been lots of traffic in FI companies, FKL could only muster a pathetic 45,748 shares traded, some of which would even have been sells

greekman - 23 Jan 2012 17:23 - 97 of 174

Hi Cynic,

I agree.
I appreciate that FKL have been trading for nearly 200 years, but the story has really only just began.
I am sure the illiquidility is purely down to most investors going for what they hope are the big money guns that are drilling the black gold.
Whilst I accept that FKL will never be as liquid to trade as the oilies are now, I do feel that the liquidity along with the spread will change for the better, and still feel that as FKL are not and probably never will be a big cap company, they will still make their shareholders a very decent return.

For info, I have about 10 shares in the oilies for every share in FKL and as said, it is more of a hedge bet, different in the fact that if one side wins the other side will also.
Difference also being that from now on steady rise, with a dividend that the oilies are a long way off from paying.
Mind you, a buy out might just trigger a special dividend to those holding in the oilies.

greekman - 23 Jan 2012 17:38 - 98 of 174

Short video, worth a look.

http://www.iii.co.uk/tv/episode/how-stable-investment-falklands

greekman - 24 Jan 2012 08:28 - 99 of 174

Deleted

markymar - 01 Feb 2012 10:57 - 100 of 174

http://www.falklandnews.com/public/story.cfm?get=6173&source=3

FALKLANDS' EXCO DECIDES ON PORT OPTIONS
January 31, 2012
by Steve Dent (FIG)

greekman - 01 Feb 2012 17:15 - 101 of 174

Hi Marymar,

Good find.
I like this bit,'There has, however, been significant progress of late, and it is these developments and new pieces of information that FIG are keen to share with both industry and the community and to gain an insight and thoughts on future plans or need'.
Not much need to read between the lines here.
I bet both the FIO explorers and the relative oil producers have been very instrumental in what is required.

I will pinch it for copy to a few other threads with ref to yourself.

NOTE.........Still trying to update the header with your graphs, son still not home to do it.

Regards Greek.

Balerboy - 06 Feb 2012 08:55 - 102 of 174

Got a bit of a rush on this morning, +17p .,.

avsec - 06 Feb 2012 20:06 - 103 of 174

Steady away reflecting perhaps their investment with FOGL and their position as overall beneficiaries of any increase in the FI's wealth and prosperity.

avsec - 20 Feb 2012 11:15 - 104 of 174

Another 10p today and going North nicely!

Balerboy - 20 Feb 2012 12:23 - 105 of 174

held these for sometime at 420p so am glad it's come good.,.

avsec - 20 Feb 2012 13:00 - 106 of 174

For the reasons I've expounded many times they have to reflect the success of the FI expansion. Had them since they were owned by Coalite and I'm still hanging in there as a 'banker'.

Balerboy - 20 Feb 2012 13:10 - 107 of 174

I hope not or "Tanker" will be changing the first letter......... ;)

markymar - 20 Feb 2012 14:13 - 108 of 174

Very Posh Greek, i like the Graphs,even better in the direction they are pointing.

lol.....Baler

greekman - 20 Feb 2012 14:21 - 109 of 174

Cheers.

avsec - 21 Feb 2012 17:15 - 110 of 174

Keeps going up! I make it about 10% in 10 days.

Not sure what is fuelling this rise but long may it keep going!

greekman - 21 Feb 2012 17:40 - 111 of 174

Hi Avsec,

My thoughts are that this is all down to the talk of takeover/farm-in doing the rounds with Rockhopper, coupled of course with their 'will it be released tomorrow updated CPR'.

When, not if, these talks come to fruition, that will really be the start of the money gushing into the Falklands coffers.

Whereas the race from Rockhopper and others will end with any takeover, or will reach a steady as she goes period with a Farm-in, the rush for infrastructure on the Islands will no doubt see a steady, upward increase in the FKL sp.
Just watch the land prices on the island multiplying.

It has been calculated that if all goes to plan, the taxes from oil and the continuing licensing agreements will be the equivalent in theory of making every islander a multi millionaire.

On that basis, what will be the future Nav of the Falkland Island Holding Company.
No doubt it will be many multiples of what it is at current valuation.

Whilst looking at a couple of the FI oilies to make me a nice bit richer in the near to mid future, I am looking at FKL to make me a bigger fortune in the long term.

My problem is, that until I release my gains from these oilies, the amount I have invested in FKL is only pin money.

That I intend to change within the next 12 months.

So its oilies for the short term and FKL for the long.

greekman - 05 Mar 2012 14:40 - 112 of 174

Interesting read.

I would think that the Falkland oil fields are in the same low risk category as the main UK oil fields situated in the north sea. That is of course if the UK is as serious as they have stated over their determination to defend the Falklands if required.
I like most people feel that the determination of the UK government to do so is as strong as the threat from the Argentinian government is weak.
I say the above not from a feel that anything as basic as the rights of the islanders being taken into consideration but for 2 other reasons.
1 It would be very politically damaging to the UK for them to not defend any attempt at taking the Falklands.
2 There is a huge amount of money involved.

If anyone has full access to Maplecroft, it does have all risks categorized in order of risk, but even so the brief article from the link shows very clearly how much risk there is in investing in many oil producing areas of the world, and the risks of once invested, those investors loosing out.

On reading the article, I feel that my Falklands investment is 'very safe'.
No doubt suitors of all the FI explorers are well aware of world oil risks, and will look at the Falklands in a very favorable light.

According to the Telegraph the UK is number 179 in the list, with Somalia being at number 1.

http://maplecroft.com/about/news/resource_nationalism_index_2012.html

avsec - 05 Mar 2012 16:39 - 113 of 174

Greek
Thanks for that article - an interesting read indeed.
I've just spent the morning and lunch with the Times reporter who interviewed Julian Thompson and whose article caused the flurry of news today. She will undoubtedly reveal more in due course.
My personal opinion is that Argentina has neither the money nor the military desire for a fight. They are almost bankrupt if you look at their indebtedness to the larger organisations; they have already welched on exisiting debts and are finding it difficult to obtain for credit.
That said their Buzios Tacticos are good (I've watched them at work) and we do have all our eggs in one Maginot-like basket - that well known South Atlantic misnomer 'Mount Pleasant'.
I think that the previous levels of quiet diplomacy will be achieved after the 30th Anniversary has been and gone.
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