new thread, page-90

"Clark Kent -Did you see my message addressed to you re BKI- any comment"


Sorry, I had missed it.
Yes, I took up my full entitlement plus the extras.
On the grounds that they were a bargain relative to NTA which I estimate at $1.64 (end of April - post rights).
I have some small reservations on BKI and I have communicated them to the company.

* I had the underwriters call me regarding my intentions on the rights issue. I did not appreciate it. I am an investor not a customer.

* They had no Bpay option for the rights issue.

* Given their Millner pedigree they dont seem to have reached the level of maturity you see in MLT, CHO. I expect this to be corrected over time

* The portfolio is OK, but includes certain Millner eccentricities such as SOT, NHC - although these seem to be doing OK

* Regarding their compulsory T/O sales, I want to make sure that they will pass on LIC Capital Gains Dividends of like the other mature LICs.

* As for the investment of the new funds, I expect that they will do the right thing and get away from the bank laden model. I noticed that have been increasing their WPL, WES holdings which is a good sign. I expect them to expand into the sort of new investments MLT have been gatting into : WOW, WES, WPL, BHP, that sort of thing

All in all, BKI are OK with a little growing up to do to get to the ARG, AUI, MLT league. I rate them a good chance, given the people at the helm.