K1 Ventures

[CY09]

Its quite interesting that K1 is rapidly giving out capital distribution that was not done in the previous FY. Similarly, Keppel T&T is giving out special dividends too. All these could be Keppel Corp's Plan of channelling more funds to prepare for its acquistion of Keppel Land shares.

Looking on hindsight, K1's recent capital distribution and Keppel T&T proceeds, indirectly benefitting their parent, could have been signs of Keppel Corp's aim to channel funds into better investments

[opmi]

No la. K1 div kacang puteh to KEP Corp. Probably
spend more money on washing workers uniforms than
the dividends received.

More likely Green don't want to invest for k1
already. Pay out everything. 好聚好散。

[desmondxyz]

K1 value after this round of 1.5 cts div:

10.2% KUH: 10 - 14 cts/share
Guggenheim Investment: 6 - 7 cts/share
Others (K12 share, NZC Guggenheim Fund, ChrysCapital LLC, Escrow from Helm, Gulf Coast Royalty Trust): 1 - 2 cts/share
Cash: 1.5 cts/share
Total: 18.5 - 24.5 cts/share

Did I miss out anything?

[GreedandFear]

K1 value after this round of 1.5 cts div:

10.2% KUH: 10 - 14 cts/share
Guggenheim Investment: 6 - 7 cts/share
Others (K12 share, NZC Guggenheim Fund, ChrysCapital LLC, Escrow from Helm, Gulf Coast Royalty Trust): 1 - 2 cts/share
Cash: 1.5 cts/share
Total: 18.5 - 24.5 cts/share

Did I miss out anything?

I think the big question is whether the KUH valuation (which is the biggest asset) is still valid. The steep drop in the share price (50-60%) of K12 - which was spun out from KUH) made me question OSK's valuation of KUH (which, I assume, is the one that you are using) and I decided to exit my position. I suspect that the Guggenheim position has upside given the warrants but given no disclosure on Guggenheim financials and very little on KUH, it just seems to me that this is a bit of a black box and that the margin of safety is now significantly narrower than what it was a few years ago when I invested. One last positive is, of course, that K1's assets are in USD so SGD based shareholders are benefitting from the weaker SGD.

[opmi]

K12 <> KUH. One online One Offline. One US-based. One US & Intl Based.

k1 is a Private Equity fund. KUH and GUGG are PE investments. Financials are not easily
available. I dont have it. It is all guessing, even OSK estimate.

My guess is max 3.5-4 cents div/Cap Reduction in 2015. After that, 0.5 cents max going forward.
While waiting for KUH and GUGG divestments.

For me, all CPF stock limit is invested only in k1. 0.5 cents pa on 14.8 (3.37%) still beats 2.5%.
KUH & GUGG are likely to be growing annually. So I GUESS (and hope) the MOS will increase over time.

[GreedandFear]

K12 <> KUH. One online One Offline. One US-based. One US & Intl Based.

k1 is a Private Equity fund. KUH and GUGG are PE investments. Financials are not easily
available. I dont have it. It is all guessing, even OSK estimate.

My guess is max 3.5-4 cents div/Cap Reduction in 2015. After that, 0.5 cents max going forward.
While waiting for KUH and GUGG divestments.

For me, all CPF stock limit is invested only in k1. 0.5 cents pa on 14.8 (3.37%) still beats 2.5%.
KUH & GUGG are likely to be growing annually. So I GUESS (and hope) the MOS will increase over time.

OSK estimates were not completely black box. K1 used to provide annual EBITDA numbers for KUH (but not for Guggenheim) so OSK could use comparable trading multiples. However, in the last annual report, they seemed to have stopped providing this info which also made me nervous.

[opmi]

K12 <> KUH. One online One Offline. One US-based. One US & Intl Based.

k1 is a Private Equity fund. KUH and GUGG are PE investments. Financials are not easily
available. I dont have it. It is all guessing, even OSK estimate.

My guess is max 3.5-4 cents div/Cap Reduction in 2015. After that, 0.5 cents max going forward.
While waiting for KUH and GUGG divestments.

For me, all CPF stock limit is invested only in k1. 0.5 cents pa on 14.8 (3.37%) still beats 2.5%.
KUH & GUGG are likely to be growing annually. So I GUESS (and hope) the MOS will increase over time.

OSK estimates were not completely black box. K1 used to provide annual EBITDA numbers for KUH (but not for Guggenheim) so OSK could use comparable trading multiples. However, in the last annual report, they seemed to have stopped providing this info which also made me nervous.

KUH and GUGG are US based investments. GUGG bought in at the low point of the US economy. If cannot 2X-3X the capital, Green very sia sway.

KUH is a leveraged play on US recovery. more jobs means more child care needs, which means high occupancy for the child care centres real estate portfolio. Making it easier to convert to public REIT. On top of improving education business prospects.

[opmi]

KU sold SG/MY nurseries to Busy Bees.

http://www.theguardian.com/money/2015/fe...ar-centres

[opmi]

k1 Ventures high volume today. No block trade. Interesting.

[opmi]

Renegades of Junk: The Rise and Fall of the Drexel Empire - Mike Milken

http://www.bloomberg.com/graphics/2015-d...l-history/