Litcomp Share Discussion Threads

[mr hangman] 24/9/2009 15:05

When's the re-rating ?

[lbo] 24/9/2009 15:02

Cant see Wray selling at 33p! More like buying! LOL



Entrepreneur and serial investor Nigel Wray, known for his long-time involvement with rugby club Saracens, sees new goals for AIM-minnow LitComp. He has made a first investment in the £3.1 million 'after-event' insurer and supplier of medico-legal reports and litigation services following its recent move into the black.

Wray, a director and major shareholder of private investment group Prestbury Investment Holdings, has bought 445,000 shares in Litcomp at 62p. He now speaks for 8.7 per cent of the company and holds £1 million of the £3.45 million of issued convertible loan notes.

Wray, also a non-executive at telecommunications and IT staffing business Networkers International, as well as Healthcare Enterprise, will have noted LitComp's encouraging swing from losses of £580,000 to pre-tax profits of £830,000 for the year to March on turnover more than doubled to £6.23 million. Non-executive chairman Douglas Smith, one-time chairman of Scottish football team Hearts, says the return to profits was driven by the after-the-event insurance business.

[the big fella] 24/9/2009 14:58

So convert at 30 and accept offer at 33. Nice 10% turn for nothing.

[abc125] 24/9/2009 14:54

Having said that though, the only way this bid can succeed is if Wray backs it.

What a game!

[abc125] 24/9/2009 14:49

Thanks for that link LBO:

Nigel Wray
Nigel Wray, studied economics and economic history at the University of Bristol and has been described as " Britain 's most successful living investor" and "serial investor and entrepeneur". Nigel is also non-executive Director of WILink.com plc, Chorion plc, Domino's Pizza UK and IRL plc, Seymour Pierce Group plc, Invox plc, Safestore Plc and several other companies.


So he's a non exe at seymour peirce. That would rule him out.

[lbo] 24/9/2009 14:13

Does Mr Wray not have very close associations with Seymour Pierce! Surely can't be him bidding after this NOMAD move. Naughty! Naughty!

[abc125] 24/9/2009 14:04

Changed Nomad straight after RNS re share price movement, is that usual?

Maybe LIN were reluctantly forced to put out a statement by the previous nomad.

As regards to Wray being behind the offer, I just don't see it. I don't know a great deal about him, but doesn't he normally invest in listed companies?

edit: he bought a shedload - 440k odd - at above 60p in 2007.

[the big fella] 24/9/2009 14:02

Funny I was looking at Seymour Pierce on this mornings announcement and looked twice, but didn't put two and two together. Why the change at this stage. Conflict of interests maybe.

[lbo] 24/9/2009 13:53

Change of Adviser

LitComp Plc (AIM:LIN) announces that it has appointed Seymour Pierce Limited as
Nominated Adviser and Broker to the Company with immediate effect.

[lbo] 24/9/2009 13:21

LOL

So you are basically contradicting yourself again (never did trust a dell computer or a dell boy! ;) ). Fact of the matter is the best offer on the table will decide the value on Litcomp not what a few shares trade yesterday or today. And holding the convertibles does not mean you hold all the aces! The person or party who holds all the aces is the person or party that offers the most money that most shareholders are willing to sell out at! So if "Wray and pals" were making an offer of 33p and converting all their convertibles at 30p then they have played their hand and its up to the market or another party to decide if they are willing to trump that offer. QUID PRO QUO if "Wray and pals" are willing to buy out other shareholders of Litcomp at 33p then under takeover rules they must also sell to a higher offer or outbid that higher offer themselves. The for sale sign has now been hoisted by management and presumably by some of Litcomp shareholders who are either sellers or buyers at 33p. So basically the outcome will not be decided on here or by even the convertible bondholders now as managment have now released an RNS which the offeror obviously did not approve and I can't see how anybody can confused about that! A 33p bid only undervalues the company if someone else is willing to bid more! Its put up or shut time!

[abc125] 24/9/2009 13:20

I didn't see that coming!


"This anouncement is being made without the approval of the potential offeror."


That would mean management/bondholders are not behind this bid, unless they have found an ingenious way to hide in the background.

[dell314] 24/9/2009 12:48

LBO - 24 Sep'09 - 11:58 - 294 of 299

Thinking anyone can "ramp" when a share is as you said tightly held is even more comical! The final outcome will be depicted by valuation and what someone is willing to pay for litcomp.

Fact is the highest bid will be accepted no matter who is "holding all the aces"! If some shareholders try an opportunistice bid at 33p and somebody else then trumps them then who is "holding all the aces " then?

LOL

LBO - You seem a bit confused.

1. I never said the stock was tightly held. Wray and pals "held all the aces" by virtue of holding the expiring convertible debt, which is why I've avoided this one despite it often cropping up on my filters...

2. Contrary to your post, if a stock does happen to be tightly held it is easier to ramp, or pump'n'dump, as there is a smaller free float restricting liquidity.

3. I agree that the final outcome will depend on what someone is willing to pay. The "value" of anything in a capitalist system is what someone is willing to pay at that time. Whether that momentary valuation is representative of the item's long term value is open to debate.....

Rgds
dell

All IMHO, DYOR etc.

[philjeans] 24/9/2009 12:42

This stinks; "in ADVANCED discussions....."

Surely should have announced AS SOON as they received an offer?

Could well be Wray.

[stegrego] 24/9/2009 12:12

33p - are they having a chuffing laugh???!!

Ive already been mugged twice this year on shares with stupid offers, looks like this is going to be another one.

[philjeans] 24/9/2009 12:02

That's ridiculous!

50p minimum and they must wait for that figure; I smell a rat here - I wonder if Mr Wray is trying a low ball?

[ball deap] 24/9/2009 11:59

OMG, pumped then dumped

[lbo] 24/9/2009 11:58

Thinking anyone can "ramp" when a share is as you said tightly held is even more comical! The final outcome will be depicted by valuation and what someone is willing to pay for litcomp.

Fact is the highest bid will be accepted no matter who is "holding all the aces"! If some shareholders try an opportunistice bid at 33p and somebody else then trumps them then who is "holding all the aces " then?

LOL

[dell314] 24/9/2009 11:41

Trying to ramp a company that had Wray and his pals holding all the aces seemed pretty daft anyhow.......

AlL IMHO, DYOR etc.

Rgds
dell

[lbo] 24/9/2009 11:40

Any successfull bid will need to be a bit higher IMHO! DYOR

[the big fella] 24/9/2009 11:37

It will be interesting to hear the rationale behind accepting such a low offer and who the buyer is (assuming it does go ahead). Not happy but at least it's for more than I paid for my shares.

[mdchand] 24/9/2009 11:36

I don't think the recent price rise of circa 5p warranted this RNS. I wonder if they used it as an excuse to release an RNS to see if they can attract other bids?

Interesting to note that they released it without prior approval of the potential offeror which they know might cause the offeror to walk away.

[the big fella] 24/9/2009 11:29

The Board really know how to generate shareholder value.