Lms Capital Share Discussion Threads

[alter ego] 28/6/2016 15:53

me too, same price

[spob] 28/6/2016 15:49

Topped up today also, 55.8

[eeza] 28/6/2016 15:15

Or the share price !!

[skyship] 28/6/2016 14:08

Unable to deal on the bid, but added today @ 55.8p. Obviously concerned regarding the Brockton valuation; but even so, with 66% of the portfolio in US$, this discount looks absurd. All will be revealed in just 4weeks time - and who knows where the £ will be then!

[tiltonboy] 28/6/2016 13:45

I've added today at 54.5p.

[cousin jack] 28/6/2016 11:41

Anyone adding post Brexit vote ? I'm tempted but too many uncertainties about potential impact on the portfolio of holdings from possible declines in property prices over coming months. On the other hand this could be a great opportunity......... I wonder if Sky has added.

[eeza] 23/6/2016 14:06

Yet another buying opportunity - Lol !!!!

[badtime] 23/6/2016 09:23

Sorry Sky I should have said I am a Suss(ex) man :)

[badtime] 22/6/2016 19:39

:)I grabbed a few

[skyship] 22/6/2016 18:39

Sussed me again!

[badtime] 22/6/2016 15:58

Probably Sky going past his 'allocation' :)

[tiltonboy] 22/6/2016 15:44

That trade wasn't mine...too small a lot for me;)

[badtime] 22/6/2016 15:40

1.7mill? :)

[tiltonboy] 22/6/2016 15:40

Bought quite a few!

[badtime] 22/6/2016 14:56

Tilts the your post 2/6 did u manage to get any? :)

[eeza] 21/6/2016 12:16

They'll be helping themselves.

[tiltonboy] 21/6/2016 11:49

I would have thought the directors would be helping themselves to a few down at these levels!

[eeza] 18/6/2016 07:34

NED handpicked by the untrustworthy, greedy, BOD.

[tiltonboy] 17/6/2016 16:34

1.7m about to uncross!

[my retirement fund] 17/6/2016 16:19

Seems to have turned a corner

[tiltonboy] 17/6/2016 12:46

A decent slug of sales has just been absorbed, and buyers have reloaded.

Hopefully the new NED will get this sorted!

[mad foetus] 07/6/2016 08:32

WFT has been doing well in US: up 8% yesterday and 20% since the nadir of last month.

[skyship] 03/6/2016 07:23

After the bizarre happening last Summer when the LMS Capital (LMS) BoD tried and failed to usurp shareholders wishes for liquidation, many continue to harbour doubts as to the Board’s probity.

However, there is no escaping the 4 principal facts:

1. Their past performance with the liquidation process has been impeccable, with 63% of the NAV at the start of the process having already been returned – a figure equal to the MCap at the start of the process

2. The liquidation process is again on track with a 28.7% tender at NAV in Dec’15

3. At the AGM last month the BoD again reaffirmed the liquidation process and the continuing return of capital through Tenders; and for the first time they put a timescale to completion of the process – essentially by Dec’17

4. The current NAV = 88p; versus the offer price of 63p; ie the shares are trading at a full 28.4% discount, even though in liquidation mode

These are the basic facts which should justify an element of research. That research will quickly uncover last month’s AGM statement which revealed that already the Company is refilling the cash coffers – now up to £15m, so likely halfway to what will be needed for the next Tender.

So, now one needs to practice a little conjecture. Say the next Tender will be declared again for 28.7% - that would translate to 29.7m shares @, well let’s be conservative and predict an NAV fall from 88p to 85p, so @ 85p would cost £25.25m. Note – we already have £15m in the kitty!

So, buy @ 63p…..sell a minimum of 28.7% @ 85p…..yes, that’s a profit of 35% on that part. But wait, it gets better.

First, there is the official Tender overage – that was an additional 3.4% in the last Tender, the 4th Tender providing these profitable trading opportunities.

Add to that the unofficial overage which arises from having your stock held in a Joint Stock Nominee Account. I got another 7% from Selftrade last time around – a total of 39.4% redeemed at NAV. Many posters on the LMS thread did even better than that. The Nominees overage is a fickle friend paying out better for some than for others – but always more! This aspect will only make sense to the professional investor; but the few who visit here are just that, so I won't dwell on that.

The final soupcon of information for the time-being. The well-respected IC tipster Simon Thompson has just revisited LMS. He wrote a piece on LMS yesterday. I won’t post his entire article as the IC Online is a subscription site; however, I will post his closing remarks:

=======================
“Of course, the fall in LMS's net asset value from 96p last autumn, to 92p at end of December 2015, and to around 88p now will make some investors cautious even though the aforementioned one-off hit on an unlisted investment and the fall in Weatherford's share price account for the vast majority of the decline. However, I believe the discount is simply too deep given the impressive track record of the company in successfully divesting its interests.

I also believe that given the surge in the cash pile, and the fact that LMS's uncalled commitments to funds it has invested in is only £4.1m, then it's only reasonable to expect LMS to make another hefty cash return later this year through a tender offer pitched at net asset value, a factor that is simply not being reflected in the share price. The company is due to report results at the end of July and I would anticipate further news on likely capital distributions then. I would point out too that every time the company has announced a tender offer the share price has bounced back strongly.

Needless to say, I rate LMS Capital's shares a buy on a bid-offer spread of 62p to 63p.”
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So, in a difficult year VALUE is hard to find. LMS certainly represents VALUE. And if you are still looking for a hedge against a plunge in CABLE following an unlikely BREXIT vote, the LMS portfolio is 66% $-denominated.

[tiltonboy] 02/6/2016 14:55

Following their demotion from the small cap index, I think there will be a bit of stock come out, so I've put a few on the board to buy at 61.5p.