London Capital Hldgs Share Discussion Threads

[woozle1] 29/5/2016 14:59

I've had a closer look and this looks uninvestable: CEO and shareholder taking out a large salary; licensing software to the company and trying take 95% of the company if the share price goes above 45p. A tad disappointed as it looked like a gem. Also even if shares are getting issued at 25p, there's still dilution. If they are serious about raising external capital for the business, this liability will have to be renegotiated. I'll wait until then.
W

[richie666] 27/5/2016 17:53

Woozle - good observation which is the essence of this piece -

[woozle1] 27/5/2016 17:30

Any cap raising will involve massive dilution for Mr Sabat; unless he has the cash to participate. He'll get a better deal, if he delists and raises cash as a private co, which is a strange situation. If he doesn't delist this looks like an opportunity to get in on a multi bagger. It's a good option play but be prepared to loose all in a delisting.
W

[apfindley] 27/5/2016 15:37

GWMO next one to rerate.Starting to move now...Undervalued and plenty of cash.5p target vs 0.35p

[cudmore] 27/5/2016 13:15

Something going on at TPT. Two huge buys yesterday for £6.5m.

[luckymouse] 27/5/2016 12:23

hedgies like to nibble deep dips of turnarounds too - let the prc come to you sort of thing

[diggedy2] 27/5/2016 11:37

RNS makes it pretty clear that there is nothing in the wings.

Mr Sabat restates the 'capital raising' comment. Which might be more informative.

[richie666] 27/5/2016 10:43

Some speculation GAIN may be sniffing. They swallowed City last year. Again DYOR and be aware this is only speculation. Notwithstanding that the cash on balance sheet (unrestricted) would make if difficult for any bidder to pay less than 12-15p IMO.

"Well, a closer look at LCG’s last published balance sheet and adjusted for the most recent pre close statement by CEO Mr Sabet of 27th Jan; where he relayed to the market that the company had circa £17 million of own cash resources at the end of Dec 2015, implies a current Enterprise Value of MINUS £1 million (EV being market cap + debt – net cash and adjusting for a small finance lease obligation of £98,000 as last disclosed). In other words the company has more net cash than its market valuation.

Another way of assessing the value opportunity is by looking at the company’s book value. This was last reported at £16.37 million, with a modest amount of intangibles (£1.28 million). At the next set of finals being due for release on the 25th April – and bearing in mind the reduction in cash resources as flagged by Mr Sabet – I would expect book value to be reduced by around £5 million to £11 million. This of course still compares favourably with the current market cap of £5 million."

The above related to a stock price of 6.25p.

[diggedy2] 27/5/2016 10:40

it looks more as if someone put a 'market order' to buy about £30k of stock. probably by mistake.

[colin12345678] 27/5/2016 10:25

zatcha1980
Posts: 12,646
Off Topic
Opinion: No Opinion
Price: 7.875
RE: Final ResultsToday 10:14Thats in the past...we all need to look forward to this Year. See Statement below:

Charles-Henri Sabet, Chief Executive Officer said: "The Group starts the new financial year transformed. We have been successful in the integration of our new technology and are in the process of migrating our client base which we expect to be completed by the end of May.

This "brand new" LCG is centered on a new cutting-edge online trading platform and an enhanced marketing programme. We are already beginning to see the benefits and have made a strong start to 2016. I believe that all the elements are now in place for the Group to return to sustained growth

[richie666] 27/5/2016 09:56

Big volume. I maintain IF Sabet goes to swallow whole he has to pay 15p - highest price paid last 12 months I believe. DYOR

[richie666] 27/5/2016 08:53

Is this going to play out?

[diggedy2] 11/5/2016 15:29

RNS on the seller (L&G)

nothing yet on who bought them. There seems to be something of a tail getting pushed out but the share price is not falling on the back of it.

Possibly this is a floor until the next results.

[diggedy2] 09/5/2016 13:00

Some big trade tickets going through over the last couple of sessions. About 10% of the company has changed hands (or 5% if each trade has been double booked).

i would guess that the big sellers are the institutions .. but only a guess ...

of more interest would be knowing who the buyers are. If the buyers are Directors (or associated investment vehicles) then this would be "interesting". Watch for any RNS over the next few days.

[diggedy2] 06/5/2016 10:24

Arthur
He did not actually pay for most of his shares . they were awarded him "as a bonus" out of the shares sold by Artemis and the former CEO to GLIO which were then immediately sold to LCG and placed in the staff bonus pool.

His actual outlay on stock is probably not much more than £200k. So far he/his companies have been paid many millions by LCG

So I doubt that he will be 'out of pocket' even if the company collapsed

[luckymouse] 30/4/2016 14:53

The full corporate makeover would suggest they are going to have a proper run at it I would have thought - otherwise why would you bother going to all that trouble - but agree potentially some conflicts of interest.

I think its all about the platform on one level - its v different to the old one & v good for scalping - so will they be marketing it hard to the right clients?

[the stinger] 30/4/2016 14:13

Arthur, doubt he'll close it down, business is there and running and its his baby now. As Lucky says,,,its all about client numbers now, if they get them it should be a profitable coy.. trades numbers are really good so just the clients and its game on. Cheap share price on the risk/reward basis.

[arthur_lame_stocks] 30/4/2016 13:09

Would Sabet face such huge haircut if he closed this down now? There's enough cash in the bank to pay off the CLN holders after all other creditors have been paid off and cash collected and he would only lose on his shares, but then there is the deal he did with one of his own companies for the provision of software which cost LCG around 4 or 5 million so he's done pretty well out of that.

I doubt he's that far underwater here yet but I'm not sure.

Arthur

[luckymouse] 30/4/2016 13:04

stinger - yes I still think its on - looks like it will just take longer - will need to see the client numbers turn around too of course - the delay strange if no special reason - poss suggests some stress at board level perhaps?

[the stinger] 29/4/2016 19:48

Unsure why the delay with those results?, was it worth the wait?. Its early days for a turnaround however more than doable. MC cheap now and its only the CLN holders, Sabet himself and larger shareholders facing a huge hair cut.. Will be interesting to see how this pans out..You can bet Sabet will be looking at a cheap takeover here and at todays MC would cost him £3mil, then he'd just need to service the CLN holders.

[luckymouse] 29/4/2016 11:31

don't know what the star platform is - but the new platform (adopted from cTrader) is by definition a day traders/scalping technology - so lots more trades - and with the clever stop loss features a smaller % of those increased trades will be losers - so a good deal for day traders - until they blow up - which most do.

So the new platform may appeal less to position holders (no small caps, no long term stk futures etc) - and appeal more to day traders - less investing - more gambling. A strategic decision the company must have made.

It will work if the co can onboard day traders at twice the rate they lose investors. Hence my concern that they are only 'migrating' - which is the wrong thing to do in isolation.

[diggedy2] 29/4/2016 10:56

the odd number in all of this was the trades per day

they apparently had fewer clients but those clients made far (far) more trades per day.

29,000 trades a day is up at the all time high volumes back in 2009/10. Normally the profit of an SB company is a function of the number of trades as, in the long run, you should make the bid/offer spread of all the trades made.

This does not seem to be happening which would indicate that there is something wrong with the pricing mechanism of the Star Platform (which LCG adopted about two years ago) which is allowing scalping/arbitraging.

The new platform should knock this out (hopefully) which would make an immediate impact on revenue.

[luckymouse] 29/4/2016 10:12

disappointing - new client acquisitions -37%

Sounds like haemorrhaging clients