Learning Technologies Share Discussion Threads

[phillis] 23/7/2021 11:11

Yes valuations are driven by momentum
In LTGs case it was predicated on further value added acquisitions of which there could never be any certainty
If management is successful with this one we need have no worries
:-)

[jeffian] 23/7/2021 11:01

"My point about LTG Is that the valuation at any stage was always way ahead of the earnings potential of the business at that same time"

I understand that and actually agreed with you, Phillis, but I learnt my lesson from AVON, which I sold (thankfully only half) at a healthy profit when it reached 4£-£4.50 because I thought the valuation too rich and it went on to over £40! When companies are undergoing transformation, it is often hard to see what they will look like 5-10 years down the line but in the meantime they tend to look 'overvalued'.

[phillis] 23/7/2021 09:18

Mega ( and Jeff )
LOL

My point about LTG Is that the valuation at any stage was always way ahead of the earnings potential of the business at that same time

In this case you have a huge underperforming business (revs 3x current LTG run rate) that can make a massive difference
Thing is it is US based ( the graveyard for many smaller UK businesses ) and will really challenge Satchell’s management skills
Forget about Andrew B, he is non exec

I have been a long term investor in RWS having bought in at the equivalent of c 50p when Julian Cooke of Gartmore(?) decided he wanted to offload his stake ( a pompous idiot he was - my personal opinion from when he was an investor in a Company I ran)

So execution is the issue and I don’t underestimate it but am happy to remain invested

[aconceptisabrick] 22/7/2021 23:03

I agree jeffian. Andrew Brodie/Jonathan Satchell now have a super impressive track record of cost efficient acquisition/rapidly improved performance and it seems to me (and various brokers) that the share price, which has had a quite remarkable run from the reverse IPO, could easily materially increase over the next 12/18 months as they again work their business efficiencies into the latest huge acquisition.I'm a material long term holder showing a 8-10x growth to date, and am thinking of selling no shares any time soon.

[jeffian] 22/7/2021 22:53

Of course, (s)he could have just been wrong all along!

I've been a follower of Brode for some time and arrived at LTG at 42.2p as a result of cross-referencing from RWS. I don't pretend to have a deep technical understanding of either business but the one thing Brode has proved time and again is that he is good at acquisitions, integrations and cash generation (the last being hugely attractive to me). Whatever they buy seems to be paid off from cash generation within a few years.

[megasonic] 22/7/2021 21:59

I've also been a long term holder and have often read Phillis' bearish comments on this thread. It's not easy making a Bear case in a room full of Bulls. I have to commend Phillis on maintaining decorum despite receiving some harsh - and often unfair - comments in that time.And if now Phillis is impressed with the proposed GP Strategies acquisition then I would suggest other posters on this BB take notice.Also, with reference to your comment 'if management are up to this very large task' - nice to see you haven't gone full blown Bull just yet Phillis ;-)

[phillis] 22/7/2021 10:15

have always thought that LTG was overvalued ( though still a holder )
This is hugely transformative if the management is up to the very large task of making it work

[partridge1948] 17/7/2021 09:49

My initial misgivings over the size of this deal disappeared when I read the 2020 results for GP Strategies. They have significantly underperformed their peer group in the last five years and look a classic target for LTG expertise. Execution risk remains for such a large deal, but I now have confidence that the "significantly earnings accretive" wording is not misplaced. Always dyor.

[aimingupward2] 16/7/2021 19:47

Not just chunky, DavrOs, thought it certainly is very sizeable, but more importantly it will be 'significantly earnings accretive for LTG shareholders' as well.

[zouppy] 16/7/2021 07:25

Ambulance chasers.

[the runt] 16/7/2021 00:57

Anyone know if the proposed investigation by Bragar Eagel & Squire, in the US, regarding the probity of the GP Strategies Board in respect to the merger, will carry much weight?

[davr0s] 15/7/2021 19:37

That's a chunky acquisition

[ygor705] 14/7/2021 12:59

Toffeeman People as rich as AB have plenty of options beyond IHT relief on AIM stocks. What happens if the government changes the rules on IHT relief? You may be correct but I wouldn't bet my hat on it. He might also want to finish his days in Monaco like Philip Green et al.

[toffeeman] 14/7/2021 10:49

>> ygor

Nope

Both are AIM stocks and Brode would lose IHT relief

[ygor705] 14/7/2021 10:15

Sold a few this morning. Have good profits here and decided to diversify a bit. Stuck the proceeds into another Brode company, RWS, which has been off the boil after its latest merger. For the moment, I think that the optics are rather easier to follow at RWS. The big question in my mind is where does Andrew Brode go from here. He's 80 now and I do wonder how long he will want to go on. At some point negotiated takeovers of both LTG and RWS must be a possibility.

[aimingupward2] 06/7/2021 18:13

Yes, you’re quite right guys. I had overlooked the AIM aspect.

[toffeeman] 06/7/2021 16:04

Doubt it - they are an AIM stock and there are big IHT issues if they move to the main market.

Brode and Satchell own 25% of the company and are currently immune from IHT - can't see them wanting to give that up :)

[aimingupward2] 06/7/2021 12:15

With a mkt cap' now of 1.4bn, LTG will presumably qualify for entry into the FTSE 250 when this list of companies is revised on 1st Sept' and this,in turn, could see more funds and institutions either wanting to buy in, or needing to, by the terms of their constitution.

[megasonic] 02/7/2021 12:20

Agreed Davros. Unless there's info to share or informed thoughts to put forward, too much chatter becomes noise.That said, interesting to see Liontrust increase their already significant holding. Also note Blackrock sold some of their stake a few days after, some well deserved profit taking for them seeing as they've been invested since the company share price was sub-40p if I recall correctly.My view on recent share price rise is it reflects a market expectation the company's digital learning business model will deliver revenue growth and that recent acquisitions have been well integrated into the LTG ecosystem. I will be keeping a keen eye out for Trading Update due later this month.

[davr0s] 29/6/2021 10:00

A quiet board is good. Who wants endless ramping or deramping, people guessing targets etc. Adds nothing but a lot of noise

[jeffian] 29/6/2021 09:54

The board is very quiet but this just keeps going from strength to strength. How long can it go on or is it in danger of getting ahead of itself?

[partridge1948] 26/5/2021 10:03

Decent update from AGM statement. Stronger sterling hurts them, but trading looks solid and integration of three (relatively small) acquisitions made early 2021 is ahead of expectations. Net cash similar to that at end of Feb.

[partridge1948] 04/5/2021 15:40

Not a director, and only a small holding, but unwelcome nevertheless. Directors have plenty of skin in the game and non exec bought 100,000 more in March. We will hopefully have an AGM trading update on 26th May.