Leeds Share Discussion Threads

[deswalker] 08/7/2008 20:14

Another buyback. 110k at 17.75.

[clangor2] 07/7/2008 09:31

One might have hoped that all these recent buybacks would have improved the share price a little ..... on earnings ratio ?

[deswalker] 03/7/2008 17:36

RNS out. They've cancelled 900,000 of the Treasury Shares to bring them below 10%. Now exactly 34 mill shares in issue to make the maths easy.

[clangor2] 03/7/2008 08:46

If nothing else, these buybacks seem to have restrained the MMs from slashing and burning the share price as per the overall market. So far ..... !

[arthur_lame_stocks] 02/7/2008 19:12

I'm not sure why they're holding over 10% in treasury, I think they've just decided to flout the rules.

At least money spent on buybacks isn't money invested in EET, which has already lost the company about £100k at book value. It also has nothing to do with textiles so I think we can only assume that the Swedes just see the cash as their personal kitty to invest in all kinds of things as they see fit. Maybe another CHUK or Gaskells or Jarvis Porter/Derby Glass or who knows.

[bracke] 02/7/2008 14:35

DesWalker

Many thanks for the information, The scenario you describe does appear to be logical given the buy-back to acheive a holding by JC of 29.99%.

As an investor it would seem that the best plan of action is to hold and maybe add when the JC holding approaches 29.99%.

[deswalker] 02/7/2008 14:07

bracke,

They signalled that the 29.99% figure was in their head in the last AR. One of the resolutions was for the authority to buy back a funny irregular total number of shares. I was curious where they got this figure from and after some calculations it turned out to be precisely the number required to get JC up to 29.99%. So it's clearly in their mind as a possible strategy going forward.

You may well be right that they may wait but I'd say it's unlikely. JC is 57 and PG is 55. I would have thought they'd be looking to tidy things up one way or the other (ie buy the whole company or sell the whole company). They're going to want to see a return either through an MBO or trade sale IMO, with cash returns via dividends and capital distributions an unlikely third scenario.

If they choose to go down the MBO route, once JC owns 29.99% then management will own 55.52% in total leaving 44.48% in Public Hands. Takeovers need a minimum 75% approval so they're going to have to make any MBO deal sweet enough to achieve this IMO. Also, there would also be the Concert Party issue to be be investigated should an artificially low offer be tabled.

My bet is on continued buybacks for another couple of years and then either a Trade Sale or more likely an MBO at about double this price.

Des

[bracke] 02/7/2008 13:50

DesWalker

Thank you for your reply. The 30,622,985 is "remaining" shares in issue so I take your point that shares in treasury should be added to give the total.

The holding above 10% appears to be in contravention of Stock Exchange rules.

So a two year wait assuming that the Directors are going to manipulate their holding to the 29.99% level. But of course if/when they acheive 29.99% they may do nothing but simply 'sit' there.

[deswalker] 02/7/2008 13:14

It's not quite as you say but your point is valid.

The number in issue is actually 34,900,000 and the number in Treasury is 4,277,015 which equals 12.26%. I've no idea why they're able to hold over 10% in this way.

Interesting to note that since this date two years ago the number of Voting Rights (Shares in Issue minus Treasury Shares) has decreased from 35,223,603 to 30,622,985, ie by 4,600,618 or 13.1%.

For JC to own 29.99% of Voting Rights requires this number to fall to 26,602,367 or by another 4,020,618. With a bit of luck we might just get there in the next 2 years and then management will need to follow another strategy. Maybe this will be a buyout, maybe dividends/capital returns or a trade sale ? By then the TBV ought to be around 40p a share which should form the base for any takeover number.

My estimate of the current TBV adjusted for buybacks and investments booked at market price is 36.4p ie we're now trading at less than half TBV and a PE of 9.

[bracke] 02/7/2008 12:52

I see that there are 30,622,985 shares in issue and LDSG holds 4,277,015 (13.97%) in treasury.

I understood that the maximum that could be held in treasury was 10% and that any shares above that had to be cancelled.

Can anyone enlighten me please?

[deswalker] 02/7/2008 12:34

There's the RNS

[deswalker] 01/7/2008 17:50

Trades showing what is hopefully another buyback. 165k at 18p. No RNS yet.

[jonak] 25/6/2008 22:53

ooo exciting....

[deswalker] 25/6/2008 17:04

Buyback RNS. 25k at 18p

[arthur_lame_stocks] 24/6/2008 17:30

I don't know why they don't dump Dorma, it's been a disaster of a acquisition and they only bought it because GPG dumped it on them.

[clangor2] 24/6/2008 10:49

The results announcement from Dawson's yesterday would indicate (dare I whisper) that they're on the mend at last, even the much-maligned Dorma brand gives the appearance of having turned the corner.

So maybe, just maybe, LDSG's recent investment might eventually turn out to be not such a howler as first envisaged.

[cg1953] 18/6/2008 12:47

jonak
no: they dont monitor the thread as i have yet to receive a writ for libel !!! lol

[jonak] 18/6/2008 00:08

wonder if they monitor this thread ?

[deswalker] 16/6/2008 19:13

I don't know but its been over 10% for quite some time. I'm sure they'd have cancelled some if it was a problem.

Another 4.2 mill to go to get JC up to 29.99% of voting rights then they'll have to pursue a different strategy. Sounds crazy and will take some time but they'll get there in another two or three years IMO, quicker if they up their bid somewhat.

Currently trading at about 50% of TBV.

[arthur_lame_stocks] 16/6/2008 17:32

Can they get into trouble for holding more than 10% in treasury?

[deswalker] 16/6/2008 14:57

Buyback RNS. 50k at 18p.

[jonak] 13/6/2008 20:56

didn't affect share price tho'....
shouldn't some of those treasury shares get cancelled now ?

[deswalker] 12/6/2008 15:11

There's the RNS. 140k at 18.25.

[cg1953] 12/6/2008 11:00

looks like another buyback; 140k at .18