Lms Capital Share Discussion Threads

[igbertsponk] 24/7/2015 09:15

Cracking news that - with all those contacts and a depressed oil industry they'll pick up some bargain stakes. Quite a good long term play all of a sudden.

[strathroyal] 24/7/2015 08:16

Whilst I may not stay long term, I intend to wait and see if institutional investors such as Woodford are backing this. With a discount of around 20% on the half year figures, there shouldn't be too much downside risk initially.

[badtime] 24/7/2015 08:12

Near miss for me...Sky hope you didnt have too many in here.

Eeza ..you can out some more in LXB now lol

[topvest] 24/7/2015 08:10

Well now we know why the Weatherford stake has been retained. To be honest I think it's potentially a good move and I am supportive. With Tony Hayward and others its a good team.

They will no doubt do a fundraising in due course, but difficult to do at a discount.

I'm surprised the share price has fallen, but those looking for short-term cash are no doubt exiting.

[tiltonboy] 24/7/2015 07:11

That's crossed off my watch list now!

[my retirement fund] 24/7/2015 07:07

Shocking im out

[spob] 24/7/2015 07:04

sold my holding

if i want to lose money in oil stocks i can easily do that myself

these directors really do live in their own little world

[jlo10] 24/7/2015 06:38

Threatening tone about the statement - "support this or shareholders' funds will be trashed" sort of tone
Presume that they have already got institution support - I hope not

[spob] 24/7/2015 06:26

proposed change of policy and future fund raising

up yours LMS

[skyship] 11/7/2015 11:28

No problem with deciding not to pay £1000/yr for the FT listing!

92p seems about right with Weatherford having retreated again.

[strathroyal] 11/7/2015 11:21

I notice that LMS is no longer being quoted in the FT. Wonder if this has any significance for the next return. Morningstar estimate NAV to be 92p as of Friday.

[skyship] 31/5/2015 17:52

hmm - as you intimate - there could be some residual value. Anyway, a pretty small holding which the recent returning strength of the US$ will have covered:


free stock charts from uk.advfn.com

[strathroyal] 30/5/2015 20:11

Luxury Link appears to have ceased trading, valued in the last accounts at £2.4M, not sure if it's a complete w/off.

[briggs1209] 21/5/2015 16:56

thanks for asking and clarifying, at least they got back to you

[papy02] 21/5/2015 14:21

Got a reply from LMS re the "consideration for the Undertaking" - it is purely theoretical as I'd hoped, so not a cause for concern. (So apologies for going off on a tangent on this ;-)

Withers Trust Corporation received no consideration for their undertaking.

The deemed value of the undertaking was calculated to establish a value for the UKLA and used in determining whether it should be regarded as a related party transaction subject to shareholder approval – as it was held to be.

[skyship] 19/5/2015 11:14

Firmer tone - 76.5-76.81p - but only offered online in 5k. Cheap stock now gone it would seem; so perhaps a positive move ahead.

[briggs1209] 18/5/2015 07:59

Bought in here, current price makes future tender later this year look attractive risk/reward.

[papy02] 17/5/2015 13:49

Thanks Sky

I'm guess I'm just wondering what the "consideration for the Undertaking" actually was. Obviously not cash, given the use of "deemed value", but was it something that reduces the economic value available to other shareholders, and if so was it fair compensation for forced participation in the tender? (If not, that adds to any concern about a dominant shareholder/director)

[skyship] 17/5/2015 11:47

Papy - presumably the situation re cost is covered in the last sentence:

"No fee was payable by the Company in connection with the Undertakings."

This is a routine clause in cases where any party, through share capital reductions, might have to set aside the takeover legislation of %age capital increases affecting 29.99%+ stakeholders, inc. concert parties.

Tiltonboy will be able to improve on that definition should he be around.

[papy02] 17/5/2015 10:18

Would anyone be kind enough to clarify the following (from last Annual Report) for me please. Are LMS having to pay a real consideration/bribe (cash or in kind) to the Rayne concert party to not increase their % share of LMS in tenders?
See the sentence I have bolded, which talks about "deemed consideration".
Many thanks for any elucidation.


In connection with each of the tender offers in May 2014 and July 2013, the
Company received an irrevocable undertaking from Withers Trust Corporation
Limited (the "Undertaking"). The purpose of each Undertaking was a contingency
measure to ensure that members of the extended Rayne family and associated
trusts (the "Concert Party") would in aggregate tender sufficient shares so
that the Concert Party's percentage interest in the ordinary shares of the
Company would not increase as a consequence of the tender offer and
consequently avoid any requirement under the City Code on Takeovers and Mergers
for the Concert Party to make an offer for all the issued shares of the Company
which they did not own.

...

The Undertaking in May 2014
was a related party transaction requiring shareholder approval due to the
reduced overall net asset value and market capitalization of the Company

...

For the purposes of this classification the deemed value of the consideration
for the Undertaking was £8.4 million in May 2014 and £7.3 million in July 2013.
The results of the tender offer in May 2014 required 45,764 extra shares to be
tendered under the terms of the Undertaking. The results of the tender offer in
July 2013 did not require any extra shares to be tendered.

No fee was payable by the Company in connection with the Undertakings.

[skyship] 17/5/2015 06:50

Quite right - the proximity of the next Tender does look to be a slam dunk certainty IMO. Certainly the Risk/Reward scenario here has tempted me to actually exceed my normal 10% MAX rule - something I do very rarely.

Looks to me that by, say, October we may see a 25% Tender @ c92p/94p.

I suspect that Simon Thompson at the IC will pick up on that AGM Statement. If he reiterates his past recommendations then these should be back up to 80p pretty smartish.

[strathroyal] 16/5/2015 22:24

AGM statement certainly caught me by surprise re size of the cash holding. The problem with LMS is that they don't update shareholders as assets are sold, so I've also got back in this week as a further tender offer can't be far away.

The next realisation, albeit a small one, seems to be their holding in BDI, which has recently put itself up for sale. Should add around £1m to the cash holding.

[skyship] 14/5/2015 15:13

The actual share price here is 76.14p-76.40p; ie all those trades @ c76.4p listed as sales are actually buys...