Lms Capital Share Discussion Threads

[mad foetus] 20/11/2015 12:40

does anyone know what has happened to the investment in Brockton Capital - it was the biggest investment at the last results but seems to have dropped off the website.

[tiltonboy] 20/11/2015 12:24

Jack,

It's the residual assets that concern me. It's all well and good having 30% of your shares being tendered at a large premium, but it's what you are left with.

I have learned from a couple of painful experiences that illiquidity in part of the portfolio can take away all the profits taken on the low-hanging fruit.

What seems to be an absolute bargain, doesn't always end being that.

[cousin jack] 20/11/2015 11:50

The argument for buying pre tender seems very compelling so it would be interesting to know why Tilts, and obviously others judging by the current price, is not persuaded. Has he/they seen something that others have overlooked I wonder ?

[skyship] 20/11/2015 08:53

CWA1 - yes, the tap has been there for weeks now. The last Holdings RNS stated BTEM had reduced a very small amount; but it would be perverse in the extreme for them to be reducing in view of the bullish comments in their Monthly Reports - and just ahead of the next Tender!

As I posted elsewhere yesterday, I've yet to read a single analytical reason for NOT considering LMS exceptionally cheap; other than the poor sentiment resulting from the level of mistrust after the machinations over the Summer.

Simon Thompson's online article yesterday repeated it all - so value will out, even if Tilts not yet persuaded!

[cwa1] 20/11/2015 08:17

Morning All

Had my eye on LMS for a while now. Swithered, ummed and ahhhhed a bit but decided to put a few on the book. Blimey O'Reilly if it wasn't swallowed as quickly as I had put it on! Certainly seems to be a keen and persistent seller. Oh well, roll on the tender....

Good fortune with it to all holders.

[badtime] 19/11/2015 20:46

Cheers Tilts ..this time next week I will mention the most important game of the season so far :)

[tiltonboy] 19/11/2015 20:30

Not bought any yet, and contemplating whether I will buy any at all.

No size mentioned, but nobody seems to be shifting them in any size.

[skyship] 19/11/2015 15:53

Tilts - does that Offer List mention size?

[badtime] 19/11/2015 15:32

Tilts u bought any yet

[eeza] 19/11/2015 15:18

Speaks for the quality of management - kicking the can day by day.

Non-setting super-glue fingers.

[tiltonboy] 19/11/2015 15:07

The stock has been on the offered list for weeks!

[skyship] 19/11/2015 14:57

Indeed. As at 14:45, post Simon Thompson's excellent contribution, no less than 127,444 shares have been bought @ 71.88p...

[eeza] 19/11/2015 14:31

MM's have plenty to give away.

[skyship] 19/11/2015 13:17

Yes, a great wake-up call for the value here; yet someone made a very badly timed sale of 15k @ 70.8p!

[cockerhoop] 19/11/2015 12:50

Simon Thompson writes about LMS in todays online IC



Final Paragragh

'So with the strong likelihood of a significant share buy-back being announced through a tender offer process pitched at a 30 per cent premium to the current share price, and with LMS sitting on a cash rich balance sheet, I see no reason whatsoever why the company’s investments held (excluding cash of £35.3m), should be attributed a value 30 per cent less than their carrying value in the accounts. Frankly, downside risk here looks limited and ahead of a trading update, I continue to rate LMS’s shares a buy on a bid-offer spread of 71p to 72p'

[my retirement fund] 17/11/2015 11:58

And still the sumping continues

[eeza] 09/11/2015 16:47

Only 6 weeks to find out out.

[skyship] 09/11/2015 16:30

Papy - thnx for that. With BTEM & CGT obviously in like mind on this issue; and presumably everyone else bar the Rayne black riders; I really don't see how the Board can renege on the 27th August promise.

"We expect further realisations and a significant return of capital at NAV later this year" - I take it from that that BTEM are in constant touch and will be keeping LMS to their word.....

[papy02] 09/11/2015 15:48

From BTEM Annual Report just issued:



Our stakes in closed-end funds tend to be very sizeable and we use this leverage to engage actively with the management and boards of investee companies. This will usually take the form of constructive recommendations regarding the efficacy of various discount control mechanisms, but we will not hesitate to adopt a more aggressive stance to defend our interests and extract value when required.



One such instance occurred during the period when LMS Capital, in which AVI owns a 15% stake, announced proposals to cease returning realisation proceeds from its private equity portfolio to shareholders, and instead re-invest them in oil & gas assets under a new management team. We wrote a lengthy letter to the board and other significant shareholders detailing our concerns; the board responded by postponing the General Meeting called to vote on the new investment policy. After further discussions with the board, we were pleased to see the proposals officially withdrawn shortly afterwards. Since then, the company's holding in Wesupply, representing 6% of NAV, has been sold, adding to the substantial cash balance that we estimate now stands at 32% of NAV. We expect further realisations and a significant return of capital at NAV later this year. Despite the 7% rise in the share price since the withdrawal of the proposals, the portfolio is being implicitly valued at a discount of 32% after adjusting for the company's cash balance.

[tiltonboy] 09/11/2015 11:59

Their apparent resistance to liquidating the Weatherford holding amounted to a gross dereliction of duty IMHO. The holding should have been sold a long time ago!

[mad foetus] 09/11/2015 11:41

a lot of nonsense on this thread. they have been told to return capital and have said they will. they have a legal duty to act in the best interests of the company. it is now clear from the change of strategy what the shareholders want and if they do not deliver the board will be replaced pretty shortly: I would give them until year end, else I would expect special resolutions to kick them out.

[my retirement fund] 07/11/2015 11:12

I assume they are busy "optimising the value of the Company's investments"

which explains why the stonewalling over the alleged realisation strategy and possibility of so much as a sniff of a return of any cash to its shareholders.

[leedsu36] 07/11/2015 05:49

Hidden debt now here,disaster waiting to happen.

[badtime] 04/11/2015 09:23

LOL...gimme the cash