Lms Capital Share Discussion Threads

[skyship] 06/12/2015 07:48

Pastybap - Remind me - how do you do that?

[pastybap] 05/12/2015 19:24

Allyp, I hope you got a screenshot of it for sentiment's sake!

[skyship] 05/12/2015 08:28

Rather late in the day I've just noticed something rather bizarre about the largest holding Brockton Capital.



The is an unlisted UK Commercial Property management company operating in a boom period for the sector when AUM must have climbed considerably, but take a look at these valuations:

# Jun'15: £15.2m
# Dec'14: £15.2m
# Dec'13: £15.2m
# Dec'12: £13.0m
# Dec'11: £15.8m

Even a cursory look at the portfolio would suggest that the Brockton stake may well be substantially undervalued...

[allyp] 05/12/2015 00:26

Pastybap, yes I have the same price. There was one evening a couple of years a ago when the decimal place was erroneous and it showed my portfolio being 10000%+ gain. I was a paper millionaire for a few hours...

[pastybap] 04/12/2015 23:17

Does anybody here have x-o.com as their broker? The closing price I have in my account tonight for LMS is £1.21! I'll enjoy it for the weekend at least....

[mad foetus] 03/12/2015 11:01

mrf, perhaps you are a pessimist by nature?
in the end, value will out and if the share price is below 67p when the NAV is 97p the pressure on the board to wind up would become intense. My biggest reservation with LMS is the amount the directors pay themselves, which is extremely high. Indeed, they said as much when they proposed restructuring the company in the summer. We need to see the board slimmed down and their salaries cut to reflect the lower workload, but one step at a time.

[my retirement fund] 03/12/2015 10:58

Why do I suspect after tender the share price will crash well below 67 p ex rights

[redhill9] 03/12/2015 10:38

Skyship, Barclays also require acceptance by tomorrow but Hargreaves Lansdown appear to have a generous date of 9 December.

[skyship] 03/12/2015 10:13

Tony Sweet (Exec. Dir.) and Martin Knight (Chmn) state unequivocally that the Exec. Board are free to make their own evaluation on the status of the WFT holding:

"The Company's internal governance procedures ensure that the independent directors (ie excluding Mr Rayne and Mr Duroc-Danner) are not subject to any restrictions on selling Weatherford shares."

The holding is totally insignificant to WFT - less than 0.5% of the issued capital; so LMS would surely be better advised to just get shot of it!

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REMINDER to ALL: Acceptance of the Tender is required very soon. Selftrade customers, for instance, need to accept by close of business tomorrow. Others by close of business Monday. Remember to accept for 100% of your holding.

[mad foetus] 03/12/2015 09:46

worth doing the maths once more

NAV is minimum 97p (dollar strength helping all the time)
You could buy 100 today at say 79p for £79
Tender c.40% at 96p
Receive back £38.40
be left with 60 shares costing you 67.6p each.
And the NAV will still be 97p, so the rump will be at a 30% discount.

Looks more like a buy than a sell still. I guess the Weatherford interest won't be sold for as long as the boss of Weatherford, Bernard D-D, is on the board of LMS. More's the pity.

[skyship] 02/12/2015 14:04

CJ - Don't sell any and accept the Tender for 100%. There has to be a good chance you'll get 40% redeemed at 96p.

[cousin jack] 02/12/2015 09:41

Skyship/anyone. Can you please clarify something which is probably obvious to more experienced investors. Say I hold 10,000 LMS and want to tender 3000 of those and sell the rest asap. Do I need to hold the remaining 7000 until 10th December or can they be sold before then? My assumption is that the 30% is calculated on the holding as at 10th and I should therefore not sell the 7000 before then. Thanks.

[skyship] 02/12/2015 09:05

The Company confirms they still hold Brockton - but of course it could well be that a sale is in progress. If it is they should get a very good price. Another asset to go at a premium...

[mad foetus] 02/12/2015 08:31

WFT is up about 5% since the tender RNS. I'd like to know what is happening with the property investment company that was the biggest investment but has dropped off the website. hmm...

[strathroyal] 01/12/2015 22:29

I know that the share price drifted badly on the change of strategy idea but now that a further tender offer has been confirmed, I can't understand why so many are getting out at this price.

2014's tender was only 22.5% (30% this time) and the NAV was 95p (expected to be the same if the exchange rate and WFT share price remain as they are). The share price during the 2014 tender period stayed in the mid-80s which makes the present share price look cheap. I'm staying put and may even add if the price drifts again now that ST has had his say.

[skyship] 01/12/2015 17:17

Never wrong to book the turn, especially in a difficult year like this one. As previously stated, I'm letting it run for the overages lottery in the Tender...

[cwa1] 01/12/2015 15:53

Might be wrong-probably too early-but sold out and booked a very handsome profit. My thanks and appreciation to Skyship for the heads up and others on here and elsewhere for their comments and input, it is much appreciated. Cheers all.

[skyship] 30/11/2015 15:47

Actual quote a few moments ago was: 78.075p-79.72p

[mad foetus] 30/11/2015 12:38

thanks Sky, I bought in modestly a few weeks ago but a good result so far so much appreciated tip-off. I think Robert Rayne is going to take up his full share in the tender from the circular, so it my be that the amount we get won't be bumped up that much.

[elmfield] 30/11/2015 12:35

Must say,
I lost faith in the recent attempted stitch up, moved on,
However these have given a good return to me over the years;
Your recent faith is getting some reward.

[essentialinvestor] 30/11/2015 12:15

SKY, well done here, it's looking like your faith is being repaid, congrats.

[skyship] 30/11/2015 11:16

The Tender circular reveals a cash position higher than thought. Thanks again not only to currency gain, but mainly down to the great result from the Wesupply sale. Yet again the sale reveals conservative portfolio valuation - a marker for future valuation upside rather than downside.

Also much encouraged by the small additional funding of NEP, a holding about which I had some concern, though solely due to the type of business, nothing more. The funding suggests nothing wrong there...



Trading update:

In the three months to 30 September 2015, the Company received proceeds from realisations of £14.2 million, including £10.6 million on the sale of Wesupply Limited (after costs but before carried interest) and £2.0 million from San Francisco Equity Partners (following the sale of The Guild, one of its portfolio companies). In the same period calls from the Company’s outstanding fund commitments were £0.2 million and the Company provided £0.4 million to Nationwide Energy Partners as part funding for an acquisition.

Total realisations in the first nine months of the year were £40.8 million, with fund calls of £0.4 million. The Company had cash of £47.4 million as at 30 September 2015; uncalled commitments to funds were £4.0 million.

The Company’s unaudited net asset value per share as at 30 September 2015 was 96 pence, up 2 pence (2%) from 94 pence as at 30 June 2015. The principal factors in this increase were the gain on the sale of Wesupply and the strengthening of the US dollar against £ sterling which resulted in unrealised currency gains of £2.6 million in the third quarter. These two positive factors were partially offset by the weakening of the share price of Weatherford International. Since the end of September the Weatherford International share price has improved and, as at 25 November 2015, the estimated net asset value per share has increased by 1p to 97 pence per share

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[skyship] 27/11/2015 10:34

MF - Actually £35m five months ago. Add in the Wesupply sale for c£8m and we have c£43m cash. There was of course talk of a second sale; at the moment no mention of that. I was hoping that would have been consummated by now.

"At 30 June 2015 we had liquid assets of GBP48.5 million (31 December 2014: GBP29.6 million), being net cash of GBP35.3 million (31 December 2014: GBP9.2 million) and quoted securities of GBP13.2 million (31 December 2014: GBP20.4 million). Outstanding commitments to funds were GBP4.1 million, down from GBP7.0 million at the end of 2014; approximately GBP2.3 million of this reduction reflects the secondary sale referred to above."

TILTS - as we all know, there are plenty of other opportunities constantly turning up; and your record shows you come up with far more than any of us do!