Lms Capital Share Discussion Threads

[tiltonboy] 27/7/2016 14:52

I've picked up a few at 59.5p.

[spectoacc] 27/7/2016 14:37

@strathroyal - I'm in BTEM & generally like what they do, which is probably the only plus I can see in the LMS/GHE debacle.

Had a read through some of GHE's RNS & can't say it inspired me, eg:

"It is still intended that the Gresham House Forestry Fund will initially acquire a portfolio of forests in the West of Scotland for GBP12.1 million. The contract entered into by Aitchesse (General Partner) Ltd ("AGP") with the vendor with targeted completion for 31 July 2016 has been terminated by AGP as certain conditions could not be fulfilled by the vendor within the agreed timelines and as a result no deposit has been paid by AGP. Gresham House Forestry continues to work with the vendor to progress this transaction and the Company is targeting completion in the second half of 2016. The team continues to appraise and develop a number of forestry investment opportunities; "

Listed forestry investments are like listed legal/accountancy practices - never seen one work. Forestry works brilliantly when held personally because the tax incentives are huge - BPR after 2 years, tax-free income on the timber, IHT-free (CGT only on the increase in land value, no tax on the wood growing on it).

Apologies if that's off at a bit of a tangent.

[skyship] 27/7/2016 14:35

Strath - "The suggestion at the end of the circular is that the NAV is around the level it was at the time of the AGM with dollar appreciation offsetting property losses..."

I've managed to miss that....can you say on what page?

[strathroyal] 27/7/2016 14:26

The suggestion at the end of the circular is that the NAV is around the level it was at the time of the AGM with dollar appreciation offsetting property losses so, like most on here I'm not enthusiastic and particularly disappointed that BTEM/AVI have signed up (along with Schroders and Majadie) but really don't see the point of selling now. Will wait and see what comment BTEM make in their next monthly newsletter.

[topvest] 27/7/2016 14:24

Well I'm pretty pleased about this deal as I agree with the Board that launching a be strategy is more sensible than selling investments wher holding delivers more value. I'm a shareholder in LMS and Gresham House and it looks a sensible long term deal for both parties on a long term view. Let's hope the ongoing costs are reduced to 2% or below though as its been the high cost base that has taken the shine off the performance here. Gresham House look like they have an interesting long term strategy, but it will take a while to see if it's working. This seems to be a replication of NewMedia Spark which is now Gresham House Strategic Capital which I also have some shares in. May take up the tender and then reinvest.

[skyship] 27/7/2016 14:23

MF - have sent you an email...

[spectoacc] 27/7/2016 13:56

@shaker - as someone commented above, they promised one thing (wind-up), and are delivering another - having already been voted down on a similar attempt a year ago.

P/e is all well & good, but there's plenty of decent p/e vehicles out there already on c.20-30%+ discounts. And they seem properly to be getting into bed with GHE with the share purchases etc. GHE are quite happy about it of course: more money under management, more fees.

And fees are part of the game - this seems like a way to keep director emoluments rolling in. With many wind-up situations, as the co size decreases, so do the fees, so I don't buy that this is necessary.

[To ramp a couple of PE ITs - APF, 30% discount. DNE, 32.5% & in long wind-up mode. PIN - 28% discount. SEP - 30%. None with legacy holdings they have to try to flog before investing).

[mad foetus] 27/7/2016 13:55

shaker,
the company has expensive offices in London (rented as I recall from a related party to the board), a number of full time employees and a very generous board remuneration policy. None of this is necessary: a board of three, using the offices of their broker, should be able to manage an orderly run down of the portfolio, some of which is quoted, all of which is managed by an investment manager (another related party).

If anyone can be bothered to organise a vote, I am happy to put myself forward as an NED to try to build bridges that the current board have burned.

[shaker44] 27/7/2016 13:46

Clearly quite a strength of feeling against the Bod. But they do have a point. As the assets decrease, the costs of managing them will become disproportionate and given that Rayne and associates will not want to see the value of their holdings diminish, why would 'independent' shareholders not stay on board for the ride?
Is it just the feeling of being hijacked, or concerns about GH capabilities- or what?

[eeza] 27/7/2016 12:37

Offer at 60.10p.

[budsman] 27/7/2016 12:15

At the top of p10 of the Circular there is reference to the NAV being calculated on the date of the Meeting.

They give as an example the figures for 31/12/15.

A guess meantime - although perhaps an educated one!

[skyship] 27/7/2016 12:10

NO - but old mangers can be replaced by new managers!

[spittingbarrel] 27/7/2016 12:03

Remember the old adage 'Bad managers never become good managers'

[skyship] 27/7/2016 12:00

Circular on the website - skimmed and didn't see NAV...not yet....perhaps with the GM on 16th August:

[eeza] 27/7/2016 11:40

Ah, fair enough. No more free dosh else I would chance a few more.

[skyship] 27/7/2016 11:39

eeza - didn't include that 25k sale. Buys started @ 10:46....and now another 21500 have been bought.

[skyship] 27/7/2016 11:34

erstwhile - GHE have had a total change of management since those days - a new team bought in c18months ago

spob - agreed, TRUST & LMS are not exactly compatible! That chmn Martin Knight needs to be revealed for what he is. He is also chmn of AIM-listed and Woodford loved Imperial Innovations...

[eeza] 27/7/2016 11:34

"Now nearly 58k of buys at around the 60.3p level"


The 25k "buy" @ 60.75p was a delayed trade from 1 hr earlier & was actually a sell. S0 around 28k buys at 60.3p I make it, includes a small few by me.

[simonsaid1] 27/7/2016 11:31

Simon Thompson says he's talking to LMS management this morning and will be publishing a column on this shortly.

[spob] 27/7/2016 11:01

" At 60p they are already on a 36% discount to a 94p NAV! "


But do you still trust that NAV figure Skyship

I don't trust this motley crew anymore

[skyship] 27/7/2016 11:00

Now nearly 58k of buys at around the 60.3p level....inc a few of mine!

[orinocor] 27/7/2016 10:57

last reported NAV was 89p and all the low hanging fruit has been sold so I think that NAV will be too high

[mad foetus] 27/7/2016 10:51

It's not clear whether the change in policy needs to be approved by ordinary or special resolution: if the latter I would not assume that it is a done deal. I think there is also an argument that the directors should not be permitted to vote their connected shares given the conflict of interest inherent in their position. But I would need to check the Companies Act and don't have time to do so right now!