Lms Capital Share Discussion Threads

[skyship] 09/5/2017 12:51

"The Annual General Meeting will be held at 12.00 noon on Thursday 25 May 2017."

So now just over 2weeks for the NAV update to 31st March.

[topvest] 24/4/2017 20:06

Yes, good spot. An outrageous £1.9m which equates to 3% of net assets. Not a bad day's work for two failing managers. Anyway, I'm thinking of increasing my investment here once Gresham have cleared the rubbish. Think its going to remain on a wide discount for a while as none of their private equity investments are really doing that well. Valuation movements on page 16 are grim. Think LMS, DNE and CDI are the private equity companies that simply put their investments in the wrong sectors.

I quite like the Gresham House idea though so will probably back them again at the right time. Looks like more downside risk in the immediate short term though. The shares are nearly back to what I originally paid for them many years ago of 41p. Having said that, I've had more than my purchase cost back in tender offers.

[igbertsponk] 21/4/2017 06:25

Investors may want to look at the rem report in the accounts out today. Big bonuses for the departing directors: who of course have just gone to the new managers.Massive payouts for failure.

[skyship] 19/4/2017 15:02

Armstrong Investments slightly increases its holding - up from 2.8m to 2.9m; and in doing so crosses the 3% threshold (3.007%):

[shaker44] 06/4/2017 14:24

Exactly. Snouts in the trough

[igbertsponk] 06/4/2017 13:49

New management ??? They've taken on the LMS guys! And once the LMS accounts are out you'll no doubt see that they got another mega pay-off to leave LMS and join Gresham. More payment for failure.

[spectoacc] 06/4/2017 13:45

Personally I'm seeing little value - but lots priced about right. Something like MVI appeals for the large discount & 8p pa divi, but it's a concentrated portfolio. I like a lot of the property ITs but they're dominating enough already.

[shaker44] 06/4/2017 13:41

Too long a watchlist to share, and my criteria may not be yours...

[skyship] 06/4/2017 13:02

Hmm - understandable of course; personally prepared to give the new management a fair crack of the whip.

Problem is to find good value plays - now very few and far between. I still mainly trawl the PE & propco sectors. Any ideas shaker?

[shaker44] 06/4/2017 11:06

You would have been welcome. I lost faith. Many better opportunities with directors behaving better

[skyship] 06/4/2017 10:15

Small - but another piece of news suggesting the bottom may be in now.

At 43p the discount = 39.4%; so happy to hold a few and will add if I see another cheap offer @ 42p....would happily have taken shaker's stock!

[shaker44] 06/4/2017 06:34

Sold out now. Fed up with directors milking this

[spectoacc] 06/4/2017 06:15

24 month delay for them receiving all the cash, but a rare positive RNS from LMS.

[hugepants] 20/3/2017 13:01

I also picked up a few at 42p a couple of weeks back. Pavey sums it up well.

[skyship] 20/3/2017 11:39

Hmm - I certainly trust GHAM a whole lot more than that ragtag Dunedin North of the border! Meant to be in liquidation mode, but can't resist buying into something new a few days ago...maybe unjust...will take a look later...

[spectoacc] 20/3/2017 11:25

Seems fair enough @Sky; the other problem with LMS is when you actually see any money back.

Much as with my DNE, who reported this morning.

[skyship] 20/3/2017 11:11

"The problem with LMS has been that the "price" keeps falling due to the NAV. I'm far from convinced it's genuinely been kitchen-sinked yet."

My view is that the declaration of the NAV @ 71p versus the projected 69.5p in the earlier Update, does rather imply that GHAM is satisfied with current, heavily marked down valuations.

A Tender will of course require further asset sales, and in that respect the timing of an acceptable portfolio asset bid is a matter of chance.

"You pays your money, you makes your choice".....and IMO the 40% discount underwrites the play at this level. Though for me it is only for a small allocation punt, rather than my high allocation investments elsewhere in the sector.

[pavey ark] 20/3/2017 09:21

SA,Then it is unlikely you will take a position as buying in here is to put your trust in GHE and the belief that the portfolio has now been properly evaluated.
I have no problem with GHE and it looks highly unlikely (to me)that there would be any logic in them putting anything other than a low valuation on the portfolio they inherited.
I'm not saying that the portfolio was marked down below market value but where there was a range of possible values the lower/lowest would be taken.

As I said "you pays your money....."

Edit: I seem to remember (when I had little interest here) that it was in GHE's interest to move reasonably quickly with liquidation and reinvestment.
Cash has been raised and more to follow so the first trigger amount could easily be reached this year.

[tiltonboy] 20/3/2017 09:13

PA,

I don't envisage a Tender offer this year!

[spectoacc] 20/3/2017 09:08

I agree everything has a price.

The problem with LMS has been that the "price" keeps falling due to the NAV. I'm far from convinced it's genuinely been kitchen-sinked yet.

If it has, then the current price looks good. No position here.

[pavey ark] 20/3/2017 08:59

As has been posted previously, there comes a point in every share price when all the bad news is in and all the deserved selling has taken place and yet the selling continues.

A 40% discount is quite a buffer.
The £11m buy back at 95% of NAV , although in two stages, should be this year.
GHE is on the up and LMS should have 15% of the company if warrant are exercised.
(these warrants have just gone "in the money").

You pays your money, you takes your chance but there comes a point when you have to question when/if things have gone too far.

I have a small (residual) holding here but had the calculator out this morning and may add.

My views on LMS are no doubt improved by the fact that I have a holding in GHS and like what they are doing there.

[skyship] 14/3/2017 11:26

Igbert - take more than a cursory look and you'll find that GHAM has taken over management there too. Actually the GHE performance wasn't that bad either; though from ancient memory they may have missed opportunities to cash in their stake in Memorial holdings. By the way, if you subscribe, then you can read Simon Thompson's recent positive evaluations in the IC...

[igbertsponk] 14/3/2017 09:58

Just had a look at Gresham's accounts. They look true experts in losing money on investments and should continue the good work that the LMS crew have been doing.

[vacendak] 14/3/2017 09:18

I do not have any directly, but follow because British Empire still has 0.5% of its assets invested in it.

From the latest BTEM factsheet, LMS is a "detractor", falling 7bps over one month (basic points relative to assets contributing to performance). They have not mentioned anything about adding or exiting their position lately.