Lms Capital Share Discussion Threads

[skyship] 17/9/2018 12:42

Thnx to astonedt for spotting this and posting on the GHE thread:

GHE CEO interview and Q&A discussing their interim results

INTERVIEW -
Q&A -

[skyship] 30/8/2018 14:16

...a little bit of interest continuing today

[skyship] 24/8/2018 16:36

Redhill - a nice price to have paid on Wednesday. You will have been pleased to see 75k bought @ 51p today...

Also pleasing to see GHE up at 460p-470p.

[redhill9] 22/8/2018 12:07

Just bought some more at a tad under 50p.

Price seems too good to be true but with such a high proportion of cash in the NAV looks a solid bet.

[pavey ark] 02/8/2018 17:21

SKYSHIP,
I agree with your 33.5% figure but my figure for net cash is 43%,obviously we are using a different method of calculation.

Perhaps more interestingly I get a figure of £20m for the total NEAR CASH which renders all discount figures even more silly.

1 Residual payment on Penguin is £4.3m but willing to discount this to £3m
2 Nationwide Energy Partners owe £2.96m (Dec 2017)and this is rock solid but I don't know the repayment schedule so call it £2.5m
3 8% Convertible loan instrument with Northbridge IS is already "in the money"
£600k but to keep things neat call it £500k.

If the above are taken out I get a discount of c.50% on all the other assets.

A £4.5m holding in Gresham House discounted by 50% !!?
Plenty of other solid assets that are discounted at silly rates.

I have been buying over the last month and this has reached 5% of my share holdings.

In my opinion these discounts take out much of the possible downside.
Happy to hold but probably have enough.

Edit: I don't think that Simon Thompson, in the IC, covers this now.
Any recent mention of LMS has been in relation to their holding in Gresham House, which is a big favourite of his.
It looks like LMS share price is at the mercy of PIs doing their own research.

[skyship] 31/7/2018 18:21

NAV turns out at 79p...held back by the collapse of their residual holding in Ide.

Still, pretty good, especially as they now have £14m in cash; a whole one third of the MCap.

The discount @ 52.5p = 33.5%; but strip out the cash and the discount rises to 38.6%.

Something ST may comment upon in IC Online...

[skyship] 06/7/2018 14:14

Interims c3weeks away.....26th July last year.

Expecting (hoping) that the NAV will be back up to 80p, perhaps even higher...

[pavey ark] 13/6/2018 15:11

By my calculations (worth checking!!)the pound has dropped by c. 4.6% against the dollar since Penguin was valued at 31st march.

Good to see further liquidation of old assets and I am happy to see the money being passed to GHE.

I consider GHE to be very good at what they do and the more they have under management the more likely that the large discount will reduce.

Shareholders here could be in the happy position of GHE producing good returns on the money they invest AND the discount narrowing.

[skyship] 13/6/2018 13:21

I suggest he doesn't hold - he's just trouble making, as is his wont.

[redhill9] 13/6/2018 12:41

IgbertSponk, I think you're being excessively cynical/pessimistic but we'll see.

I'm happy to hold at such an apparent discount to NAV - if you're not happy either sell or don't buy, your choice.

[igbertsponk] 13/6/2018 11:41

Do I really have to interpret ?? You didn't even know they marked to market a few posts ago, yet still pontificate.

No need to read the numbers - the RNS spells it out.
release of the escrow plus payments under the performance related element of the price could allow the company to receive proceeds equal to its carrying value, or possibly a small premium, during the first half of 2019.

So a small premium IF they hit performance....
And as anyone who has ever bought or sold a company knows, the acquirer does their very best to ensure no further payment is made.

[skyship] 13/6/2018 10:45

When you hold a stock on a 35% discount it is the effect on stated carrying value that is important, not whether it is sold at a loss or a profit.

The RNS more than implies that the disposal will result in a premium to carrying value.

Perhaps wait to see what the next RNS states...

[igbertsponk] 13/6/2018 10:27

They do mark to market, so a loss.

[skyship] 13/6/2018 10:17

IS - I suspect you are mis-reading the runes here. Do you hold by the way?

[igbertsponk] 13/6/2018 10:12

So a loss (sellers rarely receive earnouts). Which also cats doubts on the carrying values of other similar investments.

[skyship] 13/6/2018 10:11

Sounds encouraging - and the few buys triggered has taken us back up to 50p bid; so pleased with that.

Assuming we've recovered the NAV back to 80p, then the discount @ 52p = 35% - so still looking cheap IMO.

[skyship] 21/5/2018 16:28

135k bought from 49.0-49.6p.....someone clearly endorses the value here!

[skyship] 21/5/2018 09:39

Gresham up again (now 442p) and the $ up again...and finally signs of movement in the share price as it trades slightly better at 48p Bid...

[skyship] 18/5/2018 11:35

With the rise in the $, the rise in Gresham and the small recovery in Weatherford, the NAV here likely now to be back up to at least 78p...

[skyship] 01/5/2018 09:20

Disappointing to see the NAV retrace back to 75p from the Dec'17 figure of 80p; though of course the recent $ strength will have moved it back up to c76p, all other things being equal of course.

"The Board and the manager continue to evaluate strategic options for the Company to increase scale and enhance shareholder value."

Certainly with a MCap of just £38m & an NAV base of c£61m, increased scale needs to be addressed, though with the substantial discount it would seem a tall ask. Best for Gresham house just to take it over lock stock and barrel; but I suspect that they would prefer not to have Robert Rayne holding too large a %age of GH.

Best outcome would be a White Knight parachuting in, taking Rayne's stake and ending up with an investment shell...

They look to be good value again as at 45p the discount would be 40%. At 47p still 37.3% - a level with obvious attractions for the value contrarian.

[topvest] 31/3/2018 15:20

Looks like the Board are exploring strategic options for the Company as per the Annual Report. Be interesting to see what happens. Time to get out of some of the US investments no doubt.