Lms Capital Share Discussion Threads

[cwa1] 12/8/2020 07:50

Interesting , and unexpected by me, acquisition of interests in the oil and gas industry!



12 August 2020

LMS Capital PLC

INVESTMENT IN A PORTFOLIO OF OIL AND GAS PRODUCING ASSETS IN ROMANIA

· Leadership of an investment group to acquire an interest in Dacian Petroleum ("Dacian") in Romania

· Dacian will, conditional on obtaining necessary Romanian Government approvals, acquire a business operating onshore oil and gas fields currently producing approximately 1,400 barrels of oil equivalent per day ("boepd") with significant production upside and unrecovered reserves

· Approvals expected late Q3 or Q4 with a backstop date of 8 January 2021

· LMS investment of US$9.05 million in loan and equity capital to acquire a 32% holding in Dacian

· Co-investors include Dacian management, LMS Directors and others

[cwa1] 30/4/2020 13:38

Modest director purchase announced

[skyship] 29/4/2020 09:48

Decided to sell into the few buyers emerging after today's Update. Out @ 33.125p.

GLA

[skyship] 02/4/2020 07:32

Yes. noticed that. Sorry, no idea why the slight improvement.

18 trades on Tuesday! Small buyers paying up to 27p in the morning; but squashed down by sellers in the afternoon.

[westofengland] 01/4/2020 19:55

Sky, some life in the stock last two days- any idea why?

[skyship] 30/1/2020 12:09

I was referring to your last sentence - the return of the old team.

[igbertsponk] 30/1/2020 11:19

I'm talking about today's NAV drop and its causes.

[skyship] 30/1/2020 11:05

Igbert - that happened 2 months ago...

[igbertsponk] 30/1/2020 10:43

So a reduction due to write downs of investments made by Rayne etc.
And more costs of the reorganisation.
This is just a vehicle for bosses to get payoffs from.
I bet they'll get some old LMS guys back in again.

[eeza] 30/1/2020 10:27

RNS - Nav update

[swiftnick] 30/1/2020 10:20

Thanks Skyship. I added a few this morning at 37.65p.

[skyship] 27/1/2020 20:42

NAV should be declared this week; though won't include the further rise in GHE - now @ 650p.

[skyship] 22/1/2020 07:37

Indeed - however prepared to chance a few bucks down at this level.

[tiltonboy] 22/1/2020 07:33

About as trustworthy as MVI.

[skyship] 22/1/2020 07:31

HP - I suspect their valuations were keenly inspected over the two years when Gresham had management control. I recall there was a bit of a markdown on day one.

[hugepants] 21/1/2020 23:26

re skyships post above this looks quite interesting if cash is 31p and NAV at 68p

Looking closer at the portfolio they have 2 listed investments;

Gresham House(GHE) currently worth £6.45M = 8p
Solaredge Inc (listed US stock) worth approx £1.8M = 2.25p

That leaves about 25p per share (£20M) of unlisted stocks and fund investments. I wonder how prudently they are valuing these?

[igbertsponk] 13/1/2020 16:27

He'll soon invest the cash in something long long term.

[cwa1] 13/1/2020 16:20

LOL, SKY, never thought I would see this day :-)

[skyship] 13/1/2020 16:00

We all know that Robert Rayne is one of the best value destroyers in the investment game, so can there ever be a reason to buy LMS now that he is back in charge.

Personally I've always been prepared to chance a few quid when a discount reaches absurd levels. Two universal laws:

# Nature abhors a vacuum
# Market forces of one form or another tend to rectify discounts 😊

So, we now see LMS on offer at a smidgeon below 38p - already down 10.5% on the price paid by Peter Harvey just over 3weeks ago.

At 38p the 30th Sept'19 NAV, adjusted for the 4.25p special dividend, comes out at 68.4p - so the discount now = 44.4%. That discount should be confirmed one way or another later this month when the Dec'19 NAV figure is due to be released; when a further small haircut has to be considered quite likely.

Of the net £55.2m net assets, no less than £25m is in cash - that's 31p/share.

So, may be stupid, but I've taken a small position...

[cwa1] 20/12/2019 16:04

The Company was notified on 19 December 2019 that Peter Harvey, Non-Executive Director of the Company, purchased 20,000 ordinary shares of 10 pence each ("Ordinary Shares") at a price of 42.5 pence per Ordinary Share.

[cwa1] 19/12/2019 08:02

So ex the 4.25p special this morning, payable 15/1/20. Will be interesting to see where this one goes now...

[cc2014] 17/12/2019 13:49

Well I assume that 575k trade at 43p was a sell and has now worked it's way through and any overhang has cleared.

Or it's MM playing games and have popped a few buys through raised the price as they know it's going to take them a month to shift that much stock.


My view with CWA1 that's it's PI's attracted by the dividend. Sadly I find alot of these stocks were PI's dive in just for the yield (think CNCT and a large number of Woodford stocks) and it means I can never quite get the entry I want as it never goes low enough. (Although how low is low enough here I'm not sure).

The divvy is great but it makes the fund even more sub-scale and uneconomic in size. I remain left wondering who is going to benefit most from LMS and have to keep reminding myself about the crazy high office rental price LMS were paying to Derwent/Rayne (can't remember which but effectively the Rayne family) which GH negotiated down (which was probably were their relationship started falling apart).


Could just be someone trying to juggle their tax, wants the dividend and capital loss.

[cwa1] 17/12/2019 12:59

Possible dividend hunters? :-)

[skyship] 17/12/2019 12:54

A chunky buy followed by a flurry of small buys. The latter normally indicates a Simon Thompson re-tip; but obviously not on this occasion. So what's going on?