Lms Capital Share Discussion Threads

[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?

[eeza] 12/12/2019 18:34

Not sufficient to warrant the pain of holding the cr*p & suffering the Rayne monopoly.

[cwa1] 12/12/2019 18:16

It's certainly a chunky special in relationship to the share price ..

[skyship] 12/12/2019 16:56

Well at least he's sticking to his word re ther Special Dividend - 4.25p - XD 19th December. PD 15th Jan'20.

[cwa1] 10/12/2019 12:03

Thanks for the thoughts, I can't help my contrarian muscle twitching a bit when everyone else hates a stock so much AND Tommo has suggested to all his acolytes to SELL! Must resist, must res.... ;-)

[cc2014] 10/12/2019 11:58

The issue is not that ST screwed up because based on his buy and sell he made a profit, it's more that LMS is sufficiently illiquid that there isn't enough volume for the number of punters who pile in on the back of him and perhaps he should be more mindful of this.

On the other hand when he comes to publish his tips which will drive sales of IC he will of course show a profit. It's the same with all the tipsters regardless of IC or twitter or whatever. They get to front run the purchase and sale.

Of course one might argue that merely tipping it drove up the price which enabled him to get out at a profit when he sold and I wouldn't be disagreeing with you.

[cc2014] 10/12/2019 11:26

It my view it is univestable, unless the share price falls significantly.

1. The fund will be run for the benefit of Robert Rayne and family
2. It doesn't have scale without GH so management costs are going to be high
3. The fund promises around 15% (sorry can't be bothered to look it up but that's from memory from the circular, might be 12% or some other high number) so it's investing in risky risky stuff.


Now the conjecture part...

GH were appointed around 2-3 years ago and in that time bought nothing and only continued selling off the existing assets (running down the fund if you like). That's not what they were appointed to do and having spoken to Graham Bird that wasn't their intention at the outset.

It's inconceiveable they wouldn't have anything to buy in that timeframe so I assume everything they put forward the Rayne family didn't like. Perhaps because they had their own set of investments lined up... which GH would have looked at and presumaly didn't like the look of.

I venture that what was supposed to happen was that GH were supposed to be a puppet for the Rayne family to give the fund some credibility to enable the NAV to close and perhaps get away a raise to give it size. Only GH felt conflicted... whatever...


It's going to need a huge discount to NAV to get me interested. No-where near the current share price.

[skyship] 09/12/2019 16:38

CWA1 - Simon Thompson today recommends to ditch LMS. Below is the closing part of the article:

"My concern is that the concert party has effectively taken control of LMS without paying a premium for doing so. In my view, this will create an overhang of shareholders (who had previously been backing GHAM) who will want to exit.

The fact that LMS’s share price reversed from a 12-month high of 59.5p at the end of October is telling, as is the fact that, at 49.3p, the shares now trade on a 32 per cent discount to net asset value (NAV). I can see no reason why new buyers would want to back Mr Rayne’s team at this juncture given that LMS now has fewer resources at its disposal and also needs to recruit expertise it currently doesn’t have.

So, having recommended buying the shares, at 48.8p, in my April Alpha small-cap report, I recommend exiting at around break-even. Sell."

[cwa1] 09/12/2019 14:26

Afternoon all. I KNOW this is not exactly the RR appreciation society thread :-) ....but...I wonder if there's a price that could tempt any of you take a punt on this one? Down about 13% so far today is a bit of a slump with no official news out there(or does anyone have a handle on what today's wobble is about?)

Cheers

[aclelland] 28/11/2019 19:27

Gresham House Asset Management Limited (“GHAM”) notes the announcement made today by LMS Capital plc (“LMS”) that the resolution to re-appoint GHAM as investment manager to LMS was not carried.

The resolution was put to LMS shareholders by the LMS board (“Board”) and was unanimously recommended by the independent directors of the Board. The recommendation also received the support of independent proxy research house ISS.

Robert Rayne, the only non-independent board member who, together with family-relatedholdings represents c.42% of the outstanding shares (“Rayne Concert Party Shares”), opposed the Board’s recommendation, instead proposing an internally managed solution.

GHAM notes that a very substantial majority of holders of non-Rayne Concert Party Shares comprising 82%, supported the Board’s recommendation and voted for the re-appointment of GHAM.

Following the outcome of the shareholder meeting, the independent directors of the Board have resigned, as they do not believe that the internal management proposal is in the best interests of shareholders as a whole. An announcement relating to the appointment of
replacement directors will be made by LMS in due course.

LMS had net assets of £58m as at 30 September 2019, representing approximately 2% of GHAM’s total assets under management. The mandate is therefore not financially material to GHAM or to Gresham House plc.

Background
GHAM was appointed investment manager to LMS in August 2016, following a shareholder vote. The appointment came with a change of investment policy, bringing to an end LMS’s previous realisation policy, and sought to improve governance, reduce costs and, following
further committed returns of capital to shareholders, ultimately to recommence investment.

GHAM’s appointment was instrumental in catalysing significant positive changes at LMS, including improved governance, very significant cost reductions, portfolio re-appraisal and management, successful realisations, and improved investor relations and shareholder focus.
Under GHAM’s management, sufficient cash was raised from realisations to return £11m to LMS shareholders in August 2017, fulfilling the commitment made in August 2016 earlier than expected. Since then, GHAM has facilitated and managed further realisations which have led
to a position where, as at 30 September 2019, LMS had in excess of £28m cash available for investment.

Next Steps
GHAM will remain as Alternative Investment Fund Manager to LMS until LMS secures the necessary authority and approvals from the Financial Conduct Authority to manage its investments directly or alternative arrangements are put in place.

Robert Rayne confirmed in his Circular to LMS shareholders dated 8th November 2019 that the New Board intends to serve notice to GHAM to terminate its existing contract, and hence these arrangements will not extend beyond 31 May 2020.

[alter ego] 28/11/2019 15:40

rollocks! that's it I'm out.

[cc2014] 28/11/2019 14:28

Not a holder but I read the Rayne proposal and it left me wondering as the returns were pretty good. The rump of what was left was terrible but that distracted from the overall picture.

I'd say there's a price for everything but you are going to need serious conviction in Rayne if you are going to invest in this one.

[keit4h] 23/11/2019 14:01

Just send them a secure message with your instruction.

[jgh03] 21/11/2019 11:35

I've been waiting for an option to vote to appear on my Iweb account. Still nothing showing, so this morning I called Iweb. I was told that my account is set up to receive notification of corporate actions but not to receive details of AGMs, GMs, etc. They took my vote manually, and have ensured that in future I will receive details of AGMs, etc.

So if you are still waiting, it may be worth phoning to submit your vote. But hurry - although the company's deadline is 26 November, Iweb's deadline is tomorrow, 22 November.

[milosmilos] 21/11/2019 10:15

some interesting points here in response to the GH presentation www.lmsinternalmanagementgroup.com/response-to-gham.html

[aclelland] 20/11/2019 09:59

For LMS Capital Investors, here are links to important documents ahead of the shareholder vote on the investment management arrangements on November 28th.

Make sure you vote to retain Gresham House. Your vote counts.

Here is the link to the LMS Capital circular regarding the Recommended Proposal for the Company’s Investment Management Arrangements:



And also the EGM Presentation:



These are important documents that support the Board's proposal to retain Gresham House as investment manager. Vote Gresham House.

[atty3] 15/11/2019 16:10

Link to LMS Internal Management Group and Robbie Rayne's Circular and Shareholder Letter


www.lmsinternalmanagementgroup.com/

[aclelland] 15/11/2019 08:00

For LMS Capital Investors, here are links to important documents ahead of the shareholder vote on the investment management arrangements on November 28th. It's important you vote to make your voice heard and retain Gresham House in the interests of all shareholders.

Here is the link to the LMS Capital circular regarding the Recommended Proposal for the Company’s Investment Management Arrangements:



And also the EGM Presentation:



These are important documents that support the Board's proposal to retain Gresham House as investment manager.

[alanji] 11/11/2019 10:18

Nothing on A J Bell website.

[pavey ark] 11/11/2019 09:42

Voted for the resolution using my ii account.

(these things are never set out in a straightforward manner but got it done)