Lms Capital Share Discussion Threads

[westofengland] 27/5/2021 15:23

It will be seriously exciting if we get some traction on this stock.

This is the biggest excitement since January 2020 when they began life as Self Managed.

[cc2014] 27/5/2021 14:54

Now we are in business.

[cc2014] 26/5/2021 09:09

I'm thinking the MM's have been mucking about with this trying to shake out some sellers. I'm thinking they are now done.

[cwa1] 26/5/2021 08:57

Modest signs of of life today

[hugepants] 18/5/2021 14:43

Well it goes ex the 0.6p final dividend this Thursday which could explain some of the buying

[cc2014] 18/5/2021 12:50

Some very strange trades the last 24 hours. I can't work them out at all.

On the one hand it looks like it has maybe been tipped somewhere, on the other I'm wondering how many of the apparent buys aren't real and may just be marketmaker to marketmaker switches.

On my third hand (the mind boggles) if it had been tipped I think there would be more buys. Alternatively perhaps it's just popped up on someone's radar as at the moment it's buy any old share as the money printing presses keep going.

[hugepants] 06/5/2021 15:01

it's a fair point

[cc2014] 06/5/2021 12:41

I'm taking the view that the price of oil has been rising steadily and this outweighs the loss of reserves by a considerable amount.

So, in my mind the share price should have been going up to reflect this.

[hugepants] 06/5/2021 11:33

re the Dacian O&G acquisition. Since this was supposed to complete by end Jan at the latest then they've effectively lost over 3 months production. That's so far. So they should be paying less for these assets now. They are obviously worth less than they were at the end of January.

[cc2014] 05/5/2021 06:54

Not much we can do unless we want to buy more HugePants.

I have plenty already and wouldn't want any more unless I can buy at say 28p and surely it's not going to go that low.

[hugepants] 04/5/2021 18:51

At 32.5p to buy the discount is now 45%. And that includes approx 25p in cash. Bananas!

[hugepants] 25/4/2021 16:49

Still no news then on the Romanian O&G caper.

[cc2014] 16/4/2021 11:00

Fair comment about management. I wouldn't trust them with your bargepole never mind mine!

Most of the assets have however been turned into cash and/or reinvested differently.

[igbertsponk] 15/4/2021 17:49

Be careful with this. Same management and mostly the same assets that were in LMS a long time ago. And the management have been made redundant/left etc umpteen times and continue to take exorbitant amounts from the company. They've done a whole heap better than shareholders!

[magic] 15/4/2021 17:14

Thats very useful, thanks CC2014.
So tiny for an equity capital company.
As you say may well need a longer time to blossom.

[cc2014] 15/4/2021 08:11

I don't think you'll get many replies magic. I would guess there are only about 10 people who read this thread and of that only half have looked at the company in any real depth.

I am happy enough to hold having bought below 30p and wait for things to develop. I like the Dacian story and appreciate how transparent the directors have been with it and that even if things go wrong it's not going to be an endless pot of money disappearing into nowhere as it will be the maximum holding allowed.

I also like how the directors are not rushing in to spend all the cash in the pot and this is quite rare as most "fund managers" are always rushing to spend all their cash regardless of whether the timing is right or wrong. I firmly believe there is a disconnect right now in asset prices in the property sector and there will be bargians galore at some point in the future.

I don't like the management costs and see these as way too high as a proportion of the assets. This needs dealing with but it won't happen so you either have to accept or not invest. Hopefully, with the assets generating a return of say 10%+ and paying out 1.5% in dividends, the management costs as a percentage of net assets will shrink over time but I wouldn't bet on it.

I do like that the management incentive scheme is linked to the share price and not some other random metric which means they will get paid regardless. I find the scheme overly generous though, which seems to be the way these days as I think that about all schemes.


It looks cheap to me but of course I have a vested interest. I'm looking to stay in long term rather than flip for 5,10,20% or whatever.

[skyship] 15/4/2021 06:23

magic - Robert Rayne's appalling track record as an investor hardly inspires confidence whatever he does; so IMO leave well alone - no discount high enough to justify the Rayne Risk.

That said; there are times when one can snipe a few pennies from this stock.

[magic] 14/4/2021 21:52

Had a look through the Annual Report, April 9th.
Not that familiar with this company, the items that struck me were:

- commitment to future 1.5% div payout

- the Romanian investment would result in annual 14% payments to LMS, was it 5 or 10 years, I cant remember
This looks like a kind of preference bond investment.
Must be with voting rights.
The investment is funded by LMS and also individual Directors for a 50% investment with a local partner.

Thoughts
A 14% return is very high and would be associated with a high risk venture.
If this investment was so good, why would Romanian banks not invest for instance?

My personal feeling is that oil prices will continue to stay high for some years.
Techniques to maximise reducing wells are well developed.

I also have a small investment in tiny Evolution Petroleum in the USA, which is a secondary recovery company, having passed a traumatic period.


This is high risk business, as the Romanian co it looks like would only be £20m cap. IMO only a small % of all investments should be in this.


- other item was that LMS has escrowed its capital since Septemeber 2020.
If co is successfully set up, LMS will receive £100k per month from Sep 20.
Must be in the contract. So £300k potentially is not in the accounts and the further months payments as part of the 14% payments would be in 2021.


So its still all about the final agreement, which LMS is positive about.
But they would be I guess.

If the Romanian adventure doesnt pass, the cash woyuld go back to LMS.


Would be interested in any other views.
I dont have any good insights into their other investments, which seem to be up and down.

Hopefully the valuation is so low, that the downside risk seems smaller than the upside possibilities. Here's hoping.

[magic] 12/3/2021 02:52

Yes and without any news from Rumania.

[cc2014] 10/3/2021 08:57

This is plodding along very nicely. Going up in a slow consistent manner, although I guess so is the rest of the market.

For once nice to sit in a trade and feel 100% comfortable.

[cc2014] 02/3/2021 16:53

Nice trade in the closing auction.

[magic] 17/2/2021 12:55

This seems a very attractive proposition. Bought a small amount.
Surprisingly low P/B.
Romanian oil financing looks increasingly attractive, re rising oil price.
Dividend policy nod to investors.
Shaking up Trust after some turbulence.
Feels like it might develop some momentum.
Limited downside risk.
Increasing inflation should start to float value types more.

[cc2014] 17/2/2021 10:07

It seems the seller who has been providing me with stock on an irregular basis below 30p has now stopped.

Share price seems to be inching up slowly, mind you that's no surprise since everything is going up.

It would be nice to see them get the Dacian project signed off

[hugepants] 02/2/2021 08:40

Portfolio update:


NAV up a couple of pence to 59.5p including approx 25p in cash.