The Local Shopping Reit Share Discussion Threads

[eeza] 09/7/2015 19:35

Rent up, wage bill up, shops will give up.

[badtime] 09/7/2015 19:24

Who says they will be

[eeza] 09/7/2015 17:43

No good if the shops are vacant.

[badtime] 09/7/2015 16:47

Article I saw today said rents will go up

[eeza] 09/7/2015 11:26

Small convenience stores/shops will now be struggling even more when they have to up the wages. More shops in run-down town centres will be turned into charity shops.

Is the way I see it.

[skyship] 09/7/2015 11:10

Sorry, how so? Don't follow the logic...if anything would have thought the reverse to be true!

[skyship] 22/6/2015 17:37

...or more likely AXA further lightening their position after the 500k sale a week ago.

[spittingbarrel] 22/6/2015 16:06

Perhaps New Solera trying to unload the rest of their position?

[tiltonboy] 22/6/2015 15:45

Looks like there is a seller around who keeps on reloading 20k lots!

[tiltonboy] 22/6/2015 15:37

MM's will quite often put through business for no turn, especially if you have got a good relationship with them. Could also have been in-house where the broking side took a comm.

[skyship] 22/6/2015 14:09

Hi Tilts - how do you explain that put-through of 125k @ 12:11 - how come done at the same price?

[tiltonboy] 22/6/2015 13:35

Just had another little top-up at 27.94p.

[skyship] 20/6/2015 14:57

LSR fits the bill to a tee! (or is that to a T?)

[skyship] 20/6/2015 14:55

Further from the DIL2 Annual Report:

Outlook

There are a number of issues influencing market sentiment. The most obvious of these is the longrunning support to markets provided by central banks through their ultra-loose monetary policy. It is clear to us that without such support, markets would likely not be trading at such elevated levels. What is less clear, and what concerns the investment community, is what will happen as stimulus is withdrawn and policy tightens. The Company is positioned with this probable headwind in mind.

The Company is cautiously positioned and we have every expectation of being able to deploy further significant capital in a variety of existing and new holdings subject only to securing those investments at a sufficient discount to our opinion of the realisable value of those investments.

The key is to apply patience and discipline in pursuing our investment strategy. In strongly rising markets and extremely benign market conditions this can be difficult but we are confident that this is the correct course to take.

The Company’s aim remains to invest in situations where we believe the share price represents a significant discount to the realisable net asset value and then to realise that value in the medium term. We are confident that our investment strategy and processes will continue to provide attractive returns in the medium and longer term.

Whilst we do not make macro judgements, we believe quantitative easing (“QE”) has distorted markets and added downside risk. It seems logical to us that if QE has inflated the prices of many risk assets, then its removal may at least lead to some volatility. The Company is well positioned to take advantage of any such volatility in the prices of the securities we track and analyse.

[skyship] 20/6/2015 14:45

Ah well - the Market greeted with remarkable indifference the purchase of a 20% stake by activist fund DIL2. Perhaps because the stake came from New Solera, an investment company with its hitherto 29.9% stake.

No-one knows anything about New Solera, so their need to raise £4.6m with the shares very much at the lower end of the trading range might be down to any number of reasons.

Being a listed company one can more readily find out about DIL2. Frankly their investment performance has been pretty dull since their 2011 launch; and they now run a very cautious ship, with 50% of their portfolio in CASH. Plainly they see LSR as a mis-priced opportunity – see Extracts below:

Extracts from Chairman’s Statement in the Annual Report to 30th Nov’14:



At the date of this report the Company is cautiously positioned, with weightings of 49.25% in equities and 50.75% in cash (including net working capital) at the Year end. Since launch the Company has invested over £93 million and realised over £61 million, generating a realised gain of approximately 14.4% on its investments.

At the Year end, the Company held twenty-eight investments, of which six are currently notifiable under the Disclosure and Transparency Rules (“DTR”). Cash was the Company’s largest investment, accounting for 48.69% of its NAV. The next five largest investments account for a further 23.5% of its NAV. In total the top ten investments (including cash) accounted for 83.5% of the Company’s NAV.

Our view remains that near term the outlook is challenging for the risk averse investor. Our investment philosophy is that the price paid for an investment is the most important factor in mitigating the risk of permanent capital loss………………….

……………….. In this environment – where the risk of permanent capital loss is high – we believe it is prudent to maintain a healthy cash balance. Fortunately, periods of extreme complacency such as the present do not last forever and we continue to monitor markets for the mispriced opportunities we seek and have traditionally exploited. In short, we believe that market volatility will increase and that the Company is very well placed when it does so.
==================================================================

[eeza] 18/6/2015 10:46

Tick-up didn't last long.

[badtime] 17/6/2015 13:38

Oh well at least someone is :)

[tiltonboy] 17/6/2015 13:32

No, I went on the bid yesterday but didnt get hit.

[badtime] 17/6/2015 13:29

Tilts buying?

[skyship] 17/6/2015 10:09

Finally a tick UP - 28.5p-29.0p as I type...

[tiltonboy] 16/6/2015 21:49

I usually out-trump everyone. I just need four pints and a bag of scratchings!

[badtime] 16/6/2015 18:35

Unusual for Tilts to be trumped...losing his touch :)

[skyship] 16/6/2015 18:30

Intriguing Solera sold 19.9% to activist fund Damille Investments 2

(BT - they offered me the line first; but Tilts implied he was after them so I did the gentlemanly thing, stood aside....& DIL2 trumped us both!!!)