Logistics Development Share Discussion Threads

[zoolook] 24/12/2021 09:35

Depends who you mean by ‘management217;. DBAY don’t earn fees on it being a cash pile and as a major investor there also isn’t any incentive for them to put up with incumbent management taking a salary for nothing

[chinahere] 24/12/2021 00:58

I would be very surprised if the management did the 'right thing' and decided to wind-up rather than take on-going fees.

[zoolook] 23/12/2021 20:55

Even better if (as Eezymunny suggested) they bought back shares below 18p… and then returned the cash

[stemis] 23/12/2021 13:02

Any chance they could just wind this up and return the cash?

[ntv] 22/12/2021 13:19

Picked up a few today
Discount is not bad
Might add further if fall continues

[zoolook] 16/12/2021 19:46

At a wild guess logistics companies ;-)

How long before the sellers clear out?

[chrisdgb] 03/12/2021 08:24

Wonder what kind of target they are looking at...?

[eezymunny] 18/11/2021 22:17

There is no meaningful cash flow. Because this is a cash shell.

FFS.

[harithakur2710] 18/11/2021 18:57

I think they will give 1 pence dividend because they know that shareholders are looking for some positive news and with the cash flow they have they just might, obviously nothing is certain at the moment.

[harithakur2710] 08/11/2021 09:22

I don't know why people don't believe me when I say this LDG will hit .50 pence per share they are valued as per today at .19 pence alone and this is when they have not even given any dividend out. I have faith in DBAY that's why I bought EDDIE STOBBARD shares when they took them over and at that time ESL were running huge losses.

[chrisdgb] 08/11/2021 09:07

Crazy discount to cash now..........

[harithakur2710] 08/11/2021 07:05

lol, wait and see.

[ntv] 05/11/2021 08:54

What are you smoking?

[harithakur2710] 02/11/2021 10:27

Well they did mention they were looking to make or have more investments done with their cash. I bought there shares last year at (2020 May ) at .07 pence after ESL was taken over by DBAY and sold them all at .16 pence in JAN and then bought them again at 12 pence. I am holding at the moment and hoping that they will give dividend, if they don't these shares will not go up as they won't be attractive to investors. In order to be attractive to investors they will have to declare some sort of dividend. If they don't want the stock to be attractive than they might as well keep it the way it is and just do a cash buy back. If you read their statement when they did the 2020 Final results they mentioned in their statement that they have turned the company around which means they want to prove to the shareholders that they know what they are doing. I think it was a smart move to sell Eddie Stobart as logistics currently is nightmare, driver wages going up, Brexit, wafer thin profits and cash is king. The thing with DBAY is the only time they communicate is when they have something positive to say and when they are required by law to say something. It is not a company that regularly updates the market like cairn energy. Their financial year ends in NOV so by Dec or Jan they will declare some sort of news and if they have decided to give dividend then it will be great otherwise just invest in MANX financial for ISA (long term ). I am willing to give them chance because I have already made money out of them and they have delivered. Don't forget last year when they were offering discounted shares to existing shareholders lot of the board bought shares up to million shares and they would want them to go up as they have bought them in pennies and if they sell them in pounds they are sorted. They might not care about shareholders but they do care about the shares they have bought and want a healthy return. If I am not wrong they have bought those shares for .5 pence

[zoolook] 02/11/2021 10:03

In their current state as a cash shell what sense is there in a dividend? If they believed they didn’t require this level of cash for the next acquisition a tender offer at a discount to cash would be a better outcome for shareholders - both those wanting to exit and those wanting to hang on who will see a a rise in the TNAV per share. No idea how you think a 0.4p dividend will result in a 50p share price It’s not an ongoing business in its current form.

[harithakur2710] 02/11/2021 09:00

I don't think there will be a share buy back, if they were going to do that. They would have done it by now. They will declare .4 pence per share dividend. They want to prove to the market that they can turn the company around. LDG would hit around 50 pence or over if they offer .4 pence per share. Don't forget that when the company share price goes up so does the value of the company hence the shares which are owned by the owners their shares goes up. As someone once said in this chat room profit from logistic are wafer thin which mean it is ideal to be a investment company rather than a Logistics company. My bet is that they will declare dividend in dec - Jan and it will be around .4pence per share. Is they declare more than one dividend in the year more investment funds and pensions funds will be interested in this shares hence more people will buy thoer shares. I am happy to wait till Jan to see what happens, If you buy 1 million shares and you are getting .4 pence per share dividend do the maths.

[chrisdgb] 06/10/2021 12:02

These are cheap........

[eezymunny] 17/9/2021 21:35

Shouldn't be tax due. Check substantial shareholding exemption...

[pinkfoot2] 17/9/2021 19:00

Might the discount be due to tax on the sale of the shareholding?

[eezymunny] 14/9/2021 08:54

From the LDG Articles on website.

"43.2 Subject to the Companies Acts and any rights attaching to any class of shares, the Company may purchase its own shares (including any redeemable shares)."

[zoolook] 13/9/2021 20:18

From the horses mouth..

On 13 Sep 2021, at 17:47, Mike Haxby (Dbay Advisors) wrote:

Not currently, no. The companies articles (on the website) have to allow the company to.
Mike

From: zoolook
Sent: Monday, September 13, 2021 5:34 pm
To: Mike Haxby (Dbay Advisors)

Mike,

Does the arrangement with LDG allow for LDG buybacks when there is a discount between the share price and the cash per share as there is currently?

[zoolook] 11/9/2021 12:48

Good points re VLE - I’d forgotten about the Management bonus on disposals.

Would the buybacks have anything to do with the contractual arrangement in their capacity as Investment Manager? Surely buybacks would be purely at the discretion of the LDG board (even if their arms were being twisted by DBay behind close doors?)

[eezymunny] 11/9/2021 12:14

I think that´s all correct zoolook.

Don´t forget VLE´s arrangement is half a million a year or something, plus 10% of uplift (about equiv to a 2 and 10 arrangement), plus they tend to leave management of investments with 20%. So not dissimilar to this DBAY arrangement in practise.

I´d like to ask DBAY if their arrangement with LDG allows for LDG buybacks when there´s a discount like this. Maybe you could ask them?

[zoolook] 11/9/2021 10:53

Been pondering. There is evident distaste expressed by SteveMis and others for the DBay set up which I am guessing along with the woeful Stobbart history accounts for the poor rating? Thoughts?

I can understand the distaste. Comparing it to VLE (my biggest holding) the operating company do the investment analysis / acquisition work in-house rather than contract it out. At other businesses an activist investor will plant a board member to ensure big decisions are made with share holder value in mind. With DBay being a shareholder and earning fees appear to be having the cake and eating it.

Stripping the emotion out though having such a discount to cash is ludicrous and there are various outers that can close the gap especially with DBays activist involvement.

[zoolook] 11/9/2021 00:11

Laxey Partners founded DBay and Mike Haxby who corresponded with me is a long-standing Director of Laxey’s and I think one of the founders.