Logistics Development Share Discussion Threads

[lpavlou] 02/3/2023 20:04

Esken own 64m shares and expect they have already been slowly selling into strength. I agree I expect all their shares to be acquired as part of the buyback

[galles] 02/3/2023 08:04

LDG might use this share buyback to snap up all Esken's holdings.

[briggs1209] 27/2/2023 14:07

Yeah, but I'll forgive them when the RNS is good news. THe FIF and APH investments look like shrewd moves. Not sure about the SQI yet - can't say I understand the business

[lpavlou] 23/2/2023 19:53

Not sure how you can mess up such a simple RNS

[rimau1] 23/2/2023 19:05

ST finally picks up on the share buy-back plan! Nice to see a further investment in APH at 59p already in the money. Timing! Long and strong here.

[value hound] 23/2/2023 17:15

Update from Simon Thompson:-

LDG’s buy-back programme is a sensible move

-Board asking for authority to buy back up to 20 per cent of the shares in issue
-Net cash equates to 92 per cent of market capitalisation
-£35.4mn value of three listed investments in the price for only £7.5mn

Investment company Logistics Development Group (LDG: 15.85p) will ask shareholders at a general meeting on 6 March 2023 to approve a net asset value (NAV) per share accretive buy-back programme of up to 20 per cent of the 561.8mn shares in issue, but is limiting the buy-back to £15mn.

It makes sense to do so given that LDG has net cash of £81.5mn (14.5p), a sum equating to 92 per cent of its market capitalisation of £89mn, which means that shareholdings in Finsbury Foods (FIF), Alliance Pharma (APH), and a see-through 11.1 per cent stake in SQLI S.A. (FR:SQI), a leading pan-European digital transformation business, are in the price for £7.5mn, or 79 per cent less than their combined valuations of £35.4mn (6.3p). That’s harsh given that DBay, the group’s investment manager and shareholder, is making some astute calls, as I highlighted in my recent analysis.

Furthermore, if the board spends £15mn repurchasing 94mn shares at the current offer price, of 16p, then it would add 1p a share to spot NAV of 20.8p, thus creating value for LDG’s remaining shareholders as well as providing support for the share price. LDG’s share price is up 8.5 per cent on my entry level in this year's portfolio and I expect the 24 per cent share price discount to NAV to continue to narrow. Buy.

[erocnelg] 22/2/2023 20:22

Sp buyback movement !

Strong buy upswing very prob got a sell at 19p

[lpavlou] 22/2/2023 19:11

If the price drops below 15p I will top up again as am confident the buyback will go to a minimum of 17p, which will be a 13per cent return with minimal risk

[+eysenck] 22/2/2023 17:33

A fair bit of a pullback over the last few days. It looks like a sale of 3.5million share in a single go cratered the price today.

[briggs1209] 17/2/2023 09:53

Using today's prices and the RNS, I have FIF 11.5M, SYN 12.4M, APH 11.3M, cash 81.5M. Total is 116M of NAV and a market cap of 89.9M.

ROugh NAV of 20.8p per share, if this narrowed to 15% discount we would have a price of 17.7p per share.

[rimau1] 16/2/2023 19:53

lpavlou. I have different numbers; Current market cap £88m backed up by Cash £78m, FIF £11m, APH £11m, Synsion £12m, total £112m, current discount to nav 27%

[lpavlou] 16/2/2023 18:18

At least we got a trading update of sorts. Cash this time last year was 134.5m, they spent 22m on the last buy back which gets us to £112.5m, which is the current NAV. So running costs must equate to our current profit on shareholding's but still gets us a NAV of 20p per share. share price will therefore stay in the current range as we are close to the 15percent limit they are setting themselves.

[rimau1] 16/2/2023 10:15

Tyran, a buyback will always benefit an investment company (where the nav is simple to compute) such as LDG in the long run when the shares are cancelled and you are buying back at a significant discount to NAV. Cetris paribus etc etc Just my opinion.

[tyranosaurus] 16/2/2023 10:05

The previous share buyback improved the price in the short term but had no long term benefits.
I can`t see this one being any different, except the buyback price will be higher.

[rimau1] 16/2/2023 08:06

There we are, share buyback being implemented to try to narrow the discount to NAV to around 15% or roughly 17.7p. The buyback last year managed to get the stock price over 16p when the NAV was 19p so lets see how we go. Very undervalued at these levels IMO

[metis20] 16/2/2023 07:14

"The Company is, therefore, seeking shareholder approval to acquire up to a further 20 per cent. of the voting share capital (the "Share Buyback") to reduce the discount to net asset value per Ordinary Share and provide an exit opportunity for shareholders."

[blueball] 13/2/2023 13:46

Simon Cawkwell buy.

[lpavlou] 10/2/2023 21:58

Wild ride today but the market is doing LDG job by reducing the gap between NAV and the share price The buy back will now be less than 100m shares. The highest buyback price last time around was 16p. Will be higher this time round, so decided to sit tight and wait.

[metis20] 10/2/2023 16:13

See 1 December 2022 RNS :-



for,"The Company is also pleased to announce its intention to initiate a further share buyback, additional details of which are set out below."

[rimau1] 10/2/2023 14:40

Added to my long term holding at 15.1p. The key point being we can expect a share buyback during Q1 which should help to narrow the discount to NAV

[rimau1] 10/2/2023 08:25

Yep i am holding too. ST missed the buyback plan in his article too otherwise its a good piece.

[lpavlou] 10/2/2023 08:18

16p was always my target price, but now we are here, I'm tempted to hold on as the buyback may drive the share price to 18p

[boystown] 10/2/2023 01:54

It's a good article and it will get a bounce tomorrow, but obviously it won't get to NAV. The key for me, though, is the much longer-term picture, of where this will be, say, five years from now. After all, any investment in an investment company is an investment in trust in those doing the investing on your behalf.

But when many of us were able to buy sub 11p or so - it was much more about value investing (and still is at the current price, hence its inclusion in the Bargain Portfolio) so maybe there's a balance between the two things.

Anyway, I'm not selling! :-)

[rimau1] 09/2/2023 17:55

Good luck any newbies buying shares tomorrow on the ST bounce, its impossible to build a large position on normal days! Long and strong here.