Logistics Development Share Discussion Threads

[lpavlou] 22/12/2023 11:06

Looks like they made 400k profit on Trifast stake. £3.1m cash added to the savings account

[lpavlou] 29/11/2023 21:32

Looks like it's getting harder to get hold of stock and they will need to pay 12p tomorrow

[tyranosaurus] 08/11/2023 12:33

It looks like LDG have taken 3.91% stake as total of DBay and Associates is 11.27%.

[lpavlou] 07/11/2023 22:03

Need to be buying these companies out if they believe in them, not just taking small stakes. APH and MTG are ripe for a buyout

[arthur_lame_stocks] 07/11/2023 19:42

It looks like LDG have taken an 11% stake in TMG.

[spob] 27/10/2023 10:04

.
2023 Bargain Share Portfolio constituent 10/Feb/2023 (peak offer 16.4p)


This investment fund's NAV is holding up yet the share price is taking an unwarranted hit

October 23, 2023
by Simon Thompson

Proforma cash of £44.4mn (8.3p) in price for free
Four listed holdings worth £59.1mn (11p)
Finsbury Foods in a takeover situation
41 per cent share price discount to NAV

Investor risk aversion is so extreme right now that there have been some disproportionate de-ratings of quality companies in the small and micro-cap hunting ground.

For instance, the share price of Logistics Development Group (LDG:11.4p), an investment company managed by asset management firm DBay and one of my 2023 Bargain Share Portfolio constituents, has fallen 18 per cent since I reiterated my buy call, at 13.9p, at the recent interim results (‘Exploit this double-discounted small-cap fund’, 7 September 2023).

I estimate that LDG has net cash of £44.4mn (8.3p) after factoring in £0.8mn spent on net asset value (NAV) per share accretive share buy-backs since last month’s article as well as the purchase of a further £4.8mn of shares in Finsbury Foods (FIF) (pictured). The speciality bakery manufacturer of cake, bread and morning goods is in the process of being acquired for £143mn by funds managed by Dbay.

LDG now holds a 12.5 per cent stake in Finsbury worth £17.8mn (3.3p), or 29 per cent above cost. It’s not as if Dbay is overpaying. The offer is pitched on a price-to-book value of 1.13 times and values Finsbury on an enterprise valuation of £165mn. It equates to 5.2 times cash profit and 8.3 times operating profit reported in the financial year to 1 July 2023, low multiples for a business that has just reported double-digit annual profit growth and is forecast to continue growing.

LDG also holds three other listed investments: 10.5 per cent stake valued at £21.2mn (4p) in Alliance Pharma (APH), a distributor of consumer healthcare and pharmaceutical products; 9.5 per cent holding worth £17.2mn (3.2p) in SQLI S.A. (FR:SQI), a leading pan-European digital transformation business; and a 2.8 per cent stake in Trifast (TRI), an international distributor of industrial fasteners, that has an open market value of £2.9mn (0.5p).





-----------------------------
Portfolio companies, Sector and description, Group interest, Consideration paid, Fair value of stake, Fair value per LDG share.


Finsbury Foods Food and cake maker 12.4 per cent equity stake £13.8mn £17.8mn 3.3p

Alliance Pharma Distributor of healthcare and pharmaceutical products 10.5 per cent equity stake £33.4mn £21.2mn 4.0p

Synsion Pan-European digital transformation business 9.5 per cent read through equity stake in SQLI S.A. (FR:SQI) €15mn (£12.8mn) £17.2mn 3.2p

Trifast International distributor of industrial fasteners 2.8 per cent equity stake £2.7mn £2.9mn 0.5p

Total holdings £62.7mn £59.1mn 11.0p

Proforma cash £44.4mn 8.3p

Spot NAV estimate £103.5mn 19.3p


Source: LDG interim results at 31 May 2023 and subsequent London Stock Exchange RNS filings. Latest share prices for portfolio companies correct on 23 October 2023.
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Strip out the group’s proforma net cash of £44.4mn (8.3p) from its market capitalisation of £61.1mn (11.4p), and the four listed holdings are in the price for £16.7mn, or 71 per cent less than their latest market valuations of £59.1mn (11p).

Frankly, that’s absurd given that LDG’s NAV per share has only declined 4 per cent from 20.1p to 19.3p since the start of last month, so the portfolio is hardly taking a beating, unlike LDG’s share price. Moreover, the latest valuation of the four holdings is only slightly below the £62.7mn cost.

Or put it another way, the four holdings back up almost all of LDG’s share price of 11.4p, so you are getting nearly all the 8.3p a share cash pile thrown in for free.

[lpavlou] 24/10/2023 10:22

Strange that when the share price is 11.2p, there are few buyers around but when it get to 12p, they all come out the woodwork

[value hound] 23/10/2023 16:42

Re-tipped by Simon Thompson under the heading "This stock's cash is worth more than the share price."

He concludes with...

"Or put it another way, the four holdings back up almost all of LDG’s share price of 11.4p, so you are getting nearly all the 8.3p a share cash pile thrown in for free. Buy."

[lpavlou] 20/10/2023 09:25

Currently losing 13m on their stake in APH which is worth 2.5p of NAV. NAV is now circa 18p. Surprised they have not upped their stake in APH recently given the share price weakness. They are still only mopping up shares, but there are more shares out there to be mopped up so surprised they have reduced the daily buyback recently

[zoolook] 19/10/2023 23:15

It’s not a stated aim it’s the stated maximum they are prepared to pay.
[Bangs head against wall]

[makinbuks] 19/10/2023 17:49

Its nuts. When you have a stated aim of a 15% discount, why not just do a one off tender

[tyranosaurus] 19/10/2023 16:52

The buyback approach has to change. They are buying at roughly the same time each day and everyone knows that.
They could have bought cheaper earlier in the day.

[makinbuks] 19/10/2023 16:30

I agree FIF price seems very reasonable to me. Its the fact that LDG increased their stake in concert and are now invested in a private rahter than a public company that affects sentiment

[briggs1209] 19/10/2023 14:19

That could easily be true about DBAY and FIF. I see the FIF price has dipped and probably reflects the fact that a few shareholders have come out against it - so the price must be ok for us!Volume over last few days is pretty small and yet value destruction huge for LDG.Let's see if buyback approach changes as discount to NAV gets wider.

[makinbuks] 19/10/2023 13:58

I assume the sellers don't like the Finsbury Food deal and the way LDG seems to be a puppet for DBAY

[briggs1209] 19/10/2023 13:53

Bought some more down at 11.29p.The protection of NAV at 20p is sufficient to just tuck these away at this price.

[tyranosaurus] 19/10/2023 10:41

October 17th I said look out 12p.
That`s gone in a flash.
Where it`s going next I have no idea but looks likely to be down.

[briggs1209] 19/10/2023 09:41

someone selling out at 11.65p

If the stated aim is to have a 15% discount to NAV, you might think they would start to increase their purchases.

[lpavlou] 18/10/2023 20:22

Back to 12 month low. Plenty of stock out there to pick up and depressed pricing, so odd they have not upped the buyback, but rather reduced it in the last couple of days.

[makinbuks] 17/10/2023 18:19

very interesting developments, watching with interest

[tyranosaurus] 17/10/2023 15:17

Well your 14p has gone. So has 13p. Look out 12p.