Lok'n Store Share Discussion Threads

[dnfa1975] 07/1/2010 11:28

thanks for that scburbs

[scburbs] 31/12/2009 11:10

Nice steady progress here. I think £1.50 is a reasonable target as it is around a 30% discount to the adjusted NAV.

However, the company needs to start reporting rising pricing and occupancy in order to get it to the £1.50+ range.

The latest results showed occupancy stabilising (plenty of growth potential from these levels), but pricing still falling. Profitability should improve naturally as the number of immature stores falls in line with the slowing roll out of new stores.

"Occupancy 561,148 sq ft up 1.7% (2008: 551,824 sq ft)

Prices for self-storage down 2.3%

Ancillary income up 16.9%

Operating costs reduced by 6.6%

Store EBITDA margins (stores over 100 weeks) 42.9% (2008: 43.3%)

Store EBITDA £3.9 million (2008: £4.61 million) down 15%

Freehold stores over 250 weeks achieved 58% EBITDA margin (2008: 56%) (same stores)"

[dnfa1975] 31/12/2009 10:46

any targets?

[badtime] 31/12/2009 10:32

Easy as it goes

[scburbs] 22/12/2009 10:13

Nurdin, This is no time for serious comment! Good point though.

[nurdin] 22/12/2009 09:34

hardly scrubs...but I can buy into the theory that people and businesses affected by recent floods and bad weather will have used the facilities of likes of LOK to store away personal belongings and/or stock while their premises are being refurbished...

And a nice 10k buy there to kick off todays proceedings :o)

[scburbs] 22/12/2009 09:00

Clearly someone is expecting that there will be lots of Christmas pressies this year and everyone is going to need more storage space!

[nurdin] 22/12/2009 07:42

Burst of buying interest yesterday...wonder if this will continue today?

With NAV at 204p I guess quite a few are starting to see value here...and who knows could be one of the NAPs for 2010 :o)

[badtime] 21/12/2009 15:11

and nice tight spread

[nurdin] 21/12/2009 11:02

Some nice big trades going through here...perhaps someone is taking an unhealthy interest in them?

[badtime] 21/12/2009 09:36

nice rise..but y?

[sunseeking] 05/12/2009 00:10

bt
Well it seems to have got the share price moving up..lol..
just in case your wondering it was meant for the SCHE (carehomes) site,
although it could be taken for a convoluted ramp!
ss

[badtime] 04/12/2009 19:31

LOL...swine flu and storage..could b a link ther somewher...looooooool

[sunseeking] 04/12/2009 10:48

bye the way, I have just got back into this but not for reason stated above.
(Still lol)
ss

[madasafishman] 04/12/2009 10:45

hello guys
been watching this for a while
few questions
why such a large spread is it always this wide ?
just tried to buy 10,000 on ig said trade was too large refused deal
anyone else had trouble buying/ selling ??
always makes me stop and think when this happens

[sunseeking] 04/12/2009 10:42

Sorry
wrong thread lol
ss

[sunseeking] 04/12/2009 10:20

I have just got back in on the news of a drop in the numbers getting swine flue.
I was concerned that the epidemic might have had a big affect on bed numbers and this worry seems to be abating now as the elderly seem to have an imunity
built up.
ss

[nurdin] 04/12/2009 09:42

Looks to me its limbering up to make a strong move....at 203 NAV not long before someone pounces if the share price stays here.

[badtime] 04/12/2009 09:31

nice to c the spread narrow.

re ic..personally dont buy it...hav done but cant justify the time reading it

[affc21] 03/12/2009 08:42

Interesting three page write up on the storage space sector, in this weeks Shares Magazine, for which they have LOK and WKP as plays (buys) on the UK economic recovery.

Basically goes on to state the NAV discrepancies between this company (LOK) and the others (Big Yellow and Safestore) within this sector. A reiteration of Scburbs very informative post:

Well worth buying a copy, for those invested or those considering investing in the sector.

[affc21] 15/11/2009 21:47

Plenty of potential at Lok'n Store

Created:10 November 2009

Unlike carpet-maker Victoria, Lok'n Store is keen to promote its net asset value (NAV). Indeed it's pushing a new way to value assets even though the shares currently stand on a whopping 133 per cent discount to NAV. According to the company, the adjusted NAV is a mighty 207p or 160 per cent discount. Lok justifies the higher NAV figure because it's classified as a trading company not a property investor nor developer. So it should be able to knock out a deferred tax charge (£10.25m at end-July 2009) with rollover relief. At the same time its leasehold premises (10 out of 23) are valued at cost even though there's security of tenure under the 1954 Landlord and Tenant act. The average lease still has over 10 years to run and should be renewed in most circumstances.

What Lok should have featured is that only 52 per cent of the company's available space is currently let. That figure could rise quickly through a combination of economic recovery and a revival of housing transactions. Year-on-year the latter figure was 41 per cent lower in the 12 months to end-July 2009 but is picking up now. House contents account for more than half the'stuff' stored by Lok. At the same time the company has no further new build commitments so gearing should fall. It also wisely eschewed offers to fix interest rates via swaps. So in the latest half year the average interest rate paid more than halved to under 3.5 per cent.

Researcher Hardman forecasts a return to breakeven this year. Lok's shares are trading on a much bigger NAV discount than those of rivals Big Yellow and Safestore. If the discount stays so big the company might receive another takeover approach. We upgrade to speculative buy.

IC VIEW: BUY
BuyResearcher Hardman forecasts a return to breakeven this year. Lok's shares are trading on a much bigger NAV discount than those of rivals Big Yellow and Safestore. If the discount stays so big the company might receive another takeover approach. We upgrade to speculative buy.

Last IC view: Fairly priced, 59p, 28 April 2009.

[badtime] 15/11/2009 21:46

took a nibble last friday

[ronwilkes123] 15/11/2009 19:45

well the discount to nav is very interesting especially when compared to peers. Thankyou for the research note.

[affc21] 15/11/2009 17:59

Hardman & Co research (LOK):