Lok'n Store Share Discussion Threads

[wan] 04/10/2005 08:02

I note further delayed and protected trades after the close yesterday, and level 2's increased strengthening again this morning. LOK appears to have blipped on a few radar screens?

[wan] 03/10/2005 08:16

MrStock...Is Reading also accidental then, not to mention that there are apparently other such prospects/potential within the portfolio? The upside also comes over time from maturing stores, check the facts/yield. Furthermore it is an opinion of more than just myself, that LOK could conceivably be back on the end of a bid, in a sector widely tipped as one that will consolidate further. With respect, picking stocks that could double also comes with a heightened degree of risk, and analysts also highlight how LOK shares appear well underpinned by assets and bid potential, so making a loose comparison is meaningless. You say you have held on and off, so maybe you are not that disenchanted.

[mrstock] 02/10/2005 16:43

Wan, I would be very happy to buy again at double the price if I saw some upside. Having said that I am quite happy doubling my money on other stocks over the past year. The Kingston site valuation is an accidental windfall, rather than the result of good planning. That happens to a lot of companies. I do not suppose that many investors are really concerned with the valuation of the property when they buy this company, but are more concerned with the efficeiency and viability of it's core business which is rental. PS I have been holding these shares on and off for much longer than you might imagine!

[wan] 30/9/2005 12:41

Regardless of what Mr Stock says, BYG's share price outperformance compared to LOK at 30% looks way overdone in my opinion and LOK should/could close a good chunk of the gap, the move from an already over sold position could be quite notable.

[wan] 29/9/2005 14:39

Konil...Hi, good to hear that you still look in and may even re-join the fray. As you know I always maintained that patience was an important element here, although the rise from my entry point (May 04) to date is not be sniffed at, but I am really referring to realising 'proper' the investment. My initial time horizon was a minimum of 2 years and up to at 'least' 5 years, as of today I am circa 1 year and 4 months in. The share should be well underpinned by book value at these levels, so in my mind I am now getting very low risk exposure to a growth business, property sales above book value (imminent) and any sector corporate activity.

I note that BYG directors are continuing to 'load up' with their own stock, which again indicates that there is more than a degree of confidence about their own business and probably says a lot about the sectors prospects too.



Regards, wan

[konil] 29/9/2005 13:24

hi wan, just a quick post to say hi and let you know i'm still reading your posts and i will surely confirm to anyone that you are indeed a patient investor!
i'm not ready yet but one of these days i might jump back in.
regards and good luck.

[wan] 29/9/2005 09:04

Mr Stock...LOK purchased the Kingston site in 1996 for £905,000, the book value is circa £1.2m and the property has recently been valued at £2.75m, however, with high density planning permission now attained the land alone is worth in 'excess' of £10m! Long may then the continuation of low quality acquisitions! Cue the Reading site, and I am a patient investor here. LOK's management have been focused on accelerating the growth of the business, a period during which they have also seen the business deliver strong cash flow and asset value growth, this will eventually flow to the bottom line, when it does you will not be buying the shares at £1.40. As I said, I am patient, and I have been assembling a meaningful holding here, which includes garnering the tax breaks afforded by holding AIM stocks.

[mrstock] 29/9/2005 08:17

How long can this company continue to expand at the expense of hard bottom line profits? Want to speculate on low quality property? LOK is your company.

[wan] 29/9/2005 07:20

I note that some large delayed trades slipped through after the close, 425k to be precise! Which all looked like buys, and yesterday there was also a notable strengthening of level 2.

[wan] 28/9/2005 07:23

Another 'prominent' store acquistion announced, and confirmation that both new stores will be trading by new year, and confirmation that the Board is actively pursuing negotiations on the potential sale of the Kingston site.

[wan] 27/9/2005 07:32

BYG has announced a positive and significant impact on the income statement and balance sheet as consequence of reporting under IFRS Standards -

[wan] 22/9/2005 12:01

The directors over at BYG are continuing to add to their already substantial holdings. Again this hardly appears to indicate hard times ahead for the self- storage sector? Still got my eye on Reits and residential property into pensions etc all due 2006.

Regards, wan

[wan] 19/9/2005 07:26

I note that after the market closed on Friday it was announced that Mercury had aqcuired another 625,000 shares raising their holding to 12.9%, so I assume they are the willing buyer in the reported cross trade, who appeared to have also mopped up a few more above that reported cross trade, 125,000 to be precise? I am not the only one looking beyond todays pricing then.

[wan] 15/9/2005 08:29

The divergence between BYG share price and LOK's is now looking silly, one of the share price has surely got to be wrong/out of kilter, we are now back to a share price which represents circa book value only, i.e no value on the business or indeed Kingston (not to mention Reading)! Unless I am missing something?

[wan] 15/9/2005 07:12

Kiev...Yes a willing seller matched by a willing buyer, considering the size at not too large a discount. And if we see a few more cross trades and or volume increases then it could signal an interesting period.

Regards, wan

[kievtrader] 15/9/2005 06:25

Cross of 400,000 shares went through yesterday at 138p. ie seller and buyer dealt at the same price of 138p.

[wan] 14/9/2005 11:11

Back into deep oversold territory it is then, how long will we remain at these levels? In my opinion, it will most likely be news driven, which could mean a notable bounce from this oversold position. Time will tell, and I will still be here to find out.

[wan] 12/9/2005 07:43

Positioning within the UK property sector is (quietly?) taking place ahead of the expected reits reforms next year, not to mention residential property in pensions. Is that another reason why BYG was re-classified, and directors have been adding over there? Anyway recent positioning appears to highlight that there is expectations of good growth potential in the UK's industrial, retail and commercial property sector, and once a self-storge site is mature, the yields are very attractive. Any thoughts?

Regards, wan

[mrstock] 07/9/2005 11:36

Yes, sadly which ever way you look at it BYG will continue to out perform LOK as the more professionally run operation. It is a shame as LOK was an earlier entrant to this market than BYG but have been totally eclipsed. A re evaluation of the Kingston site may prove to give the LOK shares a fillip but will be IMHO shortlived. The market always wants to own a liquid share with a large market cap and any predator on the horizon should feel the same about buying the bigger player.

[wan] 02/9/2005 08:30

I see another director buy over at BYG, acquired 61,000 shares @220p, splashing out again to the tune of 134k hardly indicates difficult times/prospects ahead. BYG share price is still outperforming that of LOK's and if the past correlation/trend is 'anything' to go by, we appear to be at a point of correction/correlation to that past trend (my interpretation only), where LOK has caught up on a good degree of the lost ground. It will be interesting to see if the trend holds true?

Regards, wan

[wan] 01/9/2005 08:42

KT...Results should be the very early part of November, however, the FD would not be able to reveal news other than whats in the public domain. I assume you are refering to Kingston and Reading? Anyway fwiw and at the very least, I think the Kingston news will be worth the wait.

Regards, a patient, wan

[kievtrader] 01/9/2005 06:02

Dear all

Am abroad afor a while. Could someone call Ray Davis (Finance Director) to see if they have pencilled in a date for the full year results. He is very helpful and may also give some other current news.

Thanks

[wan] 26/8/2005 10:35

The following perhaps highlights a number of things, suitable sites are still in relatively short supply, planning constraints/delays on new sites (which underpins the valuation methods used for existing sites), consolidation appears to be a continuing sector theme.

The management of both Ace Self Storage and Luton Self Storage are pleased to announce the sale of both businesses to Store 'n Go Ltd. -



Anyone have any thoughts on how the introduction in 2006 of UK REITs (Real Estate Investment Trusts) and also residential property (cue Kingston and poss Reading) being allowed into pensions, might affect the self storage sector/LOK?

Regards, wan

[wan] 19/8/2005 07:31

MrStock...Thanks for your thoughts, it is always healthy to get alternative thoughts and opinion. First and in response to your comment that "this company seems to be run in the long term interests of management and not the wider shareholder base." The fact that the management has a large stake in the business (see shareholder link below) indicates that their interests should be more aligned with that of shareholders.

Your comments would be better supported if you had 'actual' content that would support those comments/opinions. So anyway here are some 'facts' for those interested in LOK and where LOK are likely to be heading, as opposed to considering putting money in the bank etc -

In January 2004 LOK rejected an offer of 115p per share.

My own Net asset value if you include an uplift of a conservative £8m from Kingston is circa £1.60

Like me the report below concludes that LOK's pricing ignores the company's strong underlying trading performance and prospects, in other words growth for free! The report below also makes two valuations -

one via the independent property valuation of £33.4m - 124p-144p

And one from their own analysis - 155p - 171p



Lok'n Store has grown sales from £1.9m in 1999 to circa £8m in 2005, and that growth looks far from over.


LOK is number 4 in the UK and number 6 in Europe, hardly an also ran -




MrStock, FWIW I think the 5 year chart could be an indication of where we are heading back towards ie 200p, other than that the 2 year chart should not be ignored and perhaps indicates that investors and institutions have been accumulating shares? (cue the suggested forward dividend yield in the report above?)-



The following 'in depth' report (price target 191p) believes that LOK has the potential to become a highly profitable, strongly cash generative, above average earnings growth company -


The following report concurs with my thoughts on the development permutations for Kingston and gives 3 scenarios -




Conservative conclusion...The shares appear to offer growth potential with limited downside, if you are interested in growth (followed by yield?) then it still makes for an interesting play. Not to mention the tax benefits of holding AIM stocks.

Regards, wan

[mrstock] 18/8/2005 15:30

Konil, you say " lok's management do seem rather 'relaxed' about investor relations, which does not help to bring the attractions of lok to a wider audience, and this can cause relative underperformance"

I would agree that this compnay seems to be run in the long term interests of management and not the wider shareholder base. The company is neither ripe for takeover nor attractive as a growth stock. It certainly is not cheap enough to buy as an asset play. So whre does that leave us? With a share price that has done nothing over 5 years. Don't bother to look back over 2 years. See that trough? There was no stock to buy anyway. 5 years is a long time in these markets and money would have been better off in the bank. Maybe it still is?