Lok'n Store Share Discussion Threads

[wan] 24/3/2006 09:44

Recent trades and history suggest we might get another announcement shortly, be it the Chairman and/or Aylestone Pension Fund selling down their holding and/or 'eventually' an increased holding. I have previously covered the reasons and indeed the LOK management 'preference' for Aylestone to reduce further the remaining 114,575 ordinary shares. The Chairman, well he does have quite a large holding, last reported at 2,187,500 ordinary shares representing 8.72 per cent of the company. Of note though is that there is 'demand at this pricing level', and of course it remains to be seen that a director actually does reduce further, however, and I believe importantly, I can confirm that the criteria for the options that I previously highlighted, has indeed been met. So as I was suggesting previously, Simon Thomas is ultimately able to satisfy demand from certain investors for a replacement cost of 37p per share. So it will be interesting to see if it is the existing institutional holdings that are increasing, or indeed if there is the emergence of a new holding. And of course it is blatantly obvious that we 'will' see directors exercising options at 37p and 38p, unless they care to pass them over to me ;-)

This information, to my mind at least, is important when assessing why a director might be selling, especially given the reliance on such by the small investor and indeed the so called market attention on such, and in my opinion directors options information should be linked/accompanied to any announcements, otherwise the content might 'unjustifiably' un-nerve/shake out small but otherwise long term investors, as the actual information is somewhat buried deeper in company accounts. Perish that thought ahead of what should be a decent deal on Kingston! Food for thought though given recent regulatory issues??!!

Anyway here again are the options -


A Jacobs 992,978 – – 992,978 @ 37p issued 04.04.02 expiry 03.04.07

SG Thomas 496,489 – – 496,489 @ 37p issued 04.04.02 expiry 03.04.07

CM Jacobs 153,000 – – 153,000 @ 37p issued 04.04.02 expiry 03.04.07

P Crisp 142,000 – 20,000 122,000 @38p issued 04.04. Expiry 02 03.04.07

The above is in my opinion only, so please conduct your own research as I could be either wrong or inaccurate.

[wan] 23/3/2006 07:15

Briefly...Yesterday, as expected, the criteria for REIT's were watered down, and subsequently 'property' companies shares reacted positively with a 10 per cent-plus rally and that included BYG! LOK is/was off the radar screen because it is not listed as such, however, I still think that self-storage property/companies are a natural fit for REIT's, as can be seen by the ownership in the US. So will LOK blip on a few radar screens before or after conclusion of Kingston? Interestingly European Reits trade at a premium of around 25 per cent to net asset value. If we apply that to the 'January 05' property valuations of £33.6m (from memory 2 stores added since) add in the combined Kingston and Reading effect at circa £13m? then we arrive at 219p, interestingly Bridgewell recently raised Lok'n Store's fair value by 19% to 215p, whilst reaffirming its overweight rating. Even if we take the January 2005 valuation as being up to date, add no premium but add in just the Kingston effect at circa £8m, then we can arrive £1.66, it then implies the self-storage side is currently valued at just £2.5M, which appears cheap.

[wan] 22/3/2006 07:36

The property market is looking very favourable indeed to attaining a 'good' deal on Kingston.

Also today's budget should provide more insight to REIT's, with apparently some alterartions to the criteria, relaxing the maximum shareholding restriction and also the interest rate cover rule, reduced to probably 1.5 or 2.

[Abuse team] 20/3/2006 16:35

Post removed by ADVFN

[kievtrader] 20/3/2006 16:34

Big trades gone trough this morning at 176.5 so the shares are well bid for large volumes. Going higher.

[wan] 17/3/2006 07:18

I was busy and missed this on Tuesday -

Public Storage to buy Shurgard for $3.2B (14 Mar '06)
LOS ANGELES - Public Storage Inc. said Tuesday it agreed to acquire longtime rival Shurgard Storage Centers Inc. for $3.2 billion, creating the largest operator of self-storage centers in the world.
Combined, the two real estate investment trusts will have ownership interest in more than 2,100 facilities in 38 states and seven nations in Europe . Under terms of the deal, Glendale-based Public Storage will exchange 0.82 share of its stock, worth about $65.16 a share based on the stock's closing price on Monday, for each share of Shurgard, headquartered in Seattle .(end)

Shurgard is Europe's largest player, also note the term RIET's.


Lok n' Store held steady at 176½p as KBC Peel Hunt repeated its "buy" advice, citing scope for further consolidation in the self-storage sector.

[wan] 14/3/2006 08:55

Kt...Thanks for the link. The self storage market is mature in the US, but it does gives an indication of how the 'immature' UK market could develop. Mercury Real estate advisors cut their teeth in the US self stoarge market, and these 'expert investors' have increased their holding in LOK to over 15%.

Regards, wan

[kievtrader] 14/3/2006 08:45

Intersting link which gives news on self-storage sector in the USA -



Consolidation is driver in this sector and LOK is a high probability target in the near term.

KT

[wan] 14/3/2006 07:59

konil...Reading is very much 'ongoing', but as I have highlighted before some patience will probably be required, my view regarding Reading remains a case of 'when and not if'. Perhaps we will get an update at the f/y results?

Regards, wan

[konil] 14/3/2006 07:50

hi wan, i know that planning issues can take a long long time, but there has been no news about progress at reading for 18 months. do you know what the status is? or perhaps i've missed an update?
thanks and regards.

[wan] 14/3/2006 07:08

To add to my comment yesterday, Carlyle are not the only ones taking perhaps a 'different' approach to UK property and indeed asset backed businesses....cue then rents/yields and indeed alternatives uses/planning for properties.

KT...It is worth remembering that follows the visit to the newly opened store at Farnborough. Bridgewell raised Lok's fair value to 215p, and reaffirmed its overweight rating.

[wan] 13/3/2006 20:14

Mr Stock...I was not suggesting Carlyle were interested in LOK, merely that yet another fund is specifically targeting UK real estate. In case you had not realised, Kingston is actually in the UK (not Jamaica), and given its location and target market, it is likely to suit an investment fund, check Kingstons development details, as I said supportive at least.

[kievtrader] 13/3/2006 19:18

5 weeks to go till the resulsts and probable announcement re Kingston and possibly reading also. Going a lot higher.

[kievtrader] 13/3/2006 19:17

Big takeover deal in USA last week in the self-storage sector. This confirms the consolidation occuring in the sector and high valuations on merger/takeover in the sector. LOk looking good and chart formation signalling next move up in the near future. Going higher , Any bid surely has to be in the region 250p-300p. Almost a double up situation. Going higher.

[mrstock] 13/3/2006 18:13

Wan, if the cash flow is so good from this company why don't they return some of it to the minority owners? Once again, myopic management. Carlyle? I really don't think this company is going to be too interested in this minnow. besides the fact that it is not a 'real estate' company. But then again maybe you would consider McDonalds a real estate company too? ;-)

[wan] 13/3/2006 08:13

London is apparently leading the current increase in property prices, which brings one neatly to Kingston. Also Carlyle, the US private equity group, is to set up its first UK-only real estate vehicle with £750m spending power. I would suggest supportive at the very least.

[wan] 10/3/2006 10:00

Is LOK blipping louder on any acquisitive radar screens? Hopefully not ahead of concluding the deal on Kingston, although I am sure at this advanced stage it would still feature loud in any negotiations.

[kievtrader] 03/3/2006 10:09

Going higher.

[wan] 03/3/2006 07:26

Mr stock...In my opinion you are being too critical at too early a stage in LOK's development. First, circa £10m is hardly worthy of a descrption of "a few pounds", especially when the market cap is only circa $44m and kingston is only 'one' of 11 freehold properties. Second, when growing a business to attain a certain 'critical mass' profits are not exactly the top of the 'initial' agenda, fwiw cash flow is usually a good indicator of where a growth business is heading, LOK's Operating cash flow at f/y was up 112% at £1.98m.

[mrstock] 02/3/2006 11:31

Wan - you are right .. dividends can usually be paid when a company makes a profit. Which LOK seems to be perpetually confused about actually doing. ( Yes, yes you are now going to tsll me about the recent P/L ...) The point of the business is to make profits storing goods not to take some second rate land and accidentally make a few pounds through re zoning. If we start to think of this as a land or property investment company it is exceedingly third rate compared to what is available as an alternative investment don't you think?

[wan] 02/3/2006 08:22

Mr Stock...I suggest you re-visit your fundamentals and indeed company law regarding when dividends can 'actually be paid'. Go figure ;-)

[mrstock] 01/3/2006 17:05

Vassily - I would say that BYG will continue to outperform.

Wan - "Regarding Kingston proceeds, I would like to see a meaningful percentage returned to 'patient' investors/shareholders, an option that I understand is under consideration, and the rest ploughed back in." LOL - that is just so funny - do you *really* expect that?! Ha! It is this company's policy not to pay dividends nor to return money to the shareholders. However, a consistent policy is to issue stock options to management. Go figure.

[mrstock] 01/3/2006 17:02

Vassily - I would say that BYG will continue to outperform

[wan] 01/3/2006 16:57

Konil...It was just a terminology, I appreciate that anyone can 'usually' participate within the timeframe indicated.

Regards, wan

[konil] 01/3/2006 16:52

wan, i think any return will be to all holders as at event date i.e. announcement, i doubt its acceptable to backdate to exclude recent holders, so any newbies getting in now will also benefit.
regards.