Lok'n Store Share Discussion Threads

[kievtrader] 06/10/2006 16:28

bid coming? loads of retail trades going on every few minutes? KT

[kievtrader] 06/10/2006 14:33

Nearly 400,000 shares traded already equivalent to 1.6% of the company. Mkt cap at current level is nearly #44 million. Nearly at the magical figure of #50million when a lot more small cap investors will start to look at the stock.

Lots of small trades from small investors over past few days - think there may have been a tip somewhere in tipsheet. Would be interesting to know where this appeared. Also many large institutional trades over past few days.

[wan] 06/10/2006 09:19

I did say that BYG was on a trajectory to break £5, today that has already occured.

[wan] 06/10/2006 07:23

I have watched on over the last few days as level 2 strengthened notably. And eventually yesterdays volume was quite a jump for this stock, with a high percentage of those trades being delayed. If the market is waking up to the divegence gap that has developed between LOK and BYG then we could have some way to go, or there could be some news in the system, either way for volume to jump the way it has, one could deduct that something of interest is in the pipeline. Time will tell.

[kievtrader] 05/10/2006 14:46

two big trades already - 210,000 and 200,000 both buys at 163 moving sharply higher.

KT

[kievtrader] 29/9/2006 14:21

Good volume today - one large trade of nearly 145000 shares at 159p. Looking good. KT

[wan] 29/9/2006 14:05

Mr Stock...I would be interested to talk about excess returns in a year from now! In the meantime LOK are in the growing phase, in a growing market that is 'far' from mature. And regardless of you thinking otherwise, a bid along the way cannot be conclusively ruled out. So I look forward to chatting, but a bit further out in time.

Regards, wan

[mrstock] 29/9/2006 13:49

Wan - I think an offer for a company at below asset value is fairly speculative in nature - no? I think the real problem with this company is simply the lack of oomph that management have. No doubt it will prove to continue to be a positive investment over the long term (at least until, the family sells out) but it has got to look better than the competition to attract serious interest in the City. Excess returns is what the City looks for. That is what will drive the share price. And that isn't going to happen the way it is going. I think we shall just have to agree to disagree!!

[wan] 29/9/2006 13:26

Mr Stock...I don't think you know whether the offer was speculative or not, what I do know is that the board rejected the offer as not reflecting fair value for the business and its prospects, and then we subsequently had a property valuation, which of course proved a point at the time. I know a bit about planning and property, so lets see what happens to the land that you refer to as being only fit for other peoples rubbish, in particular Kingston and then Reading.

[mrstock] 29/9/2006 11:43

Groan. Market Cap 39.83 mil. Asset value (gross) "in excess" of 40 mil. What is there to go for? Fast growth? No. A dividend? No. Go buy British Land if you want a quality property portfolio instead of this outfit holding rubbish commercial sites fit for ... well, other people's rubbish! And you know better, Wan - that previous offer was purely speculative and vanished as fast as it arrived.

[wan] 28/9/2006 15:38

LOK has already had at least one approach, and having annual turnover of circa £10m and a property portfolio probably well in excess of £40m does not make LOK that small. However, it does make LOK appear cheap ;-)

[mrstock] 28/9/2006 15:25

Now, if BYG took over LOk we would all be happy. But lets face the fact that it is more likely that BYG is taken over by another company as LOK is too small.

[vassily] 28/9/2006 13:57

It's a fight to the death!

[wan] 28/9/2006 13:32

Mr Stock...You know already that I watch BYG, and actually it is LOK's aim to acquire between 2 and 4 centres per annum. BYG's target of 10 units a year is not exactly a walk in the park to achieve, especially when considering a) limited availability b) competition is stiff for a limited supply of suitable properties (cue price) and c) planning constraints, which suggests that BYG might have to over pay or simply miss the target? So I am very comfortable with LOK's 'disciplined' and flexible approach to site acquisitions. LOK's management also appear very good at optimising the existing portfolio. The property revaluation should give LOK a decent bounce, not to mention Kingston, and you never know, BYG might like to get over 2 years worth of units/targets in one go ;-)

Regards, wan

[mrstock] 28/9/2006 12:19

Hi Wan - take a look at BYG (I do not hold it incidentally)which is the example of how things should be done. This company aims to add ten units a year. LOK only two. And that's still the expectation even after the banking facility. They really don't seem to know how to handle this money at all.

That's why LOK's price is going nowhere and will continue to go nowhere. The only prospect for LOK is to be bought out or pay a dividend.

Oh, and for other figures you quoted (thanks) I suggest you make a comparison table to BYG.

Sorry, but there is much better value in terms of value/growth propositions out there in the market. Sure this stock may get a bounce on a revaluation of land, but that will be it. What do you think, about 20%?

[wan] 28/9/2006 07:29

Mr Stock...Good morning. Do you actually read the results? I suggest you take a lok! Here are few pointers to go on with -

From the Preliminary Results for the year ended 31 July 2005. -

Financial Highlights -
* Turnover #7.77 million - up 17.6%
* EBITDA #1.36 million - up 68%
* Operating cash flow #1.98 million - up 112%
* Storage centres EBITDA #2.48 million - up 41%
* Operating Profit #607,000 up from an operating loss
* New #20 million banking facility
* Properties valued at #33.6 million at 31.01.05
(NBV #18.4 million)

From the interim results for the six months ended 31 January 2006.

Highlights -
* Turnover increased by 10.2% to #4.28 million (#3.89m: six months to 31.1.05)
* Store EBITDA up 23% to #1.517 million (six months to 31.01.05: #1.233 million)
* Group EBITDA up 32% to #906,759 (six months to 31.01.05: #688,784)
* Operating profit up 59% to #510,975 (operating profit #320,261: six months to 31.01.05)
* Profit before tax of #153,524 up 102% (Profit #75,903: six months to 31.01.05)
* Successfully opened two new large freehold stores in Farnborough & Crayford adding 127,000 sq ft or 16% to capacity
* The new store in Farnborough is Lok'nStore's first purpose-built site

And of course recently via a trading statement announcement, and ahead of the f/y results in October -

"the Board expects turnover for the year ended 31 July 2006 to be ahead of market expectations producing a positive profit before tax for the year."


All that adds up to double digit growth, or am I missing something? If you want to add in the property aspect ie realising Kingston, then growth is phenomenal.

LOK is overlooked by investors, and it is quite normal for such stocks to lag, until the wider market realises both the under valuation and growth potential.

Regards, wan

[mrstock] 27/9/2006 15:51

Yes, Wan - you may have noticed though, that LOK has no growth ? At least not in terms that the City would like to see.

[wan] 25/9/2006 07:30

The BYG/LOK divergence continues widen, yet both stocks are in the same growth market, in my view the market appears to be too mean in discounting LOK.

[kievtrader] 19/9/2006 15:23

thanks wan

[wan] 14/9/2006 10:04

KT...It is 30th October, which is when the property valuation will 'also' be announced -


I note that BYG has a trajectory thats looks set to break £5, driven in good part by the intention to convert to REIT status in my view. And I hold my personal view that with the right incredience, the BYG/LOK divergence could close sharply.

The results on the 30th October might provide for an opportunity for LOK to declare/discuss their intentions with regard to REIT status, given the interest, confirmations and indeed suitability of self-storage for REIT's etc.

Regards, wan

[kievtrader] 11/9/2006 11:39

what was date of results again - was it 20/10?

[wan] 04/9/2006 14:11

I note another mm buy eventually moved the price!

[wan] 04/9/2006 08:06

I note BYG has continued to move ahead, meanwhile there is little activity here, just a gut feel, but the longer that lasts (BYG and LOK divergence) the more likely that we could see a sharp move, whether that is driven by the revaluation announcment/results remains to be seen.

[wan] 31/8/2006 08:04

I note the continuation of late reported trades inc T trades.

[wan] 30/8/2006 07:28

I note the late reported trades and cross trades. Reshuffling ahead of news/event, and the next phase of growth?