Lok'n Store Share Discussion Threads

[moscowtrader] 29/11/2006 07:50

Chart looking great Wan. Going higher with all REIT news in January. I suspect bid or no bid we will have 250p by February and if a bid materialises by then then higher than that.

[wan] 29/11/2006 07:44

I note the continuation of property companies confriming conversion to REIT's, and further press/analysts comment of the liklihood of consoldation in the property sector.

[moscowtrader] 28/11/2006 15:46

Dresner Kleinworts have aquired more another 280,000 shares - obviously in the market to pick up stock. Others will follow. KT

[moscowtrader] 27/11/2006 17:44

good rise in afternoon. Going north over 210p very quickly. KT

[wan] 27/11/2006 10:34

Strictly my interpretations only, I would currently describe this stock as resembling a tightly coiled spring waiting to unwind, time will tell.

[moscowtrader] 27/11/2006 10:12

good wan - see if there is anything interesting in the docs. offer up one to 202 as though getting ready for next step formation up which will take them to 220p plus. kt

[wan] 27/11/2006 07:28

All...Given my previous post 844, I was intrigued to recieve a letter from my stockbroker (the first ever regarding LOK), detailing (and asking) if I wanted to vote on the proposals by Andrew Jacobs and Simon Thomas (effectively holding more than 30% of LOK) that they do not have to make a mandatory offer for the company, which appears to include renewing the permission/authority for any share buy backs. So I think I will request the full documents, btw the AGM is on the 7th of December.

Regards, wan

[happyjackal] 24/11/2006 09:54

wan, I agree and wait with interest to see what happens ...

[wan] 24/11/2006 08:11

So the other question (also note LOK's tax losses that are carried forward), are we (the smaller investors) going to actually get to see the 'real' fruits ripen? Appears it could go either way, taken private or significant change, which on the face of it I suppose is not too bad a situation to be in i.e. a premium to where we are now? or significant future growth? Anyway, things appear to be shaping up, and as usual time will tell.

PS...I still think there could be a good number of recent share purchases unaccounted for, or held at just under 3% lots i.e. possibly 2 X circa 2.5% lots.

I should add here that the above posts are strictly in my opinion only, and I could be either plain wrong or indeed inaccurate, so please conduct your own research etc.

[wan] 24/11/2006 07:14

Happyjackle.........Briefly, I think 'changes' are afoot

To recap, and replicate my recent post/comment -

I said in post 791 that, "REIT's is so suitable to self-storage that it surely makes it inevitable, even if someone else drives that decision? So 'if' REIT conversion is the ultimate driving factor that has taken BYG to their current rating (seems likely), then that leaves a lot of upside to be realised here." 'IF' I am anywhere near right, and we can use a formula even similar to BYG i.e. their share price is at a significant 'premium' to NAV, then we do indeed have quite a lot of upside to be realised given LOK announced NAV of 213p, so time will tell there.

I am not sure how many of us there are here, but my opinion has been, for quite some time, that REIT's status is surely an excellent, if not imminent, fit. With increased institutional holdings, and as I previously suggested, the chances of someone else driving the REIT conversion decision is surely increased, has anyone else any thoughts on that? (END)

So to add, I note that yesterday it was announced after the close that Audley European Opportunities Master Fund Limited had increased their holding to 8.01% (an additional 1.61% i.e. circa 418,000 shares).

So after checking around, I found the following very interesting, if not revealing -

Audley European Opportunities Fund Limited is an advanced stage shareholder activist fund, co-founded by UK activist pioneer Julian Treger and private equity investor Michael Treichl. The Fund invests substantially all its assets in Audley European Opportunities Master Fund Limited whose objective is to invest in the equities of a limited number of publicly traded UK and European companies in the small and mid-cap sector, in a wide range of industries, and subsequently use its ownership to either drive an operational and/or financial restructuring or effect a "going private" leveraged recapitalization or similar transaction.


Make of that what you will, but fwiw, I expect, at the very least 'change', and in that I include REIT status (eventually) and an acceleration of LOK's new store format.

I am also intrigued by the Kingston deal (and Reading), which as I have said before would fit 'within' a REIT's operational parameters. Food for thought and some interesting times ahead I fancy.


Regards, wan

[happyjackal] 23/11/2006 20:15

My only doubt is whether the LOK management have the ambition to go for it. From what I can see they are a conservative bunch and if they want to emulate BYG they are going to need bigger cojones!

[kievtrader] 23/11/2006 20:09

Looks like good support will materialise at 200p before next push up to the 225p level where the next resistance is. If bid talks are announced will push straight upto to 250p and perhaps even the 270/280p level. Going higher. KT

[wan] 23/11/2006 08:39

I think that most recently LOK have realised just how strong their brand actually is(check the comments out), I believe this element will be a key feature. Indeed I believe LOK too has the brand potential to eventually look for oversea's opportunities, just like BYG are currently doing. So there appears plenty of upside from here especially given BYG's share price is still at a revised 60% premium to NAV (LOK still at a discount to NAV), and if there is any thoughts that BYG may have plateaued, perhaps some new money will find its way over here, although to some degree I think that may have already started (profit taking aside). If we apply my afore mentioned premium of only 20% then that equates to a share price of 255p, and we have the recently announced property deals to consider on top of that.

[wan] 23/11/2006 07:26

All...Excellent set of results from BYG

From BYG's results

Commenting on the outlook, Nicholas Vetch, Chairman, said:

"The key drivers for this business, including rising population, increased mobility, increased urbanisation, restrictive planning policies, high household formation and a lack of space continue to drive demand, and in that we remain fundamentally confident.

"We remain alert to other factors such as the state of the housing market, consumer confidence, the general state of the economy and interest rates.

"We believe the Group remains well positioned both defensively and from an expansionary perspective with strong cash flow, relatively low indebtedness, a growing and recognisable brand and a strong pipeline of future stores. We look forward to the future with confidence."


I particularly pick up on the first paragraph, which I have covered previously on here, but there is also an addition that I would add to the detail, house builders are and continue to be encouraged and indeed 'made' via planning policy (30% of affordable homes on developments of 15 and over ) and section 106 agreements to build smaller affordable homes. This with the afore mentioned combination will most definitely continue to drive demand, giving more than a degree or two of confidence going forward with continued growth a near certainty.

I also note further confirmation of REIT conversion, and I still maintain that LOK are a ready made vehicle for the same, indeed with LOK's brand a vehicle that could challenge/replicate BYG.

Regards, wan

[wan] 22/11/2006 07:25

MJ...You are welcome.

Regards, wan

[mjcrockett] 22/11/2006 07:21

Wan,

Many thanks

MJ

[wan] 22/11/2006 07:18

MJ...Here is the AIM/ISA excerpt I was referring to -

Treasury may heed calls to raise Isa investing limit
By Charles Batchelor
Published: October 28 2006

Pima (Pep & Isa Managers' Association) said Isas should be allowed to invest in any recognised quoted shares, including Aim and other junior market shares that are currently not permitted.

Full story -

Although it did not get a mention in the following article -

Balls announces broad Isa shake-up
By Christopher Adamsand Jane Croft
Published: November 2 2006

Plans for a shake-up of personal savings will extend indefinitely the life of individual savings accounts, Ed Balls, economic secretary to the Treasury, pledged yesterday.

The package of reforms announced yesterday, more details of which will emerge in the pre-Budget report, included abolishing the distinction between "maxi" and "mini" Isas.

Full story -

As noted though further details will emerge in the pre-budget report, whether that includes the inclusion of AIM stocks into ISA's though remains to be seen.


Yesterdays pullback from increases 'before' the open was interesting, which on the one hand it suggests there was significant interest in the wings 'ahead' of the open, then followed by some stock being tempted on to the market via profit taking. This appears to be a replication of the most recent pullback from which we then subsequently advanced, so it will be interesting to see if we get a 'full replication'. Stake building does appear to be what's driving this, whether that is down to individual and separate institutions (as seen thus far), or a specific takeover ploy remains to be seen, but one thing is for sure, LOK appears to have blipped loud on a few radar screens. I have not had time to revisit the trades data, but it still appears that recent trades/volumes have not yet all been covered by RNS announcements?? Anyway, it now appears that LOK are changing up a gear, and we have yet to see the colour of the Kingston deal, which in itself could be revealing. Time will tell.

BYG's results are due tomorrow, so we will get another indicator, and always worth a read. BYG are trading at (when I last checked) circa 75% premium to their NAV.

Regards, wan

[wan] 21/11/2006 13:08

MJ...I did say 'if' it gets included, and I will try and find where I came across it.

Regards, wan

[wan] 21/11/2006 13:06

Nothing goes up in a straightline, so it will be interesting to see if the recent buyers return with the same viguor, and I think that that is quite possible.

[bobbob68] 21/11/2006 12:28

why a mark down with such a large buy to sell ratio?

[mjcrockett] 21/11/2006 11:36

Wan, When did the Pep & Isa Managers' Association recommend the inclusion of AIM stocks in ISA's? I don't think the government has mentioned such a change among the proposals that they have outlined so far. I agree that it would be highly desirable, particularly for 'safe' AIM stocks such as LOK.

MJ

[wan] 21/11/2006 09:48

Melody...V/briefly, BYG is rated at a significant premium to their NAV and LOK at a small discount but with excellent growth prospects.

Regards, wan

[melody9999] 21/11/2006 09:40

just hit my radar. have been considering exposure to this sector for some time - just haven't the time to do the research. how is this valued compared with BYG and any others in storage sector

[wan] 21/11/2006 07:27

Slightly off topic...With the government carrying out its first detailed review of Isas, holding an AIM stock might provide for another fillip. If the Chancelor allows the inclusion of AIM stocks (as recommended by the Pep & Isa Managers' Association) into ISA's, there could be some new money eventually targeted at AIM stocks if it comes to pass in the pre-budget report in early December, food for thought.