Lok'n Store Share Discussion Threads

[wan] 12/3/2007 08:00

Interesting week ahead, with dealing in Safestore commencing 8.00am on the 14th March. This makes me consider that LOK could become 'the differenece' i.e. a gap widener, or a gap closer for 'one' of the other two. If nothing else the race between BYG & SAFE for growth and the top slot should put a floor under LOK's price/nav. In the meantime LOK will continue at some pace to ramp up, which includes increasing its market share.

I note we had another round of large trades in LOK last week, so we may get an RNS this week.

[vassily] 11/3/2007 03:29

Kiev:

Found my answer on the BYG BB. BYG sure is overpriced as the lovely double top chart indicates.

[vassily] 10/3/2007 02:08

Kiev:

Where did you find info. on Safestore price?

[kievtrader] 09/3/2007 17:08

Safestore price 240p which was at the lower end of expectations.

[kievtrader] 08/3/2007 13:34

delayed 500,000 institutional trade reported today.

[wan] 08/3/2007 08:45

HJ...Perhaps you could post your sums/thoughts here for further discussion?

[happyjackal] 07/3/2007 20:11

Thanks wan that's very helpful. I'm coming round to thinking that there is more to come. I'm going to go away and do some sums and think seriously about increasing my target price - although maybe not double. Thanks again.

[wan] 07/3/2007 07:30

HJ...V/briefly. First of all with regard to Lok'n Stores trading performance, is not double digit rates of growth year on year reasonably exciting, not to mention huge rates of growth from the property portfolio? Just a quick reminder of the trading performance -

Turnover 2003: £5.6m
Turnover 2004: £6.6m
Turnover 2005: £7.77m
Turnover 2006: £8.95m

Fwiw I expect that performance to accelerate, in other words, the critical mass I previously suggested that LOK have attained and will indeed add to, will add to the 'already good' momentum.

Furthermore I still think there is still quite a bit 'extra' to be realised from LOK's existing property portfolio. The combined scale of the property portfolio, the 'increased' expertise of the recently enlarged management, and indeed the increased borrowing facility (not that I expect the previously shrewd purchasing trend to change going forwards), will all play their part. On that note it is worth re-reading the Lok'n Store Directorate Change announcement -

REIT status/opportunity 'will come' in time either through maturity and growth of the existing business (at a considerably higher price than we are now) or via someone else it doing for them i.e. a takeover of LOK.

Target price? circa double where we are now as superior rates of growth are delivered from LOK's business/portfolio and becomes evident to the wider market (note recent institutional interest). Timescale 2 years, quicker with realised property sales and planning permissions and/or any takeover approaches.

Regards, wan

[happyjackal] 06/3/2007 20:00

Wan, I'd welcome your opinion. LOK has hit my target price - which was admitedly set to account for the apparent undervalution of the property portfolio rather than the trading performance, which has in my opinion been a little unexciting. Given the recent industry developments, REIT opportunity and M&A potential - what is your latest target price for LOK and what's the rationale? I'd really appreciate your view.

[kievtrader] 06/3/2007 14:33

Good volume today with over half a million traded and a price rise to 232p bid. Safestore floatation any week now and will be an institutional offer. Keenly await the valuation put on safestore as a benchmark for LOK valuation. KT

[wan] 21/2/2007 07:15

Worth a glance at the UK element of today's George Wimpy results -

[wan] 19/2/2007 11:40

Apparently Safestore will float on the LSE this week, with its original buy out firm retaining a significant holding. Why? Because self-storage still has a lot of growth left to be realised, along with REIT conversion. This year I strongly believe we will see a lot of M&A action from the property companies, and in that I would not discount self-storage.

KT...I don't think the company could legally reveal the exact date/timescale.

I still think there is plenty more to come here, if you can afford to be patient.

Regards, wan

[moscowtrader] 15/2/2007 15:20

wan. Have you talked to company? Any update on Kingston timescale?

[wan] 15/2/2007 07:23

All...Nice to return to the sceens after some 'forced' time out and see that LOK are heading in the direction of my suggestion for attaining 'new' heights during 2007. Indeed the announcement of another doubling of the bank facility adds weight to my earlier analysis that LOK have attained the 'critical mass' necessary to record a much faster rate of growth for a number of years to come.

PS...The IC last week also reported on LOK's expansion plans and suggesting good value at 227p.

PS PS...Roll on the multi-million pound sale of Kingston!

Regards, wan

[kievtrader] 08/2/2007 17:42

Safestore Confirms Plans to Float in London



Safestore Holdings Ltd confirmed it intends to proceed with an initial public offering of its shares and a listing on the Official List of the London Stock Exchange.

The group's global offer is expected to be completed in early March 2007.

Safestore is the largest self storage provider in the UK and the central Paris region and the second largest in the EU, in terms of number of stores, providing individual, secure self storage space and related services.

Safestore now has 98 sites since it set up in 2002. It currently has approximately 30,000 domestic and business customers.

The group said its business model is supported by a substantial asset base, strong cashflow and a solid record of earnings which are continuing to grow.

For the year to Oct 31 2006, Safestore recorded a 22 pct increase in revenues to 64.3 mln stg with EBITDA before exceptional items growing 24 pct to 33.5 mln stg.

Safestore said it generates the majority of its revenues from self storage space but ancillary revenues are derived from the sale of contents insurance and storage accessories.

In addition to the group's 98 sites, as at Jan 31 2007, Safestore had exchanged or completed contracts on 12 expansion stores, nine of which have planning permission, and in addition has one further property in the final stages of the contract process.

Over the next five years the group said it intends to add between 7-10 stores per annum. In addition, the management team has a proven acquisition track record and will continue to consider acquisitions as an additional route to growth.

Citigroup and Merrill Lynch have been appointed Joint Global Co-ordinators and Joint Bookrunners of the offer.

[kievtrader] 08/2/2007 17:32

Safestore Confirms Plans to Float in London -

Safestore Holdings Ltd confirmed it intends to proceed with an initial public offering of its shares and a listing on the Official List of the London Stock Exchange.

Good news for LOK as the valuation assigned to Safestore will help with the revaluation of LOK's share price.

[kievtrader] 08/2/2007 13:18

Nice rise in price today on the back of two smallish buys. Close to their high and if momentum carried throug we may see 235p or so within a week or two and would be nice to see a better run ahead of results and afterwards taking price to 240p/250p level. We need more institutions to be buying. KT

[kievtrader] 07/2/2007 16:45

Results due April 23rd

[kievtrader] 07/2/2007 12:08

RNS yesterday re directors shareholding and today re doubling to £40 million of bank facilities. Good news and more volume yesterday and today to help push shares higher. KT

[wan] 02/2/2007 07:15

I note today that yet another house builder (Bellway) is reporting strong order books/forward sales and is confident of reporting another record performance for the twelve months ending 31 July. As I have said before this is always helpful, and further endorses my thoughts above.

[wan] 31/1/2007 07:22

A bit of boredom creeping in and subsequently a bit of drift, but those loose shares still appear to be getting mopped up. The Kingston deal has required a bit more patience, but advancing it is and we cannot be very far away from conclusion there. In the meantime I have reason to believe the sector is enjoying buoyant business conditions.

[kievtrader] 27/1/2007 10:40

ARMADILLO, the Edinburgh-based self-storage warehousing provider founded by self-storage entrepreneur Alister Jack in May 2003, has been sold to the property and infrastructure arm of HSBC for £40 million. Takeovers are starting in this sector in UK. Only time before LOk is victim. KT

[wan] 19/1/2007 07:20

Vassily...I strongly believe LOK is fast attaining the critical mass (not to mention the current and new managements expertise) necessary to record a much faster rate of growth for a number of years to come. This also appears to sit extremely well with the introduction of REIT's, and again I would suggest LOK's conversion to a REIT is a case of when and not if, when that happens though is open to conjecture, and for now it will be all eyes will be on the detail of BYG's eventual conversion. In the meantime LOK will become bigger and further strengthen its brand, in other words, all the right ingredients.

Regards, wan

[wan] 19/1/2007 07:07

Yesterdays RNS announcement is not very well laid out, but unless my interpretation is incorrect, both directors appear to have taken up holdings in LOK -

Edward Luker - Shareholding on taking up position 13,800

Charles Peal - Shareholding on taking up position 50,000

A separate announcement may have been better (but it probably saved money)

An indication of where we are actually heading is becoming clearer. The self-storage sector in combination with REIT's will become very attractive market, indeed a major asset class. In my opinion only, 'if' investors can stay the course, the rewards should be handsome indeed.