London Stock Exchange Share Discussion Threads

[robinnicolson] 12/11/2021 19:47

Nick Train's monthly commentary on the Lindsell Train UK Equity Fund:

"Most frustrating, for me anyway, was the fall in the LSE’s share price in the last week of October, which left it down nearly 5%. This too was in the aftermath of a Q3 report, which on the face of it looked fine. We and others asked Bank of America Merrill Lynch’s analyst why the stock was falling (he being a respected follower of the company and, incidentally, an optimist about the merger with Refinitiv). His answer was a candid – “I don’t know!”. It is no mystery that not enough time has elapsed to make any final judgement about the wisdom of the Refinitiv merger, although we assume the sellers in October are pessimistic. But to be getting on with, note this. In merging with Refinitiv, LSE acquired a 54% stake in a business called TradeWeb, which operates global “electronic marketplaces for rates, credit, equities/ETFs and money markets”. TradeWeb is quoted in New York and its shares were up 10% in October, to an all-time high and up over 40% in 2021. The company has a value of $21bn, meaning LSE’s stake is now worth over £8bn. Nice business (TradeWeb and LSE’s dextrous acquisition of it)."

I bought more today.

[hjs] 11/11/2021 11:05

From Chart point of view, it is time to top up.....it has to stay above 7046 for a move north

[marcela9] 11/11/2021 10:11

Curious fall in the past few weeks - happy to top up. 3Q trading statement decent enough and positive. Great time for a top up!

[scepticalinvestor] 11/11/2021 09:25

There is also the clearing side of things. The refinitive business has to be the main focus now.

[stutes] 11/11/2021 09:12

Some in the media are critical of LSE in terms of attracting ipos and warning about Brexit fallout.

Ate we seeing the London equity market shrinking?

[scepticalinvestor] 11/11/2021 09:04

Think it is almost time to buy back in here again. Dumped all at over 8000p recently; rinse and repeat

[disneydonald] 01/11/2021 11:37

I guess the market is showing it's a lack of confidence in the managements ability to deliver on the acquisition. Can't see any real appreciation or recovery until more positive news flow, and that will take time. However, I do suspect that eventually they will be able to provide positive updates on revenue, margin and growth, but I fear that will be later next year. If you are patient then a good opportunity to pick up shares on those bad days :-)

Speaking from personal experience, major IT integration programmes of the likes that LSEG have taken on are easy for Executives to sell to investors, than they are to deliver at street level. Long established IT platforms like LSEG's have typically evolved from a lower tech base, and do not lend themselves to integration easily. It will likely be a real wrestle to integrate with the Refinitiv platforms (which of course might also be old tech). Remember the not too distant banking IT integrations, and most UK GOV attempts at large scale IT. I have no direct experience of working on LSEG's and Refinitiv's IT platforms, but a lifetime of planning / architecting same.

I suspect that as integration project timescales slip management will succumb to throwing more cash at the problem and likely bring in a systems integrator (at some cost) to try and deliver. This usually equates to throwing more men and shovels into the hole.

However, as I mentioned earlier, at these prices they are a decent mid term buy only if the management can get a grip of the IT integration programme, otherwise we are destined for more volatility. Buckle up ...

[skynetinvest] 29/10/2021 13:27

That is the one I am referring to however he sold almost half his holdings. Other key info is not 1 BOD has purchased at this lower price which shows their confidence in house. Stocks move heavily on feelings and the current feeling is cloudy. It has also broken its trend line so will be important to get above 7300 asap IMO

[gregmorg] 29/10/2021 09:28

Mm, yes I noted the CEO partial share sale to cover taxes on a share option ( which is a pretty standard method of handling executives potential tax bill upon vesting BUT when exactly was the CEO significant share sale you refere to?

[skynetinvest] 28/10/2021 16:45

Probably around 6500s if you consider profits down, salary of execs up, data servers crash weekly. Cant see this being a quick fix. Need a change of management.

[skynetinvest] 28/10/2021 16:43

CEO sold shares 2 months ago. He didnt do that because he thought the price would go higher. Just the tip of this mess.

[prokartace] 28/10/2021 11:04

So where is the bottom. I want to buy

[marcela9] 26/10/2021 08:07

This is an over-reaction imho - a share for life!

[disneydonald] 25/10/2021 23:16

The story about supply chain issues for IT is just a "red herring". A few weeks delay is irrelevant, in the wider scheme of things. It shows poor judgement by management with respect to communications. If the "market" suspects that they are being conned, then we have a difficult time ahead. Hopefully management will focus on sorting out the integration, and delivering promised gains.

[redips2] 22/10/2021 12:50

ADVFN showing a yield of.99 …….which is hardy worth bothering with. They should kick that into touch and sort their issues out.

[stutes] 22/10/2021 12:26

Today'IT glitch along with those on its Refinitiv platform shows to me that LSE needs to spend big to fix its software and hardware issues. In spending big thst must mean less paid to shareholders?

[gregmorg] 20/10/2021 11:08

My guess is smaller companies would find the costs of gaining and sustaining a full listing would be out of reach and possibly far too demanding in relation to size.

My interpretation is with AIM a sponsoring broker is always required and the sponsor has to ensure his client conforms with AIM rules in every respect. So they take much of the responsibility for good housekeeping.

If an AIM company fails to comply with the AIM rules the broker can withdraw and unless the company can find another sponsor it it can lose its listing.

Also my guess is that the LSE would have been consulted on this suggested change so everyone sings from the same hymn sheet. No insight, purely my take on it!

[prokartace] 19/10/2021 14:28

And what is their reasoning for this?

[trcml] 18/10/2021 11:45

Apparently the FCA is suggesting that companies with a likely market cap under £50M would be best floated on AIM, not the main exchange.

[trcml] 06/10/2021 09:17

Why 'sorry'? i didn't say what i thought of the IC article, only that it was interesting. True, LSEG has strengths but the market is concerned that R is a bite too far and that with indigestion the benefit to shareholders won't materialise. Unlike LSE which is effectively a monopoly, R does not have a monopoly of data services.

[gregmorg] 09/9/2021 19:36

Sorry but I thought the IC write up was poor , indeed, the article was very much a write down , and it failed to recognise LSE’s strengths.” Taken on too much and didn’t have the top knotch staff to carry through their strategy” was the theme. Time will tell of course. The article certainly didn’t impress me

[retsius] 06/9/2021 07:32

nice tick up.

[trcml] 03/9/2021 12:01

Interesting write-up in the IC this week.

[luderitz] 24/8/2021 16:41

I think we heard you first time.

[skynetinvest] 24/8/2021 14:48

CEO David S selling 24,113 shares last week doesn't really fill me with confidence. Regardless of reasons it always a big indicator.