Luminar Group Share Discussion Threads

[spectoacc] 11/9/2010 10:00

Been away a week, great to see some director buying. Not rocket science why insts been selling down - LMR fell out of the ftse SmallCap last qtr. Probably means shares going to have an overhang for a while yet though.

Director purchases aren't huge, but it means there's nothing "material" we don't know about.

LMR is no CNT - LMR at least has a chance to survive, & if/when it does, the shares will be a lot higher than where they are now.

[baldeagle5] 08/9/2010 10:30

Jeff - my apologies on the misprint, I meant a pound.

The argument runs the same however. Let's let the shareprice decide who's right - you, me or the Directors.

[jeffian] 08/9/2010 09:51

baldeagle,

You said "The last purchases were northe of £3." They weren't, they were at 111/112p on 8/9 July as detailed above.
You said "the directors bought MUCH higher before they grasped the difficulties with the business". The Directors bought immediately on and after the IMS issued on 8 July which announced the removal of both the CEO and FD (a clue there?!) and just before the bombshell 'Update' on 26 July saying they'd run out of money. If they hadn't "grasped the difficulties with the business" by then, they must have had an inkling!

Look, I'm not trying to pick a fight! I was only using CNT as an example. All I was saying in the context of LMR, in answer to post 367 ("Ive seen it before where directors buy small amounts and then bad news follows.Might not be the case here but it does happen.Thats all.") is that Directors' share purchases are not necessarily a good signal to other investors.

[baldeagle5] 07/9/2010 17:51

Jeffian - I don't know what your beef is with LMR but CNT was different - the directors bought MUCH higher before they grasped the difficulties with the business.

Indeed there was zero buying of CNT sub a pound. The last purchases were northe of £3.

LMR directors are purchasing at the trough with all the negative news out there.

[hotfinance14] 07/9/2010 17:26

Why would directors buy shares when they know the company is in dire straits ?

[jeffian] 07/9/2010 17:18

"Ive seen it before where directors buy small amounts and then bad news follows.Might not be the case here but it does happen.Thats all."

There's just been a classic example of that at Connaught (CNT). Lots of Directors buys following profit warning in July (not "small amounts" either). Shares suspended at pennies this morning.

[she-ra] 07/9/2010 16:46

baldeagle5 - Ive seen it before where directors buy small amounts and then bad news follows.Might not be the case here but it does happen.Thats all.

Propping up purchases before cash calls is not uncommon.

[baldeagle5] 07/9/2010 16:42

Shera - the market makers didn't mark it down, 3 institutions wanted out and sold the whole way down - incidentally we can infer that they just wanted out, period, and not necessarily because they know more than the market or are more clever, as plainly if they were they'd have sold out much higher.

If a D4E was on the cards then that would be classed as 'material info' - material info doesn't necessarily have to be positive by the way - thus they wouldn't be able to deal in the shares.
Also, if a D4E was on the cards, their jobs would by its very nature be protected and given that the existing holdings were not particularly large then what interest do they have in 'propping up' the share price?

The next week will tell who's right....

One final thing, if the covenant tests were breached (the test was last week) then this would have had to be announced too.

I maintain we will be 20-30p very soon - the equity slice is so depressed that a doubling or tripling is nothing. Saw it all before last year with many small caps rebounding off the major market low.

[she-ra] 07/9/2010 13:51

baldeagle5 - I think the fact that the market makers marked it down suggests that the director's purchases are a propping up excercise for a D4E.Otherwise wouldnt it be classed as insider dealing if everything was A OK?

[baldeagle5] 07/9/2010 13:47

3 directors purchases. Interesting....

There is unlikely to be a covenant breach around the corner.

If we could just clear the damned institutional seller that Goldman's clearly have then I think we could be 20-30p pretty sharply.

[wapper] 07/9/2010 08:54

In Today's TIMES

Luminar: The embattled nightclub operator has teamed up with the Ministry of Sound record label to run 180 branded club nights at 25 of its Oceana and Liquid dancing venues from 18 September.

[72stevie] 02/9/2010 21:26

Was talking from an investors perspective. Good place to put my liquid assets as this is going one way for me and that's up! Calvin Harris doing the rounds

[hotfinance14] 02/9/2010 09:14

All the buildings are leased Stevie!! They are struggling to pay the rent Stevie!!

[jeffian] 01/9/2010 23:02

"Good asset base for recovery"

Really? What assets are those, stevie?

[72stevie] 01/9/2010 18:41

On the move. Can't see he banks calling this in. Even if there a covenant breach it will more than likely be restructured . Good asset base for recovery

[landpath] 31/8/2010 15:23

72stevie, liquid is heaving in my area of peterborough also, better than it was , went in on a friday night 4 months ago, was very quiet, now it is certrainly picking up. weather that is nationwide, time will tell.

[lucky punter] 31/8/2010 09:09

Oceana is dead where I live, they used to queue round the block but they are lucky to get 1200 through the door now. The staff were complaining at the recent move to cut entry prices in favour of the national rate in all clubs. The senior management have it very wrong. The club manager knows the local competition and should be setting the entry fees and running the promotions. Everyone is steaming when they go in so they do not have to buy many drinks inside so the entry is the main return. Madness, it will all end in tears.

[72stevie] 30/8/2010 19:25

Great recovery potential here. Liquid was heaving where I live and with the cold and wet weather on its way, clubbing is at its best as winter draws in

[hotfinance14] 24/8/2010 16:12

I have been monitoring the statements in the Standard and the City are change there views on Luminar evry day.

[baldeagle5] 24/8/2010 14:45

Specc - IF they pass the test and are re-financed, then absent the institutional seller who seems to want out period, the shares could double or treble as the 'bankruptcy' risk disappears.

[spectoacc] 24/8/2010 13:41

Nice one, thanks for that. Thought volume was heavy, didn't realise that heavy.

For the banks not to play ball would be a big turnaround to how every other muppet co has been treated - though hoping the terms aren't too onerous.

Would be helpful if the covenant tests were passed of course; would allow LMR to renegotiate from a position of strength.

Should know a lot more about LMR's future prospects soon.

[call-logger] 24/8/2010 13:35

From the Standard

The spotlight was on Luminar, and for once the struggling clubs owner was enjoying the attention. Its shares ticked up ¾p to 10¼p with more changing hands in the first three hours of trading than have most days this summer. It is tipped to try to refinance its £90 million debt mountain whatever the outcome of its covenant tests, due on Thursday.

Wild gossip earlier this summer had private equity interested in Luminar, although cooler heads in the City rejected the yarn with scorn.