Thalassa Share Discussion Threads

[rcturner2] 03/12/2016 16:22

The trouble with LSR for me is that it feels like buying a £10 note in 3 years time for £9. What's the point? Surely most investors want their money to go into productive assets not some dubious arbitrage play.

[skyship] 03/12/2016 10:35

To those understandably sceptical THAL shareholders wondering about LSR.

With the Finals this month, LSR is due to set out the new plan to liquidate at best value before 31st Dec'19. Personally as an LSR bull, I expect/hope the portfolio buyer who was in talks at the beginning of this year, will return with an offer which will hasten liquidation in 2017.

If not, then LSR will be looking to a more aggressive sales programme at the various Auction houses across the UK, especially Alsopps and Acuitus.

The former, though quicker, would likely deliver c37p to LSR holders.

The latter, though slower, more likely to deliver c42p, perhaps more.

Soukup's intervention has surely helped LSR shareholders; but I do agree that the price he paid does rather cast doubt on his judgement - especially as he apparently has very little experience, if any, in the Real Estate sector.

Having said the above, IMO @ 28p LSR is a great VALUE buy, especially in a Market increasingly difficult to find VALUE. Compared to THAL it has the advantage of NOT being a value trap. As it is in liquidation mode, the underlying value will be delivered to shareholders at some stage over the next 3 years.

[gfrae] 02/12/2016 10:52

The situation at LSR is similar to that at THAL. Both are undervalued. Maybe THAL should also liquidate itself or put itself up for sale-like LSR the parts would appear to be worth more than the whole.

[pj 1] 02/12/2016 10:37

How much of his time and energy has, and needs to be, spent fighting for value at LSR, which may deflect him from the bigger picture in THAL core business's?

He's lost a battle but not the war. Most wars last years

[kooba] 02/12/2016 09:02

Really is becoming difficult backing DS.I'm sure if his flights of fancy pay off he would be first to blow his own trumpet...but little is paying off.he has now invested a large part of the company's balance sheet in an illiquid property play that is managed by people he thinks are rubbish...it may be standing at a discount to nav ( but the ongoing management have managed to destroy value so expect more of the same!) but he has no way of controlling how we get the money back...except if we find someone to take the stake off our hands for what was paid....but there is no chance as it appears he aggressively overpaid in the circumstances....I thought he must have a clearer plan but obviously just a punt!!So we sit on a non core no controlling illiquid asset where we are currently sitting on a large loss...having failed to pick up any synergistic oil services assets during a period of great opportunity when we had a large cash balance to be the only buyer in town.Hoping that someone comes in here and tries to take control from him ...as there is a justifiable argument that recent events have not been in shareholders interests and perhaps someone else can realise value for holders!

[orinocor] 01/12/2016 09:11

but look at the price Soukup paid for the LSR shares. He paid 20% above the current LSR share price and now he's trapped. All things being equal he should be considering his position.

[owenski] 01/12/2016 08:59

LSR represents the problem with a lot of floated companies. The BoD make noises to the shareholders but ultimately the entity is a comfortable life with a nice wage and they wont do anything to upset that balance. A good number of companies are run by paid suits who are incompetent at running a business to achieve any growth plan but are very competent at feathering their own nest.

DS is a competent entreprenuer but unfortunately lacked the strategic fire power to force a change in the board.

What is also unfortunate is the incompetence of the fund holders to be bothered to support a change that would very likely have made a more productive investment out of LSR. This is the primary reason why I run my own investments etc, most institutional funds including banks are wealth destroyers, not always by intention but often by inertia and apathy.

In fairness to DS, this may only be round 1.

[tiltonboy] 01/12/2016 08:18

A well-intentioned but poorly-executed plan. I believe the investment in LSR will cover its cost, and may even yield a modest return, but it will hardly enhance the reputation of DS.

Shareholders in LSR should offer their thanks however, as it has probably forced the hand of an indecisive board!

[rivaldo] 30/11/2016 14:40

Perhaps because OPEC have reportedly just agreed the first production cuts since 2008 and the oil price has surged....

A good start, but let's see the detail.

[boystown] 30/11/2016 10:20

What's the point in holding this if they're never going to pay a divi - or to sell up as the Chairman is such a megalomaniac / all-round self-aggrandising wnkr??

[columbarius] 21/11/2016 10:08

Great value here. Profitably trading and even after this morning's rise priced at only 65% of net tangible assets.

[interceptor2] 21/11/2016 08:55

Bought an initial position also.

Have good memories from the last time I held in 2013/14, will today's RNS be the catalyst that marks a turning point?

[jmf69] 21/11/2016 08:48

This does look very cheap

[rcturner2] 21/11/2016 08:20

I've picked up 50k shares this am.

[catswhiskas] 21/11/2016 07:45

Will try and top up sub 40p I think currently we are very undervalued.

[rivaldo] 21/11/2016 07:36

Well, well...a great performance, and optimism for the future too.

With such a "very conservative" view taken on the cost provisions it's likely there will be an additional sizeable increase in profits to come.

[kooba] 21/11/2016 07:33

Seems the core business is doing well ...with some over provisioning feeding back in too....with the value of the oil services side together with the liquid assets making the market cap look too cheap imho.However really need some clarity on extra curricular activities in LSR and investment in Papua gold to makes sense of where the future focus is to be and that confusion is currently leaving notable discount to any reasonable valuation.Still should be a positive response today but the shares have massively underperformed the oil services sector....maybe DS needs to mind his own back for an activist to come in and realise some value in his own vehicle as the market is not valuing his management that highly at the moment and it appears a sum of the parts valuation would far outstrip current structure.

[masurenguy] 21/11/2016 07:11

A positive update !

RNS Number : 6547P
Thalassa Holdings Limited
21 November 2016

Trading Update for WGP Group Ltd

The Board of Thalassa today issues a trading update for its wholly owned subsidiary WGPG following successful completion of the autumn Permanent Reservoir Monitoring programmes in the North Sea. Notwithstanding the continued 'difficult' trading conditions in the oil and gas industry, the Board is pleased to report that it expects WGPG results for the year ended 31 December 2016 to exceed previous estimates indicated by the Company in its announcement of 19 September 2016 for Revenue and Profit Before Taxation ("PBT") of $10.5m and $1.1m, respectively. These improvements are the result of the $2m in late data sales announced on 10 October 2016, increased operational days & vigorous cost management.

The Board is therefore raising its estimate for WGPG Revenue to $13.9m and PBT to $1.6m. This estimate incorporates substantial provisions for higher personnel related costs, and contingencies for maintenance repair and replacement, as well as for equipment upgrades that have been identified and will be incurred in 2016. Due to the challenge of quantifying the above mentioned costs at this juncture, the Board has taken a very conservative view on provisions which it would hope are in excess of final requirement and which could result in a further increase in PBT of up to $1.5m.

Duncan Soukup, Chairman commented: "Whilst WGPG is not immune to the fall in the price of oil, it is gratifying to note that the Board's quick and incisive response to this collapse has been vindicated. I am happy to report that WGPG's focus on operational performance, client service and vigorous cost management to reflect substantially lower budgeted revenues has resulted in positive margin expansion during 2016 as revenues progressively exceeded internal forecasts. The Board is extremely pleased with the operating results achieved in unquestionably difficult circumstances. As painful and disruptive as the staff redundancy programme was at the end of 2015 and in early 2016, it was unfortunately entirely necessary and appropriate given the dire state of the industry. Margin improvements of the magnitude achieved in 2016 are unlikely to be repeated in 2017 as WGPG's staffing levels have been cut to reflect current market conditions. Nonetheless, the Board is confident, barring a sustained collapse in the price of oil below $40 bbl., that the outlook for 2017 is positive and that WGPG can build upon its long term contracts in the North Sea, respond to increased order enquiry and continue to selectively grow its business profitably. The Board will update the market on Thalassa's 2016 outlook once the full impact of costs at WGPG have been finalised."

[columbarius] 10/11/2016 15:28

Sort them out Duncan.

[jmf69] 10/11/2016 15:14

So it begins

[alter ego] 10/11/2016 14:34

interesting RNS today - DS must have plans for the investment in LSR.

[kooba] 08/11/2016 11:34

The holding in Papua worth a bit more today than yesterday! we now have a man on board.Not sure what's lit them up today though.

[jmf69] 27/10/2016 09:07

Interested to see what ds wants to do with LSR?