For those of us who are not fluent in TA, a brief few words on how a chart looks (when posting one) might be helpful - asking for a friend ;.
Segro is being killed atm and I'm tempted to add a few, still yields under 4% and the market appears to be saying.. that's insufficient for the associated equity risk.
The market can rapidly reassess the above, obvs |
free stock charts from uk.advfn.com |
Extraordinary volume. Something sure going on here... |
LMP have always been the quality play, but I do like SHED management (albeit the Tufnells purchases, & the tilt at API, seemed like missteps. Regardless, it's cheap IMO). |
bank credit is getting harder to find
Yes it is |
the LMP call was interesting - said already had size lined up (100m deal on which 80m is warehouses) on so it would happen whatever over time as they sort out LXI portfolio as well. In addition on buying other REITs Andrew Jones laughed, said 'what am I allowed to say'; and then 'could I stress it takes two to tango'.
so not necessarily a given; I think probably Shed management not keen. I thought the LMP presentation was excellent - skyship is correct their paper looks expensive vs. peers but the security of income and asset recycling gives some comfort in valuation and dividend is covered and has been growing for 10 years. There has been discussion recently above moving away from valuing REITS on a NAV basis and looking at forward revenue streams for valuations where I'd imagine the differential between the two would look less stark.
I own both SHED, LMP and ASLI |
shieldbug, the majority share holders be they institutions of some sort are very seldom loyal to a company. If they see a swift 20 to 25% profit, particularly just before a year end, there's an incentive to take it to flatter their annual performance. It all depends of course at what price they bought the majority of their holding.
This seems a solid well run company, but bank credit is getting harder to find, and property businesses are credit dependent business models. |
shieldbug - because most shareholders would accept a bid at a 20%-25% premium to Market! |
I can't imagine why they would sell the company at a discount. Can someone explain why they would do that. What part of capitalism is served? It must be the offer of jobs for the directors. Can anyone help me understand this? |
Opportunistic perhaps with SHED so low.
SHED a tad concerned perhaps as over the last 5 days declared they hoovered up 2.25m of their own stock. |
LMP got a lot to digest at the moment will they move that quickly |
I invest mainly for my children and grandchildren and having lived through several property cycles am taking a 10 year plus view |
I am happy to hold and continue to collect the dividends
I think the manager is best placed to sweat the assets
I wouldn’t be interested in an all share offer at a discount to asset value especially if the shares offered are at a smaller discount
For the record I hold TRITAX LMP and SEGRO |
Yes it was 125p in late September so a bid there would be extremely opportunistic and would surely be rejected. 135p might work and would probably keep everyone happy - SHED would get a 23% uplift, while LMP would get some quality assets at 15% discount. |
I agree with EI that LMP may well come for SHED. In any event SHED looking good value down at 110p, so bought a few on Friday.
I agree with Specto that a bid would surely have to be more than 125p. 135p might succeed. c23% up from where we are now! |
Can't see management selling their baby for as low as 125p, & nor should they IMO. That's little more than 2 years of compounded returns.
Not currently a holder - still hoping for nearer £1 to get in - but is definitely on my list. |
Agreed, 33percent discount to Nav so 125p all share would be sweet enough in my view. Albeit Nav is a pointless metric it is a lazy broad brushed guide for me. Shed is a sitting duck and a 7percent dividend whilst we wait. I have bought more with API proceeds, I just don't see any material stock specific downside. |
LMP aim to have logistics at 50% of overall portfolio by their year end.
In logistics, which is their highest conviction sector, they see urban logistics/last mile as offering the best returns.
Given LMP currently sells on less than a 3% discount to NAV, a SHED all share offer around £1.25-35..?.
The later is speculation only, however LMP reiterates they are looking to continue to acquire. |
I am waiting to here that some of the vacant assets have been let.Also I think they referred to further sales and purchases before the end of the year |
The buyback is more about signalling that management think the discount is now too wide, the size of the buyback is clearly tokenism but i like the sign of intent to proactively seek to narrow the discount versus using the balance sheet to fund new assets. I now have a full position and happy to ride out the current volatility. |
If the discount stays roughly constant at 30%.or so then it should add about 0.5p to the NAV per share.It is quite a modest buyback but looks like a sensible use of spare capital. |
Lets see what the £7.5m buyback achieves. Wondered what had triggered the Director buys a couple of weeks ago. |
Gilt yields may have peaked?. |
Spec, nice FY from GRI. |
Coming into range thanks to the XD - I'd still like nearer £1 tho.
Good luck holders. |
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