Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Why not!? Perhaps they take inspiration from this thread? ;)
Although I hope they wouldn’t use it as excuse to sell too much of LTI Ltd. That cash cow is our dividend hero
@gotoutjustintime, you make a very good point. Even a limited buyback programme would surely go some way to closing the discount. They could always hold the bought back shares in Treasury and re-issue them at NAV or a small premium in better times. That would keep the share count at 200K in the mid-term (sorry, I mistakenly said 250K in my original post). I agree for your reasons that they probably wouldn't want it to go above 200K.
All that said I think there is a slight practical issue. Right now they pay a very generous dividend, which is in turn mostly funded by the super generous payout from Lindsell Train Limited. After running costs at LTI there is currently very little surplus cash left in the tank for buybacks. Assuming they can't or don't want to take on debt in such an esoteric trust, then any meaningful buybacks would require cutting the dividend. And the special component of the dividend is already gone and we have been told to expect a nominal fall this year. So all a bit difficult. Just to add though that Finsbury Growth & Income Trust has been an active buyback participant. So as a group they are not theoretically averse to them.
But then the cynic in me thinks that there is another point, and that is that Michael and Nick, who are known to have a very LT mindset might not be too upset at the discount - it allows them to keep mopping up shares in LTI on the cheap. On a much smaller scale I am sort of in the same boat. I am bemused by the discount but see it as a great opportunity to tuck away more shares in LTI, in the expectation that one day the discount closes and the NAV reflates.
As a further aside my more major concern is something else. And that's the decision by LTI to sell some of its shares in LTI Ltd in order to incentivise the younger team. You may have seen todays RNS flagging a further sale in LTI Ltd. Granted the sums involved are small for now. And I get the need to keep the younger team members on board. All that said for me the stake in LTI ltd is the trusts USP and raise d'être. I can and indeed do hold Diageo directly. But its LTI's strategy and amazing profitability, which is the real draw. So the LT dilution of that stake lessens the LT interest in the trust for me
He hasn't. LTI's shares are bit of an outlier in being priced at a relatively high face value (only 250,000 shares in issue) i.e. at today's close £836 or 83,600p. According to the RNS Michael Lindsell bought 34 shares today at 84,366.336p, so a bit above the closing price. Confusingly many of the reporting services e.g. Yahoo finance don't make it super clear that their quote is in pounds and not pence. So you just see 836. In the superscript it says Currency in GBP. For a company like Diageo todays closing is 2797.5 (which is in pence) and the superscript reads Currency in GBP (0.01GBP). I guess because most share prices have low face value its natural to assume that the figure quoted is in pence and not pounds
As an aside I can't understand the discount to NAV on this one. Almost 15%. I guess it is a pretty unique trust what with c. 40% of the value being ascribed to Lindsell Train itself. Still the implied value of this stake is less than 6x P/E. That is amazing value even by the derated standards of the fund management sector. And then you get some cracking blue chips thrown in, many, like Diageo also trading at a deep discount to intrinsic value. No wonder management continue to mop up shares here. On a Mid-term view the value on offer here looks super compelling. I am also adding when funds available
Why has Michael paid 10 x the market value of the share for his top up?
Sorry chaps, link here
https://citywire.com/investment-trust-insider/news/trust-watch-discounts-narrow-but-plenty-of-xmas-bargains-remain/a2432741?utm_medium=website&utm_source=citywire_it_insider&utm_campaign=home-content-list-1&utm_content=investment-trust-insider-latest-news-list&utm_pos=5
Earlier this month, I tipped Train’s other trust, Finsbury Growth & Income (FGT) a ‘buy’ when it fell to a 7% discount. The same logic of backing a good manager at a low could apply to LTI but I wonder if the derating has further to go and the discount could widen even more?
#metoo 😁
However, Citiwire having successfully ramped FGT in recent weeks now gives a hesitant thumbs up to LTI (not unreasonably in my view and expectations). So I guess we may see some action in LTI too?
"Earlier this month, I tipped Train’s other trust, Finsbury Growth & Income (FGT) a ‘buy’ when it fell to a 7% discount. The same logic of backing a good manager at a low could apply to LTI but I wonder if the derating has further to go and the discount could widen even more?"
Fingers crossed
Julian Cazalet, Chairman purchased 25 shares @ £997.00 on December 8th. He also purchased 25 shares @ £970.00 on September 30th. He must be positive about the future prospects of this investment trust.
Now looking for a drop to 850 , let's see
Just wondered what the appeal of this trust is to those who hold? Although Train has a good long-term record, the short-term performance of the trust has been poor, with the NAV having having stood still for around 2.5 years, despite very wild fluctuations in the share price and premium/discount (of up to 40%). Is this trust really worth its premium? Must admit, I've never got my head around the massive weighting to Lindsell Train Ltd - and whether this is a benefit or disbenefit?
core holding and just love these guys. performance year after year.
Any thoughts on this? Been holding for what seems like an eternity at an average sp 1270
moving back up nicely
good to see the sellers be replaced by more buyers
hoping now that many of sellers now cleared
so many shares in red today
ncyt buyers moving in there today
hoping for more buyers to do their own research amd then might to see this dip at lti as a opportunity to buy or top up
Needs to be my biggest holding. Undervalued
stabilised around £10. nice time to buy these babies.
Its getting worse for LTI
It was a bit like The Smiths song from back in the day (Panic) but a bit of normality to the price has been restored.
Heck of a drop. Buying opportunity, perhaps? Spread is only 131% lol
3 IPOs are anticipated this year by those who do the good research, If what is said is correct and we believe most of it, then it could be the bargain of a lifetime. 35 years since we had a big winner "like what this might be." As usual with AIM only time will tell, so do your research before investing.
LTI we have funds ready to reinvest in to it as it should show a profit from this point.
Might be interesting for the Lindsell Train holders
https://www.hl.co.uk/news/articles/lindsell-train-why-we-bought-prada?cid=halDM109487&bid=419173703&e_cti=5474689&e_ct=T&utm_source=AdobeCampaign&utm_medium=email&utm_campaign=EOFRN_Lindsell_Train_Global_27.02.20&theSource=EOFRN&Override=1
If this information is correct the top two holdings in FFWD account for nearly 65%. That’s pretty high conviction stuff and I would need to have a very good understanding of those two companies.
https://citywire.co.uk/investment_trust_insider/investment-trusts/investment-trust-factsheet.aspx?FundID=4123
We sold this share at around £1900 some time last year when it traded at a premium. May be time to come back in, especially if it drops to the £900 or less range. We only buy stocks that are very low or out of favour. Really starting to look interesting.
We are well in to FFWD an I.T. that costs 7.4p and has a NAV of 12p. However with some of its holdings increasing a lot, the new NAV may be around 24p One of those shares which has very few followers, but its holdings are very very interesting, with block train and cannabis being involved along with others waiting to shoot up. STAY AWAY if you have a nervous disposition and prefer safety rather than possible big profits
Now at a small discount to NAV which stood at 1,085 last week and will probably be higher now. NAV increased by 32.4% over 2019 but the share price has gone down slightly. The premium fluctuates wildly because investors cannot work out what LTL is worth. I agree with TalygarnTom as to the reasons for the fall and would also add that the performance of the funds haven't been quite as good recently because of the relative underperformance of so called defensive stocks.
I do however think this is likely to be the floor as Nick Train has always said he wants to increase his stake but won't whilst there is a premium to NAV as this would be implicitly stating he disagreed with the valuation method for LTL which he said he doesn't.
In the long run this will come good again. Nick Train is one of the best investors out there and this fund holds a 25% stake in his management company. How many opportunities are there to own a piece of something like that? I am sure that in a couple of years time people will look back at this and wish we had taken advantage of a rare moment when you could buy in for zero premium.
I'm holding.
Now this is really seriously not funny Its down 7.5 today.
LTI has just got so pants.