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Will anyone attend the AGM? I would appreciate it immensely if the following question could be posed to the Chairman. "Why was the change in the Investment Manager's incentive scheme linked to the proposal to extend the fund to April 2017? By linking the change in the Investment Manager's incentive scheme to the only proposal that makes commercial sense it does not give shareholders a say in whether they agree with the change in the incentive scheme or not. Why are asset write downs included in the NAV of 101p at 1 January 2016? If any increase in asset values are included in the performance measurement from the 1st of January 2016, then any write-downs since that day should be as well." The proposal should not have been structured this way and shareholders are being strong-armed into accepting the change in the incentive scheme. In my view the Chairman was extremely weak in not standing up to the Investment Manager. The investment manager is already going to get £4.3m to sell the assets that are left in the fund. This is a cash grab and I want the Chairman to own up to why he agreed to this. There is a lot of work to be done, but that's why they're getting a £4.3m management fee. I would be very interested to hear what the Chairman says.
Many thanks. I thought, wrongly it seems, that they had committed to a revaluation 'early in the new year' and were leaning towards realizing full value ASAP. In fact about 3 weeks ago in a reply to me they confirmed that the revaluation would be made public 'shortly' Change of plan so maybe valuation lower than they thought? Odd that the sp sailed through the market turbulence on an even keel, then missed the fair winds of the last few days. Maybe they gave completed the £18m buyback now. The IM plan? Well the BoD need to keep them fired up through the extended life and if they are happy that the misses occurred despite skillful best endeavors, it seems OK to me to rebase the incentive. The BoD and friends/associates have a lot of their own cash on the line, so I feel their interests are aligned with mine. Looks Like a good buying opportunity again...
All the info re the change in incentive structure can be found on LXB Retail Properties Plc's website under news. The change in incentive structure forms part of the proposals to be voted on at the AGM & EGM which is penciled in for the 29th of February.
The change in the incentive structure (more specifically using the NAV of 101p at January 2016 as the baseline NAV when calculating the hurdle) is linked to the proposal to extend the fund to April 2017. Shareholders can't vote on the change in the incentive structure in isolation. The proposal to extend the fund is the only logical proposal as it will maximise shareholder wealth, but if you vote for this proposal you automatically agree to the change in the incentive structure. In my view the proposal to extend the fund to April 2017 should not have been coupled with the change in the incentive structure as the shareholders are now strong-armed into accepting it and it doesn't give them ability to accept or reject the proposed change in isolation.
Where did you pick up this info?? Not advised to me as a shareholder. You make some very good points. Have you made them direct to the company too? If so, any reply?
I still think it is very sneaky to try and change the incentive structure during the last year of the fund. The IM is already getting c£4m plus in management fees. They failed to achieve the hurdle that was set up at the fund's initiation, now they change the rules to fit their performance. The IM has enough shares and don't need to be motivated by reducing the hurdle. This is a cash grab and they are taking shareholder's funds from them. If they wanted to receive a performance bonus then they should have achieved the original targets. So the IM was in fact guaranteed a performance bonus, irrespective of what they achieved and the original incentive structure was in fact bull**** because it was always going to be adjusted to make sure that the IM got a handsome performance bonus. Again, reward for failure. I for one will be voting against the change in the incentive structure. Paying them c£4m in management fees and given them the freedom to start managing other funds. Absolutely absurd. Then they will also be getting £1m a year until Rusden is built. A main contractor is going to build out Rusden and believe me, £1m a year to manage a main contractor is ridiculous. Last year the IM was not going to get a performance fee because they did not achieve the performance targets. Now they will easily walk away with C£8m. It doesn't matter how you look at it, the C£8m is going to be taken from shareholders. For shareholders who have been here since 2009, like me, this is a very bitter pill to swallow.
Few people noticed that the Investment Manager's incentive scheme changed today. This just knocked around £8m of the value of the firm. It's weird that the Board agreed to this without shareholder approval. Again, reward for failure. This is a last minute cash grab by the Investment Manager and the Board should have asked shareholders about this. As a shareholder I'm not happy about this.
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You can keep tabs on buyback by looking for RNS stating change in shareholdings. Then keep adding all those where company is buying back. I see in latest RNS no final anticipated asset value is given-I expect this will be released before AGM -maybe next week-so investors should know value before AGM. I wonder if they are hoping to scoop up remaining buy back shares before announcing. I think if your not on board soon you may miss the share price rise.
I am interested to learn how you keep tabs on the total bought in to date? And expect that in a more normal market than has been seen in the last 5 weeks or so, buying in these volumes would have driven up the sp. But it has at least been stable. So the gap between sp and valuation when finally released will be higher than might have been anticipated, which makes lxb a strong buy now IMHO. I must say they have executed the buy in rather cleverly and patiently and have achieved good prices.
goldust88 asks if anyone had a forecast for when the LXB update arrives. Well how about breaking the 100p barrier? Right now it is 97.25p but research (and a ‘warm feeling’ about this share) tells me that we shall be going on to better things. I am very upbeat about this rising star and I am v. happy to have this in my portfolio. Yes, breaking the one pound mark will be a ‘fillip’ and put a spring into everyone’s step. Definitely one to watch! As you say, cm45: “Lonely on this board, anyone out there?” Seen a few tumble weeds rolling across my screen when popping into here – but that will change methinks as 2016 will be a lot busier. Maybe a "Top Slicer"? Carpe Diem
Total that could be bought in max is £18 million @ say 96p =18,750,000 Bought in to date......................................................................... 15,280,000 So max to go................................................................................... .3,470,000. I expect update when they have finished the buy in so not a lot to go now. I have a pile of these. When update comes should give a good lift to price-anyone a forecast ?
Some unusually chunky sales gone through today, Low buys but sp up. No rns that I can see so far....
LSE have now sorted it out it seems..
Interesting!
You are not alone CM unless you own all the shares. Just waiting for the revaluation as you are.
Lonely on this board, anyone out there?! The revaluation was promised for early in the new year in the last financial announcement. So not so long to wait I think....
Today, contracts exchanged with south African retail group for 10000 sq ft on Sheppey. Plenty going on at lxb still. Looking forward to the valuation due for release this month...
Thought that after I hit enter but thanks for the reply and agree there seems to be a disparity between buys and sells. Good end to the day though.
They'll be buys, part of the buy back programme. Probably be in an after hours RNS like the last few, I still don't get where all these shares are coming from if no-one is selling!!
Anyone know why?
Good question but with world markets so bearish many institutions prefer to be out of equities until things stabilize.
So who is selling? RNS said not the directors so it must be other large investors. These shares are not being traded on the open market, certainly not PI's at this level!
So today after lxb announcement we all know that one of yesterdays 955k 'sales'was a buyback!! Big 'sales' volume again today. Will turn out to he buys again I guess...