The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Very odd indeed. The non-exec director was 71 years old, so it was probably not unexpected.
.... to send this down towards 11p?
They increased their stake in Finsbury, a non-exec director resigned.... anything else?
Very odd.
At 14p Thompson wrote that LDG was "anomalously priced", it's even more anomalously priced now. Do the management just eventually give up and say that they can't close the NAV/SP gap, or are there other options to let holders out.
Https://www.lse.co.uk/rns/LDG/finsbury-food-group-investment-update-brk5lhsj0584ylq.html
Sounds like we will retain a stake of the privately owned company, for the dividends currently.
Pretty straight forward, if the buy out goes ahead, our 11M shares will get bought for £1.10p each. By my calculations we paid an average of 79p for them. 31p x 11.76M = £3,545,600 gain, about the 23% they mention.
We are not buying FIF, we do not have to worry about what to happens to it afterwards. I think that is ok.
At least that is my assumption, I suppose its possible we remain invested after it is taken private, that could be even better?. What will Dbay do with it? Can they flip it for more? C'mon this is exciting!
LDG, This type of investment is similar to a closed end fund, and really the holding time for a such a fund should be about 3 to 5 years. I expect things will be very different then, look at something like PIN historically (as that does not pay a dividend).
Its a poor time for for AIM, small caps and these funds so perhaps an entirely different investment needs to be considered for those dissatisfied here. I like the concentrated exposure to a few more small caps, and the expertise Dbay can provide.
The way I see it is Dbay make money and Investors get to buy a company with investments at a discount,all backed by huge cash ,and everybody makes money....All underpinned by the company buying in the market with their own cash....What no to like....ST certainly likes ,and he is usually right.....made plenty on his investments...
Thank you Dartron.
If you read my posts you'll see I was invested here but not currently, I just find it all very interesting.
Understand how this investment works? Let me see.... is it that DBay make a load of money and private investors don't see any of it? Probably.
Still watching....
Update from ST of IC?....Could be imminent?
You should probably sell if you don't understand how this investment works.
Dbay? LDG? Bidco? All seems like smoke & mirrors to me!
Might explain why someone picked up 10 million LDG shares the day before though?
Hmm.......
LDG own 9% - number of Finsbury shares held indirectly by the Company was 11,763,979, representing 9.0% of Finsbury's issued share capital, for a consideration of £9.3m.
https://www.lse.co.uk/rns/FIF/recommended-acquisition-of-finsbury-food-group-qkxhw2obvcnu06r.html
23.6 per cent. to the Closing Price of 89.0p on 19 September 2023;
Not sure why no RNS here, may be needs to be approved first.
I spoke too soon....
Who bought 10,000,000 shares or spent £1M? Whichever figure is correct, that is bold, they must know something surely?
It definitely wasn't me though, that is far too rich for me 😉. Maybe there will be an RNS in the morning that might shed some light on it?
Maybe some DBay shenanigans? Hmm....
Interesting.... still watching....
Can anyone remember ever seeing such a large buy?
Currently underwater here but convinced this will come good
.... presumably stands for Long Dull Groan....
I'm still watching out of interest but it's not an easy watch. Probably the slowest BB I've ever seen, seems like there are only 4 or 5 investors here plus me keeping an eye on what is - or rather isn't - happening.
I used to think I was a patient person - until I started investing! Since then I have found I have no patience when it comes to the performance of shares and the Stock Market and has led me to make some terrible decisions, hence my PF is an absolute mess with far too much money tied up in high risk ventures and all underwater. Hey ho, maybe I'll get lucky...
I did make some money on LDG though, one of my few successes.
Patience definitely required here though. A lot of patience.
Still watching...
Still here, id say its getting exciting. I missed the IC article, it didn't make it to the paper version.
I think a big factor here will be an outcome over at APH.I think LDG have 21% now of APH. APH is still in the grips of 2 short sellers, GLG and Blackrock.. I expect they are waiting for the announcement regarding the appeal over the court case. The only thing at stake now is whether APH have successfully appealed the 7.1M fine (I think unlikely) and whether Peter Butterfield gets struck off, over the incident. The latter doesn't really matter to me, APH have already restructured management. I think APH will be the jewel in the crown once all this is put to bed. Maybe DBay can find a buyer for it, or reverse this in to it?
LDG is doing as well as many other closed end funds etc. I think its worth holding.
Lastly, several times I have seen those cancelled trades above 14p, something going on?
Yes its very boring no carot for waiting sulk
Also sitting and waiting. It's taking so long that I'm beginning to think that a bank account would give better yields.
Nope. Still here and still waiting...
Nice one eviking, I'll have a read.
I was beginning to think no one was here anymore.....
Still watching....
Tipped by Simon Thompson again
The bottom line is that LDG’s shares are being anomalously priced once you factor in the substantial cash backing, the underlying value in its four holdings and their re-rating potential. Effectively, you are getting those stakes at less than half their book value even though their intrinsic value is materially above their current market prices. That double discount is worth exploiting. Buy.
https://www.investorschronicle.co.uk/ideas/2023/09/07/exploit-this-double-discounted-small-cap-fund/
APH half year trading update reads well. On track to meet FY guidance. This really is the bottom for APH, which historically has been a far stronger business. Possible short squeeze on as well (2.16% short), but up 10% so far this morning.
Grabbed a few this week in the lows of the short. Dbay hold about 16% from memory.
Nope!!! It certainly isnt. I haven't looked but i wonder how their investments are doing since they invested. That would have an effect too if they are performing badly.
I had hoped the SP would be eeking above 16p by now and holding firm.
LDG are continuing to buy back shares but the SP is slowly falling back towards 14p.
I'm thinking lack of interest from investors and economic worries are all playing their part here, but whichever way you look at it the buyback isn't having the desired effect.
It isn't going very well, is it?
Thanks @metis20, saved me a job 😉
Seems like slow progress, maybe holders are reluctant to give up their shares unless the SP increases? If that were the case shouldn't it create a vacuum and push the SP up, or will he SP only rise if LDG can get their hands on enough shares?
Or will any increase generated by the buyback be negated my market conditions and market sentiment? Hmm....
And how are LDG's investments performing?
I still think DBay will wait until the SP rises - if it rises - and then offload another big chunk of their holding in LDG like they did last time. Time will tell.
Eyes open but no cash to invest at the moment 🤔
£1.85m spent (excluding expenses) to date on the current buyback.
"The Board, however, expects to limit the total consideration for the Further Buyback to an aggregate of £15.0m."
12.2m shares bought back to date during the current buyback.
".. LDG today announces the commencement of a share buyback programme to purchase up to 112,352,944 ordinary shares ...The Share Buyback will end no later than on the conclusion of the annual general meeting of the Company in 2024"
Approx buyback period is 13 months - almost 3 months of that has passed - so approx. 21% of the total time allocated has passed, approx. 12% of the £15m has been spent and approx 11% of the max. no of shares permitted in this buyback have been purchased.