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Last year's Q4 update was on 31st Jan so hopefully we will get an update tmrw. On one hand the Truss-aster currency boost in Q3 will reverse plus we know Oil Prices are about 10% lower in Q4. On a positive, though, the backlog of maintenance should be nearing completion so 2023 should see workovers and boosts to production - all positive. Also continued interest payments will flow in, and as for real estate we are arguably now seeing market lows so we may get some interesting updates in how the LMS cash pile is going to be utilised? Having powder dry is a great opportunity to pick up some bargains.
Friday's 3Q update doesn't give much detail but there's an increase in NAV to 60.5p mainly due to the sterling crisis 30/09/22 (and reverts LMS to its 31/12/21 valuation).
However stripping out cash you are looking at paying 33p - 22.8p = 10.2p/share. Put another way, net assets ex cash are at a discount to NAV of 74.4% (10.2/(60.5p-37.7p))
But this is for assets where Dacian alone is worth over 11.7p/share, and is generating £1.2m in interest from $9.1m of loan notes (leaving aside that LMS also owns 32% of Dacian) and the interest equals about 5% of LMS' current market cap.... so pays the bills plus the dividends (roughly).
In other words strip that out too and you're getting 1.2p a share plus £20m worth of London property and US VC funds worth 60.5p - 34.5p = 26p a share for free. (102% discount to NAV)
Plus Dacian should grow its profitability through workovers and maintenance. Today the oil price is $96 and gas prices are lower but will certainly rebound as colder weather arrives. Romania do have a windfall tax but even so we should see growing profitability from Dacian.
You don't buy this share for excitement and it feels like it plods along. But if you're patient and are interested in value and overlooked opportunities this is a good wealth preservation share .... its assets underpin its value here and it's incredibly cheap. I'm happy to hold.
3rd quarter update should be out this week. It’ll be good to see some progress on Dacian oil, and the consolidation they spoke of. What’s actually quite impressive is how LMS has quietly steered a course through a pretty challenging couple of years without any real loss of NAV. It remains stubbornly on a huge discount to NAV
https://www.ii.co.uk/news/half-year-report-rnsLSE20210803070008_4065605
We should be seeing a H1 update in the coming week. It should be the case that we'll see a decent jump in NAV on the back of strong oil and gas prices in Romania. When you compare to other plays on European energy this share hasn't risen one iota, despite the attractive economics of the deal they struck. I expect we'll see a rise in the dvidend too.
GLA
NAV grows from 59p to 60.8p
Trading spread 30-34p. So buying at 34p is a 44.5% discount. Since this holds over £20m cash you're buying £47m of income producing assets for £7m. The Dacian oil alone provides a 14% return (about £0.8m per annum).
Dacian Oil deal has concluded: these are assets generating 1050 BOEPD - 60% gas and 40% oil.
LMS has itself invested US$9.1 million in senior loan and equity capital to acquire a 32% holding in Dacian. The $9.1m loan holds a coupon of 14% which equates to a $1.25m income (or an IRR equal or more than 15%)
There are some buys but the price hasn't moved..... yet. I've topped up on the good news and am looking forward to the full year update in January!
As at 30th September:
£20.5m Cash plus £6.7m escrowed Cash
£27.2m Total
The market cap today is £25.8m...... so you are getting £1.4m of cash for free.
And a free ride on their portfolio worth £21.5m NAV too?!!
https://www.lmscapital.com/wp-content/uploads/2021/10/Factsheet-Q3.pdf
Hi JaAAScarborough,
Welcome to LMS. It is a quiet board, the company just goes about its business quite happily. I was very pleased with the Dacian investment in Romania. I am surprised they got it as there are many other O&G companies in the area who could have bid for it so well done LMS.
This is a long term hold for me along with several other similar shares.
Good luck to everyone with this.
First purchase in this stock today -plus monthly AJ Bell fixed sum amount to be bought on 10th of each month!
The stockopedia report and presentation from our recent Manchester seminar for LMS Capital is available in our full member exclusive area here: https://www.sharesoc.org/members-area/
LMS Capital along with three other companies present at our Manchester growth company seminar on the 16th October, more details and registration here: hTTps://www.sharesoc.org/events/sharesoc-growth-company-seminar-in-manchester-16-october-2018/
LMS capital present at our Manchester growth company seminar on the 16th October, more details and registration here: https://www.sharesoc.org/events/sharesoc-growth-company-seminar-in-manchester-16-october-2018/
Soo.. I expected to have around 1320 shares bought back - my broker has credited me for 881 bought back ... so I contacted them as below - their response below that , anyone else have a similar experience? "dear broker" - sic 4496 tendered Basic entitlement 16.29% x 4496 = 732 Remainder = 3764 shares 3764 x 15.65% (as announced by LMS) = 589 732 + 589 = 1321 I accept that LMS does say approximately 15.65% - when seeing two decimal places it is realistic to expect that approximately will mean very close to the whole number eg. 14-16 % So why 881 ??? RESPONSE FROM BROKER After the basic entitlement was fulfilled, which was also the case for your account, a further 15.65% of all the shares of all holders were tendered as well. Please note this does not mean that this was evenly spread throughout all shareholders. There is no specific explanation from our side why exactly 149 additional shares were tendered in your case, as this was the company's decision, but as far as the corporate action notice explained, this is correct. Thank you for your understanding.
So company announces disposals in progress as planned and net asset value expectation well above current SP , then SP dives 12 % , any clues anybody??
Just heavily tipped by Simon Thompson in IC. Like LXB, they are winding down through realising company assets, 2/3 of which are UD$ denominated so have significantly benefited from the fall in the pound. ST thinks the assets atre worth niorth of 90p and he believes the market is overlooking their real value. The board are all credible city figures (not spivs!!) and this looks to me like a one way bet. But dyor
More like a bottle. Been here for a while so glad it's finally coming good. Had been underwater for quite a while and with NAV at something north of 90p there could be a bit more mileage on this over the next couple of weeks.
..is there anybody out there. Bought these based on the ST article in IC on 19th Nov. I owe the man a drink!
Latest plans to revamp are on hold because one or more big holder didn't like them. Pundits seem to feel the new Board will be coining it under their deal while rest of us wait & hope. We may end up with the Directors profit share being moderated a bit but I am sure this is going to turn into a gambling chip based on spotting an oil situation or three. Not what most of us expected.
Bought these for the last payout which was fine. Now everythings on hold for another 12-18 months. I don't have much invested so its probably worth waiting because the asset value will be close to £1 next time and then I'll have even less to monitor. But are they worth buying at this level? Hum....
Anyone still not received tender offer proceeds? Or is there anyone out there who has received proceeds via Barclays Stockbrokers? They claim they can't credit my account as there was a problem with information supplied by Registrars.
On 17.2% + of your holding. As promised. More to come.
Double digit returns expected Simon Thompson, 15 May 2013 - extracts: “LMS is now sitting on net cash of £42.2m, or 25 per cent of the company's market value of £160m. And net asset value per share rose from 85p to 89p in the three-month period to end-March 2013....Shareholders can expect another hefty return of capital later this year as this cash is recycled back to investors. Late last year, LMS repurchased 17.4 per cent of the issued share capital through a tender at 84p a share. So with the shares priced on a bid-offer spread of 71p to 71.5p, a further tender offer will not only be highly supportive of the share price, but importantly, will enable shareholders to sell down further chunks of their holdings at book value.... Clearly, there will be wind-up costs when the company finally sells off all its assets, but with net asset value around 25 per cent above the current share price you can realistically expect a healthy double-digit return on your capital over the next 18 months. LMS shares remain a low-risk buy at 71.5p.”
LMS Capital (LMS) Director name: Mr Nick Friedlos Amount purchased: 30,702 @ 65.10p Value: £19,987
Robert Rayne, a non-Executive Director of LMS Capital, an investment company specialising in small- to medium-sized companies in the consumer, energy and business services, has sold 1.44m shares in the company at 84p. The £1.2m sale comes one week after the group unveiled plans to return up to £40m to shareholders. The £40m marks the first chunk of what is hoped will be ongoing distributions to shareholders and is the latest step in a strategic move as it attempts to gradually realise the value of its portfolio, much of which is invested in unlisted companies, and return cash to shareholders. The sale comes after the company set out a tender offer on November 2nd. Rayne's holding now stands at 6.77m shares. It was announced yesterday afternoon that Paul Pindar, the Chief Executive of Capita, the outsourcing giant, has reduced his stake in the company by 400,000 shares, just three weeks after it issued a confident outlook for the year. Pindar sold 150,000 of the shares at 778p and another 250,000 at 777p, taking his stake in the group to 878,349 shares. The transaction earned him £3.1m before tax. In mid-November the company said it was confident it will deliver 3% organic growth for the year along with an improved cash conversion rate for 2012 as compared to 2011.
Uncalled commitments to funds at September 30th were £10.6m and the company had cash of £51.5m. The company's unaudited net asset value per share at September 30th was 85p, down 3p from 88p as at June 30th, mainly due to unrealised currency losses as the US dollar weakened against pound sterling. As of March 15th, Shroders held 18.12% of the company and Jupiter Asset Management 8.11%.