The next focusIR Investor Webinar takes place tomorrow with guest speakers from WS 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.
Will THAL's holding in NWT be a catalyst to drive the price higher in 2024?
I've just taken my stake in NWT to over 3%. The rally towards the end of the year and an overall return on NWT of nearly 150% in the year makes THAL potentially another stock to watch in 2024. The 10% holding in NWT reflects nearly 40% of THALs market cap. At the start of the year it represented just 20%. So not all the value of this rise has come through into THALs share price or other assets have performed less well.
I'm with the recent finals commentary in the NWT could well become an acquisition target in the next couple of years. I'd expect a sale price in the region of £40m as being realistic and this is 5/6x the current price. I am certainly of the belief that we're only just at the beginning of a strong rise in NWT as the US continues to out perform, that Safetell in now growing again and the rest of the world strategy accelerates. Another doubling/ trebling of the NWT share price is on the cards in 2024 and this should reflect well on THAL.
By 2025 we'll be in the offer territory for a take out at £40m or so.
I shall potentially be buying here in the new year once I have done some further research on the other investments.
4th May 2023 7:00 am RNS Holding(s) in Company
https://www.lse.co.uk/rns/NWT/holdings-in-company-zpumoz7knuh2ryi.html
Thanks to Dab808 on the NWT board for this post today:-
dab808 Posts: 136 Price: 56.50 Strong Buy
Thalassa Holdings 04 May 2023 12:32
"Interesting that Thalassa Holdings have decided to sell a small percentage of their holding so close to the trading update and in advance of the significant growth story to be told to the market through the next few results updates.
They built their stake in late 2019 (price then about 35p) to April 2020 (around 60p). The have obviously sat on the rise until now, then taking a small profit. Maybe this is a prudent trade, perhaps they want some profit for their efforts. One to watch moving forward and it could be that they want to move more considering the price is not moving up. If they keep selling into the rise it could hold us up a little, but I am sure they hope for larger gains and I am sure there are more buyers than sellers given the businesses trajectory."
Reply Recommend (1) Report Post
https://www.lse.co.uk/SharePrice.asp?shareprice=NWT&share=Newmark-Security
Return to go, I came out of Thalassa ages back, with a major loss, because of what seemed to me some very shady property dealing. Simon Thomson of Investor’s Chronicle also seem to see it the same way. I’ve never seen him so forthright.
https://www.investorschronicle.co.uk/2014/10/07/comment/simon-thompson/a-conundrum-to-solve-Q77PbfVybfPUKtWiuq0UyL/article.html
And a later issue he took note of:
https://www.investorschronicle.co.uk/comment/2019/03/26/local-shopping-reit-urges-investors-to-reject-thalassa-s-offer-and-vote-to-wind-up-company/
Just a warning. DYOR. I am only on here because I was curious whether a poster I used to follow quite carefully was still posting here. He or she doesn’t appear to be. No surprise!
Bargepole for me. Bye!
Nvm, guess it is due to LSR now being consolidated.
Noticed now there was a post on the balance sheet "investment properties" of $4.1m, they havent been there before have they? Or have they changed the way they report those assets?
Any other thoughts on today's filing?
Cheers
......and then there is the near $6 million invested in small illiquid listed stocks. Have THAL's board being buying the runt of Woodfird's litter from Schroder's? Or am I reading that bit of their update incorrectly. And what happened to the other $10 million in cash they had last summer?
From the farcical comedy of the overblown opening paragraph, passing the three exclamation marks, a dig at Tesla for having a stratospheric share price when not profitable, a Wikipedia cut and paste summary of lethal disease outbreaks and a quote from Winston Churchill..... all in today's"update".
I would've preferred more detail and self awareness as to why our own business hadn't boomed as hoped from the Board.
Why am I a shareholder here?
Not the best reading material - great book values but loss making. The unexpected exclamation mark count is also down to one. When you see a highlight of the last six months being another payment in the future then you know things are bad.....
Clear as mud announcement today with no clue given as to sum to be paid by Thalassa.
It doesn't look like they have rns'd results to 31/12/18 but they do appear on their website. What caught my eye is the increased cash to $17.4m which is approximately equivalent to their mcap of £14m, so doesn't allow for any of their holdings prospects or the potential for additional earn outs, $4.8m is also due to be paid to Thalassa Nov 19 from wgp
I've added
Judging by today's RNS from LSR, it appears that Thalassa will gain control of LSR should sufficent other shareholders accept payment for their shares, based on a NAV distribution.
It's like watching two bald men fight over a comb.
Nickels and dimes It looks like they can possibly pinch £1-£3 m from the shareholders in Local Shop but not without a fight. Maybe hoping to pinch it for 28-29p a share on a net asset value of 31p .Any cherries amongst the assets have long since gone. Some sort of death roll as a face saving exercise for a poor investment by Thalassa.
This won't of course adequately compensate for the fact they paid too much to Grahame Whateley for his stake in the company in the first place There was only one person who was going to get the better of that bargain .Grahame never been known in giving a penny away unnecessarily
Furthermore capital tied up doing SFA for a few years
Methinks they have a plan for the cash and near cash on the balance sheet.......
Merry Christmas!
Well that's a surprise. Joining the grown ups.
Can't help thinking this may also mark the end of adjective laden RNSs.
Another amusing set of unexpected adjectives in a THAL communique, tempered by my recollection that I sold out last week....
Amusing yes, although I'd prefer the return of the surplus cash. Not sure the Bod have any specific skills which justify them moving away from ARL. Local Shopping Reit doesn't look as if it will be a particularly high return on capital when the liquidation completes.
Sometimes I wonder if I only own these shares to be more amused by the release of results and associated commentary. I used to work with someone who used exclamation marks in unlikely places in emails...... Four appear in these interim results, between a brief summary of the woes of the world's stock markets since WW2. So, a crash may happen, recovery in real terms will take decades so the board will sit on the cash pile and believe the only probable safe bets are that there will be wars (getting two retired navy blokes on board) and we will continue to breed and want our kids educated to do better than we did (education sector).
Well, once again we have evidence of the Market moving in mysterious ways. With the cash on the balance sheet plus the WGP earn-out and the liquidation of LSR, the cash per share is north of 100p.
Thanks: my NAV per share calculation is similiar. Share buy-back programme, whilst reducing (slightly) the cash pile looks sensible. The prospective approach for a stake in ARL (RNS 12/02/17) suggested a value of $10m although a carry-value, for NAV purposes, of something less is prudent.
Having, so far, failed to find a suitable investment for the cash pile, it is understanable that some shareholders have requested that it is distributed to them.
Courtesy of stockopedia:
Net Cash: $20.3 million = £15.3 million (latest exchange rates)
25% stake in Local Shopping Reit (LON:LSR) = £6.7 million (latest share price)
We then have the company's 100% stake in Autonomous Robotics Ltd ("ARL").
ARL is still in prototype stage. External financing for the project was sought in 2017, but has not materialised yet. The operating loss generated by ARL/Thalassa for the year amounts to $1.7 million.
I have no idea if ARL has positive value, so will write it down to zero for my own purposes.
A conservative estimate for Thalassa's book value is therefore £15.3 + £6.7 million = £22 million, or 115p per share, to be reduced by further short-term losses at ARL.
There is another $10 million payment the company might receive in contingent consideration for its disposal last year. This would boost NAV to 154p per share.
Today's announcement adds appreciably to the net asset value.
Spat with the auditors re treatment of wgp sale ? see 21st May rns, maybe disagreement with auditors about how its reflected in the accounts
Outside of its control, and for some reason can't be communicated to shareholders. Agreed, odd.
Very odd announcement today regarding delay in announcing results. Quote: ...for reasons outside of its control...