The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I wish - GBP 43,647.91 down - 99.2%
How about GBP 44,000 worth at 9p?? Currently worth GBP 385 so GBP 43,615 down.
Been a painful last 10 years but made GBP 29,000 trading it from 4p up to 24p. Can still remember when I had GBP 20,000 worth of shares which had risen to GBP 99,000 and my wife telling me to sell and take the 74k profit. Famous last words " I will when the shares are worth GBP 100,00. They never did...............
So what does that mean? An investment company have bought 11% of LSL?? Is this good or bad? Do they have a history of picking good stock? Can somene enlighten.
The essential point you are missing is that Your Move (LSL) don't need a recovery to make money. If you read the statement by Simon Embley, LSL Chief Exec, he states as much
I guess what's key is that HBOS did not react to the slowing housing market and so Halifax estate agencies lost £2m last year. Your Move (LSL) reacted swiftly and made a profit. Many agencies closed over the last 2 years, Your Move are expanding. Like I said, I'm an amateur in shares but not in esate agency and Your Move is VERY well run and I assume Lloyds are selling their loss making divisions to concentrate on banking and not on (inefficiantly) selling houses.
Pro-forma net assets of HEAL at Dec. 31, 2008 were GBP38.4 million, and at completion will include minimum cash of GBP22.2 million to cover restructuring and provide an element of working capital.
LSL posted excellent figures a few months ago after the most difficult estate agency trasing period for nearly 20 years. That's why, even before this announcement, they were trading at nearly their 2007 SP level. Their cost savings and efficiencies over the last 2 years have been managed excellently. I don't think this is a gamble at all. They've proved with Your Move that they could sustain themselves at the bottom of the market. And that "modest recovery" Well, it's already happened (0.7 - 1% rises every month for last 6 months) The only gamble LSL are taking is gambling that their WON'T be another property crash soon. Based on the last 100 years of cyclical property prices, that's a very good gamble for a £1.
Opinions please. I'm an amateur but it seems to me paying £1 to put yourself 2nd in the country and then get £22 million to re-brand in January is a very good deal indeed.
LONDON (Dow Jones)--LSL Property Services PLC (LSL.LN), a provider of residential property services, said Friday it has bought Halifax Estate Agencies Ltd., or HEAL, from Lloyds Banking Group PLC (LLOY.LN) for a nominal GBP1, adding that it has performed ahead of management's expectations since July 1. MAIN FACTS: -The HEAL network, representing 218 estate agency branches, will be absorbed into Your Move, Reeds Rains and InterCounty. -Pro-forma net assets of HEAL at Dec. 31, 2008 were GBP38.4 million, and at completion will include minimum cash of GBP22.2 million to cover restructuring and provide an element of working capital. -Opportunities for LSL to develop other income streams within HEAL include lettings and conveyancing referrals. -Acquisition includes the transfer of circa 130 mortgage consultants who will strengthen LSL's position within the mortgage market. -Acquisition will be cash positive in 2010 and earnings enhancing in 2011, assuming a modest market recovery. -Completion is scheduled for Jan. 15, 2010 -Cash generation since the half year remains strong and net debt has reduced by a further circa GBP2 million. -HEAL business is currently loss making but contains sufficient cash to enable LSL to carry out its restructuring and re-branding plans. -Included within the completion balance sheet will be a minimum of GBP22.2 million cash which will cover restructuring costs not reflected within the completion b
on www.iii.co.uk they are talking about LSL taking over the Halifax estate agency. Time to buy big methinks...........
What!! Something BIG going on here..........possible takeover?
can anyboby answer below please
.
http://www.fleetnews.co.uk/news/story/Lookers-results-reveal-increase-in-profits/50967
Agreed! Topped up heavily on this and expect 30-40% uplift over the coming weeks. Feel free to join the party everybody.