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https://uk.advfn.com/stock-market/london/logistics-development-LDG/share-news/Logistics-Development-Group-PLC-Receipt-of-further/86486174
Logistics Development Group plc, the AIM investing company, announces that it has received an additional payment of GBP2.2 million in connection with the disposal of Greenwhitestar Acquisitions Limited ("GWSA"), originally announced on 1 July 2021. LDG has to date received total net cash proceeds of GBP127.5 million in respect of the disposal of GWSA, including repayment of the GBP6 million investment in the related PIK loan note.
As at the date of this announcement, LDG holds no material investment assets, is debt free and has an available cash balance of approximately GBP134.5 million (approximately 19.12 pence per share).
Why is it at 13p for most of the year then? Dont get it?
So, some news at least, and good news at that.
LDG are now sat on £134.5M debt free, valuing the shares at 19.12p, and that has managed to drag the SP back up to a mere 13.50p or so? Give it a week and everyone will lose interest (again) and it will drop back under 13p IMO.
And yet still no clue as to what they are going to do with all that money:
'The Company's Investment Manager, DBAY Advisors Limited, continues to review a number of investment opportunities, and the Board and Investment Manager remain committed to generating attractive investment returns for shareholders.'
More holding and watching I guess?
I'm keeping faith that market will act rationally at some point and stock will match market value.
I'm staying patient.
Nice tick up today, I'm just baffled who the ones are selling this at this price.
Totally agree patshare…. It will go down this week and next
Looks like I was right, sadly - heading to close today @ 13.3p or so :-(
The share chart for the last week looks like an ECG reading, for a sick patient with a dodgy ticker!
Re. who's selling at this price, I guess anyone who is fed up waiting for LDG/DBay to decide what they are going to do with all that cash and let the markets know, cashing in while they can at a reasonable return!
But what do I know, I'm just a novice around here. Nice to have somewhere to voice my thoughts though.
..... or maybe not? Looks like some buys made today pushing the price back up.
Still holding, still waiting, let's hope for some news soon.
So..... another week on, still no news, SP still holding up or even improving marginally, although has been as low as 13.04p today. I almost feel embarrassed that I suggested it would drop below 13p within a week, even more so that Maj101 agreed with me - sorry Maj, looks like we were both wrong, for now at least.
Whatever happened to Truthfactory, was posting all the time about LDG/Eddie Stobart but nothing for ages now? I thought his opinion was always good value and seemed to have a good idea what was going on. Where are you TF, we could do with your insight into the current situation.
Hold and wait..... but for how much longer?
I guess there's so little to talk about as it's just sitting on cash until we get news of an investment, that being said it's at such a discount to the current holdings that I don't feel it could really drop too far from here anyway. Some big buys this morning.
The value of the new business venture will be outside the scope of current sp management
PatShare
Used to be such a busy board with the same old names consistently sharing their wisdom. Truthfactory is still about, saw him posting on the Nanochance (NNN) board this morning!
You are right it would be interesting to hear his take on the current situation?
Nicnic - Quite. Where are they all now?
As I said before I'm a real novice at this game but I always found Truthfactory's posts to be based on some sort of reality unlike some I've read! And yet he was always being accused of ramping/de-ramping/optimistic/pessimistic/ paranoia etc. no wonder he stopped posting on LDG!! Always sounded like he knew what he was talking about to me.
SP has help up well today and looks to have closed just short of 14p despite my own pessimism about the SP just a couple of weeks ago - maybe people staying more interested in this than I thought?
What would you like truthfactory to say?
Ldg have 130 million in the bank. There is no opinion required. That equates to about 19.5p a share.
DBAY are the investment managers. Only question to ask yourself is if you believe DBAY will make good decisions with that money. So far we have no indication on where it is being invested.
Win win from here.
Only 2 things that will happen in my view
1. Dbay will invest in some company/companies. They are no mugs and will only invest if they/we are going to make money.
2. The cash will be split between the shareholders , so around 18/19p per share.
Risk is minimal as we hold the 130+ million in cash.
Sp cant go down much as we hold the cash but cant go up much either as we have no assets.
If you are watching the sp waiting for a rise or fall it wont happen without news.
Waiting game
Berg
Agreed. Win win.
Even though this stock shouldn't have any beta. I think it might fall if markets fall. But it really shouldn't as just 100% cash.
Just means it becomes extremely cheap and then even Truth Factory might turn up again.
Patience.
Thank you all, looks like we are all thinking and saying the same thing. Looks like todays market falls have dragged the SP on this down too so I will watch with interest and may top up if I think it has dipped enough - I don't have much to spare but happy to add a little.
Re. Truthfactory - I wasn't wanting him to say anything in particular or looking for any sort of approval or affirmation, just thought it would be interesting to hear what he had to say. I don't believe he is even invested here anymore so that was probably why he stopped posting?
Thanks TF, good to hear your thoughts.
Am I right in thinking that either scenario should be a good outcome for investors? I keep reading how DBay have a good record at this sort of thing, so if that is the case why isn't everyone piling their £'s into LDG at the seemingly bargain price of 13p or so? After all they have no assets, so nothing that can depreciate (or rise), and the Company value is all in the cash it holds, so presumably very low risk from an investment point of view? Exactly what Bergcarls said a few posts ago.
Look forward to whatever happens next, will be interesting to see what they decide to do, and hopefully we will all be very happy investors.
Buying more on dips got loads under 10...
Good to see an active thread on this. I’ve got a very large position here relative to my overall portfolio so interested to read alternative views.
On the face of it the substantial discount to cash makes this looks a no brainier investment. I’d guess the fact that it looks too good to be true is one reason investors are put off or at least start looking a gift horse in the mouth. Maybe the other is the woeful track record of Stobart even if that is history now. However, I’m guessing the major reason is the relationship with DBAY as both investment adviser/manager and largest shareholder looks odd at first sight and worries that there are conflicts of interest or worse a future stitch up. Finally there is uncertainty about what will be the outer for the share to be priced at fair value.
It would make sense for the Board to start buying back the shares at current prices as this will further increase the NAV and should close the current discount but given that they haven’t so far suggests they want to hang on to all the cash for prospective investment though with new execs on the Board maybe this will come up on the agenda.
DBay as investment manager has a typical private equity 2 and 20 arrangement for AUM and disposal so nothing to get alarmed about there and they don’t get that 2% fee on the cash.
Given the track record of DBAY (and it’s founder Laxey) for making value based acquisitions at discounted prices I’m assuming that whatever they buy will stand up well on value metrics. This means there will effectively be a double discount on the acquired company for shareholders who have bought in at the current price because of the significant discount to cash.
In short I can’t picture a situation for investors where this doesn’t play out positively for patient investors who buy in at the current level but welcome alternative views.