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Logistics Development Group PLC (LDG)

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WickedLester
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Logistics Development Group PLC (LDG)

#437262

Postby WickedLester » August 25th, 2021, 10:10 am

Here's an interesting one.

LDG is an investing company which previously had an investment in Eddie Stobart before it was sold. The major shareholder and investment manager is DBay who are shrewd value investors. I think these are the same guys who were behind Laxey Partners.

Currently the company's main asset is £130m in cash worth about 18.5p a share but the share price is just 14p for a market cap of just under £100m so the shares are trading at a significant discount to net cash.

I expect DBay to reinvest the money but also expect them to do a good job of it given their record.

I don't believe the shares warrant such a large discount to net cash and believe the price should be nearer to 18.5p and hence have bought some.

Anyone have a view?

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Re: Logistics Development Group PLC (LDG)

#437264

Postby pje16 » August 25th, 2021, 10:15 am

Sounds good to me

WickedLester
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Re: Logistics Development Group PLC (LDG)

#467202

Postby WickedLester » December 19th, 2021, 9:24 am

Has the discount to net cash just become too wide here? I believe so and have bought more at 12.4p.

The company now has net cash of over 19p and the discount suggests that the market thinks that DBay are going to screw up but I have followed them for a while and they are very shrewd so I think that is the wrong outlook to take. Their fees are quite high though.

https://www.investegate.co.uk/logistics ... 00026359R/

As at the date of this announcement, LDG holds no material investment assets, is debt free and has an available cash balance of approximately £134.5 million (approximately 19.12 pence per share).

I just hope i'm not missing something here.

WickedLester
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Re: Logistics Development Group PLC (LDG)

#473251

Postby WickedLester » January 15th, 2022, 10:43 am

There was an interesting announcement out of this company yesterday.

https://www.investegate.co.uk/logistics ... 00054644Y/

On 8 November 2021, the Company announced that it had to date received a total net cash inflow of £127.5 million from the disposal of its indirect interest in Greenwhitestar Acquisitions Limited, the holding company of Eddie Stobart Limited, The Pallet Network, iForce, Eddie Stobart Europe and The Logistics People businesses, to Culina Group Limited (the "Disposal"). Following completion of the Disposal, the Company, in conjunction with its investment manager, DBAY Advisors Limited ("DBAY"), has reviewed the investment opportunities currently available to the Company and believes that there will be more attractive opportunities to create shareholder value outside the parameters of the Company's existing investing policy.

Following the Disposal, trading in the Ordinary Shares has been at a significantly discounted level to the amount of available cash per Ordinary Share, thus the Company is seeking shareholder approval to acquire up to 20 per cent. of the Voting Share Capital (the "Share Buyback"), to reduce the observed discount to net asset value per Ordinary Share and provide an exit opportunity for shareholders who do not wish to retain their investment in the Company following the change of the Company's investing policy.


Personally i'm very pleased with this move. Making market purchases of the shares at a discount to net cash will boost the NAV and hopefully close the discount over time. I'm also pleased that they are widening their investment remit as I believe this will make the shares more attractive to a wider audience.

The only real downside to this that I can think of is that if they buy back 20% of their shares it will give DBay a majority holding.

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Re: Logistics Development Group PLC (LDG)

#485535

Postby WickedLester » March 10th, 2022, 9:44 am

The company has finally made at least a small investment in 1m Caretech (CTH) shares. It looks like a short term punt on a takeover to me. I'm not sure this is the sort of thing I want them to be doing. I had expected them to look at making larger strategic investments in underperforming businesses and then turn them around and sell them on, or buy good value companies for a bargain price, something DBAY is good at.

On another note the share buy back has been running for a while and they appear willing to bid up the price to get the shares they want. The current bid is 15p and I have made a relatively low risk 10% in a short space of time.

I'm unsure what to do now, they may keep bidding up the price with the buyback until the discount has narrowed considerably which would suggest another 20% with low risk or should I sell and take advantage of the market fall to buy into another quality company with more potential upside?

WickedLester
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Re: Logistics Development Group PLC (LDG)

#528901

Postby WickedLester » September 9th, 2022, 6:36 pm

I just thought I'd post a quick update about this company in which I have bought and sold shares a couple of times profitably.

The price has fallen to just 12p for a market cap just under £70m, yet NAV is over £110m including over £81m in cash.

https://www.investegate.co.uk/logistics ... 00042905X/

The investment in Caretech should be realised for cash this month and they have invested a couple of million pounds in FIF which I quite like at the price they paid. They say they are eyeing up a few more investments and I believe it is to their credit that they have sat on the cash whilst the market falls meaning they should be able to pay even keener prices for their target investments.

I believe the current price represents an excellent opportunity to back some shrewd operators at a substantial discount to TNAV at a time when most of the market is looking weak and hence I am a buyer.

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Re: Logistics Development Group PLC (LDG)

#529515

Postby Walkeia » September 13th, 2022, 11:52 am

Hi WickedLeicester,

Thanks for highlighting. It would appear this is a European small cap hedge fund style investment with a 2 and 20% payout model. 2% on invested funds and 20% of profits from investments… given they are predominantly in cash this shouldn’t be too high at present and doesn’t penalise investors if they are slow to deploy if I understand correctly.

Interesting proposition indeed

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Re: Logistics Development Group PLC (LDG)

#553442

Postby WickedLester » December 8th, 2022, 6:50 pm

Is there still any interest in this little company?

There's been some interesting news recently.

https://www.investegate.co.uk/logistics ... 30011747I/

A new investment in a company called Synsion (which I know nothing about) of £16m. And a further share buyback of up to £15m or 20% of the shares.

https://www.investegate.co.uk/finsbury- ... 08281289J/

They have also been building a stake in Finsbury Foods and now own over 13% of the company. I don't know how big a stake they are planning on taking or whether this presages a bid or sale of FIF.

Hopefully the share buyback will increase the price and NAV and I remain happy to hold and hope to realise a profit in the not too distant future.


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