LCL 10.0% 0.9¢ lcl resources limited

picked up another 100000 shares in that drop a couple of days...

  1. 146 Posts.
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    picked up another 100000 shares in that drop a couple of days ago - average price of 72.7. I notice the Hunter Hall guys got some at 71 cents.

    Any of you guys willing to make an estimate of their cash position.....
    Current market cap $73 million. Rough calc (well call it a guess) of cash position is $9 million for the property sale (allowing for some tax) + existing cash of $4million at half year + reduction of inventory level back to more normal levels $10 million(they talk about this in the boardroom radio preso. 10 million is my estimate not theirs) = grand rough total of $23million. Does anyone still wonder why Gerard and Hunter Hall are buying!!!!!!
    (and don't forget the franking credit balance which is very handy).

    Here are the possible outcomes I can think of - let me know if you can think of any more:
    - they pay out a big special dividend to get rid of the cash and improve their return of assets.
    - they make a big acquisition (hopefully on a low earnings multiple)
    - they get a takeover offer from Gerard for part or all of the business. Probably Crompton would fit nicely with Gerards Pierlite- not sure about the rest of lighting corp.
    - Gerard offers to sell them Pierlite - the LCL guys say they have approached him previously. Not sure this is a good plan - better to expand in their high margin businesses as they are currently doing. Although buying Pierlite would produce costs saving across both businesses and give LCL a very big share of the lighting wholesale market.
    - they buy back some shares- good for the shareholders who hold on.
    - a certain Oz investment bank offers to take them over (for the good of the country)....just joking.
    - none of the above.



 
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Last
0.9¢
Change
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Mkt cap ! $9.648M
Open High Low Value Volume
0.9¢ 0.9¢ 0.9¢ $18.81K 2.090M

Buyers (Bids)

No. Vol. Price($)
9 8199322 0.9¢
 

Sellers (Offers)

Price($) Vol. No.
1.0¢ 544597 3
Last trade - 11.25am 04/12/2024 (20 minute delay) ?
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