Inveresk Share Discussion Threads

[hybrasil] 30/9/2007 07:06

MJCROCKETT
Thank you for pointing that out.
I will go and do more homework and try and go and see both sites. It will probably take me at least four weeks to do that before I post again.
However you do seem to agree with me that this is merely a property company with a loss making paper business. If that is the case the only issue is the valuation of the sites.
On the basis of the accounts however do you agree that this is way overvalued.

[esmerelda] 29/9/2007 23:54

Surely that only works if the business is sold off without the production capability?

[mjcrockett] 29/9/2007 23:39

hybrasil, no time for a detailed reply, but you are missing something. The Somerset mill is on a 30+ acre site in a prime location. As soon as the business is sold off this land will be sold for development - probably worth a lot more than Inverkeithing.

MJ

[hybrasil] 29/9/2007 20:59

MJ Crockett -- I take the bait.
My logic is as follows and is all based on the interims.
The company is running at an operating loss of £974000. The statement says "Margins continue to be under pressure".
The profits arose only because of real estate sales.
The company has effectively put its paper making up for sale as they talk about playing a part in the consolidation of the industry.
They say "Real estate plays a more significant role in terms of profit and cash generation".
So what have they-- As I see it and please correct me a loss making paper making business probably worth less than the net assets employed in it and real estate principally the site at Inverkeithing bay. I dont know whats that worth - Any help?
But as sure as eggs is eggs if this is a property company it not worth 75% of net assets and this thing is trading at nearly twice net assets.


I would be delighted to hear anyone elses views.

[mjcrockett] 28/9/2007 16:20

Cisk, I suspect you will not get any reasoned answer to your question. Personally, I would welcome the buying opportunity that a 40% fall would bring, but I do not think we will see that.

MJ

[cisk] 28/9/2007 09:31

hybrasil, on what figures do you base your statement?

[hybrasil] 28/9/2007 09:04

This mornings results.
This company is way overvalued.
If you are buying or holding it as a property play have a look at property companies. They trade (eg warner) at up to 40% discount to nav.
This company has 2 business's paper which they admit is finished and obviously want ot get out of and property. Its currently trading at 2 X assets. I suspect you could see a 40% fall in the share price from here.

[ade13] 21/9/2007 16:24

MJ Thanks for that as I thought, I belive the company is now Debt free as it sold one of it's site's in Scotland and they also have planing permission for there other on the Fife.

[mjcrockett] 21/9/2007 16:07

Cisk, Yes they were fairly upbeat on the long term land asset values, but not on the paper business. The furniture paper business is very competitve and Inveresk just cannot survive in this environment.

Ade, their long term plan is to get out of the paper business. They would not give details of specific plans, but I suspect it will not be long before we see an announcement re the future of St Cuthberts.

MJ

[ade13] 21/9/2007 12:32

MJ, Did they say what plans they had for there St Cuthberts paper mill in Wells Somerset?

[cisk] 21/9/2007 10:42

MJ, didn't even realise that there was an AGM yesterday...

Were they upbeat? Any news on timescales for property disposals?

I've heard net asset values upwards of 100% of current share price. Anyone concur with this?

Cisk

[mjcrockett] 20/9/2007 17:34

I went to the AGM yesterday. Having spoked to seome of the directors, I believe that they are doing their best for the benefit of all shareholders in difficult circumstances. I understand that there may be an update RNS in the near future.

MJ

[cisk] 20/9/2007 12:49

JW, did you buy on Charles Stanley recommendation?

[jonny wilkinson] 20/9/2007 11:32

Cisk - 20 Sep'07 - 10:26 - 901 of 901

Agree , shareholders have right to be disappointed with this stock and lack of info flow. No research notes published , Directors appear to have little regard for minority shareholders, is this all part of master plan , enabling Directors or Majority Shareholders to pick this Company up on cheap, very concerned as substantial amount monies invested for last no years.

[cisk] 20/9/2007 10:26

Has anyone any news on this one? It seems to be doing nothing but go down on lack of an update....

[ade13] 26/6/2007 14:05

you want to work for them no 1 pay rise in 5 years

[mjcrockett] 22/6/2007 09:34

£11m for Carrongrove is pretty good, but trading is very weak. The comments suggest that disposal of St Cuthbert's is high on the agenda. The mention of St Cuthbert's being a 30+ acre site show where IVS see the real future.

MJ

[jonny wilkinson] 02/6/2007 20:41

Arthur_Lame_Stocks - 26 May'07 - 09:20 - 897 of 897

Thanks for this, interesting article.

Link below additional info which may also be useful

[arthur_lame_stocks] 26/5/2007 09:20

This might be worth a read:

[mjcrockett] 23/5/2007 12:40

Lot of substantial trades around, so I guess news is in the offing. Perhaps news included in the results. Likely candidates for good news are Carrongrove land sale and the sale of remaining paper business. With this sort of price movement, I would hope to hear something this week.

MJ

[ptolemy] 23/5/2007 12:34

Clearly not a lot of stock about; price ticking up on each small purchase.

Yes, perhaps there'll be an RNS soon, if yesterdays trades were on one-to-one trades.

[pa disaster] 22/5/2007 21:41

most interesting.....

[mjcrockett] 22/5/2007 16:22

Ptolomy, Thanks for pointing out those trades. I had not noticed them. Around 5% of the company's shares traded today, so we may have an RNS shortly.

MJ

[ptolemy] 22/5/2007 15:52

One of those mystery days; some big trades but no price action or news...

[mjcrockett] 18/5/2007 10:01

They were 1st June last year and mid April the previous year. They have to be submitted by 30th June. Perhaps they are delayed because of some exciting news the company is waiting to tell us!

MJ