Mallett Share Discussion Threads

[bam bam rubble] 20/5/2014 15:59

With such an unpredictable art/antiques market, why would an art dealer remain listed?
The CEO conceded: "Being a public company of this size in a business that is very hard
to read, is not a comfortable suit. It is no surprise it is rare to have a listed art dealer." It is thought Mallett could now look at going private or moving down to AIM.

A move to AIM wouldn't do much for the 'prestige' factor so that idea is a non-starter.
If the plan post-2014 is to take it private, explains the special dividend as a way of preparing an exit. Makes sense since it doesn't really work as a listed company. Could almost say Mallett no longer works as a company; hasn't made an operating profit since pre-credit-crunch H1 2007.

[orinocor] 20/5/2014 15:50

He's still at. He's been as wrong as anyone can be about Masterpiece for the last 5 years so why should this year be any different.

Mallet's share of the profit was £32,000 so where does he get 87,000 from. With his track record on this it would be very wise to double check his figures.


Rainmaker
20 May'14 - 08:28 - 6104 of 6104 0 1

Thanks for the link, Smicker. I should add that Mallett own 23.75% of Masterpiece,the annual art, antique and design exhibition, the UK's leading exhibition with some 157 stands and 34,000 visitors at last year's event. Their share of the profit last year was £87k so the exhibition made some £366k. For numerous reasons ie a first time lead sponsor, a £5 hike in admission prices this year,I expect profits to roughly double this year. Mallett and the other four founding Partners originally put £150k each into the business which was profitable in just its second year and repaid the investment back in three years.

[longinthetooth] 20/5/2014 11:37

These shares are tightly held and the market in them thin at the best of times more so when there are no doubt many stale bulls who piled in only last week at 85p!!Add to that longstanding holders who have become increasingly disenchanted and there is a stampede for the exit which can not be accomodated.With small caps in particular remember the mantra-sell into strength and buy into weakness!!The market makers want you to sell in the same way they wanted you to buy when the shares were ramped up prior to going Ex Div.At this level these shares are a strong hold if not a buy for those with nerve but not a sell.

[callumross] 20/5/2014 10:47

Finding it really difficult to get out of this one in any size. Finally lost patience with this management and their repeated failures to turn round the business and not run it for their own benefit.

[silkywhite] 19/5/2014 16:43

rainmaker so how is 93p the minimum liquidation value.
how did you work that out

[longinthetooth] 19/5/2014 15:38

Special Dividend,and especially its size, is probably a pacifier for major shareholders whilst improved trading conditions are awaited.

[strange1] 19/5/2014 15:03

Still not sure I'm comfortable with a board proposing a special dividend when current trading doesn't offer any confidence that the cash won't be needed before positive flows are restored.........walking a very fine line

[longinthetooth] 19/5/2014 12:53

Agreed if the two major shareholders vote for the Special Dividend it gets paid but not quite a formality?I will declare an interest in also topping up this morning but do not be too surprised if the shares test the 50p mark in the short term especially following likely negative Press sentiment(if any one is still interested)following the AGM.

[rainmaker] 19/5/2014 12:44

guys I fully appreciate it's ex dividend

[cockerhoop] 19/5/2014 12:36

Surely the dividend being approved is a formality, after todays negative trading statement the shareholders are even less likely to want to leave the cash within the company!

FWIW I have topped up this morning although my trade did go through as a sell. With the current asset/liability situation here I can't see enormous downside. (and would therefore at current levels recommend to both widows & ophans :-))

[longinthetooth] 19/5/2014 12:28

On the plus side turnover in the decorative arts market,especially at the lumpier end,does not materialise in equal monthly installments.A poor 1st half could equally as easily be followed by a record 2nd.However PBT in any year seem a long way off given the current level of fixed costs.Whilst this may well be a middle/long term value play with potential takeover interest from either the States or China there is still plenty of cause for caution in the short term with the dividend NOT yet approved,todays profits warning and PG no doubt becoming increasingly impatient.Not for widows and orphans!!

[sirhedgealot] 19/5/2014 10:51

Its not like he had a hedge fund and client money, it was a credit line. As far as I'm concerned that's just pure leverage without caveats. Anyway ho hum. Rainmaker, would you care to comment on the ex dividend matter?

[sirhedgealot] 19/5/2014 10:48

Baner,Oh yes he has for sure and well done to him personally. But he went bankrupt twice getting the job done and turned over his brokers. I take quite a hard stance on hardcore speculation and leverage and don't have much respect for people who risk everything just to make a return. He had to go back to his partners for money money, a disgrace. Nothing personally against him, I just think he's a gun slinger and that results in regrettable outcomes.

[baner] 19/5/2014 10:40

sirhedge

but still he has made an absolute fortune from his investments - i do not understand ?

[silkywhite] 19/5/2014 10:34

rainmaker
do you realise the shares are ex-dividend?

[sirhedgealot] 19/5/2014 10:00

Sure, sorry I didn't articulate my meaning well. Gylenhammer has gone bust twice with leverage. I appreciate it has nothing to do with mallet specifically. But basically he used £50k capital and a two million credit line to punt small caps and went bankrupt, then he did it again. He also owed 200k to a brokers which he lost due to a rights issue, he refused to pay then astonishingly got a job advising the brokers.I used to work in a brokerage who had a past involvement in Aim stocks and the are some colourful characters I met over the years who perhaps had more money and risk appetite than sense. What Gylenhammer could do would seem unpredictable. He has a history of being involved with company's where he has made little or no positive contribution. I've turned down a few micro cap ideas over the years because he's been on the registrar.

[baner] 19/5/2014 09:46

have i missed something here - what did Gyllenhammer do with leverage - in relation to Mallett or what ?

[sirhedgealot] 19/5/2014 09:39

If they go to under half book value after taking into account the dividend then in the great words of the ex governor of California....I'll be back. Gla, I know its cheap and probably something good will come of this. I'm not going to lie, Gylenhammer makes me nervous, what he did with leverage is beyond insane in my opinion.

[sirhedgealot] 19/5/2014 09:34

I truly hope they pay the dividend. Releasing this news after the special dividend date has not sat well with me. If they pass the dividend in June will the stock drop on confirmation of a payout from assets. Surely it hasn't been completely priced in. For this reason I have sold my whole position this morning in view of breaking even on the special dividend and thus gaining a realised loss against CGT. Disappointing.

[baner] 19/5/2014 09:31

recently Mallett´s BOD decided not to reduce its NY premises as sales had picked up so much. it also decided to retain the highly remunerated CFO - who they twice had confirmed would resign in 2013 in order to cut Mallett´s excessive costs - without a need for replacement (which was lass of a surprise).

five months into 2014 both reversals seems to be less than wise decisions - but what can you expect from this BOD? the strangest thing with Mallett is why on earth Weinstock and Gyllenhammer allow these muppets to run the company - do they enjoy losing their money?

[envirovision] 19/5/2014 09:23

Just to clarify. For the naive, ignorant or stupid, its a profit warning.

Sorry fozzie only just saw your post, i was asking because i was reading your earlier posts as though you were trying to say it wasn't yet ex dividend.

[rainmaker] 19/5/2014 09:18

IMO -absolutely ridiculous, adjusting the net sales proceeds for the return of capital gives a minimum liquidation of 93p a share so we're currently trading at about a third discount for a Company that was forecast to make some 7.1p next year and 9.3p in 2016 so prospective p/es of 9 and 7. All the trading statement says is that SO FAR this year trading has been slower than expected and lower than last year but the Company commented that sales these days are generally lumpier and they are approaching a important business period with potentially much improved sales. Wake me up, I'm dreaming......."Mr Market" is in a terrible mood today.

AIMHO, DYOR

regards

[rainmaker] 19/5/2014 09:06

TIDMMAE
RNS Number : 4012H
Mallett PLC
19 May 2014
Mallett PLC
Interim Management Statement
Mallett PLC ("Mallett" or the "Company"), the dealer in high quality antique furniture and works of art, issues the following interim management statement for the period from 1(st) January 2014 to 16(th) May 2014.
Current trading
Trading for the first four and a half months of the year has been slower than we had anticipated with sales lower than for the same period last year. We had a successful European Fine Art Fair in Maastricht in March but otherwise trading has been relatively quiet, which we believe has been the case for the decorative arts market in general.
However, our trading pattern is becoming increasingly volatile with periods of lower value trading followed by shorter vigorous periods of premium trading. We are now approaching a potentially stronger period of activity including the release of our Spring catalogue, an exhibition of bronze sculptures by Ben Panting at Ely House starting on 20(th) May and the Masterpiece fair in London at the end of June. We will also shortly be going live with our exciting new website which will become a key marketing and sales tool expanding our reach around the globe.
Financial position
Our inventory level remains at a similar level to the start of the year and we have a net cash position following the receipt of proceeds from the sale of our freehold property in Clapham, London in February. A resolution is being proposed at our AGM on 27(th) May to pay a special dividend to shareholders of 12.7 pence per share, to return the majority of the proceeds from the sale to shareholders. If the resolution is passed, the dividend, totalling GBP1.75m, will be paid on 13(th) June 2014.
For further information please contact:
Giles Hutchinson Smith, Chief Executive 020 7499 7411 Forward Looking Statements
This announcement may include "forward-looking statements". All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Company's products and services) are forward-looking statements. Forward-looking statements are subject to risks and uncertainties and accordingly the Company's actual future financial results and operational performance may differ materially from the results and performance expressed in, or implied by, the statements.
These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect actual results or any change in the assumptions, conditions or circumstances on which any such statements are based unless required to do so by the Financial Services and Markets Act 2000, the Listing Rules or Prospectus Rules of the Financial Conduct Authority or other applicable laws, regulations or rules.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IMSEAKSKFADLEFF

Mallett (LSE:MAE)

[sirhedgealot] 19/5/2014 08:59

Well, I've woken up to better news.