Marwyn Value Investors Share Discussion Threads

[mad foetus] 28/7/2016 13:29

I feel the bottom may be in here but am baffled by why the NAV is 2 weeks in arriving - surely it is easy enough to work out given the small number of holdings here.
Perhaps if the lovely Louisa from Axio is reading this she will speed up her team.

[skyship] 27/7/2016 17:57

Ahh - thnx Tilts - an email headed yr way...

[tiltonboy] 27/7/2016 17:54

All purchases.

[skyship] 27/7/2016 17:36

Unfortunately saw all those trades @ 151.5p too late to test whether purchases or sales. Anyone know?

[spectoacc] 22/7/2016 10:22

Thanks :mf :)

[davebowler] 19/7/2016 10:28

Liberum;

Marwyn Value Investors (BUY)
BCA acquisition

Event
BCA Marketplace plc. (13% of Marwyn's NAV at December 2015) this morning announced the acquisition of Paragon Automotive Ltd. Paragon is a leading UK provider of outsourced vehicle services to automotive manufacturers and fleet operators. The company was acquired for an enterprise value of £105m, with further earn out payments of up to £30m due subject to achievement for various market and financial targets over FY 16/17 and FY 17/18. The acquisition and earn out payments are to be funded by BCA from existing resources. For the 12 months to March 2016 Paragon's revenue and (normalised) EBITDA were £158.2m and £11m respectively.

The acquisition of Paragon is in line with BCA's growth strategy and further expands BCA's service offering to include rental, leasing and corporate fleets. Following the transaction BCA will manage over 1.5 million cars a year in the UK.

Liberum view

BCA is also seeking to broaden and increase the penetration on value-added services which help to retain the customer base and drive revenues. The end-to-end solutions enhance user stickiness by increasing supply and buyer demand. Today’s acquisition follows a number of other recent bolt-on acquisitions expand ancillary value-add services such as refurbishment and logistics.

Marwyn Value investors currently trades at a 27.8% discount to the 30 June 2016 NAV of 209.8p.

[davebowler] 14/7/2016 10:31

Liberum;
Proposed delisting of Marwyn Management Partners

Event
The board of Marwyn Management Partners (MMP) is seeking shareholder approval to delist the company. It is being recommended on the basis that the rationale for remaining as a public company has been undermined given the lack of trading in the shares, the tightly-held register and the costs of maintaining a listing.

By way of background, Marwyn Management Partners is a holding company listed on AIM that was launched to pursue acquisition-led growth strategies. MMP is the majority shareholder in Le Chameau a producer of high-end rubber boots, footwear and apparel. Marwyn Value Investors LP (the Master Fund) is MMP’s largest shareholder with a 90.1% stake. The Master Fund has indicated it is supportive of the proposals and will acquire shares at 2p per share (yesterday's closing price) for any investors who wish to exit their investment.

Liberum view
The proposal would appear to make sense given the company's small market cap (£15m) and the unlikely prospect of raising capital for the company in the current market. MMP accounts for c.9% of Marwyn's NAV and it has undertaken a number of strategic initiatives to transform Le Chameau in 2015. It has taken longer than expected for revenue growth to materialise and revenue for 2016 is expected to be down on the previous year. We have included no upside from MMP in our NAV forecasts for Marwyn. Marwyn currently trades on a 28% discount to NAV.

[skyship] 13/7/2016 10:23

I had missed the fact that MVI was now paying a Qtly dividend. 4 x 2.064p gives an annual 8.256p, so at 153p the yield = 5.4%. Not bad!

An odd dividend amount. Is it based upon something in particular?

I've been out of these since the 220p days; but @ 153p the discount = 32.3%; up with the other deep discount players like APEF/BPM/DNE/JPEL/LMS/NBPE & SEP (NB: some of those assuming NAV mark-ups on post Brexit currency weakness).

So, taken a few @ 152.7p XD; even though that Zegona holding is very much NOT what I like to indirectly hold. Still, you others seem relaxed on that score, so I'll chance some spare cash at this level.

Can any of you comment on that odd dividend level. Was it perhaps intended to provide a target yield at a particular price; or is it just Robert Ware being Robert Ware?

[tiltonboy] 13/7/2016 09:03

Specto,

It's because it's listed on SFM!

Pain in the rear end!

[mad foetus] 13/7/2016 08:52

Having met Mark Watts at the last AGM, he struck me as someone who was all over the detail of the investments and has a good track record. Having said that, I'd like to see some progress on GLOO - a first class management team in place for a year now and still no platform in place. Finally, lots of new instis bought in last year at £2+ - they will no doubt be exerting some pressure behind the scenes. Maybe the Liberum note is a sign that things may be about to start happening.

[spectoacc] 13/7/2016 08:48

Looks like we've yet another share in common @tiltonboy - if MVI good enough for you, they're good enough for me. Portfolio concentration a concern, as is the 2% annual charge (based on success of a single punt in the past, tho hardly high for p/e), but the double-discount and yield is too good to ignore.

Incidentally, had to fill in an "appropriateness for complex instruments" form before TDW would let me buy them.

[tiltonboy] 12/7/2016 13:55

Back in today. Hopefully they are close to bottom!

[oregano] 11/7/2016 11:00

thanks DB.

Zegona directors buying i see. that is now on 7x EBITDA, which for a stable cable asset, is cheap.

MVI appears cheap, but very easy to buy. is there an overhang? Presumably mgt will attempt to narrow the discount.

[davebowler] 11/7/2016 09:59

Liberum
Marwyn Value Investors* - Initiation
Undervalued high-performer
BUY
Target price 185p | Publication price 149p | *Corporate Client of Liberum

Marwyn Value Investors’ unique strategy has delivered 199% NAV return since 2006. Marwyn partners with proven management teams to implement a private equity investment strategy in listed sector-specific platforms pursuing buy-and-build strategies. The shares currently trade on a wide 30% discount to NAV (5.6% dividend yield) with potential catalysts including capital deployment and further upside from the existing portfolio. Buy.

Leading performer

NAV TR of 199% since 2006 (vs. 67% All Share return) driven by 2.6x realisation multiple. Marwyn ranks second amongst its PE/small-cap peer group over the time period.

Returning capital

The fund is committed to returning capital with 50% of net realisation gains returned to shareholders. Quarterly dividends currently equate to a 5.6% dividend yield.

Unique strategy

The fund backs leading management teams to create value through buy-and-build strategies. Marwyn has constructive influence over strategy and is often the largest investor.

Valuation

Marwyn now trades on a 30% discount to NAV. The price implies a 47% discount on Zegona and BCA positions (ex-cash and assuming 50% discount on remaining assets).

[davebowler] 22/6/2016 09:04

Liberum;
Zegona terminates Yoigo negotiations

Event
Following the update on the Yoigo transaction issued at the start of this week, Zegona have this morning announced that it had terminated all discussions on the transaction. This announcement follows the news that another bidder, MASMOVIL, has signed an agreement to acquire 100% of the shares of Yoigo. As described earlier this week Zegona had fully agreed documentation and secured 100% underwritten financing for the transaction, but the transaction required the agreement of all the existing shareholders individually and in aggregate, and as it transpired, the MASMOVIL offer was significantly higher (at least 35%) than the price Zegona was prepared to pay for the business. As such, Zegona decided that it was in the best interests of shareholders to disengage to focus on other 'Buy-Fix-Sell' opportunities in the European TMT sector.

Zegona is now the largest position in the portfolio (33% of NAV) following the IPO in March and further placing in July to acquire Telecable De Asturias in Spain, which reported strong Q1 2016 performance this morning. Revenue growth increased by 5.7% to €34.9m and cash flow was up 11.1% to €8.8m. Improving cash flows was one of Zegona's key targets for the business. The company remains on track to deliver full year revenue growth in mid-single digits and double digit cash flow growth, driven by growth in the business and mobile divisions and consumer price rises.

[mad foetus] 03/6/2016 18:04

ZEG's non -exclusivity period for talks has ended, update due
BCA starting to tick up
Discount is at its widest point
Could be a good time to get back into MVI imo.

[tiltonboy] 28/4/2016 10:22

If I didn't have such a mistrust of the managers who run the fund, I would be tempted back in at these levels.

[mad foetus] 25/4/2016 14:11

from pickledcabbage on the zeg fred:

Zegona confirms exclusive talks to buy Yoigo



...Zegona said that there was still no agreement, however, “even in principle”. It said that it had entered into an exclusivity agreement with TeliaSonera, the Swedish telecoms group that owns Yoigo, but added that other “stakeholders would also need to be involved in any transaction”.

Zegona said that the acquisition may be classed as a reverse takeover on the basis of the terms under discussion, which caused the company to request a temporary suspension of trading in its shares.

A price of about E500m has been rumoured for Yoigo, which has been put for sale in the past by TeliaSonera but without finding a buyer, while Zegona has a market capitalisation of about £250m.

The group has been backed by funds from investors such as Neil Woodford, Fidelity and Standard Life, but typically seeks to raise extra finance after it has agreed to a deal."

[tiltonboy] 11/4/2016 15:22

I had planned to sell the balance of my holding in the new tax year, but given they have fallen from 220p, I'm going to give them the benefit of the doubt from here.

[mad foetus] 11/4/2016 14:25

2 decent directors buys in the last week, here's hoping this is the bottom.

[mad foetus] 18/3/2016 14:07

ZEG busy, please let GLOO be next!

ZeGONA RESPONDS TO RECENT PRESS SPECULATION

The Board of Zegona Communications plc ("Zegona" or the "Company") notes the recent press speculation concerning a possible acquisition of Yoigo, the Spanish mobile telecommunications business. Zegona can confirm it has entered into an exclusivity agreement with TeliaSonera, the parent company of Yoigo in relation to Yoigo's acquisition. Various stakeholders would also need to be involved in any transaction and the Company has no agreement, even in principle with them. The current negotiations may not result in the execution of binding acquisition agreements.

On the basis of the terms currently under discussion, the consideration for the acquisition may cause the transaction to be classified as a reverse takeover under the FCA Listing Rules and therefore the Company has requested the temporary suspension of trading in its Ordinary Shares.

[tiltonboy] 17/2/2016 17:55

Wrong thread SKY!

[skyship] 17/2/2016 16:24

p49b - Re my Post No.830 above.

The well respected VALUE play columnist Simon Thompson of the Investors Chronicle yesterday, in his regular Online column, tipped LMS as a BUY ahead of the upcoming Finals - exactly as I did on 4th Feb.

Personally I feel this may be the last time to buy them sub 70p; but this "Heads-up" is not intended to ramp, just an advisory note.

I am unable to post his full, well justified recommendation, as the IC is a subscriber service; however I'm sure you will be able to find the piece somewhere if sufficiently interested...