Mdm Engin. Share Discussion Threads

[king suarez] 11/7/2013 10:43

Popped on my radar today also.. anyone have thoughts on the main risks?

I assume:

1) Africa based - always 'some' political risk?
2) Precious metal prices - at risk of putting some mines out of business if prices don't rise?
3) Competition?

Couple of questions:

1) Do directors hold shares here?
2) I understand the company went bust at some point in the past? Was that under current management/business model - any thoughts what went wrong there?

Thanks!

[greggor] 11/7/2013 10:05

Hi eric,their website is a good place to get up to speed and a small bit of coverage on proactive investors and mineweb.They are making lots of money and have a policy returning 50% of profits to shareholders.

If carlsberg made engineering companies :-)

[xb6] 11/7/2013 09:42

There is no prize weststar but welcome to the thread :-)

[eric76] 11/7/2013 08:54

Popped on to say thanks to greggor for the headup on this one. If its not too good to be true looks a right interesting looking co. Got some research to do on this one today then.

[west_star] 11/7/2013 01:14

XB6 just seen you have a new thread so wanted the honour of first poster ! lol

[west_star] 10/7/2013 23:13

cyber & greenroom those 1m trades look like an MM exchange of some sort,and they have also been delaying nearly all buy trades leading up to the ex divi date.In other words they have been trying to keep eyes off while the boys load up.Tiny freefloat here and they nearly had their market cap in cash before divi,i have a feeling you will see something amazing here and that even includes a possible T/O at a hefty premium.This company actually makes more profit than a few ftse 350 companies i am in !!

[cyberbub] 10/7/2013 22:57

Holy cr*p - look at the major shareholders' page on the MDM webpage... only 3% free float?!

Obviously one of the major holders must be selling some or all of their holding, to have 2 X 1M share trades...

[greenroom78] 10/7/2013 22:53

Matched seller and buyer?

[cyberbub] 10/7/2013 22:50

Hmm, my main worry is that if something looks too good to be true...

Anyone explain the 1M trades both yesterday and today? They must be sells IMO. I notice that there haven't been any holdings announcements for an awfully long time, but surely there must be some RNSes due this week, as each of those trades is for almost 3% of the company?

TIA

[cyberbub] 10/7/2013 22:36

Oh bum. :-(

[xb6] 10/7/2013 22:24

No you have missed this latest divi,you would have needed to buy on tuesday to be on the "record" on friday.I meant that you will have a chance to get some cheap before then as usually after the record date it then starts normal trading again.
As you correctly stated they have a tiny PE ratio on some very nice earnings and profits (hence why i am filling my boots here under £1.50).Check their latest results out from last week and the bosses statement.

[greenroom78] 10/7/2013 22:21

No. Went XD today.

[cyberbub] 10/7/2013 22:11

If people buy tomorrow do they still get the divi?

Is there not going to be another fall in the share price when they go ex-divi?

[xb6] 10/7/2013 22:05

cyberbub,no they have a full order book and a pipeline for future years,so yes it is extremely cheap.It is one of those companies that has gone under the radar that is all but think that will soon change.Chance to get a bargain here before fridays close (divi record date).Could see some super share price growth here plus tasty future dividends.

[greenroom78] 10/7/2013 22:02

Yes I think so. How secure is the orderbook? are we seeing a downturn in a cyclical? But with the dividend policy of them giving us half I am willing to take the risk. A lot of AIM could learn from a dividend policy like that.

[cyberbub] 10/7/2013 21:52

Er, 12% divi, P/E of less than 3 after net cash, what am I missing here? Are people simply worried that the curent downturn in mining will mean substantially less projects for them going forward?

[xb6] 10/7/2013 21:45

"Listen with care.Design with purpose.Deliver beyond expectation"


www.mdm-engineering.com

MDM Engineering......is a metallurgical engineering company which was established in February 2006. MDM Engineering undertakes mineral resources projects of varying size and concentrates on the gold, base metals, industrial metals and diamond sectors.The company offers a range of services from project evaluation and the design and construction of plants to project management.





Share Information as of July 2013


Share Issue - 37.45m / MCap - £45m / Epic - MDM / Dividend Yield 12%



Latest Financial Results as of 2nd July 2013


Highlights*

*Pre-tax earnings increase of 161%
*Revenue of US$ 137.2 million (2012: US$ 89.1 million);
*Gross profit of US$ 33.0 million (2012: US$ 16.2 million);
*Pre-tax profit of US$ 20.4 million (2012: US$ 7.8 million);
*After tax earnings of US$ 14.2 million (2012: US$ 5.8 million);
*Basic earnings per share of US 37.78 cents per share (2011: US 15.37 cents);
*Final year dividend of US 18.90 cents per share (2012: US 5.20 cents)
*Special dividend of US 6.00 cents per share included in the final dividend;
*Full year dividend of US 24.90 cents per share (2012: US 7.70 cents);

Continued commitment to pay 50% of after-tax profits as a dividend to shareholders
and Strong cash position of US$ 34.6 million (2012: US$ 29.1 million) with negligible gearing..............Full Results Statement -


Latest News





"Listen with care.Design with purpose.Deliver beyond expectation"

[west_star] 10/7/2013 16:58

deadly - i meant it was taken from the lse bb,after reading that it crossed my mind that the recent merger negotiations that stalled might have been deliberate on the part of mdm if there is a far east buyer lurking with DEEP POCKETS.Looking at the company,s recent results and progress i dont think they are desperate to merge with anyone but they might just be tempted to accept a buyout at the £2+ levels.

Bottom line here is they have a super business making large cashflows and profits and have no debt,in corporate terms it is a prime TAKEOVER candidate and i think the board of directors know that full well.I have a hunch that this will either be bought out at a hefty premium or get itself listed on the ftse fledgling market in the not too distant future.

[xb6] 10/7/2013 12:02

Think he means lse site deadly? was posted on there yesterday.

ps - this could be a serious multibagger from this level IMO

[deadly] 10/7/2013 08:47

West_Star

Who or what is Lse above?

[west_star] 09/7/2013 23:33

Taken from Lse today


In the latest update to our GOLDEN FIVE shares for 2013,the future for specialist engineering company MDM Group ( LON:MDM ) is looking very bright.The company has come up with some impressive year end earnings figures and announced a 263% increase in its final dividend.Forecasts suggest that the group is ontrack to deliver further impressive growth over the next 3 years and maintain a progressive dividend yield of at least 9% rising to as high as 14% by 2015.The company revealed its order book is bulging and have a strong pipeline of future projects on the table.There has also been sustained rumours that a Singapore based Equity Group has been eyeing the group for a takeover,with figures of £2.25 - £2.65 per share muted.

MDM reported a massive jump in pre-tax earnings of 161% - from to US$ 7.8 million in 2011 to $29.1 million in its 2012/13 financial year which ended March 31st. After tax earnings came to US$ 14.2 million (2012: US$ 5.8 million) resulting in basic earnings per share of US 37.78 cents per share (2011: US 15.37 cents) . This has enabled it to increase its final dividend by an even larger percentage, from US 5.2 cents to US18.9 cents,although this year's final payout includes a US 6 cent special dividend in the light of the company's big increase in its year-end cash balance from US$29.1 million to US$34.6 million.The company is committed to pay 50% of after-tax profits as a dividend to shareholders.

We consider the shares will undergo a dramatic re-rating shortly as the great story here gets out,and the income seekers discover what should be a solid 10% returner,plus significant growth in the shareprice over the next few years. There is still time to get this years bumper payout and the special dividend as it goes ex-dividend on the 10th July.We maintain our "Strong Buy and Hold" rating on the stock.

[deadly] 09/7/2013 16:19

all buys today including one of 1 million, but the price has hardly shifted.
Goes XD tomorrow for 12p.

[soundbuy] 02/7/2013 09:16

Agreed G78

was only looking a a trade myself, macro backdrop and visibility possibly doesn't warrant an investment (as yet)IMHO but I'm often wrong.....