|Medsea Estates Group
||EPS - Basic
||Market Cap (m)
Real-Time news about Medsea Estates (London Stock Exchange): 0 recent articles
|flateric: Maybe they should give some sort of trading update? It's been a while. That would be correct for a company whose share price has fallen from 85p listing to 3.8p.|
|guru11: I did wonder with MEA that although we have had some bad news in one area of their business whether the other areas of their busines would not bail the poor area out. The graph does not make good reading or inspire confidence and one has to ask over the last 2 years if management has not been able to add value to the share price are they doing a good job, when one remember this has come down from 40p.|
|drain: Please note that the Company raised #700,000, before expenses, through a placing of 7,000,000 of new ordinary shares with NEW INVESTORS, and this included two of the directors of the Company, namely:
Mr. Kenneth Burrage: 350,000 Ordinary Shares
Mr. Graham Jeffs: 50,000 Ordinary Shares
You can be sure that the other NEW Investors are connections of the Gatehouse family.
Following the issue, the Company has 77,979,412 Ordinary Shares in issue and the two controlling Executive directors( Gatehouse & Martinez) own 82.38% of the shares.They have not reduced their holdings since flotation and have every incentive to get the share price up.The free float is so small though.
We will just have to wait for something interesting to happen.
|giddygoat: I agree with you both on this. I'm sure the story here is turning round and no reason this cant become a growth co. I'm already in this so am happy to stick with it and watch the plan unfold. If MEA can report eps of 3.5p this year and a positive outlook Im sure this will be much higher than 12p. Until the share price trend changes tho I would wait for the bottom (I'll look to add a few at that point too).
Wouldnt disagree on the PR front but to be fair to the co. there Trading Updates give plenty of £ figures and actual sales numbers which is why Im very comfortable to hold. Media sentiment against Spainish property in general had a bigger negative impact on share price than the positive share price movement from a strong trading statement saying more of co.'s sales are in Italy and MEA's bit of Spain is fine too.
As Directors couldnt sell shares for a period following float and have such a large holding does anyone have a view on whether the possibility of them selling would keep the Share Price marked down?|
|grahamg8: Flat Eric
I agree there is a positive view that can be taken, but since around March virtually all posts have concentrated on the P/E and assumed that a share price rise was inevitable/imminent. I wanted to show that there were some very good reasons why the price was so sluggish. So here's the positive side:
Share liquidity is gradually improving
A trading range of 12-20p seems to be establishing, just about wide enough to interest short term holders.
Hidden value in the development projects which will only show up in the P/L a/c when completed.
No longer really dependent on the Spanish market, eg already selling more properties in Italy.
Invested in diversification and partnerships and so poised for expansion.
So unless management get greedy or slip up in a big way the share price will eventually begin to reflect a steady flow of good news. Timing is the problem, not the likely outcome.|
|flateric: I forecast genuine growth in share price. There, does that count?
Mkt.Sector AIMT Mkt.Segment AIMI
Turnover 13.30 Profit 2.89
Norm EPS 2.66 P/E Ratio 6.02
Market cap 11.25 NMS 500|
|giddygoat: Todays Trading Update:
Medsea has noted today's UK press commentary on the Spanish property market and
in the light of the subsequent share price movement this morning, the Company is updating the market on first quarter trading.
Unit sales in Spain in the first quarter of 2007 were marginally ahead of
last year at 110 compared to 105 unit sales in the same period of 2006.
Unit sales in Italy were 151 in the first quarter of 2007 compared to 41
in the first quarter of 2006.
Since the first quarter, current trading across the Company is in line
with market expectations.
Tony Gatehouse, Chairman, commented "While there have been some issues in the
Costa del Sol market, that is a localised problem and Medsea does not operate in that region. We are selling residential property in other coastal areas where selling prices are being sustained and demand from international buyers, who account for the bulk of our sales, remains firm.
"Meanwhile our operations in Italy are performing particularly strongly as can
be seen in the first quarter sales and selling prices remain buoyant having
risen by approximately 40 per cent in the last 12 months."|
|drain: It does still seem totally under-valued and I thought this in February when I bought at 13.4p expecting eps for 2006 of marginally more than 2.0p. The main concern for me then --and still now-- was the credibility of the company following the announcement of a (small) loss in the year after joining AIM.Afterall it was only an estate agency so would not expect it to be on a high P/E but after that setback it will take a long time for the market to gain confidence in the management( who control the company).
I invested because of the potential property development profits which seemed a new avenue of income and their link-up with SAGA last year.The latter seemed a major step forward for them. SAGA is a powerful and trusted brand and Medsea Estates work with Saga's Overseas Home Service( see Saga'a website) in the Costa Blanca area with 5 developments.The range of benefits of the SAGA scheme is extensive and I would feel more confident buying a property in Spain through SAGA rather than a Spanish developer!!
I am not sure what is a reasonable target price--eps of 3p (minimum) in 2007 and a P/E of only 10 means a share price of 30p.This must be very conservative and remember the original float price.
|flateric: They are chucking cash into that big developement of land, reading between the lines etc. Call the company's office in Torrevieja. Tony Gatehouse is Chairman and Juan-Carlos is his right hand man. I did some homework. This is a genuine growth job, after a poor year in Spain all-round last year. Check out the history of accounts. It's no fly-by night affair.
One to watch, but I suspect with all the volume over the months at 12-20 share price, there will be some overhang before the fundamentals really show in the price - profit taking etc. Just my opinion.|
|redm1re: A good point Yorked. My own investment criteria, particularly in these smaller companies never really takes dividend into consideration.
I agree it might underpin the share price a touch, however I am also keen for a company at this stage of a recovery to re-invest the profits in further growth. Personally I would like to see these investments pay off and if they use my potential dividend to do so that's fine by me.
Minimal debt is also an attraction to me here
Each to their own of course|
Medsea Estates share price data is direct from the London Stock Exchange