Melrose Industries Share Discussion Threads

[bashfish] 15/9/2016 14:47

yes, happily the final result was I got all my money out including the earlier profit. would have preferred to still be holding but as I spent a week or so thinking I was out ~£2000 it all worked out in the end

[typo56] 14/9/2016 19:51

bashfish, as steeplejack says I'd expect the default to be to let the rights lapse. Supposing you were away when the rights issue took place and you returned to find a hefty bill from your broker because they'd taken up the rights!

If you think you've lost your £1,000 then you haven't finished reading the small print. If you bought MRON at 45p I think you should end up with a small profit, although perhaps not after expenses.

[steeplejack] 07/9/2016 10:33

"Companies with a Standard listing will not qualify for FTSE UK series indices (which may be enough to discourage uptake of the Standard listing option)."

Ok Typo56,thanks for that.You were well ahead of me!

For what it's worth in old money Melrose are now just shy of ten pounds which means that the stock has gone up 2.5 times since the Nortek acquisition was announced in early July when the shares stood at slightly over £4....and the stock had risen strongly on anticipation of a deal from around £3 prior to the deal's confirmation.

[steeplejack] 05/9/2016 16:05

No,brokers must be instructed to exercise rights since an exercise requires funding.The default is to let the rights lapse and the account will be credited with rights monies when sold for the benefit of shareholders.

[bashfish] 05/9/2016 11:29

So after speaking with my broker, it turns out that they do not automatically exercise rights, so unfortunately they expired without any action, taking my profit (and £1000!) with them. An expensive mistake but not one I'll soon forget, always read the small print!

[typo56] 03/9/2016 16:00

If the money doesn't turn up you need to talk to your broker. I'd expect you to receive about 47p per MRON share you held (perhaps a bit less after expenses).

[bashfish] 02/9/2016 17:52

45p, so that doesn't sound too bad actually, I am just anxious as to if/when that money will turn up as it appears to be in the aether at the moment; by which I mean I don't seem to have any token that I am owed a certain amount of money

[typo56] 02/9/2016 17:30

You're a couple of weeks too late to take up rights. You should have received information about your options from the company or your broker (if held in their nominee account). Your rights have now lapsed and it looks like you'll receive 47p per MRON. How much did you pay per additional MRON?

[typo56] 02/9/2016 16:39

Yep, that 46.4m volume in the closing auction is due to exiting the FTSE index.

[bashfish] 02/9/2016 13:45

what is the mechanism for paying to take up rights? i initially received an amount of MRON equivalent to the value lost when the MRO price was readjusted from ~700 to ~150, i didnt specifically request these MRON or do anything other than be holding MRO when the price was changed. i actually bought £1000 additional MRON after receiving my initial load. apart from that i didnt do anything with the MRON

[typo56] 02/9/2016 13:36

Sorry, Melrose Industries PLC is certainly not in the FTSE 250. They can't be. Effective Monday they've been ejected from the FTSE UK Index Series because they no longer have a premium listing on the LSE. Note the RNS on 31 Aug.

So far it doesn't seem to have done them any harm, but if there's a large volume in the closing auction tonight it will be funds adjusting their weightings.

[typo56] 02/9/2016 13:30

If you didn't pay to take up your rights shares (MRON) they will have formed part of the rump. The shares got placed on 23 Aug at a price of 142p. This represents a premium of 47p over the rights price of 95p. Therefore you should be receiving (or have received) a payment of 47p per MRON you held.

[bashfish] 02/9/2016 11:40

probably a dummy question,

when the rights issue came out i received a load of new shares called MRON, i sat on them because i assumed they would be merged back into MRO at a later time. however this morning i notice they have disappeared from my account and i do not have any more MRO holdings, did i make a big mistake and should i have sold or done something with the MRON?

[steeplejack] 02/9/2016 09:15

Typo56.....Melrose is now in the FTSE 250 and was in the Small Index prior to the equity issue.I guess you're saying,will the "promotion" to the 250 attract index buyers?Well,it can't hurt I suppose.

[typo56] 01/9/2016 22:05

Possibly people shorting and planning to cover with their rights shares? Wouldn't have worked out very well!

[deuchar] 01/9/2016 20:21

One of the most shorted shares in the market. Anybody know why?

[steeplejack] 01/9/2016 08:42

So where's the relevance to Melrose?

[typo56] 31/8/2016 22:35

Will deletion from the FTSE index on Monday curb enthusiasm at all?

[meanwhile] 30/8/2016 22:40

Certainly overvalued on current and 'near future' business but there's a lot of long term potential in the price.
The Nortek acquisition was not the 'Grand Finale deal' I had expected from Miller & Roper, both in their late sixties. My guess is that Nortek is a core business, to be added to. The potential is here. I think we'll see some further acquisitions fairly soon and we'll see £2 per share within the next 12 months.

[deuchar] 30/8/2016 18:35

Surely way over valued now

[bigalan3] 24/8/2016 07:28

97% take up of the rights. Hardly surprising in terms of their track record.
I wonder if they will make another take over in the near future?

[sogoesit] 16/8/2016 13:38

Short positions in New Melrose are 7.98%.
I cleared out all today; certainly looked overbought above 150p.
Good luck all.

[steeplejack] 16/8/2016 10:15

The management selling some nil paid to fund the take up appears to have curbed the somewhat irrational exuberance surrounding the stock.With the benefit of hindsight perhaps,the price was clearly getting ahead of itself,aspirational to say the least.
Having touched near 9 quid in old money,the shares with the nil paid at around 40.75p bid,have now fallen back to around 625p.Sobering.