Melrose Industries Share Discussion Threads

[intrinsicinvestor] 01/3/2017 09:05

A large increase in the holding of Avila last week though..

[bigalan3] 01/3/2017 08:48

I am a bit concerned about tomorrow's results. The share price has a massive amount of improvement built into it. I wonder if we might have another large acquisition - please?

[meanwhile] 27/2/2017 12:13

MRO has a fairly stable share price today,running up to Thusday's results, after a little turbulence lately. Maybe nobody outside the company, in the market, knows much.
If such is the case, I therefore think it possible we could see a big change on Thursday, 20% or more, up or down.
My own guess is 10% up.

[hedger] 22/2/2017 19:40

Meanwhile, I most certainly will drink to that. MRO seem to be a sensible company quietly getting on with the business of making money for it's shareholders.

[meanwhile] 22/2/2017 16:11

I may face criticism for making such a comment, but I will defy this suggestion.

Panmure Gordon believe MRO can treble the value of the Nortek takeover price, and this was, I recall, 40% over Nortek's market price pre-bid. Even Numis, who have long been neutral on MRO, are now saying only rather less than Panmure. What I find surprising therefore, is that such potential (if present) was not seen by other potential bidders at the time of the takeover. You will recall that no rival bid came in for Nortek.
Either MRO have vision beyond all others or such optimism as shown by the broker targets, and by the share price itself, are misplaced.
As a shareholder, I hope the former is true. MRO's record over 10 years suggests this also. Next week, we should know. Maybe Panmure will see that the value can not just be trebled, but septupled or even octupled.

[grahamburn] 22/2/2017 14:19

Totally agree. The less said the better - though looking forward to the Preliminary Results on 2 March when there may be more to say (applaud?). Meanwhile, the share price keeps climbing gently.

[hedger] 22/2/2017 10:01

The amount of chat on these bbs seems inversely proportional to the quality of the company. Lol

[dafrog] 21/2/2017 07:10

Charts look good but no chat?

[bigalan3] 15/2/2017 09:06

Is the price getting a bit ahead of itself? They will need to turn Nortek around very quickly or buy somebody else.

[martinthebrave] 14/2/2017 10:57

Bought in today. Been watching for quite a while.........

[bigalan3] 18/1/2017 14:43

I personally keep adding. It is in the expectation they will make another big acquisition this year or several smaller acquisition to get the Hanson treatment.
It is certainly a very sound investment for the mid-term based on their success in the past.

[ali47fish] 18/1/2017 09:30

I am at a loss as to how to calculate the purchase price of MRO shares after the consolidation/rights issue adjustments- my average purchase price shows 369.20p showing a 90 pc loss for 120 shares with the peel hunt upgrade to the price target, i am tempted to add- can anyone with knowledge of these things comment please

[meanwhile] 06/1/2017 18:41

I've invested in MRO since 2006, with major returns. I've held little else since 2010 and will continue to hold most of my money in this company.
However, I would guard against expecting too much from the share price in the short term, say 1-2 years. All investors who subscribed to the new shares have already seen a gain of over 100% since July/August, 5X the 22% quoted by bigalan3.
MRO paid a 40% premium to the NASDAQ quoted value for Nortek and the 95p new issued shares (to pay for Nortek) has more than doubled since, now almost £2. This means that the value of Nortek is currently rated on the LSE at around 3 times the NASDAQ value before acquisition.
We all expect MRO to increase the value of Nortek several-fold, but a 3-fold increase may already be in the price.
Having made these cautious observations, I am expecting Nortek to be more than just a buy>improve>sell. I am expecting it to be a nucleus for further acquisitions and am holding for more new shares.

[3dwd] 06/1/2017 15:32

I have selected MRO as my stock for 2017

[bigalan3] 06/1/2017 15:05

I am going to stick my neck out and say this is the best value company on the market and possibly one of the least known. They have provided 22% per annum for shareholders since 2003. I could not resist buying yet more.
Another acquisition this year?

[meanwhile] 06/12/2016 09:43

December 2016
Broker Date Rating Previous assessment Latestassessment Latest target

Numis 06/12 Upgrades Hold Buy 245.00p

[meanwhile] 04/12/2016 11:02

The newest Director at Melrose is David Lis, appointed as an independent non-executive Director on 12 May 2016, having just retired from his job of Chief Investment Officer, Equities and Multi Assets, for Norwich Union IM/Aviva.

In early September he bought around 130,000 MRO at 152 pence. He's already making 20% profit but what else might he see in the new $2.8 Billion acquisition of Nortek.
I suppose he will see a business that has sales of $2.5B, but which has gone nowhere in the last 3 years, except to go further into debt, this being around half the $2.8 purchase price at acquisition. But if he listens carefully in his first board meetings he might hear of a business with huge potential for growth in the range of services provided to residential & commercial properties, both by organic growth of product lines and by further acquisition. He might hear of the potential for moving in a bigger way into the European market & elsewhere. He might even detect a change from the buy > improve > sell strategy to a buy > improve > buy > improve > buy > improve... sell strategy.
I think there is more to come in the way of Rights Issues.

Some Readers may think I'm just trying to talk up the shares. But others who have followed my contributions over several years, might recognise that I'm just offering my wisdom to help them make a good living.

[meanwhile] 20/11/2016 17:24

"ALLIANCE NEWS PERORT : IN THE KNOW: Analysts Welcome Melrose's Rapid Nortek Restructuring.
The rapid work by Melrose Industries on Nortek underpins confidence the Melrose will be successful at turning around its new US acquisition."

I don't know this Alliance News organisation and I haven't read the full article since this would involve me subscribing, spending money and then dealing with 50 phone calls from them as follow up. From what I see, they seem to compile & report news items, and not carry out analysis or forecasts, I bit like Barack Obama does.

I believe Nortek is being shaped to act as the nucleus of a much bigger organisation. The company & its share price could now go anywhere when this takes off.

[bigalan3] 15/11/2016 07:27

Looks like the usual ruthless progress is being made. This is exactly how Hanson their boss did it.

[dodger16] 14/11/2016 11:36

I think MRO will be the better bet, especially if Nortek was on the smaller side of the acquisition size they were looking at.

[meanwhile] 10/11/2016 10:28

I am back to this site, and in what I call 'speculative mode'.
I have just sold a few MRO in order to buy BME (the B&M Bargains chain), which looks an even better bet than MRO in the next 1-3 year period, especially given the very turbulent times we have.
In my memory, we've never had such great uncertainty in so many places at the same time, in this case brought about by the common people speaking up rather than leaving some establishment to speak for them, and long-overdue it is. We saw it in the Labour Party leader elections, with the Brexit referendum and now with Trump. Never have the future courses of the U.K. and U.S.A. been so uncertain, in my memory at least.
All this must throw up some wonderful market opportunities if we can predict them.
This requires speculation.

[meanwhile] 05/11/2016 10:48

Bigalan,
For small acquisitions I would expect finance by debt but MRO don't like too much debt so big ones could see another rights issue. There are plenty of takers at present, here and USA.

[dav1dc2] 05/11/2016 08:51

The real news we need is the next dividend timetable/calendar

[bigalan3] 05/11/2016 05:22

Meanwhile,
Would any bolt-on acquisitions or another big unrelated acquisition be financed by
offering further shares to current PI's do you think?

[meanwhile] 04/11/2016 09:41

"ALLIANCE NEWS PERORT : IN THE KNOW: Melrose's Nortek Deal "Impressive" But Upside Priced In."

'What upside?' is the question to ask here.
I think they probably mean the turnaround of current Nortek, and I must say at least a doubling of the profitability is priced into MRO.
But this is not the only upside I can see. Nortek is a business that can be built on with further acquisitions of many different size. We can expect to see the first of these soon. At some stage, there may be further share issues to raise cash.
This current Nortek just isn't enough of a challenge for these wizards.