Melrose Industries Share Discussion Threads

[brexitplus] 14/2/2018 17:34

It is Nortek plus GKN. Rough figure.

[mikepearce45] 14/2/2018 17:31

Interesting few words in the penultimate paragraph by Chris Miller's add on to the "Statement re Project Boost" issued this morning.

".........UK manufacturing powerhouse worth £10 billion today"

MRO market cap is circa £4.1bn. Wonder where he gets his valuation from. Presumably as he says "today" that would be purely for MRO and not including GKN should they be successful.

[brexitplus] 14/2/2018 17:27

Today’s GKN share price increase demonstrates the market’s very poor response to the GKN Project Boost document. It is in line with the Melrose increase using 1.49 MRO shares plus 81p.

Had the response been very positive the GKN asp would have risen and MRO fallen.

Much of the document was effectively a “cut and paste” of the Melrose document,

And 2017 7.4% gross profit margin was very poor and below consensus.

Roll on tomorrow,

[meanwhile] 14/2/2018 16:44

Minerva,

Your language reflects your mentality. It comes out of your brain.

Today you see a great example of the difference in respect for GKN and for Melrose, from the people who put their money up to support british industry.
GKN's earlyday masterplan was met with contempt. Melrose's response was welcomed with the greatest respect.
We should not forget who funds british industry and supports its progress. But those, like yourself, who try to stand in the way of progress are quickly forgotten.

[bukko] 14/2/2018 15:42

MEANWHILE

"I’ve re-invested capital returns, sold off a few shares at rights issues to reinvest in new shares, the usual stuff. My invesment is worth over 12X now.
That’s a true reflection of how successful they’ve been."

No it's not. It's a reflection of YOUR investment success in leveraging the return of capital, not the company performance which is a lot less than that. As an aside congratulations for that achievement!

A stream of good dividends will normally be reflected in movement of the share price. I accept that return of capital may not as it's usually designed to keep the share price the same as before.However, ROC will also be reflected in the share price in anticipation of future ROC events due to stated company policy,whether they happen or not.
And we must not turn a blind eye to rights issues to fund future purchases in considering performance.

I am invested in GKN and also invested in 3i but to a lesser extent. 3i has also had a surge in share price in recent years similar to MRO. This surge in share price is IMO the fruition of cheap purchases following the financial crash and availability of cheap money. This environment with easy profits is coming to an end.

MRO is now hoping to get GKN on the cheap and freely exploit GKN's resources while contributing nothing more than their self -proclaimed financial "expertise". That can be achieved by GKN by other means at a fraction of the cost of giving away half the company.

Anon.....

[sogoesit] 14/2/2018 15:40

I think market is judging the poor response from GKN today. Really unimaginative (“Me too” as Miller says in response today!)
MRO up nearly twice as much as GKN today.

[brexitplus] 14/2/2018 15:34

Thanks Yertiz

I believe the full defence document should be published tomorrow. Today, such as it was, was about Project Boost.

[yertiz] 14/2/2018 15:16

This used to be a cultured, intelligent board about Melrose - seems to have descended to the gutter, thanks to one particular individual. I have encouraged my daughter to use these boards to help her decision making with investments (she's 21) but to have comments like those above to scroll through is a bit beyond the pail. Curb your language, Minerve, and have a little respect for others on here. If you have nothing useful or productive to say, then stay quiet.

4% rise this pm suggests to me there's news afoot, perhaps MRO's response to this morning's RNS from GKN, such as it is....

[brexitplus] 14/2/2018 14:58

Market seems to think Melrose position sound. Politicians may get more involved. Whatever happens GKN have to deliver or its share price will plunge. I would rather be Melrose than GKN. And a good rise today, GKN rising on the back of MRO.

[brexitplus] 14/2/2018 13:07

Minerve, oh you are hilarious. One foul-mouthed obnoxious excuse for a human being filtered.

[dozey3] 14/2/2018 12:50

Try the filter, works wonders, which is what I hope MRO get the chance to do with GKN. Why pundits think improving productivity and efficiency at a presently semi-moribund British company is bad for the economy beats me.

[minerve] 14/2/2018 10:59

Yes, I guess you would resort to neanderthalic tendancies. Another classic characteristic of your stereotype! ;)

And you lambaste me for not being eloquent with words? LOL

[minerve] 14/2/2018 10:51

There is no point being eloquent with words on idiots like you. I need to speak your language! LOL

Your alias tells me all I need to know about the level of your intelligence. ;)

[minerve] 14/2/2018 10:43

Another idiot in the cul-de-sac I see.

[meanwhile] 14/2/2018 10:06

Old Minerva's lost control now, dreadful language. It confirms what he is.The latest from GKN board today is beyond belief. They will adopt the Melrose plan but under their own, failed team.Who can believe that?

[minerve] 14/2/2018 09:57

MEANWHILE

'Old fool'. LOL

[sogoesit] 14/2/2018 09:24

GKN has a weak strategy in the announcement and commits to "asset stripping" over one third of the market cap.
Poor approach given that the likes of Vince Kabul accuse MRO of asset stripping and should bode well for the bid.

[brexitplus] 14/2/2018 09:00

Me too. Problem for GKN is changing culture with existing management is notoriously difficult. Market seems unimpressed so far.

[semper vigilans] 14/2/2018 08:43

Well I suppose senior management have to put something out in between meeting employment lawyers, headhunters and analysing their share options.

I don’t agree with the Unions, but I do hope ‘ordinary̵7; workers come out ok.

[brexitplus] 14/2/2018 08:28

Totally agree Semper. Also important section is

“No profit forecasts or estimates

Other than the Profit Estimate and the October 2017 Profit Forecast, no statement in this announcement is intended as a profit forecast or estimate for any period. For the purposes of Rule 28 of the City Code, the Profit Estimate is the responsibility of GKN and the directors of GKN.”

Just pie in the sky!