Mj Gleeson Share Discussion Threads

[deswalker] 29/9/2011 09:18

Excellent news that NAV has taken what I presume to be Guiness Peat's stake (perhaps an RNS from them in due course to confirm). Will we now see some form of bid from NAV or will they continue to prepare it for a sale to a major housebuilder in due course. The various non-housebuilding subsidiaries are steadily being divested so that it is rapidly becoming a pure land-bank company with a small housebuilding operation on the side.

Also Chris Mills likes to get dividends out of his investments so I see regular cash returns here whilst we wait for an outer.

retsius - IMO this isn't a P&L investment. It is all about the Balance Sheet and having the right guy in charge to negotiate a deal.

[battlebus2] 28/9/2011 20:01

After hours news-
Director/PDMR Shareholding

RNS Number : 1385P

Gleeson(M J)Group PLC

28 September 2011

M J GLEESON GROUP PLC (the "Company")

28 September 2011

Notification of transactions by Directors and Persons Discharging Management Responsibilities ("PDMRs")

Pursuant to DTR3.1.4, the Company wishes to notify that on 26(th) September 2011, North Atlantic Smaller Companies Investment Trust Plc, Oryx International Growth Fund Limited and North Atlantic Value LLP acquired 3,369,425 ordinary shares at a purchase price of GBP1.015 per Ordinary Share. Each of these entities is connected to Mr. Christopher Mills, a Director of the Company, whose previous and current shareholdings, including those held by Related Persons, are as follows:


Percentage
Total of Issued
Previous Shares Now Share
PDMR/Director Holding Acquired Held Capital
--------------- ----------- ---------- ----------- -----------
Christopher
Mills 11,081,215 3,369,425 14,450,640 27.42%
--------------- ----------- ---------- ----------- -----------

This notification is to be read in conjunction with the Form TR1 identifying the entities names above, notified to the London Stock Exchange on today's date.

[retsius] 26/9/2011 16:21

Des
I am underwhelmed by profit amount. Nothing here except to close shop and realise assets.What is PFI? Wonder what IC makes of it?

[deswalker] 26/9/2011 07:59

Excellent results, a special divi and a rock-solid Balance Sheet. Current assets minus Total Liabs now up to approx 165p per share.

Good progress made since year end with the sale of three PFI projects simplifying the business even further.

Clearly this is being structured for a trade sale in a couple of years IMO.

[retsius] 21/9/2011 08:08

Telegraph must be wrong.No news today.

[retsius] 20/9/2011 13:48

Des
Daily telegraph Mon.

[deswalker] 20/9/2011 10:15

Where did you get that from pls ?

[retsius] 20/9/2011 09:36

Results 21/09/11

[retsius] 18/9/2011 09:49

Des
Many thanks.

[deswalker] 17/9/2011 19:44

Expecting the results this week based on the date last year. Don't know about a divi - we'll see.

NAS results from 8 Sep said that performance here was "encouraging" and they should know with a position on the Board and a large holding.

I'd love a divi but even if they choose not to pay one this year this is one share that I am very very comfortable holding. But I'm not topping up as I already own enough both directly and via NAS.

[retsius] 17/9/2011 19:22

Des
Is it worth topping up before results? Staring at big loss at the moment. Do you think they will announce a dividend?

[deswalker] 31/8/2011 15:31

retsius

Last year they were on 23 Sep so I guess some time around then again. Impressions from the website are that they are gearing up to open more sites and that things are going well. The resilience of the share price in the recent malaise has been good to see.

Strange to see a tip from across the pond but I agree with his analysis if not his reticence in buying the share.

The old saying about profit being vanity but cash being sanity applies here. If they keep recycling more expensively purchased land into cash at minimal profit and then recycling a portion of that cash into land at depressed price levels whilst paying the occasional capital return then they are essentially storing up profits for the future.

I still think North Atlantic, Schroders and Investec who own over 44% between them will be looking to sell out at close to NAV (185p) in due course - three years say.

Des

[retsius] 31/8/2011 13:53

Anyone know what date in September results are due?

[oddballstocks] 19/8/2011 15:54

I did a post on MJ Gleeson on my blog here:

Basically the company is trading at a nice discount to NCAV and has the resources to wait out a housing recovery. The issue I see is that even if the market recovers I'm not sure if MJ Gleeson can make any money out of it.

[retsius] 10/8/2011 10:22

This is the biggest dog share I have ever owned. IC tip of 2010.Down 30%.Will someone put it out of its misery?

[gingerplant] 06/7/2011 10:09

That does help very much - thanks DesWalker. I'll have a look at more of NAS's individual investments abnd a closer look again at GLE - and let you know what I decide to do (maybe both of course).

Thanks again,

GP

[deswalker] 06/7/2011 07:38

GingerPlant - A very tough question which I'm honestly struggling to answer. I'd probably agree with your logic and hence I hold twice as much NAS as GLE but I see very little risk wih GLE too. At some point in the next year or two I see it paying an 8% divi and being primed for a private sale so it's a tough call. I've also wondered about NAS and OIG buying out GLE at circa 150p ish as they have been known to do this in the past. Celsis for instance which is exceeding all expectations since it was taken private by NAS and OIG.

Basically a large part of my recent strategy has been to buy NAS as a buy-and-forget pension type investment and overlay that with direct holdings in those quoted portfolio shares I believe are so compelling as to warrant direct money. GLE is one and CMX is another.

I like having exposure to RPC, BBA, GPG, NARS, CVSG, RHL, ESS etc and the unquoteds, quite a few of which are in the process of being sold. The one fly in the ointment is the very real uncertainty at ASTO where NAS and OIG invested in the UAE subsidiary through preference shares. This subsidiary is virtually debt free and trading well but the parent is clearly in real trouble. It's unclear how all that will work out but a dream scenario would be NAS and OIG getting this business from either the parent or the administrator for a song. I'm sure Chris Mills is embrolied in all sorts of discussions about protecting that investment (which he made a point of saying did not have any of the parent's debt to contend with in the subscription RNS - well now he needs to prove it) and maybe trying to turn it into something more. Nonetheless I'd still rather they had the cash instead of the prefs as things stand right now.

HTH

Des

[gingerplant] 05/7/2011 21:33

DesWalker - I know it's a tough (probably impossible...) question, but which would you regard as the smarter investment at this point - GLE or NAS? Presumably the latter is a lot safer given the spread of investments etc - but the upside a little more limited?

[retsius] 01/7/2011 08:59

Des
Very interesting

[deswalker] 01/7/2011 08:13

An interesting RNS issued by Redrow (RDW) this morning. They have sold their Scottish operation to a privately held company for £49mill which equates to Net Book Value.

Now I know Scotland is a different market to the north of England (quite possibly/probably better IMO) but the operation is of a roughly similar turnover and profit profile to GLE and so could be argued to be directly comparable.

Based on Dec 2010 numbers GLE has a NBV of 185p per share ...

[deswalker] 22/6/2011 09:09

North Atlantic Smaller Companies Investment Trust. It has the ticker NAS in the same way that Gleeson is GLE. Click the search button at the top left of this page and look for NAS and you'll find my thread on it. However, no advice intended or offered on it - I like it but then there are hundreds of posters on ADVFN pushing all sorts of shares so one must always do one's own research.

Henderson also disclosed that they now have over 5%. I didn't have them on the register before so I'm speculating that they are also fairly keen buyers. At some point the seller(s) will be done and then this can move to something closer to its "correct" price.

The Prelims will be in mid-late Sept.

[retsius] 22/6/2011 08:59

Des
Dont answer that .Have just found it.
Thanks,

[retsius] 22/6/2011 08:57

Des
What does NAS stand for? Obviously some sort of investment co.

[deswalker] 20/6/2011 14:45

North Atlantic has just announced another half a million shares bought. They now own over 21%. They'll keep buying up any loose stock at these levels IMO.

[deswalker] 18/6/2011 19:07

I doubt the Director buy is responsible.

I bought more this week and was also pleased to see NAS buy more. NAS is my largest holding.

Also the seller was revealed to be LGEN and they have now gone below 3% so we can't be sure if they are done. However the drop and bounce did have a look of capitulation about it and I suspect NAS would buy the lot should there be any more. They certainly have the cash.

Fingers crossed we see a rise to a more normal discount to NAV. For a stock with such a large net-cash balance I'd suggest that should be approx 20% leading to an immediate re-rating to 150p IMO.

Des