Morgan Crucible Share Discussion Threads

[jashunter] 18/8/2009 22:04

No! See commentary of 2 Aug posting. Don't expect to see much drift on this one. A well run company which turned in a respectable performance. 130p + more like.

[r3dhot] 18/8/2009 13:45

Anyone following Morgan Crushable back down to possible sub 100p...?

[mikepompeyfan] 02/8/2009 14:51

Questor says BUY

Industrial material specialist Morgan Crucible's markets have been hit hard by the downturn. However, last week's first-half results were reassuring and Questor feels the shares are now a buy.

The company makes materials and ceramics that are used in a wide variety of applications – from medical instruments, aerospace, power generation and satellite communications to body armour, trains and fire- protection systems. Its major markets are in defence and aerospace.

The company does have a significant amount of debt – and there had been worries that a rights issue would be needed to shore up its balance sheet. However, a cash call now looks unlikely. The company made better-than-expected progress on reducing its net debt, which came in at £282.9m – down from £290.4m six months ago. Morgan continues to be cash-generative and it even managed to make a profit in the first half of the year.

Although management is not complacent, there are signs that the fall in business activity might be stabilising and the trough in its business could be near. With the company managing to take a significant amount of costs out, the operations are much leaner than before and the company is highly geared to a potential upturn in activity during 2010.

The group has reduced it headcount by 16pc, which should save it £40m in employment costs. Other operational measures are estimated to achieve savings of £12m a year for a one-off cost of £15m.

Pre-tax profits in the six-month period to June 30 came in at £15.3m – 61pc lower than in the first half of 2008. But posting a profit in these turbulent times is some achievement in itself. Even more impressive were the group's margins, at 9.8pc, although this was down from the 12.8pc seen in the equivalent period last year.

The group has moved rapidly to cut costs and the majority of these benefits should be seen in the second half of the year. So, if trading does not deteriorate further, the second half is likely to be brighter than the first half. Restructuring costs came in at £8.2m and revenues rose by 23pc to £492m, reflecting positive currency translation. Once currency effects are stripped out, revenues slid by 7pc – which is a respectable performance.

Another sign of management confidence that the group was close to the trough in earnings – implying a rights issue would be unnecessary – was the fact that Morgan maintained its interim dividend payout at 2.5p. The shares do not go ex-dividend until December 2, so there is plenty of time to get in before this payment, which will be made on January 12 next year. The group has also renegotiated its debt on what appear to be reasonable terms.

The shares are trading on a December 2009 earnings multiple of 9.6 times and yielding a respectable 5pc. The shares are now a buy at this level.

[libertine] 29/7/2009 10:56

Shares in Morgan Crucible (MGCR.L) rise over 9 percent as the industrial materials firm posts in-line first-half results and says although end markets will remain weak, order books and sales levels are stabilising in certain areas.

"With some tentative signs of stabilisation, further cost reductions to benefit the second half and positive cashflow movements, we expect forward momentum in the shares to continue," write Numis analysts in a note.

[rivaldo] 29/7/2009 09:30

Yeah I know - but you didn't say so at the time did you?!! Hindsight's a wonderful thing.....

It's a 50/50 chance and I made an excellent profit - and there's no guarantee the price won't slip back given market uncertainty.

[r3dhot] 29/7/2009 09:13

You should have stayed on board you bum nugget, up 8% already today..!!

[rivaldo] 28/7/2009 09:14

Decided to take profits before tomorrow's IMS. 20% in a month tax-free is just dandy on a stock like this.

Hopefully back in at some point at the right price if everything's OK.

[kooba] 27/7/2009 09:40

Interim 2009 Results Announcement
7:00am BST
29 Jul 2009 7:00 a.m. UKT

although the ims was relatively upbeat as currency translation had helped the numbers...the recent weakness in the $ will not help.

[rivaldo] 26/7/2009 07:38

Excellent close on Friday.

[rivaldo] 23/7/2009 19:04

R3dhot, is 145p your personal target or a broker target?

Things are looking very promising chart-wise for more, with higher lows and decent volumes coming through.

[r3dhot] 23/7/2009 16:57

145 price target this cycle.. support line @ 80 was 10pts higher than previous lows

[rivaldo] 23/7/2009 10:30

...and still rising.

[rivaldo] 22/7/2009 12:43

Continuing to rise.

[rivaldo] 21/7/2009 19:13

Nice close again. The uptrend is looking increasingly convincing.

[jashunter] 20/7/2009 21:33

the 9k was an uncrossing trade

[rivaldo] 20/7/2009 20:21

Inching up again, with a 9k buy at 101p at the close.

[rivaldo] 19/7/2009 07:24

An interesting Friday night close - both above 100p and above an old chart high.

Could be the trigger for a surge well above 100p? There was a nice late buy of 42k at 100.75p.

[rivaldo] 16/7/2009 09:05

Thx tom111. Looking perky again this morning.

[tom111] 15/7/2009 19:08

Good news from US manufacturing figures better than expected.

[rivaldo] 15/7/2009 11:58

Nice - bid talk resurfacing or just the general market rebound?

[tom111] 07/7/2009 14:35

A bit of tree shaking the last couple of days since the rumours dropped away.

[rivaldo] 30/6/2009 09:47

From today's Daily Mail:



"Continuing to reflect bid hopes, electrical equipment company Morgan Crucible rose 5 3/4p to 99p"

[rivaldo] 27/6/2009 07:40

From the Daily Mail:



"Morgan Crucible on the bid radar
By Geoff Foster
Last updated at 9:51 PM on 25th June 2009

Perennial takeover favourite Morgan Crucible was back in the spotlight as German bid hopes had punters chasing the shares up to 94¾p before they closed 4¾p better at 92¾p.

The group that makes carbon and ceramics components for industry has remained independent against all the odds.

But rumours yesterday suggested that Germany's SGL Carbon, one of the world's leading manufacturers of products from carbon, definitely has MC on its radar.

Morgan Crucible in May signed a new three-year multi-currency facility for £280million from a syndicate of eight banks. It replaced the existing £258million facility which was due to mature in March 2010.

The fact that it had renewed its banking facilities well ahead of the maturity enhanced the group's prospects. But some analysts still believe there is a good chance that a fundraising could yet be on the cards.

Nevertheless, Morgan Crucible is deemed a good recovery play and now that it appears to have its longer-term finances sorted, it could attract a predator.

Evolution's Harry Philips said in a recent note that Morgan is 'small enough, niche enough and added value enough to be attractive in any bid context'."

[rivaldo] 26/6/2009 10:46

Even more good stuff today...145p price target:



"BROKER CALL
Morgan Crucible buy at Arbuthnot after MoD orders
26 June, 2009 10:34:42 AM

Broker is a buyer of Morgan Crucible with a target price of 145p following news the MoD it has ordered new body armour and helmets for UK troops. Two of Morgan Crucible companies will gain from this initial order, which is expected to be followed by further requirements.

"This is a high margin business for Morgan and supports our view that the weakness in margins in H1 2009 will prove temporary.""

[rivaldo] 26/6/2009 08:48

And from today's FT:



"A peer's fundraising also helped lift Morgan Crucible, which closed higher by 5.4 per cent to 92¾p.

SGL Carbon, which in 2006 dropped plans to bid for Morgan Crucible, raised about €190m with a convertible bond. The German materials group said the issue was for medium-term investment but had previously stated there were large acquisitions being considered this year."