|Morgan Crucible Co
||EPS - Basic
||Market Cap (m)
|Electronic & Electrical Equipment
Real-Time news about Morgan CR. (London Stock Exchange): 0 recent articles
|libertine: Morgan Crucible may be a take-over target, analysts say
Tue 23 Oct 2012
MGCR - Morgan Crucible Co
LONDON (SHARECAST) - Morgan Crucible, the British maker of ceramics used in wind-turbine blades, has become a potential take-over target, analysts believe.
That after its share price tumbled by 33% -albeit from 14 year highs- in 2012, on the back of a slowdown in revenue growth and a worsening profit outlook, Bloomberg says.
Thus, shares of the Windsor, England-based company are now trading at their lowest valuation relative to earnings since 2009. Even based on analysts' reduced estimates for next year Morgan Crucible is still cheaper than 81% of similar-sized specialty-chemicals producers for the materials industry, according to data compiled by Bloomberg.
In fact, just this month US conglomerate 3M launched a take-over of Morgan Crucible's peers, Ceradyne, and a company such as the former US outfit could now be interested in having a go at Morgan Crucible so as to capitalize on its relatively low valuation, Panmure Gordon believes.
While sales and orders may remain depressed in the months ahead, Peel Hunt analyst Dominic Convey says an acquirer still may find value in the business, given the firm's "very strong market positions in niche segments." From that perspective, "then it is an attractive target," he added.
Nevertheless, not all analysts are of the same view, as is the case with those from Royal Bank of Canada (RBC).
Lastly, another option mooted by some is a merger with rival Cookson.|
|johnv: Quote from digital look
Mark Robertshaw, the Chief Executive Officer of Morgan Crucible purchased 35,000 shares in the the FTSE 250 industrial materials group on the same day stock broker Jefferies hailed the stock as cheap, compared to its sector peers.
Robertshaw purchased the shares at 290.00p for a total of £101,500, increasing his stake in the company to just under 0.54m shares, equal to 0.19% of the issued share capital.
The broker said that, "any share price weakness today [Tuesday] should be considered a medium term buying opportunity".|
|libertine: FTSE 250 Movers: Int Personal Finance leading the way
Date: Tuesday 27 Sep 2011
Rumours of a possible approach from ArcelorMittal continue to surround Morgan Crucible, sending its share price up by 22p.|
|jashunter: Panmure raises target price from 300p to 355p. Share price rising nicely. Look forward to results in Feb.|
|libertine: HSBC has reviewed the mid-cap cyclical stocks. Upgrades Morgan Crucible to overweight from neutral with a price target of 200p and Weir Group to neutral from underweight with an 80p a share price target. Charter and Bodycote have been downgraded - each to underweight from neutral with a price target of 600p and 160p respectively.|
|rivaldo: Bought some of these on the dip yesterday for ISAs etc:
- P/E of 4
- takeover speculation
- reassuring investor meeting and broker upgrade yesterday
- benefiting from currency movements and lower oil prices
For example, from FT Alphaville yesterday:
"NH: rumours that Swiss company SGL is looking at Morgan Crucible
NH: and that's because it has also raised some money in the bond market
NH: senior unsecured convertibles
NH: but equally the rise in Morgan Crucible could be down to a push from Citigroup
NH: they met management last night
NH: and reckon that trading has not got worse
NH: and that's the company's financial position is better than the market thinks
NH: oh and its on four times earnings
PM: , perhaps it could be a takeover target
NH: here's the Citi piece
We hosted a group investor meeting with Morgan Crucible CEO Mark Robertshaw. Key feedback was:
Stable Trading Supports Existing Guidance / Forecasts -The overall impression was that trading has been relatively stable over the last 4 weeks since the May IMS and that management are happy with existing guidance. The stable trading combined with the impact of cost actions suggest that profitability may have slightly improved month on month also supporting our profit forecast for 2009E (EBITA of £97m pre reorgs implying - an operating margin of 9.8%).
Even 1H/2H Split - Management continue to expect 1H EBITA margins in the
high single digit level (pre reorgs). 2H is expected to be at as similar level with profits likely to improve in Carbon (benefiting from cost action and improving body armor sales), remain stable in Technical, and decline in Thermal.
Remaining Confident on Financial Position, Yield Supportive - Management
reiterated its view that it will not need a rights issue based on current
conditions. Operating profits in 2H would need to roughly half versus the 1H
run rate to pressure covenants this year suggesting a very small likelihood of a year end breach in our opinion. We would only expect a capital raising if a
significant acquisition target was identified. On the basis of the confidence in the financial position we also see the dividend as relatively solid and we note that a yield of 8% is very attractive.
Reiterate Buy Rating - Morgan Crucible remains very attractive on a valuation
basis with a P/E of 4x peak earnings comparing to our sector average of 8-9x.
We expect robust trading to be amplified by growing confidence in the group's
financial position in 2H09 supporting strong share price upside."|
|gnnmartin: They do look good value. I've bought a few more. I guess the rather cautious remarks about next year being tougher have spooked the share price. Plus perhaps a bit of profit taking.
PS (on march 10): well that was a bum decision!|
|pickph: Whats happened to the share price....anyone.|
|conan the trader: Anyone know the reason for yesterdays good share price rise: up 6.4% on the day and 10% on the week ???
And how can anyone say this share is boring? On 17-Feb-03 it was 30p while today it's 318p - that's over a 1000% rise in just four years, making it a ten bagger! And we had a takeover bid last year which the management rejected because they considdered the money on offer was too low. Perhaps a higher bid is on the way following the strong results this week which beat expectations and broker upgrades which followed.|
|conan the trader: Think it's more than a whisper - the bid talks are officially over. But this is good news beacuse if DLJ were prepared to pay 315p a share then they must reckon that with a little tinkering they could quickly turn Morgan Crucible into soomething worth 400p a share so they could make their RTO.
Morgan Crucible's management rejected the 315p offer so they are obviously confident that the company is worth significantly more than 315p too.
So both DLJ and MGCR see to agree that the share price is going to go a long long way north from where it is now at 260p. BUY!|
Morgan Crucible share price data is direct from the London Stock Exchange