Morses Club Share Discussion Threads

[nick9962] 25/4/2001 08:40

Thanks Max, I bought MCL @ 65 in view of the free 1 for 12 offer and a rise on the back of a recovery in RED as you state. MCL hold a fair bit of cash too and so must be able to re-invest at these lower prices. A good buy over next 12-18 months, my target £2

Nick

[maximillion] 23/4/2001 11:15

A posting originating from thoughts on Redstone telecom.
If RED's price doesn't slide back to the pit of sub-40, and the company doesn't start calling for the defibrillators, Mountcashel looks very good value, as the bounce in RED was not factored into Mountcashel (the slump was), which owns 4.7% of RED, and at its last results (late March) had a NAV of 113p/share even before RED's rise. I did calculate the gearing to RED and xaar's price, but it’s not in front of me. It looked favourable, as by themselves the two stakes almost covered the NAV. Thee PE of Mouncashle is probably based on realisation of capital gain, and shouldn't be taken too seriously.
I believe that RED is underpriced, but the company has alarmingly evolved into a straight play on the validity of its ADSL roll-out; its revenues from premium calls look to be dying fast, which appears to leave no Plan B.
Affioncadoes might be interested to note that Mountcashel owns 1% of Comeleon (about 2.2M worth), and the Citywire article on this company. If there is an innocuous announcement by COM about becoming a favoured producer of bespoke phone covers for a large player, and folks aren’t too poor to buy well-printed phone covers as a fashion accessory, then COM can probably look forward to salad days. I have a nasty feeling Mountcashel it also owns a disproportionately large chunk of Direct Message (I could be WRONG on this point, as I didn’t archive the article), like 25%, which I assumed it bought with the cash from reducing its Xaar stake.
Note that I hold a larger than normal chunk of RED (bought at 200, 90 and 40!), and a normal-sized chunk of Mountcashel.
Max the Pauper

[optimist at large] 22/4/2001 18:22

MCL reported that they had over £5M cash as at the end of March.

In addition to the Redstone holding MCL also have the following 'strategic' investments :

1000000 unlisted shares in Ark Therapeutics, I think that the original investment was £1M.

3759737 Direct Message worth £413571 - these are tipped as "worth a punt" in the Sunday Telegraph today.

1720000 shares in NIS

There are also 319200 warrants to buy Redstone shares at about 45p

[kp1] 21/4/2001 11:45

I beleive they have a stake in NIS also. NIS is a good share and it will rise adding value to MCL

[nick9962] 21/4/2001 08:02

thanks Paul

note the heavy volume as the shares reach their low a good sign that they have reached their low point. Also remember that MCL have a EGM to vote to offer 1 NEW FREE SHARE for every 12 held. This should take place on 26th April and is worth effectively 9% gain.

[nick9962] 20/4/2001 08:13

MCL own almost 5% of Redstone see Goldfinger above. MCL are chaired by respected investor Oliver Vaughan who invested in RED when they started. MCL now have several mllon in cash PLUS the RED holdng worth an additional £50000 per every 1p move in RED. With stock prices low MCL are perfectly placed to invest their cash in cheap stocks PLUS will be able to sell RED for a large sum in due course. NB they have already got all their money back on the initial RED investment through earlier sales.

MCL is imho ridiculously cheap

DYOR

[watchingu] 19/4/2001 20:58

Does anybody know what proportion MCL's holding of RED is to the whole company.

[goldfinger] 19/4/2001 08:26

Looking more and more like a coiled spring. 65-75p

[nick9962] 12/4/2001 20:15

Agree bought at 65 the other day the 1 for 12 alone is effectively almost 9% return for free. i also agree with Goldfinger on Redstone which i have bought recently they have plenty of cash and are moving to profits soon. Every 10p move in Redstone share is worth half a millon pounds to MCL. MCL were valued at just 5 million when at 60p and they held that in cash alone with Redstone moving to a reasonable valuation of say £1 MCL shares should be £1 at least. As they re-invest in shares at the bottom of cycle this share is a HUGE buy on a 12 month view

DYOR

N

[kp1] 12/4/2001 13:47

This surely has to be good news

[goldfinger] 12/4/2001 09:50

9:37am - Ian buys another 25,000 yesterday at 68p. Something is definately brewing, though we may have to wait til May to find out.

[dondee] 12/4/2001 09:19

Is this THE Ian Hislop of 'Have I got news/old news for you' and Private Eye fame. I thought he was left wing and anti-capitalism, or have I misjudged him all these years!.

[kp1] 12/4/2001 09:17

Thats what I thought but even without that I think the price is low. Redstone has gone up more and as far as I understood it used to have a stake in NIS which you can see is on the up.

[goldfinger] 12/4/2001 09:01

To be honets, I'm not entirely sure. I thought it was a rights issude, but judging by the wording of the 10th April note...

"Subject to the relevant resolution being passed at the AGM to be held at 12.00
noon on 26 April 2001, bonus shares will be allotted following the AGM on a
one for twelve basis to those shareholders on the register as at 26 April
2001, with AIM dealings expected to commence in such new ordinary shares on 27
April 2001."

It looks like it might be 1 for 12 free for those holding on 26th April.

[kp1] 12/4/2001 08:54

Redstone up again. Surely Mountcashel will follow. Nice spot Goldfinger.

This share issue. Does it mean if we buy now we will get extra shares for free if we buy before the date mentioned.

I've bought anyway but may consider a further purchase.

[rogersg] 11/4/2001 16:42

What was that 100K sell at the end all about - odd !

[goldfinger] 11/4/2001 16:36

Hey, and a share issue too - half an hour after Ian buys his lot. Nice move Ian.

[goldfinger] 11/4/2001 15:54

I'm afraid not.

[rogersg] 11/4/2001 15:50

Goldfinger

Thanks for this - what else do they own in any number, do you know ?

[goldfinger] 11/4/2001 15:25

Mountcashel own 4.7% of Redstone Telecom. Redstone have just been handed potentially half a million customers in a deal with Natwest Bank PLC. Redstone share price has gone up by 50% this week.

Mountcashel share price has stayed static, though some bug buys (relative to MCL) goign through today. Most interesting is the news in the last hour that Ian Hislop has made his first purchase as an Executive Director.

I am not qualified to give advice and I am not saying BUY. I will leave that for you to work out, but I do own the shares myself.

You heard it here first. Thank you.

If you like the advice, please visit my site and reward yourself with some fun.

[timeliner] 19/8/1999 07:07

I think they also have a holding in Card Clear, which has been in the news recently.

[princecharles] 19/8/1999 07:01

They hold a stake in Internet Technology - possible bid target. Alao their asset value will have risen as two of their other holdings, Xaar and xenova have recently advanced. The big attraction of Mountcashel is the coming flotation of Redstone. Could be bid for pre-flotation. 100m valuation equals 90p to Mountcashel asset value and according to Michael Walters 100m is a conservative estimate for redstone's value.

[timeliner] 18/8/1999 20:09

Mountcashel rose over 10% today - anyone know why the sudden rise? Their results were out last week - is it a reaction to them?