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Real-Time news about PM Group (London Stock Exchange): 0 recent articles
|cerrito: Doing a trawl through companies in the waste management business and noting this week's share price increase I have been looking at this.
In some ways it is a no brainer buy ie a good balance sheet-perhaps more intangibles than I would like; no debt; a div yield if maintained at 4% and trading on an historic pe of 6.5x with a good acquisition in the buoyant electrical installation business not to mention exposure to waste management. I even liked the fact that while they had understandably enough their agm in Bradford they held it at a time that London people could get there.
I take the point that the spread is wide but no wider than for your average £14marcap company with 50% of the shares with the ceo; indeed while I have missed the comments about a buyout referred to in these pages,I guess that when the ceo owns so many of the shares he may find he can do without the hassle of outside shareholders. There is also the issue of what will happen to any further shares issued to the sellers of PW and indeed any lock in period they may have.
Despite the above I am hesitating before buying...lack of clarity in the waste management business , spotty track record and erratic share price...do not understand why they fell so much in the autumn.
Something to think about for the rest of the weekend but views welcome|
|studhaves: I used to sell to this/ these companies (I also used to be friends with a director of PM - don't know if he's still there now) & at the current share price I think it looks good, especially as market cap / pre tax profit is only just over 5 (very low).
However, one thing I'm not so keen on, is that when I used to sell to them I always understood that both PM onboard & Pitts electrical were owned by Geoff Mountain, ie he was the major shareholder in both (don't know how true that is, but thats what was implied), so you have to ask the question:
Who does the aquisition of Pitts benefit the most - GM or the shareholders of PM Group?
If Pitts have one major customer who accounts for 85% of business, then it isn't going to look good if/when that contract dries up. Also, just how much use are 120 electrical engineers for fitting the waste management systems, especially as that seems to have dried up, for the moment at least.
I still like the company, but I'm going to sit tight for now until the future becomes a bit clearer.
Just a few thoughts/ observations that it might do well to bear in mind.|
|alter ego: finals out today. Headline numbers looked strong but the future is very unclear. Electrical contracting had a brilliant year but they expect to do (a lot?)less well next year. Waste management side is suffering and there's no clarity as to when or even if it will pick up. All in all there was a lot of hope in the share price and that's just popped. Still look pricey to me even after recent fall.|
Pm share price data is direct from the London Stock Exchange