Mears Share Discussion Threads

[essentialinvestor] 16/7/2009 10:25

His comments were in the context of ensuring front line services, that is why I posted it.

Not everyone takes the same view - which is one of the reasons why the share price is in the 230's not the 330's.

[volvo] 16/7/2009 10:14

EI you would have to live on Mars not to realise that government spending,local and national, will have serious reductions.

That is exactly why Mears are doing so well and will contine to do well.

For example Oxford Council pay for independant gas companies to service boilers and carry out repairs to their 7800 council houses.They charge full rate, are slow and very expensive.Same for plumbing,building etc etc.

Mears offer a good discount and take on everything.Total clarity and responsibility,Simples.

All councils are looking at it right now(on government instruction),thats why Mears services are wanted and will be throughout these spending reductions just as Holt keeps saying.As the likes of Brighton and Hove sign up this week, other councils will follow, new and existing, as the momentum builds.

[essentialinvestor] 16/7/2009 10:00

Domiciliary care also saves LA's a huge amount on costs (in camparison with Residential care) and helps maintain independence and dignity.

Anyone here who has visted some of the LA run residential homes will quickly realise that staying in your own home, if possible, is far preferable.

[essentialinvestor] 16/7/2009 09:51

Suprised the comments by Gus O' Donnell yesterday, the UK's top civil servant have not been picked up here.

In summary, public sector cuts on the way..

To protect front line services such as Home Care (care for the eldery).

I agree the rating differential with CNT is unjustified IMO
and MER is debt free, CNT have gearing as well.

[volvo] 16/7/2009 09:05

Point taken although old people will still go into homes after of course many years of being cared for at home by Mears Care division.Sound better.

The point was really, maintenence of council houses(gas,electricity,plumbing,buildings,roofing drainage etc etc every day, all year, every year) and care of the elderly, based on long term contracts is about as recession proof as you can get.

Company directors are super confident they building a major major company.Got most things right here and can confirm we have a bid pipeline of another 400m, with more contracts being announced from any time now.

[geovest] 16/7/2009 08:55

Volvo, I'd much rather prefer all those old people you are talking about don't go into care homes. Remember, Mears only provide domiciliary care, ie care and support while you are still in your own home.

[volvo] 15/7/2009 21:25

Yes looking good.These contracts will be fantastic for income as the years of the recession roll by.Gas boilers will need replacing and old people will go into homes.Steady rise to 300p from here.

[rivaldo] 15/7/2009 10:19

Good spot Volvo - that's a good read-through for MER.

[volvo] 15/7/2009 07:32

Connaught plc
Today

("Connaught" or the "Group")


Interim Management Statement


Overview


Connaught is pleased to announce that it has continued its strong performance
into the second half of the financial year ended 31 August 2009, maintaining a
high level of new contract wins in both the Compliance and Social Housing
divisions, with year to date order intake now standing at over GBP650 million.

[essentialinvestor] 14/7/2009 19:10

Well Bob Holt timmed his major sale very well at appox £3 a share a few years ago raising about £6 million?? from memory.

Lets see will they back this with their own money following the next results.

[rivaldo] 14/7/2009 19:04

The interims are only a month away - last year's were 18th August. Given recent statements we can be pretty certain they'll be good.

As for director buying, given the flow of contract news I'd guess that the MER directors are not out of restricted periods very long and so are often unable to buy!

[essentialinvestor] 14/7/2009 09:31

If they really think that we should see some hefty Director share buying following the next results then.

[volvo] 14/7/2009 09:29

My calculations was that about 6pc has changed hands here during the last month.

The company have had one existing shareholder declare buying but no sellers have come forward.They assume it maybe holders of less than 3pc selling.

It is baffling to all involved as the Mail article implys.FWIW FD Smith and his fellow directors are concerned of an opportunistic offer.

[rivaldo] 14/7/2009 09:21

FWIW Volvo I agree about the takeover possibilities - the security of income and low rating must be EXTREMELY tempting to acquirors!

I assume the seller has been AEGON, who were reducing per the 11th June RNS. Given today's rise perhaps they've stopped. Until we get another RNS there's no way of knowing if they were merely top-slicing or selling most or all.

[volvo] 14/7/2009 08:58

I have mentioned this before, but this company has the appearance of the price being held as a buyer steadies itself ready for a bid.

The FD Andrew Smith has noted the bid price is always being nibbled at constantly even with very small buys (this just happened again this morning).This just stops any cohesion and momentum going forward for its shareprice.

Even the larger share holders moving in and taking out large volume has not stopped this.Some sort of jiggerypokery going on.

From yesterday

"Brewin Dolphin suggests Mears could be an attractive takeover target"

[ghurah] 14/7/2009 08:36

some movement finally

[cwa1] 14/7/2009 08:25

Investec's comment from yesterday according to DJN:

0852 GMT [Dow Jones] Mears Group's (MER.LN) bid pipeline remains strong and prospects for further wins are very good after the company wins a GBP200M social housing services contract with Brighton and Hove, Investec says. This takes the value of new contracts won by the group in '09 to nearly GBP400M, it notes. Investec reiterates buy rating and 228p price target. Shares +0.9% at 230p.

Buy and price target of 228p?? Shome mishtake here shurely?!

[volvo] 14/7/2009 08:13

Its becoming a elephant in the middle of the room.Great contracts, more to come, every investment house saying strong buy and yet we go no where. Someone WILL try a cheeky 350p offer soon.





Taking the value of new contracts won by the group in four months to almost £400million, Mears confirmed the award of a £200million, 10 year contract with Brighton & Hove City Council for social housing services. The news sent the shares up to 235p before they hit a brick wall and closed 2p lower at 226½p.

The underperformance continues to baffle followers. Virtually every sector analyst is bullish. Charles Stanley estimates the group trades on a price earnings ratio of 10.7 times 2009 and 9.4 times 2010 earnings and that is far too low when considering the group's strong growth potential, defensive qualities and its significant discount to the wider Support Services sector. Brewin Dolphin suggests Mears could be an attractive takeover target.

[volvo] 14/7/2009 08:10

FWIW Connaught will have their Interim Management statement out this week.

It will move their share price.

They don't have this persistant seller. You cant have one without the other though and Mears will have its day.

[essentialinvestor] 13/7/2009 19:26

Which institution is selling I wonder.

If the share price declines on today's news (although well flagged in advance)
and given a strong day on the markets, what is going to move the price.

[mk2b] 13/7/2009 12:39

Ah, did not suspect that, aware the buys and sells on ADVFN are not always what they seem. Hope that someone gets a move on.

[peterboroughmatt] 13/7/2009 12:02

that was a sell.

Big volumes today made up of someone still clsoing a position, been going on for afew weeks now

Matt

[mk2b] 13/7/2009 11:46

Last buyer had to pay £2.30, though it was for 25000.

[5dally] 13/7/2009 11:41

Can you believe it,,,,fantastic news and the share price is down....

[investinggarden] 13/7/2009 11:39

New £200m contract for Mears