Mears Share Discussion Threads

[rivaldo] 30/7/2010 10:35

A long article in the FT today about CNT concludes:



"Analysts said that Mears and Kier, among Connaught's biggest rivals, were likely to benefit from the company's woes. Shares in Mears have rallied 10 per cent since the start of the month."

Agreed stevemarkus, MER ought imo to be heading back to 300p sooner rather than later.

Last year's interims were on 18th August, so only just over two weeks to go, and everything the company has said indicates they'll be good.

EDIT - looks like Breeden have top-sliced a few. No doubt they need to raise some funds after their disaster with CNT.

[stevemarkus] 29/7/2010 09:38

Yes, good to see a little move up. Would be nice to see it nearer £3.

Cheers,
Steve.

[rivaldo] 29/7/2010 09:21

..and a nice start this morning too. Looks like sentiment is turning in MER's favour.

[dnfa1975] 28/7/2010 16:59

strong close

Following the brief statement made by Mears after the market closed on Friday 25 June the Company is pleased to reiterate that it is continuing to deliver strong trading across all divisions and is not experiencing any downward pressure on spend in its social housing business. Current trading and strong cash conversion for the year are in line with management expectations.

In summary:

• Continuing to deliver strong trading across all divisions
• No evidence or experience of downward pressure in spending in social housing which remains a largely secure and non-discretionary spend
• £2.5 billion order book and £3 billion bid pipeline
• Winning longer term agreements with Local Authorities and RSLs
• Secured revenues of 91% of consensus forecast for the current year
• Strong focus on cash conversion.

Commenting, Bob Holt, Chairman of Mears Group, said:
"I believe that Mears will now be considered market leader in social housing repair and maintenance which will add further to an already unprecedented level of opportunity within the public sector. Local Authority clients continue to consider more innovative and higher scale partnerships which is already evidenced this year with major contract wins.

"The quality of our operational delivery and our people underpins our strategy and continues to give us clear competitive advantage as evidenced by our enhanced reputation both in terms of the winning of new business and the recruitment and retention of key personnel. These factors are central in maintaining a robust revenue stream with our existing client base whilst providing significant opportunity within our bid pipeline."

[dnfa1975] 28/7/2010 12:38

great!!!!!! Thanks a good read.

[dnfa1975] 27/7/2010 21:48

long and strong

[melody9999] 27/7/2010 19:28

This looks very encouraging all of a sudden. I've been minded to sell with recent news - but now looks a strong hold for me. And if others think the same as me we should see the share price going north as the bulls win out.

[chillwill] 27/7/2010 16:40

Speaking of charts, the volume has started picking up which is a good thing, more people interested and downward momentum seems to have subsided. It shouldn't be too strenuous for the share price to put on 15-20% from here.

[dnfa1975] 27/7/2010 15:37

gap up to 300p on the chart

[dnfa1975] 27/7/2010 15:36

lovely jobby

[rivaldo] 27/7/2010 11:55

From Collins Stewart today on CNT via FT Alphaville - MER will benefit from CNT's Balance Sheet weakness:

"Unstable finances could have impact on order intake

Balance sheet strength is one factor Housing Associations and Local Authorities evaluate when awarding new work. We are therefore concerned about the impact this will have on order intake and whether it will impact ongoing social housing tenders."

Also some rumours in this morning's press that CNT may sell their social housing division to ease the financial pressure. Who'll be first in line to buy at a knock-down price I wonder?

[dnfa1975] 27/7/2010 09:13

this is preparation for the take off

[dnfa1975] 26/7/2010 22:56

this will move up sharpish to 280p this week, feel in my waters

[rivaldo] 26/7/2010 18:38

MER have the opportunity of a lifetime with their major competitor losing all credibility. This is their chance to step-change their profile upwards at a stroke!

Imagine the possibilities....and MER are already on a cheap rating.

I bought here at around 230p, so am disappointed to have lost some profits (especially in the ISAs) - but the upside remains very, very good imo.

[dnfa1975] 26/7/2010 18:36

well done, now let us make the proper money, roll on 400p

[hosede] 26/7/2010 16:49

dnfa
Do you really think Lambeth council can't go bust? think again!
Beerbandit.
The share price of MER has gone steadily downhill since 2007. I sold out around 270 (having bought at 29). I expect to buy back in around 150 - maybe less - and probably in 5-6 years time when this depression might be bottoming

[dnfa1975] 26/7/2010 16:11

going blue - trading update tomorrow?

[dnfa1975] 26/7/2010 15:41

bet hes licking his lips as we speak - your biggest competitor goes pear shaped and you are gonna eat their dinner, lunch and breakfast

but imagine new contracts and the big chance of margin enhancement...mmmm

[rivaldo] 26/7/2010 15:26

There must be a huge one-off opportunity now for MER to acquire CNT at a bargain price, or at least to cherry-pick what they want.

Unless MER are content to wait and see if CNT go into administration or worse first....

I'd imagine Bob Holt is working overtime at the moment!

[beerbandit] 26/7/2010 13:15

Hosede I was waiting for you to appear you've been knocking MER since 05 without a great deal of success now why don't you give up and try elsewhere

[dnfa1975] 26/7/2010 12:30

hose, it wont happen here. The problem CNT have is that they have a load of contracts with tiny authorities. Mears took their big ones like lambeth from them and these keep on working.