Mucklow (a & J) Share Discussion Threads

[mudbath] 03/10/2008 10:09

Good shout walker10(verry good).

[walker10] 04/9/2008 10:37

"Our underlying results are pretty good," Mr Mucklow said. "But we have seen a 15 per cent fall in property values over the last 12 months and it may not be finished."

He is convinced that the present malaise in the property market will throw up attractive buying opportunities in due course.
Mucklow is much more lightly borrowed than most property companies, with a balance sheet only 13 per cent geared.

and

"We are not in a rush. We have got a nice little war chest. We are looking to buy from other developers at yields of eight per cent."
Mucklow completed speculative developments in Worcester, Dudley and Wednesbury during the year for a total cost of £18 million.

Some 70 per cent of this space is now reserved or let. But it is planning no more speculative building. This is partly because demand from occupiers is expected to slow down, though the recent introduction of business rate on vacant industrial properties is also a factor. Overall, 93 per cent of Mucklow's space is occupied, down marginally from 94 per cent a year ago.

and

"We are not seeing any tenant failures," Mr Mucklow said. "One or two occupiers are paying by arrangement. We have very little retail, but some guys are trading direct with the public selling things like furniture from industrial sites."

As promised when it became a Real Estate Investment Trust last year, Mucklow is raising its final dividend, like the interim, by 20 per cent to 9.65p. That reflects a £2.7 million saving in corporation tax arising from the change of status.

The shares, which had already risen strongly earlier this week, recovered another 6p against the market trend to close at 250p – a discount of nearly 33 per cent to a net asset value of 379p at the end of June, with a dividend yield of seven per cent.

[walker10] 03/9/2008 13:32

Yes nickcduk as they say in there outlook statement:

"We are, without doubt, well placed to take advantage of this current downturn from our position of low gearing supported by a modern, quality portfolio. When market conditions feel appropriate we intend to commence purchasing quality investment properties that show clear future growth potential"

This combined with the share buy back - they have not bought back any shares for 6 years they see the weak share price as an opportunity.

We will see.

[nickcduk] 03/9/2008 12:14

Decent set of results. MKLW look good value due to their low gearing. Discount to NAV should be much narrower. UKCM has no gearing but is on just over 10% discount to NAV. MKLW much better value in relative terms.

[sleepy] 03/9/2008 12:04

Am a new shareholder.

Do they usually do this?

Do the large family shareholdings make it more difficult?

Overall I thought the results were about as good as could be expected and the revenue outlook for next year better than expected

[walker10] 03/9/2008 07:40

"The Board intend to seek shareholder approval for the authority to buy-back up to 15% of the Group's Ordinary share capital at an EGM to be held after the AGM on 11 November 2008. Our share price is currently at a significant
discount to the revised net asset value".

[walker10] 05/8/2008 22:18

Yep topvest, they will just stick to the knitting as they have always done. Without being seduced into the head long scramble for short term risky returns,unlike the very people who should be investing in them,but they are probably deemed far to safe and boring for them !!!

[topvest] 04/8/2008 21:51

I've put in an order at £2. Happy to add these if it goes below this level. MKLW will be around in 10 years from now, if they are not bid for, and are likely to be delivering dividends over 20p a share in a few years time.

[finkie] 25/7/2008 12:36

agree with last post, will have a fall in NAV to report soon though maybe 20%+ from last year.....overall portfolio looks pretty well all let and low debt so will be ok longer term, might have further to fall though in unprecedented times.....couldnt say for certain it wont go below 200p

[nickcduk] 24/7/2008 12:52

MKLW have totally missed out on the sharp bounce in commercial property stocks. Large seller lurking who needs to be cleared before we join in the fun. Yielding 8% in the meantime with low gearing and not exposed to central london offices or retail should serve us well.

[walker10] 21/7/2008 16:48

Well Ive bought myself a lump today, MKLW is a very well run company IMO they know their patch the West Midlands like the back of their hands, renting industrial sheds. Surely there is value here after the slump.
We will see!!

[topvest] 02/3/2008 08:03

Agree - £2.75 and these are a fantastic buy. I already hold - great company and very defensive, with high yield.

[call-logger] 02/3/2008 05:39

Coincidentally, I last bought these at 300.89p

Not interesting enough?

[cerrito] 02/3/2008 00:21

myopia
I would agree with you...looked at buying some but for me they need to fall to sub 300 for these to be interesting

[myopia] 29/2/2008 11:43

I think that given the good rise from lows in recent weeks and tha fact that net assets have reduced to 406p per share, at 360p, when compared to other stocks in the sector, the shares are probably a short-term sell. They look solid enough for the long-term but given the probability of more downward revaluations of the investment portfolio and the fact that peers are being discounted much more heavily than mucklow there certainly doesn[t appear to be much upside at any rate in the current markets. Short-term Sell.

[jonwig] 01/2/2008 10:56

The imposition of business rates on vacant properties is (typically) an ill-thought-through grab.
The idea was put out to be that owners deliberately leave buildings empty to escape them, and one or two might have done.
But how many developers will now risk building in depressed areas, with the attendant risks? So much for urban regeneration!

A reduction in speculative development will only have the effect of pushing up rents in the next upturn - nice for us shareholders, I suppose ... countering the shorter-term hit.

[amla] 01/2/2008 10:36

What I mentioned in an earlier post re paying rates on unrented units may have a negative affect on profits.Who knows....still,there is a lot of life in the share price and congrats to succesful traders!

[nickcduk] 01/2/2008 10:30

MKLW portfolio is predominantly industrial and centred in the West Midlands. They have a modern portfolio and low gearing. They are a in a very good position to pick up bargains if forced selling takes place. They are exposed to an economic downturn but should on the whole be quite resilient.

[amla] 01/2/2008 10:18

Is'nt most of MKLW's property for rent?
Read that the West Midlands will suffer the most in any downturn.

[kenny] 31/1/2008 12:06

Sharp fall in commercial property

Some commercial property funds are putting delays on exits
UK commercial property investments suffered a record fall in the last three months of 2007, according to IPD.
Its UK Quarterly Property Index fell showed a fall of 8.7% on the value of investments in commercial property.

Falling values have led many investors to withdraw from commercial property, and some funds have introduced delays on when people can get their money.

Such funds have problems when there are lots of withdrawals because commercial property takes a long time to sell.

Friends Provident investors are having to wait six months to withdraw their investments while Scottish Equitable has introduced delays of up to 12 months.

For the whole of last year, the return on property investments was the worst since 1990.

[not manu] 31/1/2008 11:49

never known this stock to be so volatile, very weird.

[nickcduk] 31/1/2008 09:30

Lovely stock to day trade. Need access to the order book to really capture the full benefits of its volatility. Closed most of my short around 310p yesterday and managed to get about 5k in the auction at 302.5p. Just waiting for it to spike higher again before going short once more. Yesterday was strange though because there was no buying interest at all.

[call-logger] 31/1/2008 09:20

Trying to get some more this morning - must be the only effing share to be going up today