Management Resource Solu... Share Discussion Threads

[dave4545] 22/8/2018 21:16

Think a sensible PER for MRS at the moment is 7-10

Based on 2.3 EPS that is 16.1-23p but we still trade around 8p.

The key for a better ratio is to slash the debt in time and become a cash cow and diversify their offering to other long term sectors as well as servicing the mining sector goes in cycles and thus has boom times and then bear times however we are just at the beginning of a boom cycle so they could make fortunes for 10-15 years and if they are making £4-6 mil profits and generating similar amounts of cash they could quickly transform the balance sheet. 16 mil valuation is pitiful atm. It deserves to be trading at least at the 15p options price

I'm convinced things are now going great at MRS, it's just a case of the company upping the PR and telling us.

[dave4545] 22/8/2018 20:00

Bit like comparing Zoo to Amazon on their thread today :-))

[mr. t] 22/8/2018 19:47

I think mrs is a good investment at this price, but comparing its business or valuation to fever-tree is nuts.

[dave4545] 22/8/2018 19:19

Normally the way, either they are ridiculously overvalued or very undervalued.

The board know the results, we know the results, it's almost 2 months since year end
so when do they tell us, when is the next operating update because it's been ages since the last one.

When do they state the obvious, shed operating at full capacity, we are making millions of profits, generating stacks of cash to now pay down debt and outlook is booming.

[lufc5] 22/8/2018 18:38

Isn't the stock market absolutely crazy??????

[lufc5] 22/8/2018 18:37

£1.70?

[lufc5] 22/8/2018 18:33

I'm sure they will issue a trading update shortly, but most info is already out there. We just need the tweaks and the finer details, ie, debt restructuring, I feel is a must. If that gets sorted, I'll be very happy. We know the business is thriving, but there are many who haven't ever considered this share. I look at a broad selection of fairly new companies. Always had my eye on fevertree. They have a per of around 85!!!!

What would that put us at?

The mind boggles...

[dave4545] 22/8/2018 17:20

Lucky buyers but I bet most will sell for a fast buck...too many trading this and it's stopping the price breaking into double figures...we need this silent board to start issuing news that matters.

[lufc5] 22/8/2018 15:24

I don't blame them. I topped up sub 8p. Shall just wait.....
This time next year should reward at these prices.

[someuwin] 22/8/2018 15:19

Buyers coming in.

[parob] 22/8/2018 14:09

Grabbed some more at 7.78p. Hopefully the drop will create the volume required to flush Bachmann out.

[dave4545] 22/8/2018 14:07

Be surprised if you can get any size at 7.8p otherwise it would be flashing away

[hulk2004] 22/8/2018 14:05

8p offer gone Dave, final 100k bought this morning wrongly timed! Funny how a flurry of sells, think some punters who bought on rise last week bailing!

[dave4545] 22/8/2018 13:54

I'm expecting 8p offer to have a lot of support. It's going to take a huge pi fallout to get the price lower than that even if Bachmann is still selling

[dave4545] 22/8/2018 13:48

Bidding mid price online so drop more please MRB

7.75-7.97p

[dave4545] 22/8/2018 13:44

250k sold at 7.75p

I've mentioned before that Bachmann has a habit of selling when it's having a bad day.
It's weird because you would think he'd wait for higher prices.

Anyway I suspected the 2 x 100k's were him earlier and now 250k, that's 450k again.

[hulk2004] 22/8/2018 13:33

It is frustrating Dave,need the cycle to change and it will!

[dave4545] 22/8/2018 13:26

Still depressing share as ever, no wonder so many people trade it. I'm kicking myself for not selling 200-300k at 9p too now and buying them back now.

The more it keeps doing this the more people that hold it will trade it and the longer it will take to move on until we get a RNS...it's really start to annoy me how long it can take for this company to issue some good news and also get Bachmann to issue a up to date holding.

[dave4545] 22/8/2018 12:31

A shade under £3 million unionhall

But it was a cracking deal. They were paying around £400k a year to rent the place
and not all of the loan was for the purchase, a lot of it was to improve the facility so they can do even more business and make even more money. I think you are looking at 4-5 years rent to match the buying price so a great deal

[unionhall] 22/8/2018 12:23

Think they took out another loan to buy the shed. Not really for a"song". They paid market price.

[dave4545] 21/8/2018 23:31

I reckon if they consolidated this year and concentrated on debt reduction they could slash £3-5 mil from their debt. Buying the Shed for a song itself should bring about big savings and there is strong cash generation. I do not want anymore expansion for now. I'd prefer if they continue to run at capacity and hammer down the debt first then think about further expansion.

[belgrano2] 21/8/2018 20:42

The debt is not small, but manageable especially with good contracts. Seems the forward looking long term demand for coal is sky high as the Chinese build lots of coal fired power stations for many struggling Asian countries..Thought it was about 60 in construction and planned. These will have a good 20 year plus lifespan.


China cannot satisfy that demand , as it needs coal for its own stations. Australia among others can help that requirement, hence we see expansion plans going in for pit extensions. Future looks rosy for miners and those companies that service them.

[f3rdinand] 21/8/2018 19:07

And with business booming, the debt being restructured or repaid (potentially) and new contracts arriving all the time I suspect earnings nearer 3p could be in the offing for 2018-19 making the current MC look even cheaper!

[parob] 21/8/2018 16:41

Cup and handle formation on the chart.