Marshall Motor Share Discussion Threads

[daneswooddynamo] 04/1/2022 22:30

Hold mine at interactive, voting options came through mid dec, deadline early feb

[mw8156] 04/1/2022 22:15

shares in the Hargreaves lansdown platform, yet to hear what my voting options are, should I have heard by now? is the D-day 14 January even though it's a foregone conclusion? in response to JAF below had also emailed HL before Xmas seeking info and again yesterday- seems they're like the postal service around here, all off isolating or with omicron as yet to receive any post this year or a reply from H/L. Quite annoying considering the amount they charge to run the account and deal....

[edmundshaw] 29/11/2021 14:53

Foe a consolidator these asset-rich companies always seem worth more than the market value, since the market often undervalues the assets and concentrates heavily on the earnings and PER.

The same happened some 10 or 15 years ago with small breweries when the larger ones started to snap them up. Earnings wise the small breweries (and their freehold pub assets) looked reasonable; but for the acquirer, those assets would have cost a bundle, and it would have been hard anyway to get hold of some of the prime locations.

Marshalls being well run and good at sourcing second hand cars does make them particularly attractive IMO...

[daneswooddynamo] 29/11/2021 13:37

The digital disrupters must be laughing all the way to the bank. Ridiculous valuations and can now backfit their business models by real profits, assets and cash flows.

[jaf111] 29/11/2021 13:33

£4 certainly looks very attractive BUT the fact remains that Mr Market was applying a derisory rating to the whole sector.

Of course there are valid reasons for this and the problems that the largest players (LOOK & PDG) have had would support the case for a low rating.

HOWEVER the record of Marshall Motors since it floated has been superb and (as I have said on numerous occasions in the past) the ridiculously low rating completely unjustified.

As such I regard the offer price as about right.

[this_is_me] 29/11/2021 13:12

Well it is a knockout bid; I can't complain at very close to 3 times my average buying price.

[daneswooddynamo] 29/11/2021 09:54

Yep remember it well, sytner, ryland even William jacks went eventually

[1tx] 29/11/2021 09:49

Well it's a cracking premium on the average 139p I have paid & in my opinion a very full price!I think we are in a unique position apart from being a first class outfit the majority holding means that the buyer can gain quick control of the company.Car dealers have never been highly rated in the market the last excitement was about a dozen years ago when we had a consolidation frenzy when I sold out my then holdings in Reg Vardy & European Motors at a very good price.We are now in a "sweet spot" as the online dealers try to build up their position to obtain I assume new car dealerships & stock supplies.

[wad collector] 29/11/2021 09:13

Ooh that is a nice start to the week. A longer term holder may take a different view . My reading is that this is done and dusted, as the majority holder has accepted.
Can't see the MMC being interested.

[edmundshaw] 29/11/2021 08:13

£4.00 - is that too cheap? Seems an inviting premium! :))

[daneswooddynamo] 29/11/2021 08:12

not hanging around. the next round of consolidation has begun, the digital disruptors must be rubbing their hands

[daneswooddynamo] 28/11/2021 16:49

Going to be interesting to see who else enters the fray. The traditional quoted dealer valuations are stupidly low, the digital disrupters stupidly high

[1tx] 28/11/2021 16:15

I think it will be very tempting for privately owned Marshall of Cambridge to accept cash for their near two thirds holding,the sum involved even at present valuation would transform the private company's finances; I think we just have to hope they don't sell out too cheap.As pointed out we don't yet know what the the opinion of VAG & Mercedes is regarding any takeover.

[jaf111] 27/11/2021 14:49

Leaky…..yes that’s an interesting point although not sure about that ……I had thought that the Motorline acquisition news had provided a string catalyst to a re-rating. Its share price based on the fundamentals had been absurdly low.

[daneswooddynamo] 27/11/2021 14:18

Unfortunately I am the other way. Had 60 of these at one point but now down to 15 partly as it had held up much better than look where I have been switching which I still think the cheapest. I reckon the situation at Marshall’s has been a bit leaky as the price has been pretty firm when the others in the sector have weakened. But the whole sector will move higher. It is the obvious backfit to these absurd online valuations but I thought the manufacturers would not allow the digital upstarts to hold dealership agreements but maybe they will.

[jaf111] 27/11/2021 14:12

Certainly is….although judging by the lack of comment both here and in the press perhaps people’s minds are on other matters!

I hold several motor dealers with MMH one of my largest holdings. The irony is that there has been the odd vague talk of takeover action involving ‘sector dogs’ PDG & LOOK where I have taken smaller positions, but my core holding in MMH was based on the superb management team / trading performance with no expectations of any corporate action.

But clearly WTFDIK!!!

So now the question is at what price might Marshall of Cambridge be willing to sell…..surely its got to be A LOT HIGHER than the derisory price currently given by Mr Market?????

[daneswooddynamo] 26/11/2021 17:17

Interesting stuff at 4.29!

[mortimer7] 04/11/2021 09:08

This morning SMMT have released the figures for UK new car registrations for the month of October. Total 106,265. October 2020 total was 140,945. A decline of 25% year on year.

[tomps2] 29/10/2021 09:12

D’Arcy Andrews ‘slams’ Marshall Motor Holdings (MMH) at 1h in the latest PIWORLD/Stockopedia Stockslam

Watch the video here:

Or listen to the podcast here:

[edmundshaw] 28/10/2021 15:25

"Hard to predict what effect on MMH of further supply problems" - my thought too.

It is worrying that China and Russia have got such strategic control of resources (whether by design or not). All sorts of impacts could flow from that over time, which could affect a lot of stuff, including businesses of many types. But whether MMH specifically is more exposed than airlines, manufacturing or commodities of various types I could not say...

[wad collector] 28/10/2021 11:46

Hard to predict what effect on MMH of further supply problems. Yes the new car sales numbers will drop, but will the prices and margins rise? It must help the Used car division, and will probably do no harm to the after sales.

Looking back at interims there is a profit split of 27% new 34% used 39% aftermarket.

Party on , for now.

[1tx] 27/10/2021 14:10

A major shortage of magnesium due to a decline in production in China,due to power & other problems,could seriously impact European car production in the immediate future,like next month, according to "pundits".Magnesium being required for alloys used in major components as well as steel generally and all Magnesium used in Europe imported from China.The valuation of my shareholding here has almost doubled;on existing fundamentals the shares are not dear,but can the party last....if production falters.

[edmundshaw] 19/10/2021 10:51

Agree Jaf.

Still, for those invested years ago (I took a position in 2017), or came in or added in the COVID downturn, the patience is finally paying off... :)) Of course, anyone investing more recently has probably done even better, but timing was never my strong point.

[jaf111] 19/10/2021 10:17

Indeed....very pleased to see.......BUT despite strong move up the share price is still VERY cheap so plenty move juice in the tank me thinks.....

All the car dealers seem to be on very cheap ratings....clearly Mr Market expecting a downturn but despite Marshall's superior track record (certainly compared to LOOK & PDG)and positive acquisition news, MMH does not seem to be on a premium rating it clearly deserves. IMHO