Marshall Motor Share Discussion Threads

[edmundshaw] 21/9/2017 08:48

How much would MMH be worth to an acquirer? Given the tangible assets, the price here looks absurd...

[this_is_me] 21/9/2017 07:50

Strategic Disposal of Marshall Leasing; takes MMH pro forma net assets per share to 254p.

It puts the net assets up by 50p per share.

[55biker] 06/9/2017 09:02

Still a long way from where it probably should be ie: £2+.

Still seems very undervalued and if the share price stays around this level might be starting to look like an interesting takeover opportunity.

They have some quality dealerships in good parts of the country.

[molatovkid] 03/9/2017 09:15

Edging over 160p.....steady, slow gradual rise!!

[55biker] 24/8/2017 09:02

Looking at the MMH Presentation the dividend is up nearly 20% so if they continue the historic 1/3 - 2/3 split the full year should be approximately 50%. Also a really strong Balance Sheet with 112.5 million of freehold property which is nearly as much as the market cap of the company.

With asset backing of over £2ps and despite having two sizable acquisitions since coming to the market net debt to EBITDA of 0.7X is very impressive and just shows how cash generative this outfit is!

Although retail stocks have been hit with this Brexit uncertainty and an anticipated decline in consumer spending at least these PCP deals mean repeat business in the future and they say they have over 66,000 customers. With a renewal rate over 90% and a minimal default rate what an undervalued company!!!

[this_is_me] 23/8/2017 19:41

Well they did award the Nobel prize for economics jointly to two economists who had completely opposite theories, seemingly without realising that at least one of them was a complete plonker.

Then there was the survey done of economic predictions. It was found that the average of the predictions made by a group of ordinary people were more accurate than the average of the predictions made by the chairmen and CEOs of FTSE 100 companies which in turn was more accurate than the panel of professional economists. I suspect that the captains of industry have economists on the payroll.

The general conclusion is that economics is the only area of study whereby education means that you become useless.

[edmundshaw] 23/8/2017 19:13

Ah, you know economists well! :)

Fortunately, I am not one of them.

[this_is_me] 23/8/2017 18:54

"ceteris paribus" means that an economist has no clue, but is trying to make a name for himself and has built in several excuses for getting it wrong.

[edmundshaw] 23/8/2017 17:13

Ex dividend tomorrow so price in line would drop about 2.15p, ceteris paribus.

Of course we expect it to do no such thing! :)

[king kong dong] 23/8/2017 13:10

I'm thinking a buyer is picking up any loose shares.

Selftrade seem strangely keen to take my shares - normally the shutters come down in thin markets like this and sells are being absorbed without negatively affecting the price.

[king kong dong] 22/8/2017 20:24

possibly the start of a move much higher

[trapissed monk] 21/8/2017 16:33

Was miffed by the reaction to results but today takes us back to parity which is nice.

[jamesbiesse] 21/8/2017 16:17

September is normally the best month of the year for car sales (as my friends tell me). Maybe that will have a positive impact.

[king kong dong] 21/8/2017 14:33

This should literally, be motoring, pardon the pun. They were great results....a bit surprised we arent much higher.

[jeff h] 16/8/2017 11:13

New Edison forecast out. Profits and Earnings unchanged from their existing forecast
but Dividend increased to 6.45p this year and 6.90p for 2018.

[55biker] 16/8/2017 09:34

From what I hear the Management of this outfit is top notch and as the CEO said in the Times article today all this PCP scaremongering should not apply to the major dealers who have stringent procedures in place to weed out the sub prime buyers.

Alan Tovey must always get out of the wrong side of the bed before he writes his articles on the motor trade!

[edmundshaw] 15/8/2017 12:18

Added myself 55, Fully invested here now for the long term.

Management looks great, and whatever the short term may bring in terms of a depressed market, I think they are in a good position to outperform the market, which in the long term will bring rewards. Meanwhile, 4.5% yield is not to be sniffed at.

[55biker] 15/8/2017 11:01

Great results again and whatever type of vehicles we drive in the future this company will make good money doing what they do best viz: selling and trading. If it wasn't for recent gloomy press articles by journalists with half empty glasses depressing the price I believe the share price would now be around £2. The current price is an absolute bargain but no spare funds available in my piggy bank otherwise ............!

[king kong dong] 15/8/2017 08:46

no stock easily available....will rocket with sustained buying

[edmundshaw] 15/8/2017 08:31

BTW, yield of 4% is very adequate for a growth company; but assuming the 2:1 split of final dividend to interim policy is maintained for the year, it is closer to 4.5% going forward...

[edmundshaw] 15/8/2017 08:13

I make the current (trailing) yield about 4%, and the PE about 4. And the net assets per share are over £2. Outperforming the market. Etc, etc.

Seems a bit cheap whatever the potential issues with leasing loans. And I get the feeling that Daksh Gupta is far too sharp to allow that to become a serious issue.

[jeff h] 15/8/2017 08:13

N+1 Singer:-

Today’s interims reveal 33% PBT growth, split roughly 2% organic (net of disposals and a small decline in Leasing vs tough comps) and 31% from the Ridgeway acquisition, which is nearly fully integrated and performing as hoped. Despite a 6% upgrade at the time of the pre-close, which factors in adequate caution in terms of H2 assumptions, Marshall Motors’ rating has not improved from 5x P/E, with the shares only edging up from the recent all-time low. The board’s previously upgraded outlook for the full year is unchanged and property backing has moved up to 145p/share. Overall an excellent update confirming Marshall is outperforming the market on a number of measures. On this valuation the stock represents deep value on both a relative & absolute basis. The shares should gain today.

[edmundshaw] 15/8/2017 08:07

Too right. Impressive results.

[svenice7] 15/8/2017 08:02

Yeah impressive results