Marston's Share Discussion Threads

[ritz6] 08/5/2008 14:17

tipsytoad -- Its been just going in the opposite direction since you mentioned it. LoL

[tipsytoad] 08/5/2008 08:16

good start to the day
if it keeps moving at this pace
will need an RNS!!

[coogar] 08/5/2008 02:07

From The Times
May 8, 2008

Pub sector shares soar as Enterprise wins right to Reit status

The tenanted pub company delivered a shot in the arm to the beleaguered sector after being given the go-ahead to convert to a real estate investment trust
Dominic Walsh

Enterprise Inns, the tenanted pub company, delivered a shot in the arm to the beleaguered sector yesterday by revealing that it had been given the go-ahead by HM Revenue & Customs (HMRC) to convert to a real estate investment trust (Reit).

The news, which lifted sentiment in a sector hit by the smoking ban and declining beer sales, came amid speculation that Robert Tchenguiz, the property entrepreneur, had lifted his stake in Mitchells & Butlers, the All Bar One operator, from 23 per cent to almost 27 per cent after buying shares from Alliance Bernstein.

Shares in Enterprise, which has been investigating Reit status for a year, jumped by 115p to 510p - a rise of 29 per cent - as it confirmed that HMRC had ruled that the company was "eligible to convert to Reit status if an internal restructuring of the group is undertaken".

The company said it was evaluating the decision, but that because of the complexity of the issues involved it could be several months before a decision on whether to recommend such a move to investors. However, analysts thought the company would go ahead and estimated that tax-efficient Reit status could be worth 200p a share.

Observers believe that conversion would reduce Enterprise's tax bill from 30 per cent to about 6 per cent and allow it to double dividend payments in return for a one-off entry fee equivalent to 2 per cent of its asset value, or about £120 million.

Reit applicants must derive at least 75 per cent of their income from property rents. Although Enterprise makes about half its income from rent, it intends to create separate operating and property companies under the Enterprise umbrella. The operating company would collect rent, beer sales and machine income from tenants, then pay most of such income to the property company in rent.

Ted Tuppen, chief executive, said that there had never been any question of a demerger or sale of property assets: "The key thing is we wouldn't be demerging our pubs, making expensive changes to our financing or changing the relationship with our tenants."

News of HMRC's ruling seeped into the market in a note by MF Global, a brokerage. It is said to have sourced the news to a meeting with Giles Thorley, chief executive of Punch Taverns, which is also in talks over Reit status.

Punch welcomed the HMRC decision and said that it "continues to consider the opportunity of a potential conversion to Reit status on its merits". However, analysts said that it would have to sell Spirit Group, its managed pub division, to qualify.

The announcement alerted the market to the hidden value of pub assets, sending Marston's 34p higher to 234p, Punch up 60p to 600p and Greene King 55p higher to 590p.

[coogar] 08/5/2008 02:05

"It was a day when short-sellers were comprehensively squeezed, the FTSE 100 closing up 45.8 points at 6,261.0. Enterprise Inns led the way, up 115p, 29 per cent, to 510p as it confirmed that it had gained approval from HM Revenue & Customs for a tax-efficient real estate investment trust vehicle. The market thought that this was clearly the right (Reit?) move and the news lifted the entire pub sector, Marston's being the biggest beneficiary, up 34½p to 234p."

(Source: The Times, 8th May 2008)

[cockneyrebel] 07/5/2008 21:24

Yep, 7.5m traded - where did all those M.Lynch clients come from? :-)

Definitely think theres consolidation about to happen in the sector - they way the whole sector moved says there's some news in the mkt we don't yet know imo.

Should be an interesting week or so.

CR

[lord gnome] 07/5/2008 19:19

For info, I picked up this at the other web site across the road.....


Pub operators were a positive focus today, with the sector soared as traders identified a numbers of positive factors.

Enterprise Inns was the biggest blue chip riser, up 115.25p at 510p, with Marston's a top FTSE250 stock, up 34.5p at 234p, and Greene King, up 55.5p at 590.5p.

Marston's was supported by a note from Merrill Lynch which highlighted the stock's increasingly attractive valuation ahead of the firm's interim results due on May 23rd.
For now, however, the broker repeated a 'neutral' rating on Marston's and reduced its top-of-the range full year EPS estimates.
Punch Taverns shares were also in demand, adding 60.5p at 600p ahead of upcoming results with one trader noting rumours that the firm could announce news of a switch to Real Estate Investment Trust (REIT) status with the numbers.
Mitchells & Butlers, which recently fought off a merger approach from Punch Taverns, saw its shares shed 15.25p at 340.75p, was lifted by talk that entrepreneur Robert Tchenguiz was adding to his share holding in the group.


FWIW I tend to agree with CR. There is no way that a luke warm comment from an analyst, coupled with a reduction in full year EPS estimates would generate such a response in the market. Other forces must be at play.

[cockneyrebel] 07/5/2008 18:02

Hmm, I'm suspicious when I hear that.

Half these big brokers either get wind of something and change tack. My bet is there's a bid in the sector somewhere and the yknow when that happens they will all look daft with their silly ratings.

When stocks like this are rocketing to £5 they are saying buy, buy, buy. Stock plumments to under £2, pays a 6%+ yield and on a PE of 7 and it's not a buy lol.

£1.9bn of property and plant? When was that property last revalued?

I reckon the analysts are probably all thinking blow it, we forgot about pubs becoming REITS - perhaps they are cheap!

UBS initiated with a buy recently I see.

CR

[broadwood] 07/5/2008 17:31

Merryll's described them as attractive today. That was the sole reason for the rise' as far as I can see. Unbelievable , but true.

[cockneyrebel] 07/5/2008 16:45

7.5m traded, closed on the highs.

Less than half what they were a year ago still.

PUB gave a fair bit back. MARS was up well before ETI - not the REIT reason for MARS imo. Can't be the sunny weather either can it? Not that volume imo.

CR

[lord gnome] 07/5/2008 16:32

What a day. I guess we just have to wait to find out what lay behind it. RNS anyone?

[abcd1234] 07/5/2008 16:10

rns statement re REIT progress on ETI helping now

[cockneyrebel] 07/5/2008 15:58

5.9m traded now without any large closing trades

CR

[nigelbarker] 07/5/2008 15:48

someone has just bought 100,000 ... very interesting just added a few myself

[cockneyrebel] 07/5/2008 15:35

5.3m traded - that's a big day and with the buys/sells 50/50 there must be some very large buys to show for these to be up 15% imo.

CR

[cockneyrebel] 07/5/2008 15:18

MAB, PUB and ETI all up on very normal volume.

CR

[cockneyrebel] 07/5/2008 15:16

Enterprise Inns too Lord Gnome.

The difference is the volume here - MARS is having it's highest volume since last July.

A bid for MARS coming and the others up in sentiment?

Strange the volume should be so high here.

CR

[ritz6] 07/5/2008 14:27

Predator and me --- ended up being a pray.

[lord gnome] 07/5/2008 14:23

MAB and PUB also up strongly today, so I don't think that it's anything specific to MARS.

[nigelbarker] 07/5/2008 14:22

its very cheap very few brewers left plus it has hotels

[cockneyrebel] 07/5/2008 14:09

Been a few high volume days over the past 6 weeks on MARS Ritz6 - a predator out there?

CR

[lord gnome] 07/5/2008 14:04

No idea Ritz, other than it could be because I bought a few yesterday. Just call me your lucky mascot :-))

[ritz6] 07/5/2008 13:48

Guys any ideas why is there a 10% spike in Marston. Any takeover rumours or anything else.

[lord gnome] 07/5/2008 10:50

I can't drink canned beer pherrom. It always takes a taste from the metal. I'm a midlander, so Banks is a favourite tipple of mine. The shares aren't bad either - we seem to have taken off vertically this morning. I wish my timing was always as good.

[pherrom] 07/5/2008 09:41

I put this year's isa into them on the grounds that the the div seems good as does the beer. Haven't found Banks down here (SE) but the bottled Pedigree is agreeable; the canned, also good but seems like a different beer.