Marwyn Value Investors Share Discussion Threads

[spectoacc] 19/10/2016 13:15

Possibly the weirdest announcement I've seen from an IT - what on earth are they on about? At first glance, "Realisation Shares" sounds a sensible proposition - but when reading deeper, there seems to be little advantage to them. There's no accelerated realisation/return, they're not entitled to the divi, and:

"The Company's manager, Marwyn Asset Management Limited, has advised the Directors that it does not currently expect to make any substantial disposals over the next 5 years.".

Someone tell me what the point is of them? Yes, you'd eventually get your money back when everything was sold many years down the line - is it just an excuse for MVI never to return a cent to ordinary shareholders?

[tiltonboy] 14/10/2016 08:37

Numis have upgraded their EPS forecast for BCA today by 13%. Target price of 220p.

[spectoacc] 06/10/2016 08:23

c.2p XD today.

[gleach23] 05/10/2016 10:43

ZEG now up 15% from the early Sept low

[gleach23] 04/10/2016 09:29

Yes a nice bounce off £1 for ZEG and hopefully BCA will continue to move off support at £1.80...all serves to underpin the bottom here hopefully

[mad foetus] 04/10/2016 09:23

ZEG showing signs of life too.

[gleach23] 04/10/2016 08:28

A nice 25k buy this morning. Hopefully we'll get a slow and steady rise back to the 180/200 mark.

[luckymouse] 04/10/2016 04:04

Results didn't read well but chart showing tentative signs of basing/consolidation due to increased discount & technical levels - nav will have to climb for a decent turn

free stock charts from uk.advfn.com

[spob] 03/10/2016 07:56

What irks me even more is that Barclays are a top ten shareholder in MVI

[cerrito] 02/10/2016 21:04

spob, I am going to take this up with Barclays and you may want to though I do not expect any reaction.
What irks me is that currently MVI is so transparent as almost all its holdings are publicly quoted

[spob] 02/10/2016 17:11

Hargreaves Lansdown will allow purchase of MVI within an ISA.

Currently my spare cash sits with Barclays and Halifax. Both of which say No.

[cerrito] 01/10/2016 18:10

Thanks Dave Bowler for sharing the rather lukewarm comment from Liberum-the corporate broker. Looking at increasing my exposure-but at this time probably will not although I do note the attractive discount and their historic track record. I do not like companies who give us their interims on the last possible day-Sept 30; they seem leisurely in their investing-both at the corporate level and at the Gloo level; they talk about the dividends but they are not earned per se and are just a way to return our money to us and not sure it impacts all that much on the discount. I see that after the Chemicals investment they plan to make just one or two more investments.

My problem is that like spob I use Barclays as my online brokers and they do not permit us to buy companies on the Specialist Fund Segment so I have to use my expensive full service broker-I have the same issue with ARTL.

[davebowler] 30/9/2016 09:36

Liberum;
Event
Marwyn's NAV total return for the six month period to June 2016 was -9.7%. Since the period end NAV has recovered slightly and YTD NAV total return is now -8.0%.


Zegona's (29% of NAV) recent interim results have highlighted the ongoing progress at Telecable with a 4.4% increase in revenues and growth of 10.6% in cash flow. The company is on track to meet 2016 guidance of mid-single digit revenue growth and double digit cashflow growth for FY2016.

BCA released its maiden results covering the 12-month trading period since acquisition (to 3 April 2016), reporting revenue of £1,153 million and adjusted EBITDA of £98.5 million. The company's leading market position was strengthened with UK a significant increase in remarketing volumes (UK +7.9%; International +6.4%) BCA has also completed the acquisition of Paragon Automotive Ltd (leading UK provider of outsourced vehicle services to automotive manufacturers and fleet operators) to broaden and increase the penetration on value-added services which help to retain the customer base and drive revenues.

Marwyn has today announced a new £10m investment in Marwyn Specialty Chemicals, a private company focused on the specialty chemical and industrial sectors. The company is seeking to acquire a business with an enterprise value of £250m - £1.5bn and intends to seek a listing around the time of the initial platform acquisition.

Liberum view
Marwyn now trades on a 32.5% discount to NAV (5.8% dividend yield). The price implies a c.40% discount on Zegona and BCA positions (ex-cash and assuming 50% discount on remaining assets). Catalysts for a narrowing of the discount include the deployment of capital to fund an acquisition for Gloo and new management platforms such as Marwyn Specialty Chemicals. The 5.8% dividend yield should also provide further support for the share price.

[tiltonboy] 30/9/2016 07:58

Singers have upgraded their target price for BCA to 220p.

[spectoacc] 30/9/2016 07:21

Another BREE or another GLOO?

[mad foetus] 30/9/2016 07:05

Maybe the news today indicates they want to have other options. Will this chemical co turn into another BREE? That's obvs the plan.

[cerrito] 30/9/2016 01:49

Does anyone know why Gloo has not been able to make an acquisition since its Feb 2015 commencement???

[hugepants] 29/9/2016 12:43

At the moment GLOO looks to be just a cash shell trading at a 10% premium. It's only 6% of the NAV but maybe its 10% overvalued?

[spectoacc] 29/9/2016 12:33

Fair point on the cash. And the listings, though only BCA would be readily sellable - have a look at the volume on GLOO!

[hugepants] 29/9/2016 12:18

Spec, Thing is the portfolio trades at a 50% discount if you strip out net cash. That looks extreme for an portfolio that is 85% listed.

[spectoacc] 29/9/2016 07:10

@spob - I've had to sign a few "complicated instruments" forms with other brokers, could be same with Barclays?

@Hugepants - this discount isn't unusual if you look back longer term on MVI, nor is it unusual for what's effectively a concentrated p/e-style portfolio. Would be glad to see a buyback but happy to sit & hold as is. BCA seems reasonably solid, GLOO moribund, but ZEG looks to have a lot of potential.

[spob] 28/9/2016 22:43

Barclays stockbrokers not allowing purchase of MVI.

Yet it's okay for Barclays to be on the MVI top ten major shareholder list.

[gleach23] 28/9/2016 22:19

ZEG showing some signs of life today...