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MAYG May Gurney

302.50
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
May Gurney LSE:MAYG London Ordinary Share GB00B1528L44 ORD 5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 302.50 - 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

MAY Gurney Share Discussion Threads

Showing 176 to 199 of 475 messages
Chat Pages: 19  18  17  16  15  14  13  12  11  10  9  8  Older
DateSubjectAuthorDiscuss
05/6/2009
15:05
We have a new institution with over 3%, Octopus Investments with 2,149,351 (3.06%).
jonwig
04/6/2009
19:25
Interesting/recommending little piece in The Times today under their "tiddler to watch" column. Not sure why they class MG as a tiddler, but any advertising is good advertising.
Ssords

ssords
03/6/2009
06:33
Thanks for your post, SteMiS.

Yes, I see your point, and haven't looked yet at their sector margins.
Our local waste recycling site does mirror the kind of thing you describe, so I'll concur.
It just occurred to me at the time that there might be a bit of value added to their management contracts.

Their whole focus appears to be on low margin but stable long-term maintenance contracts ... they repeated often that they were not exposed to capital projects.
That looks a strong case for paying out a higher dividend, but they're likely to make acquisitions instead.

jonwig
02/6/2009
19:20
Jonwig,

I think I can answer your question. I like MAYG (not a holder but considering) but I think the EWC acquisition was a waste of money. I know rather a lot about the waste industry (for reasons we won't go into). EWC will run civic amenity sites. Most of the recycling on them is soil & rubble, green waste and wood with maybe some cardboard. There's little value in any of those. The high value recycling is plastic and paper but the tonnages received at CA sites are quite low (most of it is now collected door to door).

Sorry to disappoint.

stemis
02/6/2009
11:16
Thanks for your kind comments.

I e-mailed them on 17 May about the content of post #166 (value of recycling waste) but haven't had a reply. I'm always annoyed when no-one takes the trouble even to say "thanks for your query, but ..."

I intend getting to the AGM (on 7 July) even though it's a 400 mile round trip.
The significant point about the write-down is that I think cash was wasted (not a share issue) so the write-down was a waste of real money.
I'll need to look more closely into that before saying more.

jonwig
02/6/2009
09:22
jonwig

Thanks for your posts.

Their "duplicitious" (if thats the right term) reporting does leave a bad taste in the mouth and does not enamour me to the management.

It beats me why they can't put adjusted and basic earnings per share in the highlights.

At least they haven't rebased the dividend lol

Regards

muangsing
02/6/2009
07:57
Very good work Jon and thanks for your efforts. I wish for more like you on these BB's. Useful to know and does give us a better understanding.
marvelman
02/6/2009
07:53
As pointed out, eps aren't 20.5p but (diluted) 3.89p (down from 17.26p).
You need to go to the actual revenue account to find this, they don't oblige by pointing it out!

So why?
Again, it's hidden in the notes and under the heading of non-recurring items:

... following our unsuccessful bid to secure a large gas alliance contract, we reviewed the goodwill and assets attached to the related acquisition of Willows Plant Limited and concluded that a non-cash impairment of £11 million was appropriate in this financial year.

To see what's going on, they announced the acquisition of Willows Plant in October 2007 for £4.6m cash followed by a further £10m conditional on renewal of certain contracts (with National Grid I assume).
It looks as though they must have paid the £10m, following which the National Grid contracts evaporated and the assets were disposed of.
A 'non-cash item' they say, but cash was paid in 2007 and maybe cash later (I haven't checked) so the writedown is material.

It may be a bit churlish of me to complain about this but they seem to have hidden the situation quite effectively.
In the context of overall good progress it's not all that significant and presumably it's genuinely non-recurring.
I'm just feeling a bit aggrieved - maybe too much Daily Telegraph reading?

jonwig
02/6/2009
07:16
Results all as expected - better, perhaps.

T/O up 8% to £470.3m.
Order book up to £1.25bn.
'Underlying eps' of 20.5p so PE of about 8, and divi of 5.125p well-covered.

Balance sheet fine with net cash and final salary pension scheme in surplus.

I wish they'd had more to say about the fact of basic eps being 3.9p (against 17.3p).
The explanation is well-hidden and I'll need to go back to earlier statements to find out what they thought at the time. It's a writedown of a Willows Plant acquisition, abortive tender for a National Grid contract from what I can see.

jonwig
28/5/2009
06:16
Useful contract extension with Network Rail:
jonwig
17/5/2009
18:41
mark up in morning, this stock must be on the radar of some of the larger players, any suggestions??????
doc robinson
17/5/2009
14:55
From the FT.

I suppose the question for MAYG shareholders is, do they merely process recyclable waste, or do they buy it from the council as part of the contract, then sell it once they've processed it?
I'll e-mail and ask them.

Waste outshines gold as prices surge

By Max Hogg

Published: May 15 2009 23:27 | Last updated: May 15 2009 23:27

It has become the latest – and perhaps most unlikely – sector to nourish the green shoots of economic recovery: the price of recyclable rubbish has doubled since November, outperforming traditional commodities.

Prices for plastic and paper have surged from a dramatic crash last year. Languishing at £19 per tonne of material in November 2008, cardboard has trebled to a price of £59 per tonne in May 2009, above the 2004-08 average price of £53 per tonne. PET plastic, used in drinks bottles, has risen almost as strongly, more than doubling from £75 per tonne in November to £195 per tonne in May, well above the long-term average of £156 per tonne.

In comparison, the price of gold has risen by 14 per cent, crude oil by 16 per cent and the FTSE 100 by less than 2 per cent in the same time period. And with the incentives in favour of recycling presented by the government's landfill tax, it is no surprise that Nigel Aitchison of Foresight, the venture capitalists, considers the waste management sector a "timely place" to invest.

Once considered plain old rubbish, commercial and municipal waste is now a valuable global commodity. The UK recycling sector is worth £12bn, and the government's Waste and Resources Action Programme predicts it will expand to £20-30bn by 2025.

But the sector has been hit hard by the collapse in commodity prices worldwide.

"It's been a bit of a white-knuckle ride in the past few months," said Ian Wakelin, chief executive of Greenstar UK, a recycling and waste management company. "You woke up one morning and prices for recycling had collapsed. Demand had just disintegrated."

"On average, prices dropped 70 to 80 per cent from their peak. We reduced production levels, cut costs by laying people off, and were forced to go back to our customers and put prices up where we could. Then we just had to tough it out."

The price of recycling tends to track the price of non-recycled commodities closely; if the price of plastic drops, the price of used drinks bottles is likely to drop dramatically.

The remarkably quick recovery can be explained by two factors: the lower volumes currently being traded in the sector, and the resilience of the overseas market for waste.

"Prices are increasing because volumes are down by around 40 per cent on last year," said George Broom, owner and general manager of Environmental Support Services, a commercial cleaning and recycling services company. "The crash has taken some of the players out of the market."

jonwig
14/5/2009
16:45
I see that Willmot Dixon have already done some work on an earlier phase. I guess that if all went well then it makes them a front runner for this phase.
May explain recent up and downs in MG sp
Ssords

ssords
14/5/2009
09:59
Willmott Dixon and May Gurney are set for a head-to-head battle for a London education contract worth up to £400 million, Construction News understands.
jonwig
09/5/2009
09:10
Agreed, ssords - we did discuss takeover possibilities a while back. I suppose public spending is for the axe, which will hold back progress a bit.
jonwig
09/5/2009
08:11
This share so far down since IPO but with huge potential(solid long term contracts, good order book, low gearing) when markets recover I expect it to recover quickly. One would think might be a takeover target just now, but I see that about 30% shares held in what I hope are friendly hands.
Ssords

ssords
08/5/2009
13:49
Hi Jon,

Cheers, I'll have a dig on those!!

TR32 has been pretty bleak but I think we called it pretty well.

I am bullish but still following what the hardcore bears have to say.

Have you looked at CTR recently. Looks rock solid, forward p/e 6, yielding 8%.

Regards

simon gordon
08/5/2009
13:27
Simon - yes, well, thank you.

I had lots of favourite 'bombed-out property stocks' in March/April, then blinked and missed the quite remarkable rally. I have, though, kept a drip-feed into TRY, which is a well-managed IT.

But, if you insist (DYOR, etc., etc.) Daejan [DJAN] has low gearing and is sound, whilst Panther Securities [PNS] is an interesting company, and has the most eloquent critic of NuLabour I've come across in Andrew Perloff - read his Chairman's statements (eg. 29/04 finals)!

Neither of these is likely to make you rich overnight.

As for investments, this one, MAYG looks OK despite prospects for lower public spending.
Otherwise, boring stuff like SLXX and INXG etfs.

I drop in to read your 'macro' thread occasionally, but if I took it too seriously I'd either not sleep or would hit the bottle.

Best wishes!

jonwig
08/5/2009
11:53
Hi Jon,

Hope you are well.

Just wondering who your favourite "bombed out" property stocks are?

Simon

simon gordon
08/5/2009
11:43
Interesting background:
jonwig
19/4/2009
09:03
Yep, kicking myself I didn't get any on wednesday when I first discovered this share... New to trading, but found it on the Aim 50 list. Looks like quite a good bet, wished I had jumped straight in now tho... Still looking good value, but hoping for some retracement early next week to get on board.
thearcticfox
18/4/2009
16:14
my position exactly; kicking myself I did not buy more at the begining of the week.
etarip
18/4/2009
13:27
etarip - personally I'd welcome a price drop here from a bit of profit-taking.

I made only a small initial investment and would like to buy more but really don't fancy paying 170p, especially as there are 'overbought' signals being mentioned in the commentaries on the wider market.

jonwig
18/4/2009
13:03
or just a RNS and the price will drop.
etarip
Chat Pages: 19  18  17  16  15  14  13  12  11  10  9  8  Older

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