Mbl Share Discussion Threads

[kimboy2] 27/2/2011 12:11

I can't see the site on the list. Is it there ?

[timesmoney] 25/2/2011 17:52

As you say many unknowns, however if Morrisons is 80% of sales it would see t/o from circa 200m to 40m that has to mean a massive rethink on staff at all levels not just manual labour. Related issue is that the core bis has been supporting all the new innovations, in profit, cash and probably personel.

[davidosh] 24/2/2011 20:51

I do not think there will be significant redundancy costs as the majority of workers there are on temp contracts and some are just seasonal ie. for the three month run through to Christmas. There are certainly many unknowns and we shall have to see what we are left with after the Morrisons decision

[timesmoney] 24/2/2011 18:21

David
Unless we know the balance between payables and stock value at cost we cannot make the call. In any event any cash in would pale against the cost of mass redundancies,vacating premises and other horrible costs of downsizing. Remember Morrisons is still probably 80% of the whole. And, even given cash these guys have shown a remarkable ability to invest it badly (and of course pay it to themselves) Another pointless on line venture, another minority stake in a wish and hope venture £2m was it for 15% I can't recall.
If they loose Morrisons which is likely (or if not it will be work for nothing)
They may as well cash in all the assets and return the funds to the shareholders. They wont of course....

[davidosh] 24/2/2011 18:05

Timesmoney....Why do you not see a benefit to come at some point in cash ? If MUBL are holding stock in their warehouse that is subject to a supply agreement and was purchased only to supply Morrisons then MRW change their mind before the end of that contract and no longer require certain amounts of stock that has already been bought then who do you think should pay ?? It is more a question of what the agreed price should be...cost price ? cost price plus agreed margin or another amount ? Just remember the contract runs until at least September too.

It will make a big difference if half the warehouse is Morrison stock. A supply agreement must have some standing in law and even more if you do not have to answer to Morrisons after September.

[timesmoney] 24/2/2011 15:40

Guys where on earth do you get the idea that there is cash benefit from the Morrisons stock? Because the company said Morrisons would take the stock if the deal was cancelled does not mean there is a cash profit in it. In fact it may represent a cash loss! Morrisons may well have said they will take the stock, but we have no idea how much stock is truly Morrisons or when they would take or indeed at what price. Morrisons is a supermarket after all, a industry not renowned for their charity when it comes to suppliers.

[rbcrbc] 24/2/2011 12:51

This does seem to have dropped a long way on some tiny trades, I guess the MM's dont want to be holding stock. It looks like it is at a 5 year low and any minor interest will see it rise quickly. However I dont see much hapening until the End March update, so an ideal buying opportunity if I hadn't gone in overweight at about 100p in anticiaption of an MBO above 120. I do now wonder if Morrisons were the potential buyer and went for Kiddiewhatsit instead. Some good figures from the new businesses (It shouldnt be hard to increase the 8,000 customers at outnow) or a one-off return of cash from the morrisons pay back should see a return to more sensible levels. It will be very interesting to find out the amount of cash to be returned by morrisons and to have some indication that it will be returned to shareholders (in part) or put to good use.

[mr hangman] 24/2/2011 11:26

a ramp up at Melo, that's what's desprately needed here

[davidosh] 24/2/2011 11:24

The new FD clearly had some confidence that even in the worst case scenario there would be a return on his 49.5p per share investment. I would probably be much more confident if the ex FD LC put all her bonus payment into buying shares though. Now that would make a difference.

I feel sure that Morrisons will still have a contract with MUBL after September albeit less profitable but I am interested in how much the cash is going to be coming in under the agreement for all that huge stock we have with their name on it !!

[fft] 24/2/2011 11:12

anyone any thoughts on where the bottom could be ? assuming morrisons is cancelled, what is valuation on what is left, and what sort of NAV do we have. I assume there could some hefty 1 off exceptionals as the business would need to be downsized to meet the new reality.

Market cap is now just over 7m. the cash from the morrisons stock should be more than that, but the market isnt interested.

Hope we are not in a RCG type situation.

The only shame is that TA and PC probably wont be downsized....

[timesmoney] 23/2/2011 18:01

A comment like that shows the true colours. £25k is the going rate for a tin pot plc. The comment suggests he is in it for as much as he can make personaly.
Not the sort of non exec you want or need. Should be tighter rules about this sort of thing or once again a proper board to ensure this does not happen.
Where's Stelios when you need him.

[typo56] 23/2/2011 17:17

Not able to claim expenses then?

Let me see. £5 per gallon (then). 25mpg. £25k petrol would be, er, 125,000 miles.

Not much travelling time left for JD. and that carpet company.

[cockneyrebel] 23/2/2011 16:46

£25K barely pays his petrol? Compay car a Bentley GT is it? :-)

CR

[miamisteve] 23/2/2011 16:26

He could return the cash if he felt that bad about it. I remember him moaning on the conference call, saying he made no apology for his bonus as his 25k pay barely pays for his petrol.

It is a desperate state of affairs when he is our only hope for some semblence of corporate governance.

[timesmoney] 22/2/2011 18:32

Hey Tommy
A bit black and white. The £300k was a foolish move and if he could undo it, probably would. That's what happens when temptation comes ones way and there is no one to guide you. Like mum and dad or in this case a proper board. I am sure the JD shareholders are happy with his performance. If you think PC has destroyed the co with 300K what about TA and the odd £1M??

[tommyjnewton] 22/2/2011 00:18

The current price suggests that people think Cowbell is a worse home for your money than Gaddafi. His £300,000 bonus has in effect destroyed the company. What a pillock! Why do people trust him elsewhere?

[timesmoney] 17/2/2011 21:01

If TA goes down to London to meet Investors I will eat my hat

[fmcalorum] 17/2/2011 16:21

Yes, that makes sence. Better to discuss knowing the facts of where we stand

[davidosh] 17/2/2011 16:12

FWIW....I also think they have a very good chance but until we know where we stand it is probably not worth setting anything up with investors.

[fmcalorum] 17/2/2011 16:02

Thanks David. They must think they still have a chance with Morrisons!

[davidosh] 17/2/2011 15:35

Yes...PC has agreed to do a conference call following the tender offer process with Morrisons. They are busy on that and it has to take priority at present. I think that PC will also encourage the directors to come down to London on the day of the finals results to meet with investors this year for sure.

[fmcalorum] 17/2/2011 15:07

davidosh - 31 Jan'11 - 08:49 - 3385 of 3588

I will be trying to arrange a conference call or preferably a meeting with PC within the next few days. At least we are no longer in the ridiculous offer period. There are tens of questions now to ask and as FFT has already stated the business is now going to look very dominated by cash and we need to have far more confidence in our management to not extract it for their own benefit.

Hi David, have you had any joy with a conference call or meeting?

[kimboy2] 15/2/2011 21:30

Does anyone know how or if the Kiddicare technology plastform is superior to MUBL. I have found this but don't really understand it;

[davidosh] 15/2/2011 20:53

No need to rub it in !! Anyway the new FD bought 19k at 49.5p so that kinda shows confidence at this level. We should know more about Morrisons and the way ahead within the next few weeks and certainly by the end of April. If Kiddicare can get taken out on hefty multiples there is still hope for the rest of the business too.