Mcbride Share Discussion Threads

[bookbroker] 23/11/2020 08:53

Should be able to buy back a few more today than the usual derisory amount with a statement like that. Very uninspiring, the CEO needs to perk up, other he’ll be going the same way as Ludwig!

[bantam175] 20/11/2020 11:30

Dipped my toe in after buy rec from motley fool. Usually quite astute.

Held these for a profit years back. Missed the big surge tho.

[imastu pidgitaswell] 20/11/2020 08:35

You would think so, although it does just seem to have reached a higher level of equilibrium in the doldrums. I sold out soon after the move to 65 or so - small profit and have put the funds to far better use elsewhere - TW. and SAGA not least.

Really not sure I'll be back, and the company will be better off without short term impatient types like me...

[bantam175] 20/11/2020 08:17

Well with all these buybacks we should start upwards soon.

[bookbroker] 10/11/2020 12:26

Ridiculous valuation here, if they can afford to buy back ten per cent of stock this should be considerably higher.

[sirrux] 03/11/2020 10:03

So those last two trades reported after the close were the buys, maths works.

[imastu pidgitaswell] 03/11/2020 08:40

Anyway, seems to have had the desired effect, temporary or not. After 6 months of nothing, that has to be good.

57k shares bought - and see the percentage change off the back of that. That maybe all it takes on such a low volume share - we will see.

[sirrux] 02/11/2020 11:20

Maybe they ARE doing well and have decided that they can grow organically to hit revenue targets. Ironically the share price is at the lows when cleaning demand is at the highs in Europe and these are one of the larger suppliers with a market cap amounting to a handful of peanuts in industry terms. Brexit is an issue, but is it really?

[imastu pidgitaswell] 02/11/2020 09:37

Mmm, we'll see.

I'm not sure strange is the right word - it's unusual, not too many others are doing it right now as they are intent on cash preservation, but buybacks tend to happen at the wrong time in terms of share prices - everything from BP (wonder what a buyback programme would do at the moment - but they can't afford it) to my personal bete noire COST - market cap far below net cash balances, indeed below the cash they raised 6 months ago via a placement, several years' income on the order book - a share buy back would be extremely beneficial for the share price, but they can't really do that so soon after tapping shareholders for more cash.

This is at the right time from the share price perspective for MCB - can they afford it? I think they can, but nothing is ever guaranteed. As I say, I'm fairly relaxed as don't have too many now, but am curious to see if thinking a little differently pays, er, dividends, as it were...

[essentialinvestor] 02/11/2020 09:19

PUG, exactly.

One of the strangest RNS I've read in over 30 years, particularly given the backdrop.

Then again I'm not running the Company.

[pugugly] 02/11/2020 09:13

imastu - Agreed re PE but check out pension liabilites - not such a nice picture - also buyback will increase gearing and increase downside risk if major contracts lost - Contract manufacturing for PL is a cut throat business.

[imastu pidgitaswell] 02/11/2020 08:47

Nah, debt is cheap, this is tax efficient (interest costs of the debt are tax deductible), they have pretty good certainty of cashflows (unlike many) - and I suspect it will be nothing like 10%. More a token warning to lay off shorting it.

I don't have too many anyway, and am interested in what impact (if any) this will have, not least because others may consider doing it as well. There are some ludicrously cheap companies out there that PE vultures will just come and steal, imho.

[essentialinvestor] 02/11/2020 08:43

FFS, what about repaying some more debt?.

[imastu pidgitaswell] 02/11/2020 08:38

Good idea - Chris thinking sensibly.

"We believe that McBride's current share price does not reflect the value of the underlying business. We have resilient revenues, a strong balance sheet and highly visible cash flows. We therefore think it is in the interests of all shareholders to commence this programme."

Quite.

Note 'up to' - so could be 20 shares...

:-)

[imastu pidgitaswell] 23/10/2020 12:33

I do both (I think.) Trade some and hold some.

In these markets, stuff goes up and goes down, and often nowhere - see the FTSE for the past 20 years or so. If you can't beat them...

In this instance, yes, there are clearly a number of people doing what I have just done (possibly sold the lot as opposed to just some) but after over 6 months of nothing, I think that's a reasonable response to what might be just another short window. I hope it is the start of something sensible, but hedging my bets.

The fact that the price is holding up in the face of selling is positive.

[elsa7878] 23/10/2020 12:23

Yes..can see you trade and don't invest. Sooner we get the weak retail holders out of this, now the overhang has been cleared, the sooner it will move upwards.

[imastu pidgitaswell] 23/10/2020 10:27

In no particular order:

Large caps: HSBA, BP. TW. POLY.

Also COST (got my own thread!) - for me the cheapest of all, plus DLAR and DTY for swing trades.

Generally prefer liquid (much larger) caps - lower spread and easy to get in and out of. Another reason for reducing here.

[elsa7878] 23/10/2020 09:59

Love to know your more astonishing bargains....

[imastu pidgitaswell] 23/10/2020 09:21

Nothing - but after too many months of nothing, I need to put some of the funds to better use elsewhere. Sold some, kept some - small profit (but not, never, a loss.)

More fool me, probably, but there are some astonishing bargains out there, and I'm not letting them go by while marooned in this.

[elsa7878] 23/10/2020 09:18

Whatever. PE of 6.75 and forecasts to increase revenues and presumably profits too by about 25% over the next few years. What's not to like?

[imastu pidgitaswell] 23/10/2020 08:10

Or maybe not.

I guess Gilead have finished. I'll miss them...

[imastu pidgitaswell] 22/10/2020 15:00

The intern charged with selling must be taking an afternoon nap. He'll be for the high jump.

Quickly stamped on.

[imastu pidgitaswell] 21/10/2020 11:44

Looks like they have simply taken Gilead's plus some more.

[elsa7878] 21/10/2020 11:42

Well new shareholder with 16.8% thinks otherwise. Not much info on there fund so no idea how big it is or how successful....