Mcbride Share Discussion Threads

[blackhorse23] 06/6/2022 08:18

Investment shifted to IGR

[blackhorse23] 06/6/2022 08:08

Red day again

[wigwammer] 24/5/2022 16:51

PMDR giving the tin pot shorts a run for their money.. a lot of effort by the latter to make tuppence (at high risk)... :)

[blackhorse23] 17/5/2022 15:15

Sold MCB & bought IGR , better value & company

[gozo] 13/5/2022 11:59

Just dipped my toe in this morning and bought some following management buying

[wigwammer] 25/4/2022 12:28

Chairman buys 100k.. not what you do when yer about to place shares (even if you were allowed to).

[wigwammer] 20/4/2022 09:30

A further point is valuation. 0.08x sales. Any margin recovery is going to have hugely leveraged effect on eps given the size of turnover. And at this valuation will be a massive kick in the knackers to the tin pot consensus shorts.

[wigwammer] 20/4/2022 09:26

A rather selective time period, CC. Operating margins were as low as 3% in 2014 and consequently recovered materially to the 5-6% levels you refer to in 2017/18. In other words - margin variability has been the norm here for many years (rather than trending down, as your state). Previous recoveries have resulted in huge rewards for holders - the shares were £2+ post the last recovery. Yes - we have cost inflation, and according to management a large part of this is being passed on to end prices. But what happens when the inflation stops, and we potentially see a pull back in commodity prices as consumer demand is hit and economic recovery stalls? I suspect many of McBrides price increases will prove to be quite sticky upwards, while costs will fall commensurately. ATB

[creditcrunchies] 20/4/2022 00:12

Operating margins on this stock has been trending down for 5 years:
Profitability
Operating Margin %
2016 2017 2018 2019 2020 2021 Current
4.83 4.31 4.57 3.69 2.17 2.27 -2.30

I'd agree 5% is a good figure for this type of business but they've never hit that level in the past 5 years, also,high inflation is killing this stock.

It's also got a Z score of 1.7 which is in the bankruptcy distress zone.
Mcbride has an Z1-Score of 1.37
This indicates a serious risk of financial distress within the next 2 years.

[gozo] 14/4/2022 17:57

I see the cfo and ceo have put around 30k of the their own hard earned in March.But having read about the I'll timed share buyback it doesn't inspire confidence

[gozo] 14/4/2022 17:43

Cancel that just read the last few releases. Will keep on the watch list and may dip my toe in on the off chance of a speculative bid

[gozo] 14/4/2022 17:28

I've not had mcb on my watch list for a couple of years. Heard a news report this morning saying the increased cost of living was leading to shoppers switching from branded to unbranded toiletries etc and consequently thought I'd take a look in here.Graph is shocker....what's gone on?

[wigwammer] 14/4/2022 09:36

Whereas the tin pots would not have a clue how to negotiate with a major retailer, or the brains to pass exams and get qualified, or the ability to persuade a meaningful City institution to give them a job :)

[pugugly] 14/4/2022 08:33

WW. Proper City Jobs - Dont make me laugh - Many in the city would not have a clue how to negotiate with a major retailer.

[wigwammer] 14/4/2022 08:17

Some tin pot outfit is shorting. Not difficult to make an illiquid share fall, but painful for the tin pots when it snaps back. If only they had the qualifications and ability to get proper city jobs.. :)

[pugugly] 13/4/2022 12:54

Need to change the headline to "Target <30p (imo)"

[brut winky] 13/4/2022 12:14

All but in freefall.

[wigwammer] 08/4/2022 20:57

They wouldn't be allowed to trade if they knew.a placing was imminent... "wigwammer - I suspect those small purchases are an attempt to prop it up prior to a placing"

[wigwammer] 08/4/2022 13:39

Well management have been purchasing shares - sometimes in quite material amounts - over the last year or so. No placing has emerged. I imagine they purchased because they believe the business is structurally well placed and represents good value, even at a materially higher share price. But they did not anticipate - and nor did the market - a black swan commodity spike to upset things.

[she-ra] 08/4/2022 12:21

wigwammer - I suspect those small purchases are an attempt to prop it up prior to a placing.

I hope not for everyones sake.

[wigwammer] 07/4/2022 22:08

Re private equity might have an interest. In fairness to management, THEY are showing an interest ... see pmdr purchases.

[essentialinvestor] 07/4/2022 21:22

Ok fair enough, you may have wider sector knowledge than me.

[wigwammer] 07/4/2022 20:12

With respect essential, low op margins/high throughput are the nature of the industry they operate in. McBride's op margins were 5%+ as recently as 2018 - highly respectable for a business of this nature. So the perception that McBride has had a long term margin performance problem is I suspect just that - a perception.

[essentialinvestor] 07/4/2022 19:58

wig, no one could have predicted that, or certainly not the extent.

However, thin margins have been an issue at MCB for about as long as I can remember.

Anyway it's done now. May be private equity might see some value.

[wigwammer] 07/4/2022 19:55

Pug - since they undertook the buyback they've been impacted by rising commodity prices which have affected many companies unexpectedly. But no doubt you had all that predicted - bought triple leveraged commodity ETF's and made loads of money in the process... which is why you now prowl around advfn posting boring post event rationalisations AFTER the event... what a genius! .. lol :)