Mccarthy & Stone Share Discussion Threads

[farrugia] 02/6/2020 08:24

'The Group is pleased to announce that it has secured access to the HM Treasury and Bank of England Covid Corporate Financing Facility ('CCFF') and has put in place a £300m commercial paper programme under this scheme. The facility will be used to provide additional liquidity should it be required.'

this seems a no brainer, i bought some this morning - how can you go bust with the government lending you 300 million?

[brwo349] 29/5/2020 09:55

oh err..I need to learn to keep my mouth shut.

[brwo349] 28/5/2020 15:19

Up 9% and trouncing the sector today.
The discrepancy is being noticed.

[sbb1x] 20/5/2020 18:56

Eye eye what's going on here

[brwo349] 20/5/2020 18:29

down 8% today, twice the drop of the sector. Pourquoi?

[bell011] 15/5/2020 21:02

This business model is absolutely completely finished. Lock stepped with government guidelines, Effectively apartment/flat owners trapped,having payed inflated prices, in most cases for the intention of social interaction completely denied....tyrannical managers....No way as
a business can it grow, simply the stigma of care homes will have an enormous impact........"a parasitical philosophy which sadly will kill its host"...So many existing mcs "prisons" will inevitably become available....and with outrageous service charges whom would pay for the privilege?

[brwo349] 30/4/2020 17:59

sale of assets at a profit

30/04/20 Sale of assets to Waverstone LLP

Notification of Class 2 Transaction

McCarthy & Stone plc (the "Group"), the UK's leading developer and manager of retirement communities, today announces the completion of a portfolio sale of apartments to Waverstone LLP. The transaction follows an initial sale and lease back of sales offices and show flats to Waverstone LLP in October 2019.

This second transaction involves the sale of 135 units with a balance sheet asset value of c.£32m for a total consideration of c.£35m. This comprises the sale of 41 show flats and sales offices with a subsequent 12-month leaseback, and the sale of 94 finished apartments and apartments under construction in Scotland. The sale of these 94 apartments completes the Group's strategy to exit its development activity from Scotland.

The Group will receive c.£13m cash on completion with the remaining c.£22m balance expected to be paid over the next three years. The transaction is expected to generate a net profit of c.£3m over a three-year period.

[brwo349] 29/4/2020 10:19

price should be 100p at least

[brwo349] 28/4/2020 11:48

Price to tangible book is only 0.56
That's way lower than other housebuilders.

[paleje] 28/4/2020 09:36

The Times had a decent piece on them this morning:-

McCarthy & Stone was finally finding its way through its own crisis when coronavirus hit. In fact, after steering clear for much of last year, this column recommended buying the housebuilder’s shares in February, when the price was 149½p. They were up ½p, or 0.5 per cent, at 72½p yesterday.

McCarthy & Stone is Britain’s biggest builder of retirement homes, with a share of the market of about 70 per cent. It built just over 2,300 properties last year, the average selling price for which was £308,000.

The company has reinvented itself after a profits warning last year, calling a halt to an overambitious expansion drive to concentrate on sustaining margins. Crucially, its new approach is built on flexibility: customers can either rent or buy. This cushions the group from much of the vagaries of the housing market in normal times, including by making it a property manager as well as a builder. Now it has closed sites and sales offices, furloughed staff and cancelled the dividend.

Government support for wages and the lack of building mean that monthly costs are low, but Peel Hunt thinks it will need its banks to waive covenant restrictions on its debts if the lockdown continues past May or June. If it persists for several months after that, it might also need to turn to shareholders for cash, the broker thinks. Given that Persimmon, Vistry and Taylor Wimpey are resuming works or are preparing to do so, it would be unsurprising if McCarthy & Stone was to follow suit in the coming weeks.

The company has an attractive business model, which Covid-19 does not jeopardise. The shares, down 51 per cent this year, are also cheap. The dividend has been cancelled so there is no yield, but the shares trade for only 7.8 times Peel Hunt’s forecast earnings. While obviously a possibility, the prospect of a cash-call does look fairly remote. It’s quite risky, but the share price is an opportunity.

[brwo349] 27/4/2020 07:17

This is still being depressed by a stock overhang.
Who is the seller?

[brwo349] 25/4/2020 16:24

Look at this from the covid update

The Group has a strong balance sheet with a Tangible Net Asset Value at 28 February 2020 of c.GBP687m and gearing of 8%.

-- All cash measures announced today ensure that the business would be able to operate with no sales revenue for a period of c.2.5 years.


The market cap is just GBP387M against Tangible Net Asset Value at 28 February 2020 of c.GBP687m

This is the standout play just in the house building sector.

[brwo349] 24/4/2020 14:22

Some housebuilders restarting construction on Monday. MCS wont be far behind. Strong buy imo.

[brwo349] 24/4/2020 07:23

At 73p this looks way cheaper than other housebuilders. Its valued at only 50% of the pre-covid share price whereas the other builders have risen much more and are valued at 60%-80% of pre-covid price.

[windsor430] 14/4/2020 20:53

Construction starting back in Scandi & Germany, MCS doing the right thing putting up NHS workers, supporting existing residents & taking paycuts. Seems a good buy tomorrow after today’s drop.

[sphere25] 26/3/2020 12:06

Nice move higher. Stock has rallied nearly 40% from the bizarre early movements yesterday. It didn't make much sense why the stock was marked up in the auction but then fell back to then rally back through the day (and continue significantly more today). The statement was absolutely solid, particularly in light of how far the stock had fallen back.

We did see some large chunks being exchanged yesterday so clearly there are distressed/forced sellers out there who are holding some stocks back from even bouncing from significantly oversold positions.

This looks a much safer hold than anything else I've bought for a bounce but I'm dumping pretty much everything into all these spikes.

Maybe abit too cautious with this (but I don't trust the algos and human emotions when panic strikes again - everything gets clobbered) one but the reasoning for the majority is below:

Getting some lovely oversold bounces, but we still have to exercise a great deal of caution because this is far from over. The reality is that these bounces could easily get sold into and stocks make further new lows or at least retest the lows. The US is very unlikely to have bottomed with the current erratic moves - moving 1000-2000 points in consecutive days or more really isn't sustainable.

Moves like that mean noone can say that the bottom is in. We really want more sustainable and less volatile moves and a V shape looks very unlikely with economies effectively closed.

If you look at the commentary out there many companies are suggesting that a three month period of no/limited sales and then a further short period of around a month with reduced sales is very much manageable.

Clearly there are companies with much deeper underlying debt issues like CINE who are in a great deal more trouble than the rest and there are many companies who have almost panicked to a certain degree and done placings (HOTC, SSPG, TEG) near the bottom of these brutal downward moves, but on the whole it would appear the theme is one of exercising caution.

The long termers clearly will make the best returns in buying the good quality companies with strong balance sheets, but this is all unchartered territory and even though I'm optimistic and that there are many bargains out there, the markets could easily crash a great deal further depending on government policies.

[brwo349] 26/3/2020 09:13

The mark down to 40p was a clear anomaly. The other house builders are only down 50% max so this should be no less than 75p.

[eastbourne1982] 25/3/2020 08:36

So the business is basically being put on hold, literally everybody will suffer big time and the top dogs at M & S are taking a 20% pay cut, big deal.

[sphere25] 25/3/2020 08:16

Long here first thing. How many businesses can put out a statement like this:

"All cash measures announced today (including our current financing facilities) ensure that the business would be able to operate with no sales revenue for a period of c.2.5 years"

Safe as errr...houses.

[thewheeliedealer] 23/3/2020 23:28

Hi all,

My mate Peter @Conkers3 and myself did 2 Twin Petes Investing Podcasts a few days ago in a Special Double-Bill and MCS was one of the Stocks that we discussed. We also talked in depth about the current mess in the Markets and how we expect things could play out. Anyway, if you use Apple or Audioboom you can find them under the 'Conkers Corner' Channel (you want TPI Podcasts 19A and 19B) and you can find them on Soundcloud at the links below.

Cheers, WD
@wheeliedealer

[finkie] 19/3/2020 12:46

Huge overreaction to a suspension for a short period of a 3p dividend, surprised it lost a further 50% and continues to drift.....I have to say not the best company outside of corona issues always struggled a little to make real headway. Probably not one I will be looking to dooubke down on right now, there are safer plays to do that with.

[1 nhs] 18/3/2020 18:50

Good to see this company go down the pan.

Massive service charges

Outrageous prices