Mdm Engin. Share Discussion Threads

[exbroker] 07/11/2013 12:34

I spoke to my man at Canaccord, they dont cover the company any more as the analyst has left/been downsized so there is no update from the trading statement, guess we will have to wait for the figs on Dec 4

[sar10] 07/11/2013 11:02

Pye

according to canaccord they had net cash of circa 45p per share AFTER the final and special dividends were paid.

[sar10] 07/11/2013 10:59

Mick no probs. You can remove your address

[mickharkins1] 07/11/2013 10:58

sar10 - would appreciate if you could also send me a copy - [e-mail]

Cheers,

Mick

[pyemckay] 07/11/2013 10:57

At last results the company had a lot of cash too.

[sar10] 07/11/2013 10:25

Jeffian.

Agree with your comments and I wasnt trying to mislead - its one of the reasons I stated that the share price was 121p at the time the report was authored obviously now the share price is higher the yield will be lower at approx 5.3. I actually got in at 123.5p so the yield is great.

I think it is quite clear from company communications that last years exceptional results were due to the completion bonus. If we compare 2012 actual pbt to 2014 forecast then the progress can be seen. Just imo.

I was also curious about the potential for another completion bonus this year...that would certainly be, well, a bonus!

GL

[sar10] 07/11/2013 10:13

Pye and fly you can remove email address....

will send in a couple of hours, need to get on a pc (on phone at the mo)

[jeffian] 07/11/2013 10:11

Yes, I've now seen the figures too. Not quite as you say because both the share price and the £/$ exchange rate has changed since July. The forecasts are for 2013 eps of 26c (16.15p) rising to 27c (16.8p) in 2014 with a dividend 2x covered. At the current price that's a PER of 9.4x and divi yield of 5.3%. Still OK, I think, but not quite as stated. Also, down on last 'exceptional' year. The point is made that last year was distorted by a substantial 'completion bonus' and I wonder whether the market actually expects/understands the current year to be down? Equally, the point is made that there is scope for further 'completion bonuses' within existing contracts so there could be further nice surprises along the way. It would be nice if they could maintain the 'underlying' dividend (18c) even if that stretched the 2x covered 'rule'. Nobody likes to see their income go down!

[flyfisher] 07/11/2013 10:08

sar10 , Thanks that is kind of you .

[sar10] 07/11/2013 10:00

Maybe I should start a business charging for research notes :-) . I might float on aim - wanna buy shares?!

Will email to anybody that leaves their address - would be interested in peoples thoughts after also...

[flyfisher] 07/11/2013 09:51

sar10 , Any chance you could e'mail it to me.

[pyemckay] 07/11/2013 09:49

sar10, can you forward to me please ?

pye

[sar10] 07/11/2013 09:44

Finally managed to get a copy of the Canaccord note. Makes decent reading imho and with a 'prudent' approach they have upped their pbt forecast slightly from previous forecasts for both this and next year. Forecast yield is 7.4 % for 2014 - nice!

They have a buy rec target 161p which they indicate is 'undemanding'. Note that the share price was 121p at the time this was authored.

GLA

[hop53ton] 07/11/2013 09:34

South African DTI support for MDM's Hummingbird Dugbe 1 DFS and FEED. Due for completion Q3 2014 I think. Good for further MDM work if it keeps Hummingbird costs down, and nice advert for MDM too.

[sar10] 05/11/2013 15:52

Well just asked Canaccord directly! They are getting back to me so if I have any joy I'll let you know. Im expecting a call this afternoon.

[jeffian] 05/11/2013 15:41

I've had the same response. Haven't heard back from my own brokers yet (HL). I changed from my 'proper' broker (Rathbones) to HL recently for cost and convenience reasons, but I think this is the downside of that decision. You get what you pay for! Maybe the next step is to ask Cannacord direct; they may not be my broker but they're the 'house broker' and we're shareholders so......

[sar10] 05/11/2013 15:32

Hi All,
Has anyone had any joy getting hold of this research note? I have contacted MDM who have informed me that they cannot forward to me due to some disclosure rule but to contact my broker who should have access. I have called Barclays and I think they think I'm some kind of loony! They were pointing me to RNS's and didnt have a clue what I was talking about!

Anybody any other ideas?

Thanks

[jeffian] 01/11/2013 16:05

How could I refuse when you're the one who drew this little gem to my attention?!

I'll post when I get it.

[pyemckay] 01/11/2013 15:36

jeffian, would appreciate if you could forward this report on to me when you have it?

pye

[jeffian] 01/11/2013 14:24

I got an instant response from MDM's PR person. There was a Cannacord report July 13 which they are sending to me. I was certainly under the impression before that last year's profits were exceptional and would fall back. Still cheap, though.

[nermil] 01/11/2013 14:11

According to my TD Waterhouse broker forecasts Cannacord is giving 17.5p EPS (sterling) for 2014 and 18.17 for 2015.That is down however from EPS of 24.38p for 2013. That is the only broker they list. So the question is whose expectations do they refer to? Cannacord's or their own? Have they ever given any forecasts themselves?

[jeffian] 01/11/2013 12:17

I would be pleasantly surprised if that was the case as it would be slightly ahead of 2012 eps despite that year including an 'exceptional' profit. I've mailed the company/Cannacord to see if they'll let me have anything.

[jeffian] 01/11/2013 11:09

Yes, I had a feeling that was the case but I can't find any figures. The only broker covering seems to be Cannacord. Anyone got anything from them?

[wjccghcc] 01/11/2013 11:00

Last market forecast I read had earnings 25% lower this year.