Mdm Engin. Share Discussion Threads

[mechanical trader] 17/10/2012 20:12

Was their a brokers meeting/confrence
call.

Must have met up with management today.

[mechanical trader] 17/10/2012 20:10

Looks cheap to me. perhaphs historicaly
its been on a low P/E?.

RATIOS
2012 (A) 2013 (E) 2014 (E)
EBITDA £4.73m £7.45m £8.15m
EBIT £4.56m £7.38m £7.96m
Dividend Yield 2.50% 6.44% 6.70%
Dividend Cover 2.75x 1.99x 1.98x
PER 14.54x 7.80x 7.53x
PEG f 0.09f 2.10f
Net Asset Value PS 31.60p p p

[mechanical trader] 17/10/2012 20:08

ohh thought it was good news.

Ill just have a look at the P/E to 2013.

[stegrego] 17/10/2012 19:43

If I thought this was worth 166p, I wouldn't have bothered buying it...

[mechanical trader] 17/10/2012 19:11

17 Oct MDM Engineering... MDM Canaccord Genuity Buy 157.50 139.00 152.00 166.00 Reiterates

166p Target share price

[cockneyrebel] 17/10/2012 18:25

Carlsberg Special Brew 9% with a Glenfiddich chaser please :-)

CR

[cfro] 17/10/2012 18:08

Great to see you here Glasshalfull too along with so many other quality regulars.

I also bought more this afternoon. Stunning value here.

Now, as we have so many of us here, how about a pint down the local?....IC2's buying the first round.....what do yer all want?.....:-)

[cockneyrebel] 17/10/2012 16:50

Agree Glasshalfull.

20p eps being touted so even that might be beaten.

That would be a 10p divi.

And this being conservative :-)

CR

[glasshalfull] 17/10/2012 16:35

I've also been buying today (thanks steg for the heads up ;-)

This analysis dated 14/09 may have already been posted on the thread, but I thought it might be helpful for other newbies to the stock.



Again, the fact that MDM are predicting to be ahead of forecasts with over 5 months of the year still to go confirms their confidence. It will be interesting to see the earning upgrades which as a few commentators have mentioned, suggest that the shares are trading on a prospective PER 7-8 (without taking cash into consideration) with earnings likely to come in at 20p+ for the current year based on the fact that earnings of 30.3c were pencilled in...therefore expectations of 32c (which would be a 5% upgrade) would equate to 20p at current exchange rate.

Yield also looks to be in the range of 6-7%.

These really are fantastic value IMHO.

Regards,
GHF

[neg] 17/10/2012 15:43

Cash of some 50p, strip that out and pe around 5.5 and with the commitment to pay 50% of earnings in dividends this makes a yield of some 6.5%. Been buying all day, my 12 month target is 250p.

[protean] 17/10/2012 15:14

The last move up prior to the consolidation was about 50p. A similar move up from 140p would take the shares up to 190p which roughly ties in with the top of prior resistance.

Huge volume today.

[wiwaxy] 17/10/2012 15:00

2.222p premium to be precise. Hope its worth it.

[cockneyrebel] 17/10/2012 14:49

Charging a 2p+ premium for 3K ?

CR

[cockneyrebel] 17/10/2012 14:36

Moving up on L2 now - some or all that stock cleared imo.

Just 1 mm left on 157p.

CR

[cockneyrebel] 17/10/2012 13:21

Results Dec 4th - got to be way higher by then imo.

CR

[cockneyrebel] 17/10/2012 13:18

Absolute ton of buying going on - I've had more - these just look so cheap imo.

CR

[interceptor2] 17/10/2012 12:49

Good to see you here Saucepan, thought these might appeal to you.

ic2...

[saucepan] 17/10/2012 12:36

I have joined the party just now, with a view to a long term hold. Thanks for the heads up,ic2.

[cockneyrebel] 17/10/2012 11:15

That meatier buy has helped clear a bit of stock imo - might rallyo up once that's cleared imo.

CR

[cfro] 17/10/2012 11:07

How many co's like paying out 50% of earnings?......not many i would guess. Thats what makes an investment here that much more compelling.

[cockneyrebel] 17/10/2012 11:07

So perhaps higher then, depending how far ahead they are perhaps?

CR

[stegrego] 17/10/2012 10:05

Forecast divi is 14.5c which is currently around 9p.

Which is currently 6%

[cockneyrebel] 17/10/2012 10:02

This is what they said in the year end results:

"Dividend policy

The board approved a final dividend of US 5.2 cents per share payable on 26 July 2012 to all shareholders on the register on 29 June 2012. MDM will continue with its dividend policy of 50% of after tax earnings"

If they beat forecasts they should be on for 18p eps or better imo. 17.9p eps, Edison saying 18.8p.

If they pay out half the years earnings in divi's that'ts 9p or better imo - a 6% yield. The revenue growth here has been stonking too imo and still a small co so scope to keep the growth going imo.

All imo/dyor etc.

CR

[highcommissioner] 17/10/2012 09:59

Thanks for the pointer.
A small holding for me.
PE too low for growth.

[interceptor2] 17/10/2012 09:56

I'm no chartest, but would this indicate a cup and handle formation. A bit of a long one being over 2 years when most play out within 65 weeks.

ic2...