Mears Share Discussion Threads

[pbracken] 23/7/2009 10:12

From Charles Stanley today:

Demand for cost savings
We are buyers of the outsourcers that offer significant cost savings and
continue to benefit from ongoing demand from both the private and public
sectors. By contrast, the distributors, recruiters, rental providers and
construction facing companies have reported weaker conditions in Q2 compared
to Q1 and we anticipate further difficulties in H2 09.
�� Key recommendations:
�� Connaught (Buy) – Defensive growth, with excellent earnings visibility. Social housing bid pipeline remains strong, potential market share gains in compliance.
�� Mears (Buy) – Strong bid pipeline in both social housing and domiciliary care. Valued in line with the wider sector yet offers superior earnings growth.
�� Robert Walters (Sell) – Loss making in 2009E and difficult outlook for 2010. Trades on significant premium to wider sector pricing in a strong macro recovery.
�� VT Group (Buy) – Attractive valuation, good visibility, large order book, strong balance sheet. Ability to provide significant cost savings to the government.

[sruthan] 21/7/2009 14:32

mmmmm......112k sold and only 53k bought but price edging up at last. still plenty of buy orders on L2 so looking good.

[nellie1973] 20/7/2009 16:44

At last we have cracked 240!!!

[hosede] 18/7/2009 18:56

IMO while both are very well run Cos., MER is fairly valued and CNT significantly overvalued. Remember, at the bottom of bear markets even the strongest Cos. come down to PEs in the 5-8 range, and if you are crazy enough to think we've seen the bottom, then consider that the SP500 (probably the West's most representative index) is currently on a PE 0f 23.3 with earnings falling - at previous market bottoms its PE has sunk similarly into the 5-7 range OUCH!

[essentialinvestor] 18/7/2009 14:11

Mears have a contract with this council

[ezodisy] 17/7/2009 10:34

It does, though it doesn't take into account sellers or MM madness :)

[rivaldo] 17/7/2009 10:12

Ta ezodisy - looks promising.

[ezodisy] 17/7/2009 09:23

Chart-wise on closed prices we broke above minor resistance and have next at around 248. A break there and a move towards 300p will be on.

[volvo] 17/7/2009 09:21

More contract news next week is a strong possibility(unquote).Please dyor though.

[peterboroughmatt] 16/7/2009 16:46

A good day at last long may they continue

Matt

[nellie1973] 16/7/2009 13:36

I was in a while ago at 211 and sold out at 242. This company has won some serious contracts in the past two months and has dropped off prompting me to re enter at 220. I think we are all expecting good results in less than a month. A safe part of my portfolio!

[rivaldo] 16/7/2009 11:49

Nice 25k buy at 238.5p. Looking good for more with the likelihood of further news flow soon.

[essentialinvestor] 16/7/2009 10:25

His comments were in the context of ensuring front line services, that is why I posted it.

Not everyone takes the same view - which is one of the reasons why the share price is in the 230's not the 330's.

[volvo] 16/7/2009 10:14

EI you would have to live on Mars not to realise that government spending,local and national, will have serious reductions.

That is exactly why Mears are doing so well and will contine to do well.

For example Oxford Council pay for independant gas companies to service boilers and carry out repairs to their 7800 council houses.They charge full rate, are slow and very expensive.Same for plumbing,building etc etc.

Mears offer a good discount and take on everything.Total clarity and responsibility,Simples.

All councils are looking at it right now(on government instruction),thats why Mears services are wanted and will be throughout these spending reductions just as Holt keeps saying.As the likes of Brighton and Hove sign up this week, other councils will follow, new and existing, as the momentum builds.

[essentialinvestor] 16/7/2009 10:00

Domiciliary care also saves LA's a huge amount on costs (in camparison with Residential care) and helps maintain independence and dignity.

Anyone here who has visted some of the LA run residential homes will quickly realise that staying in your own home, if possible, is far preferable.

[essentialinvestor] 16/7/2009 09:51

Suprised the comments by Gus O' Donnell yesterday, the UK's top civil servant have not been picked up here.

In summary, public sector cuts on the way..

To protect front line services such as Home Care (care for the eldery).

I agree the rating differential with CNT is unjustified IMO
and MER is debt free, CNT have gearing as well.

[volvo] 16/7/2009 09:05

Point taken although old people will still go into homes after of course many years of being cared for at home by Mears Care division.Sound better.

The point was really, maintenence of council houses(gas,electricity,plumbing,buildings,roofing drainage etc etc every day, all year, every year) and care of the elderly, based on long term contracts is about as recession proof as you can get.

Company directors are super confident they building a major major company.Got most things right here and can confirm we have a bid pipeline of another 400m, with more contracts being announced from any time now.

[geovest] 16/7/2009 08:55

Volvo, I'd much rather prefer all those old people you are talking about don't go into care homes. Remember, Mears only provide domiciliary care, ie care and support while you are still in your own home.

[volvo] 15/7/2009 21:25

Yes looking good.These contracts will be fantastic for income as the years of the recession roll by.Gas boilers will need replacing and old people will go into homes.Steady rise to 300p from here.

[rivaldo] 15/7/2009 10:19

Good spot Volvo - that's a good read-through for MER.

[volvo] 15/7/2009 07:32

Connaught plc
Today

("Connaught" or the "Group")


Interim Management Statement


Overview


Connaught is pleased to announce that it has continued its strong performance
into the second half of the financial year ended 31 August 2009, maintaining a
high level of new contract wins in both the Compliance and Social Housing
divisions, with year to date order intake now standing at over GBP650 million.

[essentialinvestor] 14/7/2009 19:10

Well Bob Holt timmed his major sale very well at appox £3 a share a few years ago raising about £6 million?? from memory.

Lets see will they back this with their own money following the next results.

[rivaldo] 14/7/2009 19:04

The interims are only a month away - last year's were 18th August. Given recent statements we can be pretty certain they'll be good.

As for director buying, given the flow of contract news I'd guess that the MER directors are not out of restricted periods very long and so are often unable to buy!

[essentialinvestor] 14/7/2009 09:31

If they really think that we should see some hefty Director share buying following the next results then.