Mears Share Discussion Threads

[rivaldo] 27/7/2010 11:55

From Collins Stewart today on CNT via FT Alphaville - MER will benefit from CNT's Balance Sheet weakness:

"Unstable finances could have impact on order intake

Balance sheet strength is one factor Housing Associations and Local Authorities evaluate when awarding new work. We are therefore concerned about the impact this will have on order intake and whether it will impact ongoing social housing tenders."

Also some rumours in this morning's press that CNT may sell their social housing division to ease the financial pressure. Who'll be first in line to buy at a knock-down price I wonder?

[dnfa1975] 27/7/2010 09:13

this is preparation for the take off

[dnfa1975] 26/7/2010 22:56

this will move up sharpish to 280p this week, feel in my waters

[rivaldo] 26/7/2010 18:38

MER have the opportunity of a lifetime with their major competitor losing all credibility. This is their chance to step-change their profile upwards at a stroke!

Imagine the possibilities....and MER are already on a cheap rating.

I bought here at around 230p, so am disappointed to have lost some profits (especially in the ISAs) - but the upside remains very, very good imo.

[dnfa1975] 26/7/2010 18:36

well done, now let us make the proper money, roll on 400p

[hosede] 26/7/2010 16:49

dnfa
Do you really think Lambeth council can't go bust? think again!
Beerbandit.
The share price of MER has gone steadily downhill since 2007. I sold out around 270 (having bought at 29). I expect to buy back in around 150 - maybe less - and probably in 5-6 years time when this depression might be bottoming

[dnfa1975] 26/7/2010 16:11

going blue - trading update tomorrow?

[dnfa1975] 26/7/2010 15:41

bet hes licking his lips as we speak - your biggest competitor goes pear shaped and you are gonna eat their dinner, lunch and breakfast

but imagine new contracts and the big chance of margin enhancement...mmmm

[rivaldo] 26/7/2010 15:26

There must be a huge one-off opportunity now for MER to acquire CNT at a bargain price, or at least to cherry-pick what they want.

Unless MER are content to wait and see if CNT go into administration or worse first....

I'd imagine Bob Holt is working overtime at the moment!

[beerbandit] 26/7/2010 13:15

Hosede I was waiting for you to appear you've been knocking MER since 05 without a great deal of success now why don't you give up and try elsewhere

[dnfa1975] 26/7/2010 12:30

hose, it wont happen here. The problem CNT have is that they have a load of contracts with tiny authorities. Mears took their big ones like lambeth from them and these keep on working.

[hosede] 26/7/2010 12:22

Rivaldo
CNT THOUGHT they had good earnings visibilty! Cash strapped councils can simply renege on contracts or slow them down to near zero pace: worse still they could default on payments. Look at the dire state of US Munis - do you really think the same is not going to happen here?

[cambium] 26/7/2010 11:01

Thats Bob Holt been on the phone to the brokers allaying any fears :o)

[dnfa1975] 26/7/2010 10:46

up she goes

[dnfa1975] 26/7/2010 10:32

"Shareholders have a choice whether to fund the business to keep it going, or leave it to the group's banks (similar to White Young Green). For those considering the former, Connaught's industry reputation will be severely impacted from these successive updates and backing a turnaround will take a significant amount of time, in our view. Connaught operates in an industry, where reputation and perceived financial stability is paramount. In our view, the damage to the group's industry reputation is only just being felt and will now worsen materially."


looks like MER are going to rake it in!! Connaught just gave mears its biggest bargaining counter when bidding for new work

[rivaldo] 26/7/2010 09:39

MER have incredibly good revenue visibility for the next few years, and have repeatedly stated that their services are outside the remit of cutbacks. There may be a small effect, but nothing material imho.

The likelihood of picking up sizeable contracts from CNT is increasing day by day. This would far outweigh anything else.

[geovest] 26/7/2010 09:13

Tainted by association. The whole sector will remain depressed for somw time. MER may benefit, but until the cloud clears and local government cutbacks become clearer, this will continue to slide.

[gardener1] 26/7/2010 08:30

Agree so why are they down ?

[dnfa1975] 26/7/2010 08:27

Cracking news for MER - should be able to pick up the juicy CNT contracts for nothing now

[rivaldo] 26/7/2010 07:19

Crikey - Connaught (CNT) are REALLY in trouble per today's RNS.

This has to be great news for MER - no-one's going to want to commit new business to CNT for a while yet, and there's the possibility that things might spiral completely out of control at CNT.

It appears that CNT's earlier statements were a smokescreen for internal chaos and mismanagement by the look of it.

[dnfa1975] 23/7/2010 11:06

last july went from 220p to 300p - hoping for a repeat

[dnfa1975] 23/7/2010 11:05

gap to 280p on chart

[dnfa1975] 23/7/2010 09:09

Con naught looks dead This is going to steal their contracts now,imho. Come on HOLTY

[dnfa1975] 21/7/2010 09:41

up she goes