Medsea Estates Share Discussion Threads

[driver101] 05/4/2007 13:41

I'm think I will stay with these long term, we will see a steady share price rise over the year. Still under valued IMO



Strategy and Objectives
Medsea Estates intends to fuel future progress through a combination of organic growth and, where appropriate, acquisitions and partnerships which will develop its position in Spain and expand its business in Italy, Portugal, Turkey and Bulgaria.

[redm1re] 05/4/2007 10:25

Nice to see us opening up well.

Have a good Easter all and may we all prosper in the new tax year

[mistertibbs] 02/4/2007 21:02

I agree giddygoat. Their recent suggestions I have found to be strange although they are in the good habit of pointimg good opportunities. They will probably revisit mea once they have another good 6 months.

[redm1re] 02/4/2007 16:59

More to come we all hope

I visited A Place in the Sun Live at Excel Arena in London on Friday and it certainly seemed to be buzzing to me, particularly for a Friday, with the main weekend events to come

[giddygoat] 01/4/2007 23:31

"The current year has started well and forward bookings are up on last year" and we're only on a P/E of 5!!! Is that only worthy of a "Hold" Share Mag? More to come IMO.

[driver101] 01/4/2007 16:05

mistertibbs
Chers will hold and add looks good value to me.

[mistertibbs] 30/3/2007 14:09

Shares mag reckons hold, IC reckon a medium term buy. Well thats this week

[mistertibbs] 29/3/2007 18:28

I believe this line of business a bit simpler than the complexities involved in scr. Not my cuppa I'm afraid. Ouch.

And a Zep man. Quality indeed.

[redm1re] 29/3/2007 17:13

Oh, I have a few losers like anyone else. I am a long suffering holder in the saga that is SCR. Interesting to read the boards on that one, though I am not knowedgeable enough to contribute!

I think you are right though, we are in the process of north south migration. If this and a few others come off I intend to be one of them too in years to come!

Led Zep - quality!

[mistertibbs] 29/3/2007 16:04

I know its old hat but thought you all might to look at it anyway. A site by investors for investors.

[mistertibbs] 28/3/2007 18:32

So long as the oldies continue to go South, we should all be ok here. Yet another good choice with old RR. Your not in the habit of backing losers I guess. Not seen any tips on this one, yet.

I think Led Zep said it best when they sang...nobody's fault but mine.

[redm1re] 28/3/2007 16:10

You are welcome, provided you don't blame me if it heads south ;-)

Hopefully the results will get a good write up in the weeklies this week to bring it to a wider audience.

That's always nice to see something you have already made a decision on tipped as a buy. It happened to me well after I got into Rolls Royce a couple of years ago and really helped to get them motoring. No pun intended!

[mistertibbs] 28/3/2007 14:25

Thnk you redm1re for pointing this one out. Been looking far and wide and often ones I am initially keen on get lost in the mist of time. 2 of my current holdings have recently issued open and rights offer so cash tied up. I too will monitor this more closely now.

With Cyprus becoming part of EU next year, this one could be interesting. I believe the property developers moving into Northerm Cyprus in a big way these days.

[redm1re] 28/3/2007 11:42

Mistertibbs, just a small purchase here for me also until I see how things look in terms of price trending and yes spread is too wide but isn't it always the case in these small thinky traded stocks

Agreed, debtors are high relative to turnover but it was similar last year and they seem far stronger this time round. I will be interested to see how the developments turn out in the longer term. It is rare for any of these small outfits to be 100% sound, so yes debtors might be an issue but happy to take a small position at such a PE and top up if it starts to gain momentum

Welcome aboard

[mistertibbs] 28/3/2007 10:50

As it turns out redm1re, it was indeed on my watchlist after all. Think I paid too much attention elsewhere as you know. So my small trad e this morning for mea not yet showing. Bloody poor spread mind you.

Any concerns over the increases debtors?

[flateric] 27/3/2007 23:14

I reckon it'll take a while to get rid of the overhang. The overhand being all those that were sold stock by 2 brokers at 11-15p, or 12p to 20p, whatever it was being punted at. The price will yo-yo until that's all picked up, unless someone just buys it all up at a floor level as they see it as a bargain. Which it looks like it could be. All in my opinion.

[yorked] 27/3/2007 10:24

redm1re, jwe & FlatEric: thanks for your replies and information. Watching closely at moment.

[flateric] 27/3/2007 07:35

They are chucking cash into that big developement of land, reading between the lines etc. Call the company's office in Torrevieja. Tony Gatehouse is Chairman and Juan-Carlos is his right hand man. I did some homework. This is a genuine growth job, after a poor year in Spain all-round last year. Check out the history of accounts. It's no fly-by night affair.

One to watch, but I suspect with all the volume over the months at 12-20 share price, there will be some overhang before the fundamentals really show in the price - profit taking etc. Just my opinion.

[jwe] 26/3/2007 18:25

After the loss last year a dividend this year was very unlikely.

[redm1re] 26/3/2007 16:14

A good point Yorked. My own investment criteria, particularly in these smaller companies never really takes dividend into consideration.

I agree it might underpin the share price a touch, however I am also keen for a company at this stage of a recovery to re-invest the profits in further growth. Personally I would like to see these investments pay off and if they use my potential dividend to do so that's fine by me.

Minimal debt is also an attraction to me here

Each to their own of course

[yorked] 26/3/2007 14:59

Looks good value, but why don't they pay any dividend?

[redm1re] 26/3/2007 13:15

Don't think so Flat, that was what made me decide to take a few last Friday

A little surprised there is not more interest on this board as looks likes very encouraging to me

[flateric] 26/3/2007 09:59

So, 2.66p EPS and an 18p share price. That's a P/E ratio of 6.8.

And reading the Chairman's report it looks bullish.

Have I missed anything?

[driver101] 26/3/2007 09:20

Als like this bit from the results

The Group is now able to focus more on Euromed Investments, a division which, I
believe, has immense potential. Euromed, through which we invest in our
associate companies and thereby earn a share in their profits, has already
procured exclusive selling rights to the national and international market for
Residencial Argos Sol, a large development in Murcia. Our share of the
development profit is likely to be in the region of €6 Million. In addition,
existing developments at Frondoso Valley and Torre del Obispo have now been sold to the extent of 30% and 75% respectively.


Medsea in € 120million spanish property development deal
Source: immo-news.net Tuesday 31 October 2006
Medsea Estates Group PLC, the leading Spanish-based estate agency, has just signed a four year contract with Residencial Argos Sol, S.I to market all the properties on a new €120million development in murcia, Spain. AIM-listed Medsea, which also owns ten percent of the developer, has sole selling rights for all units, whose prices start at €99,000 and go up to €229,000 for the luxury villas. Over the period of the contract the consortium believe they will generate €35 million of profits of which approximately 10% will accrue to Medsea.

Medsea's management also believe that in addition to the development income net sales commission of circa €12 million will be made by Medsea over the period of the contract.

The Residencial Argos Sol development, in the lakeside area of Cehegin, covers 325.083 sq m and comprises 830 units – ranging from apartments, town-houses, semi-detached villas and an aparthotel/spa.

Cehegin is approximately 62km from the City of Murcia and linked directly to it by a new motorway. The international airports of Alicante and Murcia are just over an hour's drive away, as are a choice of beaches. As well as its large lake (venue for the National Fishing Championship), the area is renowned for its health-giving hot springs.

Medsea also made in an investment of 785.000€ ( which equates to a holding of 13% in the development company holding the land and project) in the Frondoso Valley in June 2004 at an initial land valuation of €24 million . After a recent revaluation by Tinsa, the Spanish chartered surveyors, based on a revision of planning consents allowing the developer to build 1066 houses the Land has been re valued at €55 million.

Says Medsea's Chairman Tony Gatehouse: 'The Argos Sol project is a major breakthrough for us, producing profits from two sources. As well as the estimated €3.5 million profit we will make from our financial partnership with the developer, we also anticipate generating a further €24 million through sales commissions which translates to €12 million additional profit to Medsea after paying agency commission over the next four years. This is excellent in terms of Medsea's short to medium term prospects. We are also in early stage acquisition talks with a number of targets. Potentially this will open up Cyprus, Turkey, Dubai, Bulgaria, Portugal and South America, which will make Medsea much less reliant on its current activities which focus on Spain and Italy.

'Concurrent with this, we have also had our Fondoso Valley investment revalued. In June 2004 we invested €785,000 at an initial valuation of €24 million. The recent revaluation, based on revised planning consents allowing the developer to build 1066 houses, now values it at €55 million. This puts Medsea in a very healthy situation indeed.

'Argos Sol reflects the increasing demand we are finding from UK clients for properties away from the traditional beach resorts. Cehigin is about 600 m above sea level and has a dry mountainous climate, compared to the humidity found along the coast. It is an old town with a population of 14,000, and comprises a mix of medieval houses, churches and glorious architecture. It is surrounded by valleys, mountains, reservoirs, forests and wildlife, yet with two international airports only an hour away.

'The hot springs of nearby Archena already attract regular visitors and the developer is in the process of building a luxury health spa with a clinic to cater for them. Cehegin is an unspoiled area that is ideal both for residential property and holiday homes.'

[redm1re] 26/3/2007 09:08

Good to see us start positive after such a good finish to last week

Have been rereading the results and feel increasingly comfortable with this one. Interest rate and economic issues aside I think we are favourably positioned to take advantage of what is a large scale migration of people from Northern Europe to sunnier healthier climates. The demographic profile of northern Europe would tend to support this too.