Melrose Industries Share Discussion Threads

[minerve] 30/11/2018 18:18

God, I am in awe of how well connected brexitplus is. He has got the finger on the pulse right? If he still has one that is! LOL

[minerve] 30/11/2018 18:16

getting

My investment thesis targets a percentage of stocks in my portfolio that have really low price/earnings ratios. These companies generally are poor companies. That is why they have low PEs. I expect bad news. I expect share prices to fall. I take opportunity in that. I build-up over a 12mnth to 24mnth period. That allows for problems to unwind and reporting periods to be completed. Once I have built a position it will sit there until it recovers. I have no idea when. If anyone in the market could see a catalyst to recovery the opportunity of cheap would not present itself.

You, and others here, on the otherhand, are joyful when MRO has increased. You obviously therefore cannot be building up a position unless you like paying more for a share than you did before even when the status quo hasn't changed. In otherwords, there has been no news.

I've told you before, go and invest some time reading about value investing.

OK chimp? ;)

[brexitplus] 30/11/2018 18:07

Getting

My b-in-law hopes to retire before the sector collapses. His company has been bought out several times over the last few years because of lack of cash. Each owner has experienced the same problems, and he says government contracts are the worst. Lots of the design work is now done in Eastern Europe to keep down costs, but this leads to problems onsite leading to costly contractual problems.

Keir comment “Kier said its directors believe it is important that the net proceeds of the rights Issue are reported on its balance sheet as at 31 December 2018, to enable the group to be better positioned, in light of tighter credit markets and more stringent tender pre-qualification requirements, to win new business.”

Hmmmm.

[gettingrichslow] 30/11/2018 18:04

B+, I know a couple directors at Doosan and Costain and they say exactly the same. Don't touch with a bargepole. One of them is really worried about the situation and is looking to join SNCLavelin (the bit that was WS Atkins) abroad.

[brexitplus] 30/11/2018 18:04

The Woodford ‘Kiss of Death’ from Citywire

“Fund manager Neil Woodford has been dealt a fresh blow by Kier (KIE), after the construction company announced plans for a deeply-discounted £264 million rights issue, sending its shares tumbling.

The shares fell 32% to 508p on news of the rights issue at 409p per share, a 46% discount to yesterday's 752.5p closing price.

Woodford is the single largest investor in the company, having bought heavily into the shares since first investing in March with his Woodford Income Focus fund, later adding the stock to his flagship Woodford Equity Income fund in August.

Woodford Investment Management holds over 14% of the company's shares, with the stock a 2.7% holding in the Income Focus fund and a 1% position in the Equity Income fund.

The shares are down 47% this year as the UK construction sector has come under pressure following the collapse of Carillion in January.

Kier said the rights issue was needed to reduce its debt pile, which stood at £624 million at the end of October, as lenders look to reduce their exposure to the construction sector.

'A number of lenders have indicated an intention to reduce their exposure to the construction and related sectors, which may affect the confidence of other credit providers and liquidity in the medium term,' it said in the rights issue announcement.

Kier is also held by a number of UK equity income managers, thanks to dividend which will reach 69p this year, placing the shares on a yield of over 11% following today's fall.

But that dividend now looks set to fall, as the company said that it would next year aim for earnings cover of five times, up from the two times it had been targeting. After next year, the company will move to a 2.5 times target.

Kier's rights issue is the latest to hit Woodford during a torrid run of performance for the UK's most famous investor, with his fund rooted to the bottom of the Investment Association's UK All Companies sector, down 12% over three years to the end of October.

Capita (CPI), the longstanding investment he sold in October, was forced into a rights issue earlier this year, while Provident Financial (PFG) was also forced to go cap-in-hand to investors in the last 12 months.”

[gettingrichslow] 30/11/2018 18:00

Jackdaw - ok thanks

Fart in lift - so if MRO falls 6% in a day, all the investors are chimps and morons, but if Kier falls 30% in a day, that's great news because you can 'build a position' at a cheaper price? Haha ChimpLogic! 😂😂😂

[minerve] 30/11/2018 17:59

Oh, here we go, the master chimp brexitplus using his pathetic anecdotes as a basis for his investment and life decisions. There is no wonder he has had a mediocre financial life.

[jackdaw4243] 30/11/2018 17:52

Getting

£2.01 for me then

[brexitplus] 30/11/2018 17:49

Getting

My brother in law, who is a senior civil engineer with a competitor to Keir advised me to keep out of This sector. We spoke after the Carillion episode and he told me that any of the companies in the sector could have real problems because it is really cut-throat and companies will take on non-profitable work. He sometimes actually quotes too high to NOT get contracts while keeping in the loop.

[minerve] 30/11/2018 17:46

getting

It was actually down over 30% today. Good news if you are building up a position like me. I bought more before close and plan to exercise all my rights. I think it is too much for you to bear, so I would stay clear if I were you.

[gettingrichslow] 30/11/2018 17:41

Kier down another 14% today! Share price has almost halved in last year. Hope nobody on here has suffered on this one. You don't know anyone in Kier do you Minerve??

[gettingrichslow] 30/11/2018 17:36

I is know you is him Meanwhile, you is well sussed! They needs more toilets!!

[meanwhile] 30/11/2018 17:22

getting,

Me as told you before, I is not hvs.

I is distressed that you think I could use his foul language.

[losos] 30/11/2018 17:22

jackdaw4243 - Actually, Alan Greenspan at his peak came out with some crackers, like the immortal: “I know you think you understand what you thought I said, but I’m not sure you realise that what you heard is not what I meant”."

Ah the wonders of the English language haha - You have a good weekend too :-)

[minerve] 30/11/2018 17:03

Oh, I would hate to be on the wrong side of a brexitplus rant. I'd be quivering in my boots. LOL

[minerve] 30/11/2018 17:02

"In Cheltenham there are people on the street trying to get people to sign up for a second referendum saying Brexiteers are ill-informed. Sharp end of my tongue."

I bet they really lost their bladder control there! LOL

You are just like a little terrier that barks not knowing how amusing you are. Just a little kick in your balls (empty ones at that) and you'll be a big cry baby, I'm sure.

[gettingrichslow] 30/11/2018 16:53

Meanwhile, is you entering hvs into the competition? Well is you? Haha 😂

[brexitplus] 30/11/2018 16:46

Hi Jackdaw

In Cheltenham there are people on the street trying to get people to sign up for a second referendum saying Brexiteers are ill-informed. Sharp end of my tongue.

I think £2.02 may be a good price. But it’s a case of having a guess. Dogs will probably win; hope it’s Casey rather than the imaginary Rover or it’s equally imaginary owner.

[gettingrichslow] 30/11/2018 16:45

Sorry Jackdaw but that guess duplicates Sogoesit's guess. There can be only one winner. Do you want 201p or 203p?

[jackdaw4243] 30/11/2018 16:36

£2.02 for me.

Off Topic , but have a good weekend

Re Mrs May yesterday from my Stockbroker mate

"I shall resist the temptation to quote the famous “If I made myself clear, I’ve misspoken” Greenspan quote.

Actually, Alan Greenspan at his peak came out with some crackers, like the immortal: “I know you think you understand what you thought I said, but I’m not sure you realise that what you heard is not what I meant”."

[meanwhile] 30/11/2018 16:28

The 2 dogs seem to have the top figures, and must therefore be the most optimistic.
I think we could all learn something from them, without, of course, going so far as to believe they are humans, temporarily in animal form.

Another matter - "Meanwhile's shrunken wallet".

If the size and bloatedness of my wallet, which getting has referred to, depended solely on Melrose then it would indeed be quite shrunken, although still bulging a bit. Fortunately it is not solely dependent on this and other sources of funds are also in play.
In fact, the next photo update will be of a small case, like a portmanteau or overnight bag, which I now carry my pocket-money in.

[brexitplus] 30/11/2018 16:10

Please let be me anywhere but last. It would be sooooooo boring and the food the same!!!!

[gettingrichslow] 30/11/2018 14:17

Last day today for entry into the Xmas share price prediction competition. Winner gets a signed photo of Meanwhile's shrunken wallet. Last place gets breakfast with Minerve in Bill's. Mattboxy is the reigning champion. Entries so far:
Casey the Dog 220p
Rover the Dog 208p
Sogoesit 202p
Yertiz 200p
Meanwhile 198p
Mattboxy 195p
Getting 190p
Losos 189p
B+ 186p
No entries yet from Minerve, Jackdaw, Keyno, Ryelodge, hvs etc

[ryelodge] 30/11/2018 14:17

Another volatile day for MRO. Cue a discussion on one or all of: dogs, Rugby, Restaurants in provincial towns, League 2 Football teams, holidays in Europe, etc.

[gettingrichslow] 30/11/2018 14:14

Thanks Losos. So two entries from dogs this year!! Yet no entries from farts in lifts...