Melrose Industries Share Discussion Threads

[brexitplus] 04/4/2019 12:35

Oh dear, what a shame😁ԅ13;😁

“German factory orders posted their biggest annual plunge in a decade in February as its industrial sector struggles to cope with heightened trade war and Brexit uncertainty.

Factory orders slumped 8.4pc year-on-year and suffered a shock 4.2pc month-on-month drop, well below economists' expectations of a modest rebound.”

[yertiz] 04/4/2019 11:01

Tournesol, I too invested in Dana in the late '90's to about 2005 ish. Made quite a few bob then. I will take a close look at Parkmead, now knowing Tom Cross is there at the helm. (Meanwhile, there's another nautical term for you - I know you enjoy them).

[losos] 04/4/2019 11:00

B+ I'm looking at the ISA allocation right now as well. Unfortunately being a tad older than you this maybe the last year we can do the full allocation. The two IAS's (Mine & wife) will likely keep us going until we snuff it haha.

Yertiz - sorry to read your personal news, can't say more, advances in medical research are often highlighted in the media but on a personal level there are reasons why it's not applicable. That's the really hard bit.

[brexitplus] 04/4/2019 10:52

Thanks Tournesol

Will have a look.

[tournesol] 04/4/2019 10:49

B+

Liked your comments on Mittelstand and also the football analogy.

Off topic, but if you are looking for investment opportunities in other sectors you might do worse than look at Parkmead Group, which has many of the characteristics of the Mittelstand (large management shareholding, long term strategy) and which is run by a management team of ace "footballers" with a good track record. It's an early stage oil and gas co which has built a foundation of cash generating gas production in Holland and is using the revenue to develop an asset portfolio in the N Sea. I am confident that it will return a multiple of the current share price over the next 5 years. The CEO and largest shareholder - Tom Cross - was the founder and CEO of Dana Petroleum where he pursued a long term strategy which made me 25x my investment before falling to a low ball bid facilitated by short term investors needing to offset losses elsewhere in their portfolios. He believed in that co so strongly that he opposed the bid despite even though that cost him a large exit pay off. He is now leading what is in effect Dana Mk2 and is following the same long term approach and patient management that worked so well previously.

It's my second biggest holding.

Sorry for going off topic.

[brexitplus] 04/4/2019 10:45

Yertiz

UBS also reiterates BUY

The Lindsell Train investment basis is similar to Fundsmith

“Our primary aim is to protect the real value of our clients’ capital over the long term. This is consistent with one of our key business principles, which calls us to invest our clients’ capital as we do our own (indeed the founders invest alongside clients in all the strategies). As individual investors, we care about maintaining or growing the real value of our capital and income over time; for us, outperforming a given equity index, or failing to, is of secondary importance.

We are guided by four investment beliefs when constructing and managing portfolios for our clients. We think that:

Investors undervalue durable, cash generative business franchises

Concentration can reduce risk

Transaction costs are a “tax” on returns

Dividends matter even more than you think

At the heart of the process is our conviction that inefficiencies exist in the valuation of exceptional quoted companies. Specifically, we believe that durable, cash generative franchises are rare and undervalued by most investors for most of the time. Therefore our work involves the identification of a universe of what we analyse to be such companies.

We find the majority of our candidate investments in a select group of broad industry categories. These are Consumer Branded Goods, Internet/Media/Software, Pharmaceuticals and Financials.

We value all our candidate investments using a variety of approaches, the most important being a discounted cash flow calculation. The candidate investments that appear best value to us form the portfolio.

Once we have committed to a company we are extremely reluctant to sell it, except on a significant breach of our valuation target or when we realise that the premise for the investment is no longer valid. This reflects our conviction that owning great companies for the long haul makes sense and that transaction costs are a tax on our clients’ capital, a tax that we cannot avoid altogether, but that we can minimize by dealing as infrequently as possible.

These features lead to portfolios with a high degree of concentration (20-35 holdings) and unusually low turnover (generally less than 5%p.a.)”

This approach has been very successful over the years, with the added bonus that both Fundsmith and Lindsell Train funds fall less in downturns than most others.

[brexitplus] 04/4/2019 10:36

Just noticed this from the presentation


Record GKN technology investment under Melrose

 2018 investment was our highest ever: more than £75m in total, more than £30m of which from external sources

 2019 total set to be higher still

[brexitplus] 04/4/2019 10:28

Yertiz

Yes advances hammering on. A very close friend is having immunotherapy for a melanoma. Nothing to do with the sun. Finger slammed in car door years ago. Goes to the Maudsley once a month. Told reoccurrence could be 30% with current treatment. Done on medical insurance.

[brexitplus] 04/4/2019 10:21

Yertiz

Did you watch the Fundsmith AGM video?

Our ISA money is going into Fundsmith Equity, Lindsell Train Global Equity and Smithson Investment Trust this year. We have plenty in favourite companies.

Fundsmith Eqity up 25% in one year, 159% over 5 years
Lindsell Train Global up 23% in one year, 153% over 5 years
Smithson up 17% since launch on 18th October.

Sensible investing. No Kier, Rolls Royce or AA in sight.

[brexitplus] 04/4/2019 10:11

Yertiz

So sorry about your personal news. Hopefully companies like Syncona which are funding advancements in the treatment of a number of diseases will help.

[minerve 2] 04/4/2019 10:05

I feel SO SORRY for Yertiz, he will miss that pile of dog muck that Brexit serves up every year. There is a photo on Brexit's profile.

[yertiz] 04/4/2019 10:05

Actually Minerve, I have not stayed 'safe' as you put it, I've invested in several companies who are turnaround opportunities recently. Eazyjet, for example, on news of their potential shortfall this year went down 9.7%, I bought a tranche on Monday afternoon at 1013p and they're up to 1068p today. A nice little earner but there's a great deal more to come.

Evraz are doing splendidly, as are Hikma, Tate and Lyle, IWG to name but 4 other purchases made in the last 3 months.

I wouldn't touch Kier with an extendable barge pole, the writing is on the wall and I hate losing money. LOL.

[ryelodge] 04/4/2019 10:04

Maybe the Government should give the top management and Medics in the NHS £42million bonuses. Then they won't have to worry about the volume either.

[minerve 2] 04/4/2019 09:58

The truth is this company is just a cash cow for the executives and top shareholders looking at the short term. I can't see what would make GKN technology attractive if they have reduced investment (against potential) at such a transient time for vehicle tech because they are too busy paying off debt and paying bonuses in addition to bolstering pension funds. The technology might find itself behind the curve. The only interested buyers would be other PE groups IMO IF they run the company with the objectives they currently have.

[yertiz] 04/4/2019 09:54

Probably not - been a dreadful week so far for news on our nearest and dearest. NHS have made great strides into the diagnosis, treatment and maintenance of cancer, but there still remains those instances where nothing can be done, such is the situation we find ourselves in. As an atheist I don't see any benefit in prayer, but I can see how those who are believers find solace.

[minerve 2] 04/4/2019 09:52

VW investment to bring electric platforms to market is c$50bn!

[minerve 2] 04/4/2019 09:51

Yertiz

Yes, you best stay in 'safe' if I were you.

Kier would be too much for the old ticker. LOL

[meanwhile] 04/4/2019 09:50

"Their loss. I really don't understand why Meanlodge and Ryewhile are invested in a company they obviously know so little about.

Now then, Captain Pugwash, I've been invested in Melrose since 2005. I know a bit about them. They've made me a fortune. I took out a mortgage to buy MRO shares just before they bought Nortek. This thread of that time will tell you that.
You just don't need any intelligence at all to know that companies who boast about £50M of investment shouldn't be paying out that amount in Director bonuses.

[brexitplus] 04/4/2019 09:43

Yertiz

Happily both are filtered as they know. I just respond to comments from the rest of you.

I too have no idea why they bother to post. Lack of friends, boring little lives, lack of self-esteem, jealousy. Could be any number of reasons.

We’ve just had a little bit of snow!!!

Are you watching any sport this weekend?

[yertiz] 04/4/2019 09:34

Their loss. I really don't understand why Meanlodge and Ryewhile are invested in a company they obviously know so little about, and why Porky, who has no discernable interest in Melrose, still writes his diatribe on here as to why we are all wrong and he is so right....Kier, anybody? ROFLMFAO.

[brexitplus] 04/4/2019 09:23

Yertiz, I’m afraid that non-entities such as Ryewhile and Porky live in the past. Porky in particular specialises in backward looking annual reports, while Meanlodge can only focus on bonuses.

They are both gone

They are the past.

I like to focus on the future which is looking great. My main areas of concern are what I am going to cook for our family get-together at Easter and how Gloucester will perform against Northampton at the weekend.

Oh and where were are going to put the next £40k of ISA money next week!!!

[minerve 2] 04/4/2019 09:18

Just think, if they hadn't had their bonuses they could have doubled that £50M spend.

The trouble is some competitors will be spending more, much more, on R&D, and the electric car phenomenon is mega competitive. You don't just have the incumbent car manufacturers entering this space, you have electronics/tech companies entering too. Those bonuses really are a misappropriation of funds at such an important time for all companies and shouldn't be made because of a figure on one graph that has gone higher. Better run companies HAVE MANY OTHER IMPORTANT THINGS to focus on.