Melrose Industries Share Discussion Threads

[ryelodge] 05/4/2019 10:14

A 230 Target Price for ,say, two or three years time is still below the CGT base price for many MRO shareholders that came in with the GKN acquisition. Unlike the Institutions the individual shareholder doesn't mark to market and benefit from subsequent movement. Now if it was £3 by Christmas, as projected by some here, it would be a different story but the 230 is a disappointment for many.

It isn't a disappointment for the 4 Directors who each received a £42 million Bonus last year which was based on a then Shareprice of 232p. If it doesn't regain to this level and above will they give some back? And what will be the Base Price for their next LTIP?

[meanwhile] 05/4/2019 09:54

ianod,

As Minerve points out, if your mind can't take an opinion different to your own, then just apply the filter.

I know I don't need to hold the shares, but I've held MRO since 2005 in increasing amounts. As I've said before, this holding has made me a fortune. However, there are some aspects of the company's operations I like and some I don't like.

Now instead of complaining, why don't you engage your clearly weak brain and tell me how setting up a Company which subsequently pays you a £42M bonus is reasonable. I've not heard a good justification yet.
Otherwise, you could just clear off and play with some toys or a video game.

[minerve 2] 05/4/2019 09:23

Ianood

We can post whatever view we want on Melrose. There is nothing on ADVFN within their terms to request you be a shareholder to visit this thread. I can assure you it neither has anything to do with envy. I can afford to do everything I want and so can MEANWHILE. We have better morals and values than you suck-ups and weaklings seem to have.

Now, if you don't like what we post filter us.

Run along now little boy.

[brexitplus] 05/4/2019 08:46

Ianood

Please don’t be to critical of Meanlodge. There is nothing else to do in his part of Wales but count sheep and gripe.

[ianood] 05/4/2019 08:32

Meanwhile - You don't have to hold the shares! If you don't like the Company's modus operandi move on. Your continuous griping and green eyes are somewhat boring.

[brexitplus] 05/4/2019 07:30

STMartin

Investopedia has a good article on this. It’s summary says

A price target is an analyst's or trader's projection of where an asset's price will go.

A price target can be lower or higher than the current market price of the asset. A higher target price is bullish, while a lower target price is bearish.

Price targets will vary by individual, since each trader uses different methods to project price targets.

When prominent analysts change their price targets, it can have a significant impact on the price of the asset.

Investment horizon is very important when considering price targets. A much larger price target is more reasonably expected over a longer period of time, while a shorter-term price target tends to be more conservative.

Price targets don't account for risk tolerance. Controlling risk is up to the trader. A stock may reach the price target, but if it collapses by 50% prior to that it may not be ideal for many investors.

Best to read the whole article!!!!

[gettingrichslow] 04/4/2019 23:29

How empty must Minerve's life be for him to post all day on the discussion board of a company he doesn't hold and has never held?????

All the things one can do in life (and it's a very short life) and that's what he thinks is the best use of his time. Absolutely remarkable!

[meanwhile] 04/4/2019 22:43

Yes, Minerve, or better still 'turnaround 90 degrees, pick up your £3M annual salary, turn around another 90 degrees, pick up your £42M bonus, turn around another 90 degrees and grab some of the share dividend then turnaround and look away'.
They are certainly "turnaround specialists" in this 'Price is Right' game.

"Simon Peckham - come on down. You are our next contestant on The Price is Right".

[minerve 2] 04/4/2019 20:57

More like turnaround and look away! LOL

[minerve 2] 04/4/2019 20:45

"turnaround specialist"

That's one way of putting it!

ROFLMAO!

[stmartin] 04/4/2019 20:43

"Goldman Sachs reiterated its 'buy' recommendation and 230p price target on turnaround specialist Melrose Industries on Wednesday."

When there is a "price target", is there an understood convention that this is 1 Yr or what ? I have never known but always neglected to ask until now.

[brexitplus] 04/4/2019 18:10

FROM SHARECAST

(Sharecast News) - Melrose Industries is aiming to increase profit margins at its acquired GKN's aerospace and auto businesses, it told investors at a long-awaited capital markets event.

Applying the central tenet of its 'buy, improve, sell' mantra to the fruits of the £8bn takeover battle concluded last April, Melrose said it would drag up profit margins to more than 11% from the 7.4% booked in 2018 and the 10% it first identified.

In presentations to more than 250 City analysts and institutions on Wednesday afternoon, the corporate raider's executive vice chairman Christopher Miller and chief executive Simon Peckham said the aerospace business could improve its margin from the 8.2% last year to more than 12% by fixing procurement and cutting the costs of servicing aeroplanes and fighter jets.

At the car parts business, divisional CEO Liam Butterworth said Melrose has identified ways of driving up margins from 6.7% to around 10% in the medium term, and saying that he has experience with such a turnaround twice before.

Analysts reported that Butterworth was eyeing a bloated cost base and poor procurement, the latter savings target being a gross £200m, operational excellence £75m and fixed cost reduction of £50m.

In the short term, cost cutting will be balanced by £300m of investment developing its electric motor and gear transmission systems for low and zero-emission vehicles.

Analyst Harry Philips at Peel Hunt highlighted that there was nothing radical in the presentation, "but the aero margin target looks easier than auto".

As well as the headline issue of margins, management commentary included the point that "the margin targets do not require volume growth to be achieved - it is about changing the core operational processes and Melrose is not going to make GKN radically different but much more make a good business perform in line with expectations".

"So the impact on GKN profitability based on the margin targets would be to take EBIT to £919m based on 2018 revenue from £624m which is an increase of 47%."

Looking at aerospace, Philips noted that the market position is strong and "underpinned by a well balanced technology portfolio - this is not new news but it is about realising the potential backed a commercial deliveries growing at a CAGR of 2.9% out to 2022 - the savings come from £70m of operational excellence, £40m procurement and £40m SG&A".

Although there was nothing radical in the presentations, Philips concluded that "the confidence in the room about the potential of GKN is so strong and rises every time we see the company. Melrose is a must own stock given its return profile and GKN is a huge opportunity."

Deutsche Bank analyst Jonathan Hurn kept his 230p target price and noted that the aerospace margin target of 12% by 2022 compared with a consensus forecast of 12.1% and his own of 12.9%.

Automotive's forecast margin of 10% by 2022 is against a consensus of 9.3% and Deutsche's 10.1%.

He observed that the margin target of 14% for GKN Powder Metallurgy had already been disclosed.

[tournesol] 04/4/2019 13:44

GOLDMAN REITERATES 'BUY' ON MELROSE INDUSTRIES AFTER RESULTS

(Sharecast News) - Goldman Sachs reiterated its 'buy' recommendation and 230p price target on turnaround specialist Melrose Industries on Wednesday.
The bank, which has Melrose on its Conviction List, said that following the company's 2018 results, it continues to view Melrose as offering one of the most attractive risk-reward profiles across its European capital goods coverage, with a solid platform for multi-year earnings improvement.

GS said the results were ahead of management expectations, with adjusted operating profit on a fully consolidated basis coming in slightly ahead of consensus and net debt/EBITDA slightly better than expected at 2.3x versus guidance of 2.5x.

"Annualised sales growth came in at 2% versus the prior year; Nortek was the only business not to grow (-4%), albeit it was flat excluding the well-flagged termination of a Chinese contract.

"More impressively, since being acquired in 2016, Melrose has improved Nortek's operating margins from 8.7% to 14.7%. We note that, for 2019, management sees attractive growth opportunities in Nortek's HVAC business, particularly in data centres and in range hoods where new products are being launched in 2019."

[brexitplus] 04/4/2019 13:43

Yertiz

Adolf Merkel has screwed things up as much as Quisling May.

And now we get

“Politicians and campaigners must watch their language to avoid inflaming the "incredibly febrile" atmosphere created by Brexit, a top police officer has warned.
Martin Hewitt, chairman of the National Police Chiefs' Council, said public figures should be wary of "consequences that weren't intended" when speaking about the issue.”

I think he means Sourbry and the poison dwarf, Bercow.

Mind you, with rugby players being cited for giving the opposition a dirty look ...!!! Personally, I rather enjoyed a good punch-up when I played, and generally was at the centre of the “action.”; Happy days.

By the way, we were in Bristol yesterday having a coffee. Sitting near was a big Polynesian bloke with his hair in a bun. He was with his tiny wife and baby. When he stood up he was massive. He was Chris Vui, Samoan. 6’6” Bristol second row and back row. Made me feel tiny!!!

[tournesol] 04/4/2019 13:41

According to HL today:

Goldman Sachs reiterates buy with a target price of 230p

[yertiz] 04/4/2019 13:30

The Remoaner has spoken....LOL

EU is a busted flush, the Euro was only ever meant to be an experimental currency and the German's vision of heading up the 4th Reich is dissolving fast in front of Merkel's eyes.

[minerve 2] 04/4/2019 12:46

Hey, at least it HAS an industrial sector. LOL