Melrose Industries Share Discussion Threads

[lon_don] 04/3/2015 12:29

Wondering if some one could explain what happened this morning while watching L2. @ Market makers become fixed at the top of the bid for about an hour while bids higher than theirs get served behind them.. is it a way of supporting the price their bids were 2/3 points below the queue at all times???

Cheers.

[meanwhile] 04/3/2015 12:21

Eipgam,

16th March, I believe.

[redips2] 04/3/2015 12:12

Pleasing to see the director buys. I too will add my 18.7p's in due course .

[cisk] 04/3/2015 12:03

and another one:

The Company announces that it has been informed that on 4 March 2015 Christopher Miller, Executive Chairman, purchased 335,715 Ordinary Shares of 7/55 pence each in the share capital of the Company ("Ordinary Shares") at a price of 284.075 pence per Ordinary Share. Following this transaction, Mr Miller holds an interest of 14,203,260 Ordinary Shares in the Company, representing 1.43% of the issued share capital of the Company. The interest of Mr Miller includes 5,311,426 Ordinary Shares held by Harris & Sheldon Investments Limited, a company which is connected to Mr Miller.

A substantial amount added...

[eipgam] 04/3/2015 11:51

When does the 18.7p get credited to our accounts, please?

[steeplejack] 04/3/2015 11:31

Given the team are worth tens of millions a piece,it would not be unnatural to question their motivation going forward.Looking at the old guard (Chairman and Vice)Melrose is what Jock Miller and David Roper do.They've also built what you might describe as an orderly management succession.They're always quick to point out that they're a team.Nonetheless,harking back to Wassall days,I guess that Miller and Roper figure larger than the rest of the team in the City's consciousness.They looked in reasonably robust health last time I saw them......:)

[soundbuy] 04/3/2015 10:54

Perhaps timed well.........

Numis downgrade to hold, TP unchanged not helping i'd imagine

Liberum Capital maintaining their Buy rec and 330p TP though.......

[cisk] 04/3/2015 10:25

director purchase:

The Company announces that it has been informed that on 4 March 2015 Liz Hewitt, non-executive Director, purchased 17,700 Ordinary Shares of 7/55 pence each in the share capital of the Company ("Ordinary Shares") at a price of 281.9 pence per Ordinary Share. Following this transaction, Ms Hewitt holds an interest of 23,782 Ordinary Shares in the Company, representing 0.002% of the issued share capital of the Company.

A nice vote of confidence.

[cisk] 04/3/2015 10:06

haha hope so! it's my largest holding. but I've followed these guys for years. Just hope they carry on working for another 10 years. I also add to my holding monthly and will reinvest the special dividend that way as well, so happy to take a long term view on them...

[steeplejack] 04/3/2015 09:59

You're probably right Cisk.I'm holding anyway.

[cisk] 04/3/2015 09:48

SJ, not sure where you get the impression that an acquisition is not imminent - comment from the results:

"We look forward to a further acquisition in due course to continue our success."

Obviously we don't know when this is.

I'm always amused by the market's constant obsession with the next acquisition for MRO.

Only time can tell if an acquisition makes sense, i.e. it takes around 5 years to turn a business around and realise the gains from it, as demonstrated in the FKI purchase.

Elster is still young under Melrose's tenure, clearly there are still gains and improvements to be made from it, and with smaller bolt-on buys, there's no need to rush this. Coupled with a growing market, what's not to like in keeping hold of these businesses and reaping the benefits?

As far as I'm concerned, steady as she goes is good news, incremental improvements in dividends and profits are fantastic and Brush (just under 25% of turnover and profit of the group) may be experiencing headwinds, but this is just cyclical. It will rebound and it's the leader in its fields.

So I'm a happy holder and these little drops are pleasing to add at attractive prices.

[steeplejack] 04/3/2015 08:31

Understandable market reaction to these figures.Elster is a jewel in the crown but Brush looks to be a short term headache.Adverse currency movements are taking the gloss of headline growth hence this concentration upon constant XRATES comparisons.Reading between the lines,it doesn't appear that an acquisition is imminent.The period of rapid dividend growth is now tailing off which fuelled the rapid rise in the shares over past 5 years.We are reminded of how well the group has done in the past and the calibre of the management here is clear but I sense a transformational purchase might be hard to find while Brush can't be sold until things have improved.The shares have been pretty dull over the last year and I don't see that changing despite analyst target upgrades.

[soundbuy] 04/3/2015 08:21

Agreed though expected 2-3% off, -5%,

ho hum............

[steeplejack] 04/3/2015 07:50

The medium and long-term growth in power and in particular the aero-derivative gas turbine market, where Brush has such a strong position, remain positive, and with the additional growth from China, a strong new product development pipeline across all business units coupled with continued operational improvements, means the business is well positioned for its future.However, the overall market dynamics remain difficult in the short term. Your Board expects profits to decline significantly in 2015 despite all the efforts of Brush's management and continued improvements in its Aftermarket, Transformers and Switchgear businesses.Brush prospects offsetting those of Elster.

[dav1dc2] 04/3/2015 07:15

Ref RNS today ,well done Melrose again . Another dividend coming up fairly soon.

[eipgam] 02/3/2015 12:56

Melrose Industries Plc (LON:MRO)‘s stock had its “outperform221; rating reissued by research analysts at RBC Capital in a report released on Friday. They currently have a GBX 355.38 ($5.48) price objective on the stock. RBC Capital’s price target points to a potential upside of 18.48% from the stock’s previous close

[meanwhile] 26/2/2015 17:25

Buying now would give you the new 7/55p shares.
The dividend did fall off on Monday 23rd but the price pre then (around 290p) would have fallen to around 271.3p had it not been for the simultaneous consolidation.
So for your 303p now, you are not getting the dividend but you are getting 14/13 of the shares.
As with all dividend payments, the precise time you buy around the divi date has no benerit.

[eipgam] 26/2/2015 15:10

MW... I am aware of that, but the brokers are advising their clients to buy without the the benefit of the special dividend.

For every share we had, we now have 13/14ths of an old share and 18.7p. If you buy as per the recommendation, you only have the 13/14ths of an old share. The old shares had a CS target price of 275p, and now they are consolidated and the holders of taken their 18.7p off the table, why have CS immediately upped their tp to 350p?

Or have I bamboozled myself?

[soundbuy] 26/2/2015 13:59

There's the 'herd' instinct amongst analysts to consider plus perhaps the whiff of a deal sooner rather than later............

[meanwhile] 26/2/2015 12:59

eipgam,

The special dividend & consolidation were coordinated to have no effect on the share price & will have no effect on future prospects, except for the dividend % if maintained, so I see these upgrades as only based on the brokers' view of the future.

[eipgam] 26/2/2015 12:38

The surprising thing is that they have raised the tp post share consolidation. Doesn't make sense

[meanwhile] 26/2/2015 12:05

Yes, it does seem strange, eipgam, but probably explained by the sheep mentality of these brokers. Most of them are about as astute and useful as a fart.
Only Numis are now out of step with the recent upgrades of the others. What has changed to generate the upgrades? Energy prices : No. An upturn in the EU economy : No. Credit Suisse have gone from 275p to 350p. We might imagine there is some positive speculation around the results, or the next aquisition, which they have got wind of. Let's hope so.

[eipgam] 24/2/2015 14:50

Its strange how all these target prices have come in after the share consolidation, isn't it?

[eipgam] 24/2/2015 14:36

Melrose Industries Plc Goldman Sachs reiterated their buy/neutral rating on shares of Melrose Industries Plc (LON:MRO) in a research note released on Tuesday morning. They currently have a GBX 385 ($5.92) target price on the stock.

[eipgam] 24/2/2015 09:56

Top technical analysis from the Boffins at CS!!

StockMarketWire.com - Credit Suisse has upgraded its recommendation on buyout group Melrose [LON:MRO] to 'outperform' from 'neutral' and set a target set of 350 pence a share.

"FY15 will be the year for the next large acquisition by Melrose in our view," the broker said.

"Supporting factors include: (i) the current Melrose portfolio consists of only two assets, with the near term outlook for Energy mixed and further margin upside at Elster now more limited; (ii) the pullback in valuations, particularly for O&G exposed names, has created opportunities; and (iii) timing of large deals has been every c3-4 years implying the next acquisition will be in 2015+. We would expect a deal size of c£3bn+ and in line with the company's track record of each major deal size being c2x the last." At 2:17pm: [LON:MRO] Melrose PLC share price was +6.55p at 298.25p - See more at: