Melrose Industries Share Discussion Threads

[cisk] 01/3/2016 20:09

I think the price has been driven by rumour and people buying back in after the capital return. We don't know any facts yet, just speculation. And whatever or whoever they buy, it will take a good 2 years at least to generate a decent return. There will be plenty more opportunities IMHO to get on the MRO bandwagon. also personally I want to see what they are buying before committing additional funds.

[eipgam] 01/3/2016 18:05

very true....

We'll be saying the same about oil shares before Christmas

[meanwhile] 01/3/2016 17:56

Such is life, Magpie, in this singular business. In 40 years investing, I have seen many such opportunities pass by. I see it as an achievement for me to have remained fairly sane throughout.
Such opportunities look obvious in retrospect but the market was very shaky a few weeks ago and could have suffered a collapse. We could be seeing 235p instead of 335p.

[eipgam] 01/3/2016 16:03

I wish I'd spent my spec divi on MRO shares now.... c20% upside attained

[eipgam] 26/2/2016 17:19

I wonder if MRO are still as keen to buy Philips Lighting (if rumours are correct) now that the Lumileds business is included following the non approval (by US regulatory body) of the sale to the Chinese investment fund.

[eipgam] 24/2/2016 09:55

They're prob referring to the FT article

[meanwhile] 19/2/2016 19:29

In ADVFN Recent News for MRO. It seems you need a premium subscription, which I don't have, to get the article,

Recent News
Date Time Source Headline

16/02/2016 11:21 ALNC IN THE KNOW: Significant Upside Potential For Melrose's Next Deal

[eipgam] 19/2/2016 16:51

no prob... changing any or all of the letters in http to a capital works (except in the case of advfn competitor sites)

52 week high attained in the end of day auction (318.80p)

[meanwhile] 19/2/2016 14:04

Thanks, Magpie

[eipgam] 19/2/2016 13:08

When posting, and before you press 'post reply', change http to hTtp and the link will work properly

eg

[meanwhile] 19/2/2016 10:25

Don't forget to use http (replace hxxp) to follow links.

[meanwhile] 19/2/2016 10:23

For whatever it may be worth (not much in my opinion), Beaufort Securities have MRO in their 10 stock tips for 2016. They had been similarly tipped in 2015.

hxxp://www.dianomioffers.co.uk/uploads/product_7253_pdf_link.pdf?v=4

[steeplejack] 17/2/2016 15:05

Indeed,hence "all things being equal".If they do the Philips lighting deal as suggested at a perceived good price,given past expertise in that area,the stock could go strongly better I reckon.

[meanwhile] 17/2/2016 14:40

Cisk,

It's too late to get the full benefit if you wait until they announce the deal.

All this speculation, of course, relies on the overall market holding up until then.

[steeplejack] 17/2/2016 12:23

You've got to assume that the market will applaud the deal when it's announced so,all things being equal,best to buy ahead.

[cisk] 17/2/2016 11:26

MW, are you suggesting buy now or wait until they announce a deal?

[meanwhile] 17/2/2016 10:42

Shareholders now find that 85% of their holding has been liquidated. As a result, they have a big pile of cash. If they have long memories, they will recall that there is good money to be made at the precise time when MRO issue new shares to finance an acquisition, the market being confident that the funds being raised will appreciate. They won't want to miss it.

If you can hang on up to 6-9 months for this to happen, the shares look a one-way bet again.

[steeplejack] 16/2/2016 19:28

There's a long,informative and rather complimentary article in today's FT.....Philips Lighting is mentioned and the fact that the senior management in their previous incarnation at Wassall had knowledge of this industry area.Worth a read.

[eipgam] 16/2/2016 17:45

2/12/2016 Numis Securities Ltd Reiterated Rating Buy GBX 350

I wonder if the source of the Philips rumour has had his wrists slapped?

[eipgam] 11/2/2016 11:42

Thanks gb... mine are in a SSAS so no tax at this stage, but your info is appreciated.

In the meantime....

Investec Reiterates Melrose Industries PLC (MRO) Buy GBX 325

[grahamburn] 06/2/2016 15:48

So, one needs to know the apportionment percentage split between the "C shares" sold and the "new ordinary shares" retained. This then allows the shareholder to allocate the (notional) cost of the C shares against the sale proceeds (£2.40 per share) to arrive at a capital gain (or loss), whilst carrying the balance forward as the cost of the new ordinary shares.

The company should provide this information (as it did in February last year which is on its website). I guess it will appear in due course, but hope it's sooner rather than later for 15/16 tax planning purposes.

I just thought someone might have found the information out - hence the original query.
_____________

Edit (10 Feb)
Found the answer myself after a very helpful chat with the Company Secretary:

[meanwhile] 06/2/2016 14:14

Just apply logic. It's capital, juts as if you sold the shares.

[topvest] 06/2/2016 13:34

It's a capital distribution as per the tax section of the circular I believe. Effectively 85% of the cost treated as a sale I believe, rough numbers.

[eipgam] 06/2/2016 13:06

Don't rely on this info, but I thought that the tax rules had changed recently and the special divi of £2.40 is all to be recognised as income.

Although, on second reading of your post, that might not be what you were asking