Melrose Industries Investors - MRO

Melrose Industries Investors - MRO

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Melrose Industries Plc MRO London Ordinary Share GB00BZ1G4322 ORDS 48/7P
  Price Change Price Change % Stock Price Last Trade
0.25 0.14% 183.75 11:42:16
Open Price Low Price High Price Close Price Previous Close
185.00 182.30 186.35 183.50
more quote information »
Industry Sector

Top Investor Posts

gettingrichslow: Gold is for morons eh? Well I’m one of those morons who watched the Fed turn on those multi-trillion dollar printing presses in March and thought “hmmm...huge amounts of new funny money is being magically created, I wonder, what will rise in demand as a result - ooh, I know, that yellow stuff that has been the ultimate store of value for centuries” so I bought loads of it, just like every other sensible investor I know, and guess what, it rose from c$1,500 to c$2,000 in the next few months. But it’s complete luck Minny, not judgement at all, no, no, no!
minerve 2: getting AA has always been a play on a pseudo debt for equity swap and in that regard there is no change. If you think the sustainable competitive advantage of the AA isn't damaged sufficiently enough by its debt the opportunity is still there. Kier is a turnaround stock and in that regard there is no change also. They both offer prices below intrinsic value if AA pays down its debt and Kier continues on its path of turnaround. With Rolls Royce its share price also offered price below intrinsic value based on projections of flight numbers going forward and its improvements within including computer simulations of engine improvements and its new range of engines moving away from being loss making at point of sale. I was a computing/electronics/general engineer before being a full-time investor, so I know about these things! ;) Of course COVID has thrown a spanner in the works. With your investments it has ALWAYS been 'be part of the herd'. I bet you don't do any thorough business analysis of the underlying shares, if you do it is not enough. I bet you can't even compute simple DCF analysis. You rely on the Greater Fool Theory which looks marvellous when the herd is in full swing - empowered by QE, serial low interest rates and silly government handouts. Just wait until the magic money tree runs out of steam and then watch your favourite shares look for their intrinsic values. You will not be able to see that originating in a Chinese province, it will just happen. Terry Smith you momentum traders are not. He is unique. You know there is one side of investing that you numpties always seem to completely ignore! That is risk. Return should always be measured by the risks you take. Most of you herd numpties take on more risk than you realise because you have no idea of what the real assets and cashflows should be valued at. You only realise the risks you have taken when it is too late. You never know, you might be one of the lucky ones who never gets to learn the lesson. Some how, I doubt it though. I've seen your type come and go over 30s years of investing. I'm still here and I'm still doing well. Better stop being a prat, pretending to be something you are obviously not, and start learning from the pros.
minerve 2: "The market is up if you’re in the right areas Ammu - SGLP, AMZN for example..." Define 'right area'. To you it just seems the hindsight view of recent momentum. My definition is in shares of value not in shares that rely on "The Greater Fool" theory. IT is very easy to look like a clever investor when you are sat in the herd making money. One day the music will stop, the greater fools will disappear and then you will be left with an asset that is overpriced relative to the forward cashflows it will bring you. The market will come to its senses and the share price will adjust downwards. Some of them in large downward movements. Give you an example. Imperial Brands currently yields 10% dividend. More importantly, the asset is generating 20.83% FCF per share to shareholders. That means if the stock market closed tomorrow - and assuming tobacco sales hold up medium term - shareholders would get back their initial investment with free cash flow in less than five years. Anything over that is forward profit. The tobacco revenue pool is actually expected to grow going forward because of NGP. So I think it is one of the best investments on the FTSE ATM. Do the herd think so? No. They buy into other stocks where forward sales are generally unpredictable but they are the glory boy shares so who cares? Wait for the greater fool right?
gettingrichslow: I’m not sure which part of what’s happened so far with MRO is something anyone should be surprised about? Let’s look back at what happened. The coronavirus story started emerging in mid-January. By mid-February it was the main news headline. It was already pretty obvious at that point that there was a really big problem brewing. Wuhan was in its lockdown, cases were popping up in ski resorts, on cruise ships etc. At this point, the share price was still c.245p!! A week later I was in a pub in London watching the news where every single item was about this virus spreading fast and engulfing Iran and Italy. I sold all my MRO the next day at between 214p and 204p. Everyone I was with that night (all experienced investors) agreed at that point that airlines and anything related would be stuffed and that this virus was clearly becoming a pandemic with disastrous consequences. So I do struggle with anyone saying this was hard to predict??
minerve 2: The clever and proper investors amongst us would have made best efforts to ascertain forward returns on Melrose to give some idea of present value and would be slowly building up holdings if their due diligence is positive. Not fleeing to gold like every other muppet who is easily spooked. Melrose is not for me, I have give you my reasons, but it is a much better value investment than gold is ATM, for sure, and I would hazard a guess that shorting has a rather limited future here too.
mach100: You wonder how investors allow themselves to get fleeced by selling yesterday particularly at 96p. I know it is fear and loathing in Las Vegas but that drop on that update was never justified. A day later and a proper weighting for the share price is already here.
gettingrichslow: Minny, they’re not professional investors, no, but they still made the right decision didn’t they?! Unlike you it seems who didn’t have the right stop-losses in place. They, like me, are now sitting on big cash piles that are worth way more than if we hadn’t acted. Now that might not be such an issue when dabbling in relatively small amounts of money like you do, but at the amounts I had invested I had to act fast, and I did, and I’m very glad I did! Sometimes you have to make big calls Minny, and it seems you failed to do so!
brexitplus: From Motley Fool “There are only a handful of stocks in the FTSE 350 that have produced annual returns for investors of more than 25% over the past decade. One of these is the industrial group Melrose Industries (LSE: MRO). This company, which buys struggling industrial businesses is hardly the most exciting enterprise around. However, over the past few decades, the group’s strategy has generated outstanding returns for investors. The stock has produced a compound annual return of 32.3% over the past 10 years, a total return of 1,540%. That’s enough to turn an initial investment of £1,000 into £15,000. It’s highly likely this trend will continue as Melrose continues to do what it does best. Buy, build, sell Melrose was founded to fill in a vital gap in the market. Its founders noticed that quite a lot of industrial businesses are poorly managed with low returns. They set out to change this. They targeted buying poorly-managed struggling companies, nursing them to health with experience, and then selling them on. The strategy has been hugely successful, as the stock’s returns over the past decade show. The company’s latest acquisition was industrial conglomerate GKN. But this isn’t the only business in the Melrose stable. It also owns US domestic heating and air conditioning manufacturer Nortek. Acquired for $2.8bn in 2016, Melrose been working its magic on the business over the past three years. According to recent reports, the group is now looking to sell part of this business for $3bn. The rest will be sold off later in 2020. This could lock in a sizeable profit for the company’s investors. Future growth The group’s track record seems to suggest it will make a healthy profit on GKN when it comes to selling the business. In the meantime, it will have $3bn from the sale of Nortek to play with. Melrose often distributes special dividends when it completes a sale so a special dividend could be on the cards. Reinvesting the proceeds is also an option. Buying for the long term Considering its track record, Melrose looks to be an excellent long-term investment. The stock is currently dealing at a price-to-earnings ratio of 16, which is about in line with the industrial sector average. It also supports a dividend yield of 2.1%. The distribution is covered 2.7 times by earnings per share, so it looks as if it is secure for the time being. With this dividend income, investors will be paid to wait for the company to complete its turnaround of GKN. At the same time, a special dividend from the sale of Nortek or the reinvestment profits from the deal could lead to enhanced returns in the next five years or so. Whatever course management chooses to take, it looks as if shareholders are set for a big payoff over the next decade, just as they have been since 2009.”
grahamburn: This thread is for the handful of posters who wish to discuss the company, its news, its activities and potential. It is NOT for miscellaneous commentary on topics which have very little bearing on the company. That can remain on "other thread" to ensure that this thread only contains posts by serious Melrose investors or potential investors.
brexitplus: Investment Size Re Graphcore, the Draper Esprit investment, written by co-founder Nigel Toon. “The next phase in our company growth story begins today. In the last few months we started to generate revenue from our IPU-Processor products and at the same time have been receiving very strong interest from large investment funds asking to provide growth capital for the company. I am pleased to announce that today we have closed a new $200 million funding round which values the company at $1.7 billion and brings the total capital raised by us to over $300 million. For this funding round we had to deal with an interesting dilemma. We have been receiving very strong interest from lots of large potential new investors, but our existing investors can see the strong growth path we are on, also wanted to invest much more and didn’t want to be diluted. To deal with this situation we were lucky to have Goldman Sachs, one of the world’s leading investment banks, offer to help on this private round. Over the last month or so, I have been on the road constantly, meeting new and existing investors face to face to discuss the various options. We worked through the different offers and were able to reach a great outcome with new investors taking half the round and our existing investors matching this investment amount. The round was jointly led by Atomico, Europe’s leading venture capital firm and an existing Graphcore investor, and Sofina, a very large investment holding company known for providing patient capital to private European companies. Merian Global Investors, a major investment fund based in London, through their new Merian Chrysalis Fund and other funds that they manage, also joined the round, matched by our existing investors that include: Amadeus Capital Partners, Robert Bosch Venture Capital, C4 Ventures, Dell Technologies Capital, Draper Esprit, Foundation Capital, Pitango, Samsung and Sequoia Capital. We had to tell lots of potential investors that we didn’t have room for them. We are also thrilled to add two new strategic investors with BMW and Microsoft joining this round. Microsoft have strong interest in our technology and Tobias Jahn, Principal at BMW i Ventures said when talking about this investment: “The versatility of Graphcore’s IPU – which supports multiple machine learning techniques with high efficiency – is well-suited for a wide variety of applications from intelligent voice assistants to self-driving vehicles. With the flexibility to use the same processor in both a data centre and a vehicle, Graphcore’s IPU also presents the possibility of reduction in development times and complexity.” With this new capital we will be working hard to rapidly scale up the company. We will be hiring lots of new engineers to our headquarters in Bristol, UK and to our offices in London, to Oslo in Norway, Palo Alto in Silicon Valley and to new offices that we are opening in Beijing, China and in Hsinchu, Taiwan. We will be ramping up our production and will be adding to our sales, marketing, finance, legal and people teams. Our goal is to build the global market leader in machine intelligence hardware and we are looking forward to an exciting new period of massive growth. Our mission at Graphcore is to help innovators create new breakthroughs in machine intelligence. We have been able to attract leading innovators as friends and investors including: Demis Hassabis, co-founder of DeepMind, Zoubin Ghahramani of Cambridge University and Chief Scientist at Uber, Pieter Abbeel from UC Berkeley, and Greg Brockman, Scott Gray and Ilya Sutskever, from OpenAI.”
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