Melrose Industries Share Discussion Threads

[meanwhile] 14/3/2018 14:42

Well, this morning's discussion has indeed been most serious and detailed. I apologise therefore, if I am lowering the tone here with a 'Wallet Photo Update', now available via my profile.
You may notice a USA flavour to the wallet contents, a tribute to the mainly U.S workforce of Melrose.

[brexitplus] 14/3/2018 11:35

Trading since Monday interesting. Rises am, falls pm. Someone, mainly institutions I fancy, making lots of money as they normally do with takeovers.

[brexitplus] 14/3/2018 11:26

Getting ..

I am an HL client and their service is top notch. We have funds, shares, ISAs and SIPPs with them.

[brexitplus] 14/3/2018 11:23

Burford

Not directly applicable but the CEO of Burford’s comment is interesting

“Meanwhile, chief executive officer Christopher Bogart said the company had experienced "an explosion of demand" for its capital from clients around the world.”

Melrose appear to have no problem whatsoever raising capital.

[gettingrichslow] 14/3/2018 11:14

Loses, indeed, I think they are the only player that have spotted that what people really want above all else is good customer service and customers are willing to pay a bit more for that. They have a 'answer the phone with a human within 10 seconds' approach for example. They are also very good at convincing people to consolidate all their investments including pensions with them, using simple and consistent language in their marketing. Seems to be working!

[losos] 14/3/2018 10:22

gettingrichslow - "I don't use their service but they are a money making machine"

In the early days of my investing I used (over time) seven brokers, I had trouble with all of them no names but three had the initials K and B and S (might give a hint) Then switched everything to Hargreaves Lansdown. Never had a problem and really like their service.

They must be doing something right as they claim over one million private clients now.

Don't hold shares in them, never worked for them, and have no connection at all.

[gettingrichslow] 14/3/2018 09:36

Yertiz, thanks and that is quite remarkable - Ashtead are one of my biggest holdings. I'm also heavily in Hargreaves Lansdown - I don't use their service but they are a money making machine and I can't see that changing going fwd.

[brexitplus] 14/3/2018 09:36

Getting ...

It is a serious question to minerve. I have always told my clients that they know more about their company and markets than me. My job is to focus their minds on the important aspects of both, mainly concentrating on profit and not turnover.

Sounds a bit like Melrose, which is why I like them.

[brexitplus] 14/3/2018 09:32

Sogoesit,

Playtech tried to buy Plus500 a couple of years ago but it fell through because of regulatory factors. Pity for me.

[gettingrichslow] 14/3/2018 09:26

Brexitplus, thanks for your thoughts, I'll investigate. You have really put Minerve on the ropes with that question. He is probably trying to think of something sensible to say...

[sogoesit] 14/3/2018 09:25

Yertiz, thanks for that... Plus 500 pays dividends?
Must check it out as its an AIM stock. It was a big play for Odey but he lost credibility over his Brexit trades so i stopped following.

Halma has been on my watch list since i started investing some 30+ years ago! Still there... Lol.
Maybe when I retire I will buy it ;-)

Edit: My long termer incomes are CSN and RDSB (and SDIV for USD). Also Singapore REITS.

[meanwhile] 14/3/2018 09:22

I've not come across Burford. I don't look around much these days. Only have MRO & B&M European Retail. Stirling will be getting my attention though, when they find something to go for.

[sogoesit] 14/3/2018 09:21

Indeed b+, I went for JIL instead, got dispirited in the legal finance idea and didn't catch BUR. Should've spread my investment between the two.

On yesterday 11x multiple it was very good value.... may still be but I must check.
Check:
At 127c/share trailing EPS and today's price of 1375p that now becomes 15x P/E.
So, if it continues to grow healthily this is still good value today imv.
I will have cash after 6 April but have to wait for the time being.

EDIT: Dividend is less than 1% 'tho. So its a capital only play.

[brexitplus] 14/3/2018 09:14

Meanwhile. Talking of investments, I had considered Burford Capital. Should have gone for it. Up 30% this morning on results!!!

[meanwhile] 14/3/2018 09:10

I wouldn't give you f'ing monkeys the benefit of my knowledge, you f'ing morons.

Sorry, brexitplus, I thought you were asking me.

[brexitplus] 14/3/2018 08:59

Minerve. Serious question.

Given your unrivalled, on this board, experience of successfully running an engineering company, and given GKN’s underperformance both financially and share-wise over the last few years, what would you do to turnaround the business? I’m thinking in terms of organisation,capital allocation and the future.

[brexitplus] 14/3/2018 08:33

Getting

I would like to say Playtech but it’s a bit up and down at present. Good increasing income stream, €7~800 million in the bank, increasing dividends, likes acquisition. At present the only problem is betting legislation. There will always be gamblers, particularly in Asia.

Melrose is a given, and Syncona is a private equity biotech punt. I bought it as Bacit and it has huge promise besides giving money to cancer research.

Now to light the log burner, make a nice fresh coffee, and sing along to La Boheme. Anyone like to join me?

[minerve] 14/3/2018 08:19

Why don't you set up an investment club?

Invite a few chimps, light a fire, sit around it and sing a few songs! LOL

[gettingrichslow] 14/3/2018 08:16

Brexitplus, Yertiz sums up Halma perfectly and I don't think you are too late because the case for investing in them now is much the same as it has always been. I like how 'under the radar' they seem to be.

Brexitplus - of the other companies you mention, which do you recommend as the most solid, high quality investment for the next ten years?

Yertiz, you and I obviously have similar tastes when it comes to investing - is there one other company you would single out as a solid, high quality investment for the next ten years? I'm more than happy to then reciprocate if you wish?

[yertiz] 14/3/2018 07:46

I’ve held Halma for nearly 10 years now- nothing not to like about them. Year on year dividend increase (now over 40 Years) and a company that has grown exponentially with great management and acquisitions

[brexitplus] 14/3/2018 06:58

Getting

No, not HLMA. Perhaps too late now.

I’ve made a lot of money from private equity, including investing in small local businesses directly and being hands on. Currently Melrose, Playtech and Syncona are my biggest direct holdings, together with TR Property investment trust in which I reinvest all dividends and is currently paying 14% on my original investment. I also got into RIT Capital Partners when it was 285p. Now about 1900p.

GKN is getting very messy. I’ll be happy either way. I think there is a lot to improve and develop, and a big opportunity. Whether the GKN board are capable of doing so is another matter. If GKN disappears completely, which I think it probably will do by 2020, so be it.

Whatever happens, Melrose is a top company. They can sniff out opportunities, like deals and don’t overpay.

[gettingrichslow] 13/3/2018 22:56

Meanwhile, yes I do see what you are saying but where we may have different perspectives is that I am not looking for any certainty at all. I'm more than happy to choose companies where I see a leadership team I can place my trust in, and then leave them to it. Almost by definition, when we buy shares we are taking a view that figures will be beyond those predicted by the wider market and that can only ever be a hope rather than a certainty. So I guess I share Brexitplus' view that this is just a great company and I need to stay heavily invested. I'm interested to know if you or Brexitplus hold HLMA too? That is another company that gives me a similar feeling of confidence.

[minerve] 13/3/2018 22:54

I am a mountain,
I am a tall tree, oh
I am a swift wind
Sweeping the country
I am a river,
Down in the valley, oh
I am a vision
And I can see clearly
If anybody asks you who I am, just stand up tall, look 'em in the face and say
I'm that star up in the sky
I'm that mountain peak up high
Hey I made it, hmm
I'm the world's greatest
I'm that little bit of hope
When my back's against the ropes
I can feel it, hmm
I'm the world's greatest