Melrose Industries Share Discussion Threads

[steeplejack] 26/4/2018 15:26

'Short positions were only needed as cover/opposite play for the arbitrageurs.The bid was successful so the short positions are no longer need.'I think Minerve is right.

[brexitplus] 26/4/2018 14:50

Yertiz, that smelly brown tongue seems to be at it again. Sort of thing minerve really enjoys.

By the way, since there are now a lot more Melrose shares in the market (I leave it to someone good at sums to provide the numbers) it is possible that the number of short positions hasn’t actually fallen in number, only as a percentage.

[meanwhile] 26/4/2018 14:44

Yertiz, I was too harsh, I now realise.

Since you mention my wallet, would you like a wallet photo update, autographed, framed, possibly embossed. I'm working on a 3D version to highlight the bulk effect but this may not reproduce on the profile page.

[steeplejack] 26/4/2018 12:26

Interesting if rather feral bulletin board.Frankly,I think GKN should be ashamed of itself as to the recent revelations about break fees etc.Minerve,Melrose has fulfilled every request that an investor could of asked of it over recent years.It has,with the notable exception of Brush,substantially improved return on capital in acquired businesses.It is this track record that enabled Melrose to secure GKN.In fact,MRO doesn't have a policy of sacking staff,it attempts to release divisions from bureaucratic control or reorientates operations,fine honing.Its not an asset stripper per se.Its more analogous to someone who buys a used car,tunes the engine,cures the rust,replaces the tyres and sells the car on for a profit.Now that is capitalism and I'm surprised as an "investor" that you don't applaud.That said,I understand your concerns about short termism.The current capitalism system has inherent flaws but I don't think Melrose epitomises those shortcomings.

[minerve] 26/4/2018 11:14

Short positions were only needed as cover/opposite play for the arbitrageurs.

The bid was successful so the short positions are no longer needed.

[owenski] 26/4/2018 11:00

Did the short positions not do very well here, I notice they're down from +15% to under 5%........ Have I got that right?

[minerve] 26/4/2018 10:55

Don't forget we have the first, virtual on-line Crufts on this thread!

[meanwhile] 26/4/2018 10:41

With a 'Resident Oracle' and a 'Cotswold Sage', both using The Times newspaper, this board should be providing a rather better analysis than it is.

[minerve] 26/4/2018 10:26

So, our resident oracle - grahamburn - who likes to come across ever so educated and reserved has been investing proper for 8 years. Is that all?

So, obviously, not through a real, full economic cycle and certainly not through any financial crises like the .com crash or the 2008/9 crisis. No offence, but any moron could make money in the QE world.

Investing has been my ONLY source of income for nearly two decades. I invested through the .com and the 2008/2009 crisis. A lot of experience and catching-up to do me thinks!

Yet, I could be a bloody liar so if you think that ignore my comment.

Perhaps I should add the comment that I don't normally comment about my worth or experience on BBs but .........


ROFLMAO!

[minerve] 26/4/2018 10:17

Well, defence and aerospace companies in the US are revising up forecasts so if Melrose don't improve from here they will be right clowns. 🤡

Of course, we already know the Jackanory that they are going to spout!

Anything positive will, of course, be down to them.
Anything negative will, of course, be down to historical GKN.

Still, morons love this sort of stuff!

All tickety-boo in the land of a moron!

[sogoesit] 26/4/2018 07:53

B+ post 3666:
"Now Melrose can ream this company out"

.... as the groom said to the bride!

[brexitplus] 26/4/2018 07:12

Hi Cisk, I remember Marconi where the Chairman and CEO I think ruined the company then sued for their contractual bonuses.

When people say Melrose is short-term they forget that listed companies regularly fiddle the figures, like GKN with screwing their suppliers to make the balance sheet look better, to please the market and artificially support their share price at least Melrose look at 5 years whereas listed companies look at 6 months.

[cisk] 26/4/2018 07:03

Brexitplus, we’re singing from the same hymn sheet in this matter. Hope the commons committee does something. Although in my investing career I’ve seen far worse culprits get away with far more with no rebuke. So I don’t really hold out hope.

But your point is well founded that management don’t have stakes in their companies. And often remuneration has small hurdles. Hence the love of share buybacks to increase EPS and hence trigger bonuses. Anyway, another story for another day!

[brexitplus] 26/4/2018 06:28

Cisk

Agree. Stevens and Sclater were at least “economical with the truth” with the BES Committee.

General opinion in the media is that they were very underhand, failed in their fiduciary duties, and quite honestly should be brought before the Committee again. They were desperate to keep their jobs, and to my mind hid their financial engineering.

I emailed Rachel Reeves pointing out these facts and received a reply saying that the Committee had not yet deliberated and were taking further evidence. Hmmm!!! They may yet get their comeuppance. MPs don’t like to made to look fools even though many are.

Re Melrose director benefits, I have no problem. They have reasonable salaries, hold large shareholdings (Simon Peckham says he has never sold any shares), and take dividends. And pay U.K. tax. They started Melrose and have worked solidly for 15 years to make it the success it is today. And quite honestly, if Directors/Management of our engineering and manufacturing companies applied the same principles to the same effect there would be no need for Melrose. The fact is that much senior management here is rubbish, short term pandering to the market, and just a stepping stone up the greasy pole with no consideration for stakeholders whatsoever. Some are even “morons”.

The £285 million people talk about is in shares and the targets to meet this total are very high. Should they turn GKN around to the degree needed in the timescales set they will deserve every penny. And they have to be very successful to get anything. I would prefer to criticise after the event rather than before.

[cisk] 26/4/2018 01:07

Hmm didn’t the reptilian GKN board say they were in discussions wit Dana before Melrose showed up? Or did they lie about that?

[minerve] 26/4/2018 00:04

IMO Dana would simply not have been entertained - at least not in the same manner - had Melrose not shown up.

Melrose is to blame!

Most independent observers - I am sure - see that!

[cisk] 25/4/2018 23:09

That they may, but the MRO team delivered on performance. The GKN team did not and destroyed shareholder value.

I’m happy that the MRO team get such packages if they deliver. If they don’t, then they shouldn’t.

Take WPP. It was a tiny company based in Brum making wire products before Sorrell made it into a multi billion enterprise.

GKN team just ruined the company finances. Diabolical. If ignorance and stupidity were crimes they would be locked up.