Melrose Industries Share Discussion Threads

[meanwhile] 16/2/2020 22:23

Now come on now, now come on, come on.

Why can't we all just get along?

Would anyone like a photo of my wallet?

[jackdaw4243] 14/2/2020 14:47

getting

"More than they can chew" is a realisation in some parts of GKN.

[keyno] 10/2/2020 21:04

Goldman moves in mysterious ways ???? I've no idea the whys and wherefores :)

[brexitplus] 10/2/2020 11:42

Keynote, interesting GS increased their target and price dropped.

[sliotar] 10/2/2020 09:50

Interesting that there were one or two very high volume days just before the Goldman announcement.

[keyno] 07/2/2020 10:42

Goldman cuts Melrose to "Buy" ('Conviction Buy List') - Target 260 (250).

[petomi] 06/2/2020 11:36

Re GB's post 24 I agree new senior appointments wouldn't normally suggest imminent sale but it seems NSC with 700 employees is only a relatively small division in Nortek.

More generally like other LTHs I find the recent strength very encouraging especially give underlying issues in auto industry to which GKN is exposed.

GLA

[meanwhile] 06/2/2020 09:43

High volume so far today.

[gettingrichslow] 05/2/2020 21:57

Possibly. Or maybe it’s slowly dawning on people that GKN is a massive turnaround opportunity and confidence is building that Melrose are going to work their magic on it just like they have with their previous companies? A lot of commentators seemed to think that Melrose had ‘bitten off more than they could chew’ but that view seems to have largely evaporated in the last six months or so. If Melrose show more signs that they are going to pull this off, the share price could easily be north of £3 by Christmas.

[yertiz] 05/2/2020 18:51

News afoot? Nice rise again today, maybe Nortek sale is closer than we thought?

[brexitplus] 05/2/2020 16:42

Nortek Security & Control (NSC) has announced that Christopher Larocca has joined the company as the new chief executive officer (CEO) and Darren Learmonth has been appointed as chief technology officer (CTO).

Leading 700 employees across its security, control, access and digital health business units, Larocca will address intelligent home and commercial automation environments, propelling the company as it positions itself for future growth.

He will be responsible with ensuring the company’s portfolio strategy and family of brands remain disruptive.

“I am honoured and excited to assume the CEO position at Nortek Security & Control,” said Larocca. “It’s inspiring to join a company whose products have already made millions of consumers more secure and a leader in creating connected environments for a more personalised and intelligent experience.”

He continued: “From this strong foundation, I look forward to working with the exceptional professionals at NSC to implement strategies focused on strengthening our brand equity, delivering innovative solutions to the market and bolstering customer relationships.”;

Previously, Larocca was the CEO of Luminance Brands, a consortium of seven divisions that developed and manufactured lighting products, energy controls, connected home and smart lighting solutions. He has also held CEO and executive management positions at Dover Corporation, General Electric and EMCORE Corporation.

As well as the new CEO appointment, NSC has also announced Learmonth joining the company as its new CTO, responsible for all engineering and product line management departments.

With more than 25 years’ experience in defining and quickly bringing new product to market, Learmonth will take a leadership role in efficiently executing the company’s IoT, solutions-based strategies, including a list of innovative product launches scheduled for this year.

“I am thrilled to join NSC at this powerful time in the company’s history,” explained Learmonth. “We are on the cusp of product and feature breakthroughs where I will lead and help expedite our product development in order to keep pace with the rapidly evolving markets we serve.

“My primary objective is to work with NSC’s knowledge engineering and R&D staff to maintain the company’s position as an innovator and industry leader while delivering advanced and differentiated products that help us meet our global growth targets,” he concluded.

Prior to joining NSC, Learmonth was CTO at Assa Abloy, a global supplier of security solutions. He has also held other CTO and senior vice president positions at HID Global and Thales E-Security.

Both new appointments are based at the company’s Carlsbad, CA headquarters where Learmonth reports directly to Larocca.

[sliotar] 04/2/2020 17:22

Decent volume today but small price movement. Volume strength is often an indicator of an upcoming market sensitive event but that has not been an MRO characteristic in recent months.

[brexitplus] 04/2/2020 12:29

GKN AEROSPACE SIGNS USD MULTI-MILLION CONTRACT FOR BOEING 777X WIRING

Six-year agreement covers electrical wiring interconnection systems for the 777X


GKN Fokker Elmo has signed a contract to supply electrical wiring interconnection systems (EWIS) for the new Boeing 777X family. Production will start end of Q1 2020. The 777X EWIS will be delivered out of a number of strategic global locations, such as China, the Netherlands, and the new state-of-the-art wiring facility in Pune, India.

GKN Fokker Elmo has supplied EWIS to Boeing for more than a decade for the 777, 737 and P-8A. The new contract re-affirms GKN Fokker Elmo’s position as a strategic EWIS supplier to Boeing. GKN Fokker Elmo is globally recognized as one of the market and technology leaders in EWIS.

John Pritchard, President Civil Airframes GKN Aerospace, said:“We are extremely proud of our participation in the 777X program. It is great that we can contribute to this advanced aircraft that successfully completed its maiden flight on 25 January 2020. We’ve been producing EWIS for Boeing aircraft for many years and this new contract award - which is thanks to the team’s continued commitment to quality, on-time delivery and customer focus - means we have now strengthened our business relationship for many more years to come.”

[brexitplus] 04/2/2020 12:29

GKN AEROSPACE SIGNS USD MULTI-MILLION CONTRACT FOR BOEING 777X WIRING

Six-year agreement covers electrical wiring interconnection systems for the 777X


GKN Fokker Elmo has signed a contract to supply electrical wiring interconnection systems (EWIS) for the new Boeing 777X family. Production will start end of Q1 2020. The 777X EWIS will be delivered out of a number of strategic global locations, such as China, the Netherlands, and the new state-of-the-art wiring facility in Pune, India.

GKN Fokker Elmo has supplied EWIS to Boeing for more than a decade for the 777, 737 and P-8A. The new contract re-affirms GKN Fokker Elmo’s position as a strategic EWIS supplier to Boeing. GKN Fokker Elmo is globally recognized as one of the market and technology leaders in EWIS.

John Pritchard, President Civil Airframes GKN Aerospace, said:“We are extremely proud of our participation in the 777X program. It is great that we can contribute to this advanced aircraft that successfully completed its maiden flight on 25 January 2020. We’ve been producing EWIS for Boeing aircraft for many years and this new contract award - which is thanks to the team’s continued commitment to quality, on-time delivery and customer focus - means we have now strengthened our business relationship for many more years to come.”

[brexitplus] 02/2/2020 21:37

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.”

[brexitplus] 02/2/2020 21:34

Interesting article from the FT

“ The Brexit talks are the most pressing, but probably not the most important item on the EU’s calendar this year. That place goes to the upcoming conference on the future of Europe. It offers a rare opportunity to reconfigure the dysfunctional engine at the heart of the EU. Yet, I fear, this opportunity might be missed.

What the EU needs to fix more than anything else is the divide between the core and the periphery. Brexit is the most extreme manifestation of that divide, dating back to the 1990s and the Maastricht treaty.

The introduction of the single currency and, later, enlargement of the eurozone to include countries that were economically unprepared laid down two systemic dividing lines: between the north and south of the eurozone, and east and west. There are countries on the disadvantaged side of both.

It is further evidence that the road to hell is paved with the best pro-European intentions. The euro started as a federalist project. It is a dangerously incomplete one. Post-Maastricht politics left the EU in limbo: too centralised for a common market, not centralised enough for a monetary union.

The core countries need to prioritise three areas of integration: industrial policy, foreign and security policy and a fiscal union large enough to stabilise the economy. It is likely that all will be attempted, but, like the common eurozone budget, fade out. And then what?

One risk is for the disintegration that started with Brexit to continue. If the UK economy ends up performing just fine, public opinion in some peripheral member states could shift against EU membership. If the UK can demonstrate that life outside the EU is sustainable, Brexit will become less scary. Do not underestimate the residual anger in Greece and Italy at the way the EU has handled the crisis and forced austerity on unwilling electorates.

The bigger danger is gridlock. Of the remaining 27 EU members, eight are outside the eurozone. And the core and periphery countries tend to frustrate each other’s ambitions. The divide within the single currency area is one of the reasons why the EU cannot leverage the euro as a foreign policy tool in the way the US does. And why the EU finds it so hard to solve persistent problems such as immigration that require collective action.

Solving the core versus the periphery divide would constitute formal recognition of a two-speed Europe. There is no way around this. It would give the periphery more sovereignty and less influence. It would also give the centre more policy tools.

One of the many issues a stronger EU would handle much better is energy policy.

Nordstream 2, the not yet-quite-complete gas pipeline project in the Baltic Sea, is a national project driven by Germany. If completed it would increase the EU’s dependence on Russian gas and drive a wedge into the transatlantic alliance. An EU energy policy would not have allowed that to happen.

Or take Huawei. The EU has two indigenous producers of 5G mobile network infrastructure — Ericsson and Nokia, from Sweden and Finland. The EU is about to miss out on one of the rare opportunities to create another Airbus-style European champion. Airbus succeeded because it broke into the oligopoly of US aircraft makers. The 5G case is similar. The use of European mobile telecommunications suppliers would make the EU independent from a Chinese company with uncertain security credentials. But some EU leaders favour Huawei because they fear Chinese reprisals.

Similarly with the debate on the future relationship with the UK. There is now a real possibility that the trade talks with the UK will fail if the EU continues to insist on regulatory alignment. It cannot be in the interest of the EU as a whole to have an unnecessarily distant relationship with a neighbour that sits on the UN Security Council, and alongside European allies in the G7 and Nato.

By the EU’s “interest̶1; I do not mean the sum total of those of its member states, and certainly not the lowest common denominator. The EU’s interest exists in and of itself. The EU has the means to pursue it: critical mass, money, rule of law, sound legal and administrative institutions and qualified work forces. If it fails to look after its own interests, it has no one to blame but itself.

The EU will not necessarily disintegrate. But it might become irrelevant. I am under no illusion about the reduced political room for manoeuvre. Political trends in Italy and France, combined with German industrial mercantilism, may reduce that room further.

My central expectation is that the EU will continue more or less in the same way. In the process, it will misjudge Brexit, the intentions of China and Russia and the warnings from US politics. But misjudgments are choices too.

[e-mail]”

[minerve 2] 30/1/2020 16:12

Glad to be of help. :)

[brexitplus] 30/1/2020 15:40

As part of its commitment to supporting innovative startup businesses in the UK, GKN Aerospace will continue its sponsorship of the Aerospace Technology Institute (ATI) Boeing accelerator with additional investment into the programme.

The 12-week accelerator programme will be welcoming a second cohort of 10-15 startups in September 2020. The programme will open for applications at the end of March 2020 and will help to strengthen the UK’s growing ecosystem of startups.

The programme is designed to help startups build and grow their business. Selected startups will be mentored by Boeing, ATI and GKN Aerospace and are all offered a £100k equity investment from Boeing HorizonX Ventures. The startups are also given access to a wide range of business and technical professionals and corporate sponsors to accelerate their speed-to-market and facilitate access to potential investors and funding.

This agreement was announced with the UK aerospace minister Nadhim Zahawi at the accelerator hub in London. It continues GKN Aerospace’s sponsorship of the ATI Boeing Accelerator, which was announced in October 2019 and saw ten startups actively supported. The first cohort attracted international interest of more than 200 applicants, with a high ratio of female founders.

Rachel Power, Head of Strategy and Innovation, Aerospace Technology Institute said: “The accelerator was created to help grow innovative aerospace startups in the UK and drive new collaborations with leading aerospace corporates. GKN Aerospace’s continued support of the programme demonstrates the value they have gained through their deepened engagements with startups. We are excited to continue this collaboration and are excited for more corporates to join the programme.”

Paul Perera, VP Technology of GKN Aerospace said: “Sponsorship of the ATI Boeing Accelerator is a win-win situation. Technology and sustainable innovations are at the heart of GKN Aerospace and crucial to the UK’s industrial strategy. By collaborating with energetic and inventive startups and learning about their exciting ideas, we enhance our innovation power. At the same time, we are a sounding board for these companies and give them access to our global footprint, cutting edge technological knowledge, and industrial expertise.”

[brexitplus] 30/1/2020 14:59

As part of its commitment to supporting innovative startup businesses in the UK, GKN Aerospace will continue its sponsorship of the Aerospace Technology Institute (ATI) Boeing accelerator with additional investment into the programme.

The 12-week accelerator programme will be welcoming a second cohort of 10-15 startups in September 2020. The programme will open for applications at the end of March 2020 and will help to strengthen the UK’s growing ecosystem of startups.

The programme is designed to help startups build and grow their business. Selected startups will be mentored by Boeing, ATI and GKN Aerospace and are all offered a £100k equity investment from Boeing HorizonX Ventures. The startups are also given access to a wide range of business and technical professionals and corporate sponsors to accelerate their speed-to-market and facilitate access to potential investors and funding.

This agreement was announced with the UK aerospace minister Nadhim Zahawi at the accelerator hub in London. It continues GKN Aerospace’s sponsorship of the ATI Boeing Accelerator, which was announced in October 2019 and saw ten startups actively supported. The first cohort attracted international interest of more than 200 applicants, with a high ratio of female founders.

Rachel Power, Head of Strategy and Innovation, Aerospace Technology Institute said: “The accelerator was created to help grow innovative aerospace startups in the UK and drive new collaborations with leading aerospace corporates. GKN Aerospace’s continued support of the programme demonstrates the value they have gained through their deepened engagements with startups. We are excited to continue this collaboration and are excited for more corporates to join the programme.”

Paul Perera, VP Technology of GKN Aerospace said: “Sponsorship of the ATI Boeing Accelerator is a win-win situation. Technology and sustainable innovations are at the heart of GKN Aerospace and crucial to the UK’s industrial strategy. By collaborating with energetic and inventive startups and learning about their exciting ideas, we enhance our innovation power. At the same time, we are a sounding board for these companies and give them access to our global footprint, cutting edge technological knowledge, and industrial expertise.”

[bigalan3] 30/1/2020 11:23

I am transferring my 2020 share tips from the 'other' thread. Justified since it includes Melrose.
Melrose Start of 2020 £2.42
Rockrose energy Start of 2020 £19 (Nap)
President energy Start of 2020 3 p.
Hope you don't mind.

[grahamburn] 30/1/2020 10:52

There you go.... charts etc added.

Thanks Minerve2 for the heads up.

[sliotar] 30/1/2020 09:40

MRO's relationship between share price movement and trading volume is interesting. Yesterday a 3% price hike was on far less than average volume. In previous days we have had no material price change on 4 or 5 times average trading volume. All in similar total market environments. Covering shorts isn't a factor and the Share Register seems to stay constant. Market makers may see it as a stock where they can run the price up /down to tempt business, but this seems unlikely as the ownership is very Institution dominated. Maybe one of the new charts could show the answer.

[thamestrader] 30/1/2020 08:01

I'm sure adding charts in ADVFN used to be easy, just one click, but I can't see a way of doing it now.

[keyno] 29/1/2020 22:11

Your starter for 10, grahamburn courtesy of Minerve 2.

[brexitplus] 29/1/2020 21:54

Getting, good find.