Melrose Industries Share Discussion Threads

[essentialinvestor] 02/9/2021 21:32

If someone wanted to purchase a particular division before it was marketed for
sale, they can simply approach the BOD with an offer.

But an offer for the entire business would make little sense and the only reason
Melrose would agree is if market conditions no longer allowed the sourcing
of acquisitions with upside.

This happened once before to their previous acquisition vehicle, Wassall Plc,
which was also LSE listed.

They sold the entire company as were being outbid by PE {at the time}
on a number of deals - that ultimately led to Melrose.

[ny boy] 02/9/2021 21:18

Looks an interesting recovery play, it’s on my watch list

[brexitplus] 02/9/2021 16:36

Do you mean Melrose or GKN?A takeover of Melrose has been suggested in the past.

[kanwar] 02/9/2021 14:33

Could this be a "potential takeover target?"

[brexitplus] 02/9/2021 12:35

Possibly the main challenge in both aero and auto is the lack of microchips which is reducing production, particularly as manufacturers work on a just in time basis. I did read that the electronics in a new car make up 20% of the cost of manufacture.

Good to see GKN strong in it the new areas of electric and hydrogen.

[essentialinvestor] 02/9/2021 12:31

Agree about the continual improvement aspect, but that appeared to be underlined.

It read to me as they see some operational underperformance - outside of end market
challenges with covid. Obvs that makes running the business more challenging.

[brexitplus] 02/9/2021 12:20

Melrose are not slow in replacing people when necessary, and will always be working on improving performance.

[essentialinvestor] 02/9/2021 12:16

Reading between the lines, this morning's comments from Melrose on the GKN
aerospace business, they are clearly not satisfied with current operational performance.


Note the comment about a new CEO being installed and ..plenty still left to do.

[essentialinvestor] 02/9/2021 12:08

Halma has been a star stock for decades.

When I was 16, way back in 1984, I did some weekend gardening work for a couple
who lived in St Georges Hills Weybridge, they had backed Halma around 1974,
from memory, when the business shifted strategy, within that first decade the % returns
were utterly phenomenal, the name of the then CEO alludes me now.

[brexitplus] 02/9/2021 10:06

Excellent investing Yertiz. I like private equity more and use funds for general investing and risk management. I’ve also recently moved money into Supermarket Income REIT which is paying 5+% with some price growth as a hedge against market turbulence.

My current star performer is S4 Capital which I started buying a couple of years ago. Weight averaged purchase price is 192p and today the price is about 835p. It is a digital marketing group set up by Martin Sorrell (ex WPP) and just goes from strength to strength with no end in sight. Probably a bit expensive at present but with results on 13th September there is still room to grow. Several analysts think it may double in the next few years. If you look at the advfn page you’ll find we have the usual idiots onboard, but they do provide a bit of fun.

[yertiz] 02/9/2021 09:59

I've held Halma for over 16 years now, trimming from the top and adding on dips over that time. First purchase was £4500 at 430p, look at it now!
Held Melrose for a similar time and treated it in the same way, both satisfying shares for long term investment. Same goes for Ashtead and the builders (Redrow and Bovis/Vistry).

[essentialinvestor] 02/9/2021 09:55

Unless some more troubling covid variant emerges, Melrose look ideally placed.

[brexitplus] 02/9/2021 09:53

Smithson in its last report in June has £90million in Halma. It’s been a good performer for me. Worth a look.

[gettingrichslow] 02/9/2021 09:47

Interesting, I wasn’t aware that Smithson held Halma. I bought Halma a long time ago and it’s easily the most consistent, yet understated, performer in my portfolio. So much so that it’s now my second biggest holding and I’ve only added a few £20k ISAs worth over the years. Long may it continue.

[brexitplus] 02/9/2021 09:35

Getting

I hold Halma in Smithson Investment Trust, a small company version of Fundsmith.

[gettingrichslow] 02/9/2021 09:23

Morning all! Yes, Melrose surging on that update, but Halma has been the golden share for me during this pandemic - still under the radar though for most investors, for reasons I still can’t work out. Just need Meanwhile back now on this board.

[brexitplus] 02/9/2021 08:47

Agreed Yertiz. Good to be back. My holding here is much smaller than it was before and only a very minor part of my portfolio. I’ve been away so long I’ve forgotten the names of the nemesis😁8513;😁

[yertiz] 02/9/2021 08:42

Welcome back B+. Good to see the old guard are still around after what has been an unparalleled 18 months of misery!. As I said, MRO are going to be in for an excellent year, starting now, so good even our nemesis has joined the fold.😝. Debt down, pensions covered, sales happened (Brush was more a millstone but even that's been off-loaded). Ergotron next? Happy days..

[brexitplus] 02/9/2021 08:32

Hi Yertiz, I’ve given this board a long rest while concentrating on S4 Capital and Draper Esprit. Hope you are well. Reasonable report today.

[yertiz] 01/9/2021 15:51

Next 12 months will be a profitable one for shareholders in MRO, with Nortek and perhaps Ergotron sales, the aerospace industry kickstarting into action very soon and GKN showing its worth in a fast recovering market. Good luck to you too with your investment....it's been a cracking 12-15 months for me.

[yertiz] 01/9/2021 14:39

Thought you'd gone for good. So pleased to see you are still here, dishing out your valuable and totally impartial advice. Bought into MRO now?

[medieval blacksmith] 01/9/2021 13:06

By-the-way, I'm Minerve. :)

[medieval blacksmith] 01/9/2021 13:05

Ignoring the return on the business they have sold they are effectively raising a small amount of capital to pay down the GKN pension debt. The improved free cashflow per share increases the intrinsic value and should wash out overtime. The only way you can decide whether this is in YOUR interests is to decide whether you could improve upon the potential future IRR currently offered by Melrose. I doubt you could.

[yertiz] 01/9/2021 12:20

Bloody spelcjek, that's ii, not 'it'.