Melrose Industries Share Discussion Threads

[speedsgh] 03/3/2022 14:18

Melrose on course for flotation of two GKN businesses -

Preparations for the flotation of two UK-based FTSE 100-sized companies [GKN Automotive & GKN Aerospace) began as Melrose Industries reported that the restructuring of two engineering businesses it bought for £8 billion four years ago was bearing fruit...

... Melrose believes that the return of sales volumes will get margins in the GKN businesses to double digits. They stand at between 4 per cent and 5 per cent...

... Andrew Wilson, analyst at broker JP Morgan Cazenove, said he believed that, factoring in the disposal values of the GKN businesses, Melrose was worth 240p a share. He said the recovery in the GKN businesses could unlock a tripling in earnings that would lead to the “crystallisation of the full sum-of-the-parts value as the break-up timeline moves closer”. He added: “The equity is mispriced and there is material upside for shareholders.”

[essentialinvestor] 03/3/2022 11:56

You cynic! eh.

Some of their comments the most cautious I can remember from Melrose.

Quality management but multiple sector headwinds - very unfortunate a chip shortage
hit auto sector volumes just when civil aerospace was experiencing an early recovery having
been hit for 6 during covid.

Now a soaring oil price and Ukraine.

Current equity markets are now looking more concerning and I am now 65% in cash having
exited a number of positions. Initially thought a sharp bonce back but now far less sure on that.

[1justine] 03/3/2022 11:43

Always too much puff in this company's Results Statement. They always seem to beat their own expectations-- whatever they may be! In these results they beat revenue expectations, beat adjusted , normalised , underlying profit expectations and exceeded cash flow expectations. With all this exceeding of their expectations they then pull the rug on what has propped up the price -- a 2022 cash payment to shareholders.

[queenbreguet] 03/3/2022 10:55

Cheap at these levels

[bmel] 27/2/2022 12:27

Just read it. Pretty bullish for strong sales recovery in aerospace and automotive in the coming year with a very significant increase in profits as a result.

[essentialinvestor] 22/2/2022 12:42

A bit of Bobby Vee action today - rubber ball. Ukraine events dominating and unresolved.

[essentialinvestor] 15/2/2022 18:05

SP playing ping pong between risk off and on days atm.

FY results should give a firmer indication of direction.

[essentialinvestor] 26/1/2022 11:26

FY results 03 March.

[roguetraderuk] 24/1/2022 15:14

no of course not. putin will go in and probably take the russian speaking part, maybe up to the river even. taking the whole of ukraine would be a game changer and unlikely. when all sides have nuclear weapons everyone does what their conscience allows. putin has decided on an invasion of sorts, it will probably happen after olympics as he is expected to attend. but you never know.

[essentialinvestor] 24/1/2022 15:06

Well it can't be full scale war as Russia is a nuclear superpower!.

Sanctions, more sanctions etc, which probably does mean yet higher domestic fuel
costs to come and the same goes for corporate customers.

[roguetraderuk] 24/1/2022 09:29

russia invasion of ukraine is just about nailed on. the only question is what form it will take. ferrexpo still getting destroyed on this having decoupled from the iron ore price as mkt price in company specific risk.

[essentialinvestor] 24/1/2022 08:09

Added a few at the open.

Looks a fairish price unless markets sell off hard?.

[essentialinvestor] 21/1/2022 13:18

Mentioned a hell of a lot of bad news looks priced in a few weeks ago,
war with Russia and the West was not included!, all be it very unlikely to reach that conclusion.


Selling a few near £1.70 and buying back around the current price or
lower has worked several times.

[medieval blacksmith] 14/1/2022 10:53

Shstt1

I'm not Porsche1945.

Here is something you might not be aware of: half of the population (at least) didn't want Brexit in its current form and the majority certainly don't want the clown as PM (who was voted in by the astute Brexiters and Tory clever boys - LOL). So it shouldn't come as a surprise that many hold the same view as I, even on ADVFN - well known for attracting many Tory voting ignorant old farts and silly little boys spread-betting and Bitcoin trading.

As far as investor relations: Nothing there I'm afraid. Move on. I won't be shaking in my boots.

Everyone is entitled to their opinion, you need to grow-up and be a man and accept that fact. :)

[shstt1] 13/1/2022 23:17

Why waste so much time on these threads MB alias Porshe1945
Your ignorance astounds me, it oozes from your posts.
I have forwarded your posts to the companies investor relations depts concerned as there are rules these days old chap.
Your days on the site are numbered under your email address.

[medieval blacksmith] 13/1/2022 21:47

Melrose not exactly setting things on fire with their other stuff.

Mind you, take £150m out of shareholder funds and pay the three Amigos is another £150m less for other shareholders and stakeholders.

[gettingrichslow] 13/1/2022 16:59

Thanks for your input Minny but it was obvious to anyone that didn’t go to a polytechnic that GKN was seriously underperforming - that will no longer be the case now that it’s in the hands of MRO.

[medieval blacksmith] 13/1/2022 12:57

GKN has been around for centuries, survived many problems. It has had businesses that have sustainable competitive advantage many times before and most likely again. It doesn't need the current Melrose executives to be successful. Melrose executives just cut more of the value created for themselves. One could argue whether that is "quality".

[bookbroker] 10/1/2022 07:56

Very strong management, highly skilled and able to generate outsize returns to investors. The caveat is that automobile sector seeing tremendous issues with chip supply, recent news out of Mexico that automobile manufacturers such as BMW and Daimler Benz seeing significant falls in production due to chip supply, this will likely affect Melrose as much as any company in that sector. NAV includes intangibles, GKN came with a large element of those, but again management squeezing significant improvement in that business overall. Were the issues remarked upon above and aircraft engineering business not clobbered by Covid then it is likely the acquisition of GKN would have been a steal, just the timeline delayed. But a well run company with high quality executives.

[netcurtains] 09/1/2022 17:32

I'm looking at companies with higher NAV compared to MARKET CAP.

Melrose is one of the few FTSE100 companies with a higher NAV than its MARKET CAP.
Is this because there has been a massive rights issue that I have missed or is it indeed a FTSE100 company with a higher NAV than its MARKET CAP?