Melrose Industries Share Discussion Threads

[essentialinvestor] 08/9/2022 15:40

What is strongly points to is not getting interest for the auto business at
a level expected.

This perhaps automatically leads to some questions on the current valuation of
the overall business?.

[roguetraderuk] 08/9/2022 13:38

i earlier mentioned the prev lows and 200 day by 143/144 which was rejected this morning. on the downside you have the past swing high at 130 which gave sup recently and below that maybe 127 at the channel. but not much down to 120 really if goes under 130 on a closing basis. i sold mine this morning and will look to buy back lower down. im not convinced it will stop here at 130 but im regularly wrong on this one, it always gets strength that i dont foresee.

[essentialinvestor] 08/9/2022 12:42

rogue, if about what are your thoughts on today share price wise, thanks.

[watcher13] 08/9/2022 11:43

Just sold out - shame but I fear that directors might be more focussed on getting the next slug of their share deal rather than being patient and holding for a recovery in auto (which will come)

[roguetraderuk] 08/9/2022 10:41

fts lex runs the title Melrose/GKN: demerger reflects weakness of auto sector

art suggests diff to find a trade buyer at the right price given depressed auto mkt.

[1justine] 08/9/2022 10:25

With the dismal MRO share price performance since the GKN acquisition the issue is less about what the Directors are worth in pay than whether they should keep their jobs at all. I'm sure the heavyweight non Execs will be considering this as a matter of urgency (not).

[medieval blacksmith] 08/9/2022 09:59

No disrespect but I think there is nothing to stop 'full pay' on both.

[watcher13] 08/9/2022 09:57

With the current high levels of investor scrutiny of governance I'm sure the Melrose RemComm will act appropriately and halve their pay at Melrose - after all it will only be half the business and half their time - or am I being a bit naive?

[roguetraderuk] 08/9/2022 09:52

yes maybe they cant find a buyer. with sterling so low id be surprised which leads me to think they wanted a higher price than others were willing to pay. but i wont pretend to think i know exactly whats going on and what the intentions are. they do say they will want to lead m/a with the newco which may mean its actually easier for the newco to be taken out of course but also for the rump, the aero business, to be taken out. the management did say they want to part ways at the right time and declutering it might be a way of getting there.

[1justine] 08/9/2022 09:21

Admission of failure? The Sell bit of their Buy - Improve - Sell mantra is where we have made money in the past from this shareholding. It's just been downhill since the acquisition and holding 2 pieces of paper instead of one isn't going to improve that.

[roguetraderuk] 08/9/2022 09:12

that swing high of 130 recently provided sup. if fails you can point to a channel by 127 but after that not much sup til 120p as it travelled up so quickly during that period when they did the gkn aero day and announced the buyback.

[watcher13] 08/9/2022 09:12

Demerger often a good option if market consistently values the whole as less than the sum of the parts but not sure that is the case with MRO. To me it looks bit defeatist compared with the buy; improve; sell philosophy. Also the idea that individuals can be executive directors of 2 FTSE 250 businesses at same time stinks - looks like the egos have been at work there. No wonder market is disappointed this morning.

[roguetraderuk] 08/9/2022 08:10

decent update and spinoff of gkn auto. 144 which was an area of support and now becomes res. key level by the 200dma 143 and change.

[roguetraderuk] 05/9/2022 12:05

i reopened my position last week at 129x following a decent slide. theres still bad news ahead for the economy and for the share there are still gaps to fill on the downside which i am prepared to add to at those points. 115ish and 100ish i think from memory.

[essentialinvestor] 05/9/2022 11:49

The share price has been lower for longer as they made their largest ever acquisition (gkn)
and then came covid which battered the civil aerospace market.

As that market began to recover their auto sector business was hit by chip
shortages impacting new car production.

The longer term record is exceptional but as always this offers no guarantees
and multiple industrial countries are about to enter recession.

[ali47fish] 26/8/2022 18:16

the chart indicate the share price has been down over a long time and city am says the following

Unlocking cash from ailing businesses has been Melrose’s track record for over a
decade now, prompting Peel Hunt analysts to recommend buying the firm’s shares.
Since May 2005, it has generated a 19 per cent annual return on equity investments.
Its model has held up well through economic downturns. The City’s consensus
forecast for its first half profits are just over £160m.

i know it operates differently form other companies but does this ring right to you investors- opinions welcome

[netcurtains] 05/8/2022 08:12

With both CON candidates saying they will increase defence spending will that potentially help Melrose - or is Melrose no longer in the defence sector in any significant way?

[tenapen] 25/7/2022 18:36

Also on the same subject....

[alan@bj] 19/7/2022 14:02

The company stated it would buy up to 437,242,947 shares, which I think was 10% of the total in issue prior to 9th June. However, it also said it would spend up to £500m on this exercise and they've been paying around 160p, which would restrict the number bought in to 312,500,000, and I reckon they've bought 223,763,538 so far. So, with 88,736,462 to go and about 9,000,000 a day purchased, they could be done and dusted by the end of next week.

Always assuming I haven't miscalculated, of course.

[darrin1471] 19/7/2022 13:12

Share repurchase programme looks to be about halfway.

[roguetraderuk] 19/7/2022 11:01

since the announcement the shares havent done much but you can strongly argue those with access to inside info front ran the mkt as essentially it went up by over a third ahead of the capital day and they could be drip feeding into the repurchase.

[1justine] 19/7/2022 10:45

It couldn't possibly have anything to do with the company itself buying about 9 million shares a day for the past few weeks as part of its Share Repurchase programme which is soon to end!!!! Compare this demand with a normal daily total trading volume of around 8 million shares and see what happens when the company comes out of the market.

[roguetraderuk] 19/7/2022 08:38

in addition, theres a gap just under 143. 3 more but much further away with the first by 116. i could be convinced to begin rearming at 143.