Melrose Industries Share Discussion Threads

[meanwhile] 02/8/2017 10:37

Razor,Melrose are more concerned with 'coin of the realm', otherwise called money, not this virtual stuff. If they intend to pay dividends in bitcoin, contact us again.

[martinthebrave] 21/7/2017 20:25

Mattboxy. Tend to agree. Why delay only to say nothing?

[mattboxy] 21/7/2017 19:27

Sounds like you are panicking over nothing! Could be long enough to finish that deal and announce the same day

[panic investor] 20/7/2017 19:23

Later - Mmmmm not sure I like that

[meanwhile] 20/7/2017 19:22

Melrose website (Investor section, Financial Calender) :

31 August 2017 Announcement of 2017 Interim Results.

Rather later than usual.

[grevis] 20/7/2017 15:56

I believe there should be an interim report at the end of this month. Interim issued 28th July last year. Should learn about progress and maybe potential acquisition.

[meanwhile] 17/7/2017 20:32

I sense the shares may be emerging from the doldrums, this state being equivalent to an induced coma, created by the major institutions for their own purposes. Although I sense this, I could well be wrong and tomorrow we could see 236p again, this price being an artificial bottom maintained by the big holders to retain the unbroken shape of the year long uptrend. In this case we may have a few more weeks of this doldrum condition.
It matters little in the long term, providing we small investors hang on and don't panic over these recent apparent reverses. I expect a steady, and appreciable rise to the results, a sharp rise on the results and a very sharp rise if accompanied by a new acquisition.
I have said before that the shares are worth £3 on current business and £4 on the back of a further move.

[meanwhile] 14/7/2017 16:10

Yes, it'll turn, when the inter-institutional dealings, at a discounted price, are completed. Currently we are seeing a market moving in small circles around an agreed fixed point, rather like a ship in the doldrums.

In such cases, the next move is upwards.

[pyglet] 14/7/2017 14:17

It will turn eventually!

[pyglet] 13/7/2017 16:13

Ready for another burst upwards??

[mayers] 11/7/2017 22:35

With respect to Director sales (post 1838) for what it is worth Hargreaves Lansdown does not indicate that these were "tax related" which it usually does in these circumstances, but "market".

[meanwhile] 10/7/2017 15:28

Deutsche Bank breaks cover. One dormant broker has emerged from its lair to rate a 'Hold' on MRO. How bold & daring.
The rest remain in their lairs awaiting some stimulation, for example the smell of a potential victim. A pitiful breed; how these barrow boys make a living is beyond me.

[meanwhile] 08/7/2017 20:22

Dav1dc2, I can understand you being shaky about the price movements down, I always
feel exactly the same way and tend to stop following the price. The Director sales are especially disturbing but may be simply to raise cash for payment of tax bills.
However, I take comfort from having seen 2 or 3 very similar patterns of MRO trading in the 12 years I have held the shares, as explained in my note 1829 on this site.
The last 2 I recall quite clearly, and each followed by an acquisition & share issue, to the shareholders' considerable benefit. The Director appointment you mention may be especially relevant.

[elsa7878] 08/7/2017 09:05

Can anyone give brief resume of the valuation here. Is it on fundamentals or hope of another deal?
Thanks

[dav1dc2] 08/7/2017 08:50

Note the new director appointment and his declared skills. Could Melrose be needing them for a new operation on a LARGE scale? I have to say I am trying not to look at Melrose too much before August 31st when the results are to be announced.
The sight of the price going down always shakes me a bit.

[meanwhile] 06/7/2017 22:44

Further to my 5th July theory, has anyone seen a recent broker note? They have ceased, since May.

[grevis] 06/7/2017 16:57

Sorry that should have read shares not £s.

[grevis] 06/7/2017 16:50

£1,275,938 at the close!

[grevis] 06/7/2017 16:49

There it is!

[grevis] 06/7/2017 16:25

The way MRO is behaving makes me suspect the MMs are filling an order!

[pyglet] 06/7/2017 11:37

How much further before the bounce back - 230p?

[meanwhile] 05/7/2017 10:44

For the last 2 weeks or so, it feels, to me at least, as though the shares have been in, for want of a better term, an 'unsettled yet controlled state', We've seen a new high, quite sharp movements, Directors selling big lots, major institutional shareholders shuffling their holdings. The key observation I make is that these appear to be somewhat co-ordinated, to set the price in a fairly narrow range.
As a long-term and close watcher of MRO I believe I've seen this same pattern before, on 2 previous occasions, both preceding an acquisition and share issue.
I'm not at all knowledgeable on the inner workings of the market but other readers may know if such coordinated control is exerted and used for various purposes.

[meanwhile] 03/7/2017 16:13

Thanks, Grevis,

A very poor analysis, a small part of the overall Melrose story.
In particular, few long-term shareholders would see a rights issue as an 'inherent risk'.

[grevis] 03/7/2017 15:12

Hargreaves Lansdown

Which mid-cap stocks are attracting fund managers’ attention?

Fund managers make a living from picking stocks. Our research team use in-depth analysis to try and identify those who are best at it. Only those we believe have the skills to generate long-term outperformance make it onto our Wealth 150 list.

We thought it would be interesting to look at the stocks attracting most interest from our favourite UK fund managers. Here, I run through some of the FTSE 250 stocks that are most prominent in the 29 UK funds that make up the Wealth 150 list.

Melrose

Melrose has an unusual business model, operating in much the same way as a private equity firm. It buys up struggling UK industrial businesses with the aim of improving performance, selling on at a profit and returning the proceeds to shareholders.

On the back of solid progress at its current projects, Melrose itself has delivered an impressive performance in recent times, although please remember that past performance is no guarantee of future returns.

The turnaround at Brush, which manufactures niche equipment for the energy industry, is still hamstrung by challenging end markets in power generation, but progress at airflow and technology group Nortek has exceeded expectations since last year’s £2.2bn acquisition. Core administrative and managerial functions have been decentralised, and leverage has been reduced from 5 times earnings before interest, tax, depreciation and amortisation (EBITDA) to 1.9 times.

While the group has a strong track record, and can boast of improving operating margins at previous acquisitions by 5-9 percentage points, its buy-improve-sell business model does come with inherent risks. In the past, Melrose has financed deals using rights issues, so investors should be aware that the group may seek further funds from shareholders in the future.

Note: A further two were featured, namely Phoenix Group and TP ICAP.