Share Name Share Symbol Market Type Share ISIN Share Description
Merchants Trust Plc LSE:MRCH London Ordinary Share GB0005800072 ORD 25P
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.0% 473.75 0.00 00:00:00
Bid Price Offer Price High Price Low Price Open Price
472.50 475.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 36.24 32.67 29.67 16.0 573
Last Trade Time Trade Type Trade Size Trade Price Currency
08:24:15 O 1,250 461.26 GBX

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Date Time Title Posts
05/3/202103:54MERCHANTS IT yld 6%1,328
04/3/202111:12INVESTMENT TRUSTS as an Annuity150

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Merchants (MRCH) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2021-03-04 16:29:50472.5014.73AT
2021-03-04 16:29:30474.692,12710,096.73O
2021-03-04 16:27:53474.694171,979.47O
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Merchants (MRCH) Top Chat Posts

Merchants Daily Update: Merchants Trust Plc is listed in the Equity Investment Instruments sector of the London Stock Exchange with ticker MRCH. The last closing price for Merchants was 473.75p.
Merchants Trust Plc has a 4 week average price of 443p and a 12 week average price of 416.50p.
The 1 year high share price is 500p while the 1 year low share price is currently 293.50p.
There are currently 120,984,887 shares in issue and the average daily traded volume is 208,286 shares. The market capitalisation of Merchants Trust Plc is £573,165,902.16.
ctrader3: Share issuances and buy backs The board has a policy in place to (i) issue new shares when the company's ordinary shares are trading at a premium to NAV with debt at market value and (ii) buy back shares for holding in treasury to help dampen share price volatility when it is at a sustained discount to NAV. The renewal of this programme was approved by shareholders at the AGM in June this year. During the period under review the company has issued 6,016,423 new shares. 30/09/20
superiorshares: I used to watch Bob the builder . C trader could you do me a chart please . Hypothetically I put 20,000 in at £5.50 I believe in 5 years time the share price will be around 3 pound . I think the dividend will also be cut ? If the dividend is increased as it has done for those decades . I think the share price will fall to around £1.75. Also could people who are far brighter than me tell me please if MRCH has issued any shares since March 2019 . Thanks
superiorshares: All these charts are very pretty etc. The fact remains the share price is way down . You are reliant on continued money being pumped into the stock market . As far as I am aware there are very few companies that haven`t shelved or cut their dividend . MRCH will have to pay the dividend to the shareholders from the shareholders purse or issue shares to raise the money for the dividend . Corona will be around for at least 5 years . Aside from the millions that will die (R.I.P ). At the end of it all the global economy will be in total tatters ! Those that look at a chart and quote a low to a high and how you invested at that low ??? are as boring as the man that tells you he had a grand on a 33/1 nag after the race has been won :-) We are in the biggest stimulus bubble ever created ! Fortune favours the Brave :-)
tim 3: Interesting research thanks. A few thought of my own on mrch. Have spent a lot of time looking at charts and previous performance and although it can be useful it can also be miss-leading.Firstly the time span you use can make a huge difference.For instance if the share has a good year this can lift the performance of the previous years making them look much better than they really are when looking at cumulative performance. Also although I am sure the level of knowledge on this thread would negate this if you based your investment purely on previous performance then this in the past has not proved a good strategy as previous years star performers can often drop quickly into the bottom performers list.In view of mrch if the current move into value becomes a trend then this could be the beginning of a much stronger period of outperformace which is only now starting to feed into the charts as you correctly state. Even in a time period when mrch has often been out of favour the recent performance as shown below (with dividend reinvestment) shows how it can skew pervious years figures and they look completely different to how they looked for long periods last year with mrch now outperforming the ftse considerably over 3 and 5 years cumulative. 1m 3m 6m 1yr 3yr 5yr Merchants8.1% 30.8% 30.7% -8.6% 12.7% 51.4% 94.8% FTSE 100 5.0% 15.6% 13.4% -6.3% 0.6% 41.8% 68.0% Sorry about poor pasting hope it makes sense.
zac0_4: As you say it always looks good when the share price is heading north. This is a fairly substantial investment for me. On that basis I prefer to judge performance based on facts. This is still down almost 18%, including dividends, over a 12 month period. I'll continue to hold for the next 12 months. A 5% capital growth figure over that period coupled with 7.15% dividend will deliver over 12%. Surely that's within reach given the current share price position. If so, I'll be satisfied with that and will re-asses in 12 months time.
zac0_4: pj fozzie - here you go - Investment trust shares are often hit disproportionately hard in market sell-offs but, equally, they can do particularly well when markets are on the up – as happened in November. When vaccine news propelled the FTSE 100 index to its greatest monthly gain in 30 years many investment trusts made even greater share price gains. These included UK equity income fund Merchants Trust (MRCH), whose share total return of 24.3 per cent for the month to 30 November put it well ahead of both the FTSE All-Share and FTSE 100 indices. However, 2020 has not been plain sailing for this trust. Its value bias – among other factors – mean that it has faltered more generally, and made a share price total return loss of nearly 13 per cent over the 12 months to the end of November. Despite this, its investment team has stuck to its target of generating a high and rising income with a good total return. Simon Gergel, the trust’s manager, notes that a focus on good yields in the medium term has added some portfolio continuity, meaning no fire sale of holdings that suspended or cut their dividends. “We look at companies with good yields in line with the market in the next 18 months – not just today,” he explains. “The reason for that, almost exemplified by this crisis, is companies can cut dividends. We’re not forced to sell just because [a company] has cut its dividend.” The trust will receive a “significantly lower” income from its holdings this year due to dividend cuts, according to its board. But the board has also vowed to use its revenue reserves to cover any shortfalls. Merchants was recently trading on a 6.5 per cent yield. Mr Gergel, like many investors, also expects a return to dividend payments in selected sectors and has not deviated from the portfolio’s slight value bias. But a challenging 2020 has inevitably forced some changes. 2020 changes The trust's asset allocation has changed this year, with Mr Gergel making it more defensive while also trying to capitalise on “anomaliesR21; and mispricings in the market. This has involved taking money out of some cyclical names, for example, the coronavirus outbreak prompted Mr Gergel and his team to call time on positions in Prudential (PRU) and Sirius Real Estate (SRE). They also remain wary about companies with uncertain business models in post-pandemic life. “We held Informa (INF), which runs trade shows and exhibitions,” he says. “[But] there’s a question mark, long term, about whether people will still go to trade shows. Companies might send people to a trade show but they won’t send 10 – they might send five. Where we have companies with a question mark, unless we’re confident they’re very cheap, we’ve been looking to get out. So we sold Informa.” This caution extends elsewhere. In a year when share price tumbles have meant that some weak companies trade on high dividend yields, Mr Gergel notes that much of his team’s time has been spent “trying to avoid value traps”. They never buy holdings purely for income, but instead seek solid businesses that look under priced. Doing this has led them back to a variety of high-profile UK names this year, and they have a preference for businesses that look resilient and defensive. They added Next (NXT) amid the retail slowdown earlier this year, with a view that online sales have become “a dominant part of the profits”. And Mr Gergel believes that Next will pay dividends in the future. He also bought Vodafone (VOD) and BT (BT.A), stocks he had not held for around half a decade and previously viewed as value traps. Mr Gergel argues that sector consolidation, politicians now acknowledging the importance of fibre optic cables and broadband, and the possibility of lighter regulation have changed this sector's outlook. “Having been under huge pressure from competition and regulation, the sector might have more benign regulation and competition, and looks cheaper,” he explains. “They have defined earning streams – customers stay with them unless they leave. It’s not like a retailer where you have zero sales unless someone comes to your store or website.” Mr Gergel and his team have also topped up a position in Imperial Brands (IMB). They believe that prices in the tobacco sector have grown more attractive in the past 18 months. They also added to National Grid (NG.) and SSE (SSE) in the belief these are “resilient businesses and monopolies”, even if some regulatory pressures remain. They have favoured housebuilders but grown cautious on debt heavy businesses, prompting a move out of Vistry (VTY) and into Bellway (BWY). And they hold DFS Furniture (DFS) – a pandemic-oriented play. “We like things associated with house building,” he says. “People have sat on their sofas a lot and might realise they’re not that comfortable any more. We want businesses that are defendable against the internet: it’s hard to sell sofas on the internet [as] people want to touch them, but also you need people to deliver them.”
zac0_4: That's an awful lot of "ifs". I can't see a share price of £6.80 on any horizon for this! However, your example of a rising share price resulting in a reducing yield, not actual income, is interesting when I look to answer the question you posed yesterday regarding selling part of a holding in ATT. My answer will follow . . .
ctrader3: if u bought 10k of MRCH yielding 8%, it's easier to switch to a cash equivalent so £800 pa. if u assume the dividend is unchanged over 10 years but the share price doubles, u will still earn £800 pa but it will only now yield 4% (still 8% on buying price) if the share price doesn't rise keep re-investing in MRCH for as long as they don't change their dividend policy, your dividend take after 10 years would be £1,440, more if the share price fell as the yield would rise. if u sold your MRCH shares say roughly 20k plus dividends earned of 8k and re-invested in a share say a Renewable yielding 6% your dividend would rise to £1,680 pa
zac0_4: SS - the figures on the MRCH website are a little confusing. The 5 year performance is dated 28.08.15 to 28.08.20 and, as you say, clearly shows a share price return of 2.9%. If I look at data taken from the HL website the share price return for the same period is -19%. Further investigation states a caveat that: "percentage growth, total return . . ." on that basis I suspect the 2.9% return over 5 years includes dividends.
zac0_4: I think it's vitally important to regularly review performance of individual holdings. I haven't said that my strategy is simply to move away from income just because we're in a period of unprecedented uncertainty. However, a mainstay of any investment portfolio has to be capital preservation. If holdings cannot hold onto my capital when things get tough then I see little point in holding them. MRCH share price has to deliver 61% growth from here just to get back to it's year end figure! I'm sick and tired of having to play catch up with my income paying holdings. I've plenty of other holdings that have more than proved their resilience during this period.
Merchants share price data is direct from the London Stock Exchange
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