Mercia Asset Management Share Discussion Threads

[weatherman] 10/7/2021 13:02

I wonder whether ST is too embarrassed to recommend them again? I was also not happy after discounted fund raising, but not always best to sell after a fall - you can instead average down and wait for the recovery. NAV is now close to where it was 3 years ago. I find a lot of STs recommendations have also already risen prior to his write up.

[p1nkfish] 10/7/2021 10:52

Not a fan of Stockopaedia either. Good for sheep. ST probably has embargoed Merc. He had a valid point but the ability to change opinion on prospect of changing outcome differentiates.

The average 3 Yr plan average return is to help smooth out lumpiness.

[columbarius] 10/7/2021 10:07

The problem with Stockopedia is that the price doubles before the rankings catch up. I stopped my subscription for that reason and use free screens to pick winners ahead of the crowd.
No mention of results in the Investor’s Chronicle. Are they boycotting the company after Simon Thompson’s hissy fit?

[riverman77] 10/7/2021 09:52

FWIW the stock rank on Stockopedia shot up recently and is now 92 (momentum 97)- usually a pretty good sign

[weatherman] 10/7/2021 09:33

MERCs eps is going to be lumpy in coming years, but it is possible that it continues to generate good outcomes from its portfolio over the next few years. This is the question whether a PE of under 5 is excellent value or not, but I am becoming more confident. At least the downside looks protected with a discount to NAV, the upside is looking brighter.

[gawain boilyer heid] 09/7/2021 14:01

I have heard the story this week for the first time.Have to do some further work on the numbers but I am extremely impressed at how the management came across. They have delivered on their 3 year plan of growth (AUM from £0.5billion to £1 billion) and they have cleared the debt. They are confident of achieving on the next phase: growing AUM by 20% p.a. over 3 years and also producing on average £20m pa of PBT. On a first look I really like the company.

[varies] 09/7/2021 12:14

undervaluedassets
I too am a believer in MERC but I do not regard the earnings achieved in 2020 as a reliable base for future years and feel that the PER of 4.9 is not in these circumstances a useful tool for assessing the company's worth.
I believe that the NAV is more relevant and that the directors' figure of 40p is very conservative indeed.
These earnings included gains made on disposals that may well recur in 2021 and 2022 but are not to my mind of an income nature.
The dividends declared are very welcome but the amount (0.4p p.a.) suggests to me that the underlying recurrent profits of MERC are nearer 1p than 5p.

[undervaluedassets] 09/7/2021 08:26

Made strong showing yesterday on a big down day for the rest of the market. This relative strength is encouraging. The market likes what it sees here.

And why not. Results showed growth in all areas and the shares reside on a very modest PE ratio of 4.9.

A strong candidate to re-rate to a more appropriate PE of between 10-20.

[columbarius] 07/7/2021 08:08

All their presentations and webinars appear on the website within a day or two in the section called the Mercia Hub.

[robsy2] 07/7/2021 07:54

Go to Investor Meet Company, register for free and you can access the presentation.

[p1nkfish] 07/7/2021 07:28

It wasn't recorded from what I remember seeing on the IMC screen at the time. Perhaps someone managed to stream it and will put up on youtube. Read results thoroughly last night and were very useful on paper anyway if you can find the time to plough through what I think was about 40 pages of print-out on A4.

[undervaluedassets] 07/7/2021 06:33

Wish I had seen it/heard it ... Is a recording still on a website somewhere? Anyone know.

Newbie here. but valuation + prospects are striking.

Across the sector (diversified financial services) the average PE ratio amongst profitable outfits is 20.5
(discounting Begbies Traynor and Marlowe holdings which are outliers on PEs of 194 and 159 respectively)

Source for this data Sharescope.

All very reassuring

[robsy2] 06/7/2021 15:57

Excellent presentation. They are really well positioned and are very confident.No debt, lots of cash, track record getting better all the time ,the hybrid model of external and B/S funds is excellent . The fund management business supports the entire group. taxable losses to use up, , progressive dividend policy and the stated 20:20 initiative mean the next 3 years are likely to be a lot better than the last 3 years.

[bb123] 06/7/2021 14:25

Live management presentation and Q&A via the Investor Meet Company ("IMC") platform at 3.00pm on 6 July 2021.
Still time to register see below


As previously announced, Mercia will provide a live management presentation and Q&A via the Investor Meet Company ("IMC") platform at 3.00pm on 6 July 2021. Registration details can be accessed via:



hxxps://www.investormeetcompany.com/mercia-asset-management-plc/register-investor



The presentation will be given by Dr Mark Payton, Chief Executive Officer, Martin Glanfield, Chief Financial Officer, and Julian Viggars, Chief Investment Officer.



Questions can be submitted pre-event via the IMC dashboard or at any time during the live presentation via the 'Ask a Question' function.



An analyst webcast will also be given at 9.30am on the day of results. Analysts wishing to register are asked to contact [e-mail].

[p1nkfish] 06/7/2021 12:10

A win for regions and Merc shareholders.

[p1nkfish] 06/7/2021 12:09

Glad to read it. Well done. Hold for me. UK regions need this support and focus so not just holding MERC but also helping support some otherwise neglected areas of development/innovation geographically in UK.

[weemonkey] 06/7/2021 12:01

inexpensive. nice volume today.

[turbocharge] 06/7/2021 11:51

The self-fulfilling prophecy comes to fruition:

These results cement the recent Northward trajectory of the Mercia share price Long-term holders take comfort1

[undervaluedassets] 06/7/2021 10:59

nice results. have nibbled.

Cheap. pe of 4.7. lots of growth everywhere.

Won't be on that rating for long.

[gizmohican] 06/7/2021 10:14

Great results!

[robsy2] 06/7/2021 09:06

They have set a new target called Mercia 20:20':
The Group will aim:

-- to grow its AuM by an average of 20% per annum over the next three years; and
-- to deliver average pre-tax profits of GBP20.0million per annum over the same three-year period.

The achievement of these two new strategic objectives is expected to deliver substantial total shareholder returns during the next three years.

That should keep things moving along nicely.

[solarno lopez] 06/7/2021 08:15

Good results plus a dividend

[columbarius] 25/6/2021 12:25

Well I wouldn’t invest on chart patterns alone but it is definitely worth considering the chart along with fundamentals in this case as they are in tune. The three best share price rises this year have coincided with the highest volumes, the long term trend indicated by the 200dma is highly encouraging and both indicators correlate with improved performance and outlook.

[turbocharge] 25/6/2021 12:03

In addition to the further financial realisations, investors will also be realising the new trajectory Mercia is now on with regard to its share price A double whammy effect, or a self-fulfilling prophecy?