Mereo Biopharma Share Discussion Threads

[remynapoleon] 08/5/2007 22:49

wavering

There is a major difference you may have missed. YSL and Boatang were licences, JCC and its subsiduries are our own brands along with Greenmark and Moda.

We still have a licence with Ungaro which is almost worldwide and we are told is being accepted well by our old YSL customers. Only time will tell if YSL has been fully replaced or indeed been excelled by our current brands, but we were only licenced for YSL in the UK. JCC, and the others are global and going from strength to strength. Being our own they also have higher margins.

Boatang is an irrelevance who owes us money and appeared to be waste of Mr Morris' time and effort. You will have to do some research to find out why, but basically he was selling his clobber cheaper than we were and obviously that did not go down well with our management. We sued, he counterclaimed, we won and were awarded damages, as yet unspecified, as well as costs. He won't or can't pay and the lawyers love it.

You are in to a company that has enormous potential, run by management who own large chunks of it ( a matter that has been discussed on this board previously, with not everybody agreeing this is a good thing, however I personally like the idea of the directors putting their own money at risk alongside mine ) and we have been informally advised to sit back and let them make us rich.

If you have the patience and can afford to leave your money where it is, just sit back and enjoy the ride. In the future you will hopefully look back on your decision as one of the best you ever made.

Fundamentals always win in the long run and MPH have these right.

Who knows what will be bought next, but expect something as our coffers are full from the bumper sell through at the end of the YSL contract. These should also be high margin as we did not have further development costs for the following season.

remynapoleon

[wbjunior] 08/5/2007 21:49

Wavering I see you have done some in depth analysis into MPH
ie Yves St Wotsit and Greenmarch...................lol...............wbj
Lex good day held up well compared with other small caps, talk soon.

[wavering] 08/5/2007 21:27

Thank you both. I guess this boils down to what is the appropriate P/E for a volatile fashion house where in the past pretax profits have varied from £12.5M to losses of £2.8M but is now likely (but not certain) to make pretax of about £8M.

A P/E of about 10 would leave it about where it is now but 12 of course would be a lot better. Or maybe 15? Bit of a lottery. If the Greenmark deal does not work then they (ie shareholders) have a problem.

Does not look like a total no brainer to me but the balance of probability is that it will go up ...

[lex1000] 08/5/2007 21:04

wavering,just spotted your post.

1.Through Marchpoles strong management YSL very profitable brand.True contract not renewed demise in share price negative sentiment(grossly over sold in my view)and set wheels in motion transformation of Marchpole into company it is today.

2.Boateng is Boateng.Regard as non issue now.Judgements in MPH favour.No link whatsoever to YSL which was taken back in house.

3.Greenmark Ltd from what I can see is a truly excellent acquisition and reason why I've bought back in.

4.Yes parallels with CCT.Re-rating is not by accident.Just look at share price and where it is heading.

Make no pretences on reliance others to do number crunching.Like what I see and believe share price will keep pace with CCT and possibly potential to beat it. Guesstimate in my view current potential CCT 240p-320p v MPH 300p-400p.How long your guess Waiting results and trading update when all should become clear. Was in MPH 20p-37p first time round and down again.Jumped ship 22p/23p rebought trading 16p-22p last sold 119p to buy CCT! There has been 1:5 split. You're more knowledgeable about these things than me so please make up your own mind.Growth and income share.Huge upside potential.aimvho.dyor.

Nb;you will see from header MPH is traded on PLUS and is ISA'able.

[sensei10] 08/5/2007 19:54

Wavering,

You are a little out of touch. Look at the Hardman report above (top of the list) YSL dod not represent 79% of teh business.

YSL - end of contract. Botang - legal dispute. MPH had to act. You are looking backwards rather than ahead. BTW I used to be a holder 3 years ago and bought back recently. They have signed several new licence deals and I am sure there is more to come.

[wavering] 08/5/2007 19:48

lex1000
Thanks for the intro to this share. Some questions (they may have been answered in the posts but with over 1000 posts it is just too many to read (I tried)

1. If Yves St Wotsit represents 79% of the business then losing it must be really serious

2. They seem to fall out with people - eg Boatang and Yves St Wotsit

3. Greenmarch they are buying for £3M makes about £3Mpa profit! So that is a good deal but means that fashion outfits like this should be valued on a P/E of about 1.5!!

4. Ten years ago this company made pretax profits of £12.5M so we have been there before ....

The parallels with CCT are eerie. Any comments?

[lex1000] 08/5/2007 10:58

Good morning wbj.Interesting where MPH goes 2007/2008.Trend is up!Patience

[wbjunior] 08/5/2007 08:08

morning lex and all holders, thanks for the chart breakout info lex may attract a few buyers. Great week last week and more of the same would be great. Keep smiling everyone and be patient there is plenty to come yet imho...................wbj

[lex1000] 04/5/2007 21:42

Dan de lion, had forgotten and thanks for the reminder.

[dan de lion] 04/5/2007 17:11

Don`t forget this for next year :-

"A unique perfume for women, le Doudou, was launched in 2001 and is currently
sold in 52 countries with an annual Euro 30 million turnover. A men's fragrance
is to be launched in the near future. From 2008, the perfume business will
generate a royalty income for JCC S.A. of 4% on sales upto Euro 50 million per
annum and 3% on sales above Euro 50 million per annum."

From the initial JCC purchase agreement!

[jason8466] 04/5/2007 17:05

Bloody hell another WBJ love-in, Lol.

Have a great w/end all and yes more to come soon, very soon, its all in the tea leaves and add the mms ridiculous behaviour today lol.

[wbjunior] 04/5/2007 16:50

lol dave have a good weekend, good pullback and more to come next week.............wbj

[daverw] 04/5/2007 16:22

wbj,
"wbj's enthusiasm" Complimentary I assure you.
Regards

[wbjunior] 04/5/2007 14:03

So good i posted twice ..lol

[wbjunior] 04/5/2007 14:03

Daverw
"wbj's enthusiasm"
I must admit to having a few wobbles over the last two years and must give credit to Mrs wbj who suggested adding another £10k when the price fell to 16p. Having said that the position now is much better than when I purchased a few years ago with strong growth and a diversified global presence not relying on YSL anymore. The Greenmark,Homebody acquisitions will benefit hugely from the new distribution network that the Moda deal has opened up and I can only see MPH going from strength to strength over the next twelve months. Pleased you stayed with it dave and very happy if my posts helped in a small way. Holding firm and looking forward to results announcement or any other business.........................wbj

[daverw] 04/5/2007 13:12

marben100,
Similiar, bulk bought at 24p old money, although some over 30p.
Got nervous when they were in the low teens, but wbj's enthusiasm
kept me here.
Normal practise, if they are not performing, sell and try something
else.
Patience here well rewarded hopefully.
Regards and Good Luck

[marben100] 04/5/2007 13:04

dave - after an early wave of selling in small volumes, the buyers seem to be coming back now, so my answer is "yes"...

Personally, I don't really care as I've got plenty (by my meagre standards), all bought around 100p 12-18 months ago. No intention of selling yet. Happy to hang around for another year, if necessary, as share price doesn't look anywhere near fair value to me yet, based on latest data. I'm expecting this to be my biggest multibagger, in absolute terms, to date. [but RCG might have overtaken it by then].

[daverw] 04/5/2007 13:03

dramatis,
Interested to see if the 20k broker trade at 12:44 goes out as a sell
later on.
Regards

[dramatis] 04/5/2007 12:58

i was just thinking the same. i think we may see blue before close of business.......for sure, it would be a nice sign of strength.

[daverw] 04/5/2007 12:52

Brave or stupid call!
Can anyone else see us going positive today.
Regards

[lex1000] 04/5/2007 12:01

Posted did not know if share price would drop but did not want to take that risk.Subsequent to rise from 160's including large 78k buy @ 189p which took share price to new highs of 189p-193p has been selling.MPH trading normally.End of day mms match buyers to sellers providing perfect buying opportunity before next assault on 187.5p mid point.aimho.

[kneath] 04/5/2007 11:11

Just bagged 4th tranche at 184.75 - Mm's havin' a laugh this am!

[sensei10] 04/5/2007 09:03

Hi juju. - chart here is very positive. I would ignore mm nonsense today.