Mereo Biopharma Share Discussion Threads

[cosnova] 11/8/2006 12:07

wishful thinking on my part lol

[brindy] 11/8/2006 11:48

I suspect there is a buyer in the background at 21p.......

[argy2] 11/8/2006 11:45

cosnova

Apparently not.

[brindy] 11/8/2006 11:38

75k sell and a tick up on the offer !

[cosnova] 11/8/2006 11:07

not many sellers so close to divi day, mm's will have to improve the price if they want some!

[lex1000] 11/8/2006 07:51

Brief hello, patiently waiting.Trading statement and 28 June 2006 "... we are negotiating an exclusive distribution agreement to supply both
the JCC range and Ungaro into nine Middle Eastern and Gulf states and anticipate
that an agreement will be signed imminently." Surely imminent must mean soon combined with trading statement perhaps?

[dan de lion] 10/8/2006 08:19

Don`t forget that YSL will not be taking up the supply of MPH`s customers after 2006, this leaves a big hole on the shelves, MPH will be in an excellent position to fill this hole with Ungaro.

[momentos] 09/8/2006 23:58

Annual Report due soon... 10 August 2005.

[momentos] 09/8/2006 23:52

Excellent recap, Pete.

A few points...:

1. Agree re OB.

2. Don't think debt is zero, Moda purchase was funded by loan(s)

3. Working capital needs to be tighter.

4. They don't start from zero orders each year, alot of the supply agreements on YSL etc would be longer term ... You make it sound a bit like they knock the stuff up then head off to the market completely in hope!

5. They appear to be a brands management and DESIGN company. They had their own designers for YSL, who would have had to meet standards set by Gucci. Moda did the Emanuel Ungaro design. The JCC operation is primarily design.

6. Although I agree re YSL loss, the tide has actually recently turned in their industry against taking everything in house. See Stella McCartney / H & M, other PPR out-license deals. Gucci (now PPR) almost pulled the license in 2002, I think. Marchpole must have something to stop them pulling the plug, given that over the recent years they have ended more than 200 licenses.

7. Agreed, it is a huge transition. Yes this is weighing heavily (perhaps 10p) on the price. But There is enormous potential too.

[superpete] 09/8/2006 22:02

Watching MPH waiting for right entry point.Company need to look up meaning of imminent.At this rate imminent news on final resolution Boateng court case will be upon us and expect share price to drop.Retail news Moss Bross looking none to clever.imho>dyor

The results for Marchpole Holdings for the year ending March 2006 looked pretty healthy. Turnover was up 23% on £38.4 million, EPS (earnings per share) were up 14% to 2.6p and the full year dividend was 0.7p per share. Assuming that earnings will be flat in 2007, the current EPS puts the company on a forward P/E (profit/earnings ratio) of 8 – which is unimpressive. Add in zero debt, cash flow positive operations, a dividend yielding around 3%, plus the founder of the company piling into 200,000 shares, one would think the company's share price would be a little stronger. Yet the shares still find it hard to make much headway past the 20-25p range – at 31p the P/E ratio would be an undemanding 12. Sometimes there is an underlying reason why a share price appears weaker than it should; in the case of Marchpole, there is one.

Marchpole is in the 'brands management' business; the company holds licences to represent brand names, designing, manufacturing and distributing branded goods to retailers on behalf of the brand holders. Each season Marchpole designs a new range of clothing for its brands. It then out-sources to Asian companies to create samples which are then 'showcased' to retailers who place orders to sell in their shops. At this point Marchpole gets paid and pays a royalty to the brand owner. Marchpole orders the goods from Asia and distributes them to the retailers.

The company's current licences include Yves Saint Laurent (YSL), Boateng, Rossignol, Emanuel Ungaro, Jean-Charles de Castelbajac and recently signed de Castelbajac's 'JCC' childrenswear brand. YSL has been Marchpole's main brand in the UK – and there's the rub! The market is concerned about Marchpole's reliance on YSL which is now part of Gucci and since Gucci acquired YSL it has taken all of the designs for the brand in-house. For Marchpole this means that when the licence comes up for renewal at the end of 2006 there isn't a Gucci-bag-purse-in-white-with-gold-trim's chance in hell of the licence being renewed.


Therefore Marchpole need to replace all of the lost revenues that will be affected in 2007 – and this is what has the market worried. Marchpole hasn't been resting on its laurels, the company is all too aware of the need to replace YSL. A number of deals have been signed to address this and Marchpole have made it clear that deal-flows are likely in the coming months.

The AGM in September could be worth attending, just to get a feel of how confident the management are about the future. With a floundering share price and low valuation, it wouldn't be surprising to see a share buy-back programme initiated or some other type of shareholder incentive announced to give the share price a much needed kick on the tushie.

We all know the old adage that the market hates uncertainty – and this is exactly what Marchpole is suffering from now. The market appears to be discounting the chances of Marchpole maintaining profits at current levels – which is far from looking like 'a certain thing' yet.

[Abuse team] 09/8/2006 21:48

Post removed by ADVFN

[dan de lion] 09/8/2006 15:42

Someone has a buy order in on these, given 177,000 sells to 25,000 buys today.

[momentos] 09/8/2006 13:22

Naaaahhh.... But thats the price they will clock their buy at!

[deanroberthunt] 09/8/2006 11:30

19p then! doh 8@{

[dan de lion] 09/8/2006 10:27

British bullsh*t have a "BUY IF" in place!

[deanroberthunt] 09/8/2006 09:15

its about time we had a breakout....could this be it.....hold on!

[cosnova] 09/8/2006 08:38

Nice to see the mm's have marked up, probably on the back of the 100k trade at 4.30 yesterday.

[momentos] 08/8/2006 15:50

Pycco, yes it is moda stuff (as per link in header under Licenses & Collections!!)

[vixen] 08/8/2006 15:39

0.45p divi here we come. Well within T range

[dan de lion] 08/8/2006 10:32

Must be the S/S range from earlier this year when Moda was "inbetween" owners!, A/W stuff should be arriving now, hence the "sale".

[pycco] 08/8/2006 10:06

momentos - I have found this. Macy's selling Ungaro. Do you think this is Marchpole stuff via Moda??

[skintvestor] 08/8/2006 08:56

Wonder what effect the weakening US dollar has on the bottom line?