Metalrax Group Share Discussion Threads

[cockneyrebel] 18/4/2011 07:11

Making new highs this am

CR

[omerta] 14/4/2011 09:56

The Shares article came out at the same time as a brokers note... which is bullish to a degree. Looking at the trades i still think there there is a tap. The MM's are taking all the stock thrown at them @ 3/4 and buyers paying 11p
As of now they are 10.8p bid for 50/-....

[rampant debra] 14/4/2011 09:10

Thank You Electronica. Source: Shares magazine.

[lance corporal winstanley ash] 14/4/2011 08:50

Just need to be patient.

[electronica] 14/4/2011 08:36

RD

I'm not sure that the Henderson/Gartmore integration will actually work that way.

In the short term the number of funds being managed (by the combination) & the funds under management will not change much. Also the combined number of fund managers (who are not necessarily sector specialists) will remain much the same.

The things that attract us to MRX (BTW - where did your piece above come from?) should also attract the Henderson/Gartmore guys. They will be struggling for outperformance (and job survival) & MRX will look a safe(ish) punt.

[rampant debra] 14/4/2011 08:08

so, is it a case of when the seller stops share price rises?

problem is henderson recently acquired gartmore and both companies have circa 10%. so i think henderson are going to sell a fair few imo.

[electronica] 14/4/2011 08:04

ackland

Not if there's a seller willing to give the MMs anything that they want at 10.75p.

[ackland] 14/4/2011 07:57

Some good buys, yet again when are the mm going to increase the share price,should have gone up with the interest in buys vrs sells over the past couple of weeks.

[rampant debra] 14/4/2011 07:21

Metalrax fixed and ready for growth


Areturn to profit, more efficient
operations and a sharp
reduction in debt are reasons
to buy engineer Metalrax
(MRX:AIM). This trend is expected to
continue with 2012 profits forecast to
come in 54% higher than last year's £1.7
million; and net borrowings predicted
to decline a further 38% to £5 million
over the same period. Investors should
not have to wait too long to reap the
rewards as we reckon these anticipated
achievements will be reflected in
Metalrax's share price this year by the
forward-looking equity market.
The bulk of Metalrax's earnings are
made in the field of specialist engineering.
It makes products for the medical,
specialist metal coating and premium
automotive markets. The remaining
sales came from the manufacture of
bulk of pots and pans sold in the UK for
both the retail and commercial arenas.
The biggest profit contributor is an
operating business called Cooper Coated
Coil. It makes metal coatings used in a
range of areas from non-stick pans and
heat resistant plates for coffee machines
and ovens; to body side trim in cars and
suspended ceilings in offices.
Last month's full-year results (15
Mar) showed a 7.1% rise in sales.
Metalrax is among the many industrial
companies that are enjoying the benefits
of operating gearing – where a rise
in revenue equates to an even-greater
increase in profits as costs are predominantly
fixed. Therefore if volumes are
improving – as they now are – then
expect to see more money go into the
engineer's pocket after paying its bills.
This trend will be helped by an investment
by the Birmingham-headquartered
firm in a more efficient paint line
and the consolidation of its finishing
processes into a single location, so costs
should come down.
The outlook is improving for PG
Lifelink, the engineer's US-based manufacturer
of power safety equipment for
hospitals and laboratories. The subsidiary
had suffered from deferred
investment in the US healthcare sector.
The good news is hospital projects are
now appearing in the US, so PG
Lifelink's prospects should improve.
More advanced is a recovery in the yellow
goods market, which is material for
construction and earth moving equipment.
Metalrax serves this industry
through its Toolspec division whose
expertise includes welding parts of automotive
chassis and brake pipes. You just
need to look at trading statements from
Metalrax's customers including JCB
and Caterpillar (CAT:NYSE) to know
business is booming.
Management is focused on cash generation
to improve the balance sheet, a
prior source of concern due to lofty
debts. The company has gone from 23
separate operating business to just eight
in the past three years. Gearing, or net
debt to net assets, has dropped from
73.9% in 2009 to a more comfortable
49.1%. While the balance sheet is clearly
getting better, it is too early for investors
to expect a return of the dividend.
Pre-tax profit for 2010 came in at £1.1
million after interest and pension costs.
An operating loss of £2.7 million in 2009
was turned in to a £2.1 million operating
profit a year later. The future looks
even brighter with Metalrax saying it
ended 2010 with an order book 52%
higher than a year earlier.
Shares in Metalrax have been in a
strong upwards trend since September
2010 as investors taken note of the
recovery story. Nonetheless, they still
remain considerably below the prerecession
high of 87p on 20 April 2007.
Stockbroker WH Ireland has a 14p
price target. If Metalrax can continue
to grow sales and keep costs under control,
there is no reason why the share
price should not exceed this level
before long. The upbeat outlook and
strong share price performance make
this stock ideal for both traders and
longer-term investors.

[rampant debra] 13/4/2011 07:25

ok - henderson recently took over gartmore who also hold a fair few mrx shares

[omerta] 13/4/2011 06:36

Hi Deb, it looks like Henderson Global have sold down to 10.81% having held a little over 11% . Not major but poss the reason the current buyers have been soaked up and the share price static. If this tap is turned off we may see them go better...

[rampant debra] 12/4/2011 19:01

Hi Omerta. i saw the rns. can you explain in laymans terms what you mean. thanks.

[omerta] 12/4/2011 16:28

There's your tap

[redips2] 12/4/2011 09:44

Thankyou Debra :P

[rampant debra] 12/4/2011 09:39

welcome aboard redips. this is rgd mark II

[redips2] 12/4/2011 09:32

Well i'm in now, so we will see, what we can see. :}

[rampant debra] 12/4/2011 09:01

all buys as well. all beit at a small volume so far.

[ackland] 12/4/2011 08:34

here we go again, a slight rise at the start of the day, then a drop back at the end of the day?

[rampant debra] 11/4/2011 13:26

todays buying is relentless. another rns soon i would think.

[omerta] 11/4/2011 11:33

been a broker buy rec > target 14p
Feels like a tap there at the moment

[lance corporal winstanley ash] 11/4/2011 11:06

there has been steady buys for ages but wont move out of this 10 - 12 range.

[ackland] 11/4/2011 11:02

steady buys again today hopefully strong movement northwards?

[rampant debra] 11/4/2011 07:12

12 pence on the ask now. re-rating should start now.

[rampant debra] 10/4/2011 18:22

Sounds good to me dmhzh.

Engineer company Metalrax is also a BUY for Shares. The company makes products for the medical, specialist metal coating and premium automotive markets. Last month's full year results showed a 7.1% rise in sales. The forecast for 2012 profits is 54% higher than last year's £1.7m. Net borrowings are predicted to decline a further 38% to £5m over the same period. Previously marked down due to its high debts, the engineer has now returned to profit and a more efficient business

[dmhzx] 08/4/2011 18:16

Recommended in Sharea mag eh.

Must be some really bad news on the way then.