Michelmersh Brick Share Discussion Threads

[envirovision] 20/4/2010 16:01

Well timed ed 123 :-)

[bodgit] 15/4/2010 11:49

Ed123, thanks. Good luck to you too with your investment.

[ed 123] 15/4/2010 10:41

Bodgit.

Agree with "no compelling reason", however I topped up yesterday since I prefer to get in early.

Yep, it may take a few years to get back to your buy price, but if we see several years of economic growth (very possible, following the worst recession in 60 years), you may yet reach your goal. The company looks well positioned for such a scenario.

Good luck.

[bodgit] 15/4/2010 08:55

Ed 123, FWIW I agree. There looks to be no compelling reason to buy more at present and the progress made to date as well as future land sale payments, asset values etc. would seem to broadly underpin the current share price I rate these a hold at best. Still looking for a four fold increase to get back to my break even and that may well take years. Good luck all.

[ed 123] 15/4/2010 08:21

Muted market response (market up a penny and no trades so far) to good news, imho.

Payment for the 16 acres of land should come in H2. Brick demand is picking up. Benefits of the FBH acquisition to come (£1.5m of unwanted assets sold post results).

Risks remain - esp. a double dip recession would be bad news - but chances appear to be receding. Borrowings are high - but plan to reduce via land sales.

Net assets are valued at about double the market capitalisation.

I intend to hold onto my MBH shares - expecting (hoping!) for a doubling in share price over say the next two years.

[davidosh] 02/3/2010 09:02

envirovision...It is fairly clear that there was to be a placing and you simply needed your broker to contact Charles Stanley during the course of that week to get yourself listed as an interested shareholder and give indication of the size of your interest. I did not set the price but presumably the larger institutional holders said the level they were interested at.

[shanklin] 02/3/2010 08:56

envirovision

FWIW, I thought the following from you was both rude and uncalled for...

"If you were able to ask charles stanley for some when it was a private offer, which a couple of you say you did, i am amazed and sickened you never mentioned it here prior."

In terms of whether you post here or not, that's your decision. Just a bit unfortunate that you come here bad-mouthing people and then object when those you accuse of behaving in a sickening manner choose not to agree with you. I guess see you can dish out grief but not deal with the consequences.

As I've already stated I think it was unfortunate the placing price was so low.

However, the deal does look good for MBH. I imagine within short order we'll see a 3-pronged operation in which brick-building, land fill and land development are all profitable and cash generative.

[envirovision] 02/3/2010 08:41

well listen shanklin, i'll leave the board to your own ramblings cheers and goodbye.

[shanklin] 02/3/2010 07:05

FWIW, a much higher placing price was initially identified (I have draft documentation suggesting 39p) but the institutions seem to have pushed this price down and down to a level which whilst not a stitch up by MBH is certainly vary advantageous to placees.

[shanklin] 02/3/2010 07:00

Possible Equity Fundraising

The Company has a number of opportunities to accelerate the development of its other property assets which may include increasing its land fill operations at other existing and possible new sites. The Group is also planning to undertake further redevelopment of certain of its landfill and other property assets. With this in mind the Board is contemplating a possible equity fund raising to raise approximately £5.0 million further details of which are expected to be announced shortly.

[shanklin] 02/3/2010 06:57

Its sad we live in a culture where people all too frequently blame other people for their situation when it is 100% their responsibility.

[envirovision] 01/3/2010 20:41

Whoopie i'm so looking forward to it with excitement. Charles Stanley Securities are on most rns's as is tavistock. The last RNS just talked about Possible Equity Fundraising for development of its other property assets.

This is a takeover of anouther company, nothing to do with its own property assets as it claimed was the ambition. The company wont have any spare cash after assuming all this debt in order to develop any other assets. This deeply discounted placing is a total stich up to myself.

If you were able to ask charles stanley for some when it was a private offer, which a couple of you say you did, i am amazed and sickened you never mentioned it here prior.

[shanklin] 01/3/2010 18:00

New note from Charles Satnley soon, worth keeping an eye out for as it will presumably provide more background on the rationale for the deal

[envirovision] 01/3/2010 16:34

Well it all went right over my head.

[davidosh] 01/3/2010 14:02

I also took part in the placing for the same reasons and having seen the previous RNS. I could probably have taken a larger amount and noted that the original suggestion was to raise even more so no reason why more of you could not have taken part via your brokers.

[shanklin] 01/3/2010 08:28

envirovision

The last RNS stated there would be a placing and gave the name of the person organising the placing. Thankfully I asked by broker to phone them and was able to participate in the placing.

Cheers, Martin

P.S. Asset development looks to be the major driver of MBH profits going forward

[envirovision] 01/3/2010 08:13

Not what i was expecting but stuarts post gave a clue. The price seems fair and the loan notes and directors loan at 4.25% is good value, the consideration shares at 39p unfortunate and the 30p 3Mil placing shares sickening

[envirovision] 04/2/2010 18:47

Thanks Stuart, keep it coming.

[stuart little] 04/2/2010 18:01

Probably best taken with a large amount of salt but the rumour in the brick industry today is that MBH are preparing to buy Hanson brick uk. I believe the sale price is around £250m???

The brick industry has a habit of creating false rumours but if it does happen you heard it first here!!

I'm going to do a bit more digging tomorrow and speak to a few higher up the managerment ladder who might have a better idea....watch this space.

And by the way I have seen a noticeable upturn in sales since the beginning of Feb with all market sectors appearing to awaken from their long snooze!!

stuart.

[envirovision] 29/1/2010 18:01

The outlook very very positive for residential, looks like its a case of excellent timing for MBH:
29-1-2009. House price rises could move into double-digit territory next month following a strong start to the year.

The latest Nationwide figures show property values rose in January, clocking a 1.2% monthly rise.

At £163,481, the average price of a typical UK property cost 8.6% more than a year earlier in January, up from 5.9% in December.

Despite fears that the end of the stamp duty holiday at the start of 2010 would dampen demand for property, the building society says that annual house price inflation is now likely to move into double-digit territory in February for the first time since May 2007
.

[ed 123] 29/1/2010 09:36

alanrussell,

The full terms of the contract with Persimmon are not public, so we can only speculate. The company should announce anything material which is likely to reach the market in other ways.

Regarding the £5m, if MBH need it now to accelerate immediately, then £1.2m pa (even if increased for the 16 acres) will not do. They would have to find another way of getting immediate cash and then pay back from the £1.2m pa.

[ed 123] 29/1/2010 09:26

Agree, envirovision.

However, the banks are exceptionally greedy these days (high arrangement fees and high rates compared to their borrowing costs). Possibly the RNS comment about equity issue was management's attempt to show some competition to the bank(s). Might squeeze down the offered interest rate a smidgeon?

Anyway, it sounds like we've not long to wait.

[envirovision] 29/1/2010 09:11

Well looking at this company again and additional secured projected income now. With regards to accelerating Charnwood and Dunton landfill and preparing the remaining 64 Acres Telford. I would have thought they could borrow this from a bank, hell if they couldn't then offering 5 Million pref shares at 100% paying 10% cumlative PA should be fairly easy. I'd certainly have some.

[alanrussell] 28/1/2010 14:28

If I remember right the option price was about £1.2M pa, initially for ten acres and then extended to sixteen. Accordingly MBH should receive £19.2M - very significant.

As this was an option there was some talk about whether the price would be renegotiated. Do fellow shareholders feel that if the company was aware that this was going to occur the company would now have to announce it?

If this sale is going to go through at the option price why the need to raise £5M?

Very encouraging RNS but, as ever, questions remain.