Michelmersh Brick Share Discussion Threads

[master rsi] 16/1/2013 11:00

nicely moving higher, though buying is on small size

[master rsi] 15/1/2013 09:22

The move up is on the bid today after MMs forgotten to do so on the afternoon buys yesterday.

Narrowing the spread is allway a good thing 26 / 27p now

[master rsi] 14/1/2013 23:06

re - Net asset value 60p

The key to the brick-maker's value is its asset value. The company buys land from which it extracts clay to make bricks, then allows landfill on the land before selling it on for development.

Michelmersh now has over 2.5 times its valuation in net tangible assets, though the real value may be greater as the land is accounted for on the balance sheet at cost, not as development land.

[master rsi] 14/1/2013 16:20

Plenty of life today, as it seems the large trades last week got the overhang cleared, has been rising since, almost on a strait line

[cjohn] 14/1/2013 10:17

I've picked up a shed load of these in the last few weeks at and around 20p. ANy improvement in trading and these will look ridiculously undeer-valued.

[drewz] 11/1/2013 13:14

Showing signs of life here now. Green shoots of recovery? The MMs have no stock on their books, it would appear. It ticks up another 1p with every 10,000 put on the order book.

[alanrussell] 08/1/2013 15:51

Less than three weeks now until the three year anniversary of the granting of planning approval at Telford. Can MBH bring in a deal before the 28th! The excitment of it!! I can scarely contain myselzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz

[ganthorpe] 27/12/2012 16:19

Signs of life now 2 months later?
But probably just a twitch?
Time stands still at Michelmersh.
GAN

[ganthorpe] 27/12/2012 16:19

Signs of life now 2 months later?
But probably just a twitch?
Time stands still at Michelmersh.
GAN

[alanrussell] 19/10/2012 16:58

'ello 'ello 'ello - signs of life in this one sir!

[xxx] 13/10/2012 05:46

Does anyone know if this share is zero rated for inheritance tax purposes ?

[shanklin] 05/10/2012 15:48

GP, no indeed not. Of course, we could all be dead by the time PSN and MBH reach closure.

[gingerplant] 05/10/2012 08:13

Good info Shanklin. I just hope your hospital app't wasn't stress-related brought on by the sheer ennui of waiting for the PSN news.

[shanklin] 05/10/2012 07:42

I understand PSN are now actively looking at ramping up their hosebuilding in the Midlands so we should see some finality on their situation with MBH relatively soon.

On another tack, and as per the recent MBH results, there is still lots of UK brickmaking capacity being taken out. Whilst I was in hospital yesterday I was lent a copy of the The Sun, and in addition to lots of photos of a scantily clad Cheryl Cole taken from her 2013 calendar, I came across



This includes:

"BRITAIN'S devastating double-dip is threatening hundreds of jobs at two construction firms.

Cement and concrete supplier HANSON is looking to axe ten per cent of its UK capacity to cope with the downturn."

and

"HANSON - now part of Germany's HEIDELBERG - has already HALVED its UK workforce to 4,000 since 2007.

A spokesman said: "The market is shrinking. This year we expected a five to six per cent decline - it's been closer to ten to 12 per cent."

AIUI, MBH have no plans to reduce capacity. However, the ongoing capacity reductions are gradually increasing the pricing power of brick manufacturers.

[shanklin] 24/9/2012 16:50

If PSN proceed on the first few 12 acres, and the other 15 acres get sold after planning permission is received, I think that reduces the debt by 60-75%.

[shanklin] 24/9/2012 16:48

AIUI, the land deal covers circa 100 acres becoming gradually available over the next 20 years. However, PSN agreed to a price/acre that is much higher than current market value for the first few acres... ...based on the market price at the time the deal was done. However,later on they get a slightly discounted price on the remaining acreage

Fairly soon however, PSN will have to stop pre-varicating and either proceed or pull out. Presumably all the builders that MBH are discussing the new 15 acres with would be interested in the above 100 acres.

Clearly PSN are w1nkers to deal with as otherwise a deal would have been reached several years ago.

[pugugly] 24/9/2012 09:55

puffintickle;> Thanks.

[gingerplant] 24/9/2012 09:43

It is beginning to feel like a company being run more for the benefit of the continuation of the directors' salaries & emoluments than the small shareholders I'm afraid. I just hope we aren't being softened up for a de-listing as Chairman and CEO own 50%.

That ownership, though, is the saving grace - i.e. bottom line NAV and value should at least be preserved. Still, I wish I was pulling the CEO's £12k a month out of MBH as I waited for the value to come out. FD and Comm Director on a measly £220k between them; 4% of current mkt cap going each year on directors' pay alone.

Despite all this, I tried to average down substantially but was only quoted 20p - so only bought a tiny qty.

[alanrussell] 24/9/2012 09:36

Not much joy here for a (very) nervous holder. The expert determination re. the Telford land is expected shortly - do we know if Persimmon are under any obligation to proceed at the determined price or can they walk away? It's unlikely that they will having put in the effort to obtain PP but you never know. It has already been flagged up that the eventual deal is likely to be phased (perhaps payment as the houses are sold) so a deal may not transform the balance sheet. It seems with MBH it is better to travel hopefully than arrive.............

[puffintickler] 24/9/2012 09:27

Pugugly

Yes debt is about 20 million. This should largely disappear once the land is sold, this will improve profitability as interest charges should come down from the current high levels of 400k.

Assuming a miserly 5% increase in sales and margin I reckon that the current price is about right. The point is though that sales should be much higher.

I can't recall any specific problems with the pension scheme but have not checked.

[pugugly] 24/9/2012 08:57

DAVIDDOSH & PUFFINTICKLER:> Sorry to hear about you frustration. This has been a perpetual on my watch list since 13/8/04 re i/c tip at 74p. I am lucky I never invested.

On checking the accounts it appears that the debt is now some £20.25 million. do you agree ?



Pensions (from teh 2011 accounts) appear to be defined contibution. Do you know if there any old defined benefit schemes still running?

NAV per share looks interesting BUT has looked interesting for teh last 8 years - promises promies but never delivers (imo)

[puffintickler] 24/9/2012 08:38

I agree, performance here has been lamentable. The environment has been difficult but that does not explain all. I'm all for underpromise, but when it is followed by underdeliver one does have to question the ability of management.

[davidosh] 24/9/2012 08:32

Mmmm...Profit warning for the full year put in the interims and actually now forecast just to break even! The arbitration settlement with Persimmon is still ongoing and the process of extracting some value for this land enters a seventh year! NAV down from 64p per share to 60p and falling.
It is not difficult to be frustrated here as a shareholder as the business has been flat at best for many years and the land assets that are the jam tomorrow just keep being promised forever! My patience is running out as the board are very handsomely rewarded for delivering massive losses to my original investment and ongoing losses to every false dawn and averaging down investment ever since.

[judgement] 22/8/2012 17:48

AIM profit warnings are a thing of the past. Shortly before results you often find the house broker has reduced forecasts, but not told anyone. The company are therefore still in-line, and no need for those annoying profit warnings.

[gingerplant] 22/8/2012 15:00

Well - interims date announced and no warning.