Mincon Share Discussion Threads

[tmfmayn] 10/7/2022 09:46

MINCON: FY 2021 Reveals H2 Mining Sales Up 30% And ‘Outstanding’ Greenhammer Tests Yet Obvious ‘Moat’-Like Financials Remain Highly Elusive #MCON

"The second half was MCON’s best ever six-month performance for revenue and profit"

[scepticalinvestor] 10/8/2020 21:53

eps up, debt downand no trades today?!contemplating taking a small position here

[albanyvillas] 19/3/2020 01:10

Ripe for a kickng

[woodwards26] 11/4/2016 16:54

Just the two of us then . It seems to have edged up on very little volume recently.

[woodwards26] 11/4/2016 01:10

Is anyone else watching this ?

[apad] 26/4/2015 18:53

www.irishtimes.com/jobs/2.3879/chief-executive-officer-1.2137023
apad

[wexboy] 04/5/2014 23:32

Company: Mincon Group

Prior Post(s): None – New IPO (Nov-2013)

Ticker: MIO:ID

Price: EUR 0.975

Not to be unfortunately mistaken for rubbish like Minco (MIO:LN)... Mincon IPOed in late 2013: The company was established in 1977 by the Purcells, and now has manufacturing plants in Ireland (Shannon), the US (Benton, IL) & Australia (Perth). It sells (& services) rock hammers & bits to the mining industry (& distributes related third party products) – for example, the San Jose miners in Chile were rescued with Mincon equipment back in 2010. Its products are considered consumables, rather than capital items, so customer loyalty & revenues are far more predictable – its customer base is also more diverse than you might expect, with its top 10 customers typically accounting for about 30% of revenue.

2013 was a fairly tough year for the industry, and 2014 promises more of the same – but recent results were still encouraging. Revenue declined 17%, but this was primarily due to a 43% fall in third party product revenues (after some one-off deals in 2012). On the other hand, adjusted operating profit (of EUR 15.0 million) was up an astonishing 18%, but this was flattered by some exceptional 2012 expenses (mostly bonus payments) – I estimate underlying operating profit fell marginally, which still amounts to an excellent performance. This pegs the operating profit margin at a remarkable 28.7%, which obviously masks an even higher margin for Mincon's own product range. I do notice some cash flow shortfalls in the past 2 years, but that kind of margin still deserves a 2.5 P/S multiple. This margin would also support a good slug of leverage: I calculate EUR 43 M of debt would cap interest expense at 15% of operating profit – let's haircut this total by 50%. We can also add cash on hand, plus net IPO proceeds:

(EUR 52 M Revenue * 2.5 P/S + 50 M Cash + 43 M Debt Adjustment * 50%) / 207 M Shares = EUR 0.98

Mincon Group's fairly valued – a view on the commodities/mining industry may be essential here. Meanwhile, it's worth noting Mincon's still very much an owner-operated firm – Paddy Purcell's a non-executive director, while Tommy & Joe Purcell are Sales Director & Chief Technology Officer respectively, plus the CEO Kevin Barry's also been with the company for 3 decades now. This involvement's also reflected in their continuing 58% (Purcell family) & 14% (Barry) stakes. [Incidentally, the average employee has also been with the company for nigh on a decade]. Some investors prefer to avoid this kind of ownership, others will actively embrace it. It could also prove a double-edged sword when it comes to acquisitions: Mincon's already earmarked its available cash for a likely deal or two in 2014 – their tight-knit culture may offer a good home for similar firms, or prove a real integration challenge.

Price Target: EUR 0.98

Upside/(Downside): 0%

[johnthornleigh3] 05/3/2014 11:58

Starting to move up slowly and surely. Anyone know when dividend announcement is due? Looks like they paid a divi in August 2013 before the float.

[modform] 25/1/2014 09:08

So 33000 shares traded, all sells, and share price goes up by 2.7%. Mms are buying at a higher price because they know it's going to blow? Otherwise I am confused.

[iandippie] 22/1/2014 08:33

Nice gesture! Shows a lot of confidence in where this company is going...:-)

[essential] 22/1/2014 07:39

Blimey - I'd be lucky to get a bottle of wine at Christmas with my employer.......

[apad] 03/1/2014 13:37

Forgot to mention, SG.

If they fail to grow the business as stated in the offer document they could easily take the business back and the pi would suffer.

That's the risk that I see.

My hook was the track record of the company in producing kit that the users could not afford to fail, and it's a consumable. Bit like Weir.

OT: Traded in RDSB for ELM and SPX today. More VEC looked too rich.

apad

[simon gordon] 03/1/2014 11:19

Hi APAD,

A Happy New Year to you.

Don't own any at the moment, keep looking at it to see if I can find a hook to make me buy. Forgot about the dividend, that would interest income funds as the founders placed stock.

For now, I'll keep watching.

Good fortune.

[simon gordon] 03/1/2014 10:25

A guesstimate on the rating:

2013
~PAT - £8.75m
~EPS - 4.22p
~P/E @ 78.5p = 18.6x
~P/E net cash of £39.4m = 14.1x

Any views, does that stack up?

Say they can double the company by end 2015:

PAT of £16m = 7.7p.

Is it a bargain?

How are fundies going to chase the stock when it is so tightly held? Is it left to PI's to move the rating, will enough of them be interested?

[essential] 02/1/2014 13:04

Apparently the 1% commission is because it is an Irish share. The deal size could be an issue

[quickmind] 02/1/2014 10:21

Had a dry run with Selftrade. Yes 1% SD is payable (I'd have assumed it's just another aim stock.) There's a separate issue - ST only takes market orders up to 1,500 shares!

[modform] 31/12/2013 13:16

MFM Techinvest special situation has got 3.27% stake in his smaller companies fund.

[essential] 31/12/2013 12:44

Not happy about paying 1% stamp duty - putting me off a bit but I like the company

[apad] 31/12/2013 08:02

Sorry m, it's not a company it's Physical Vapour Deposition, which is where their patents and competitive advantage lies.
Good luck,
apad

[modform] 30/12/2013 23:28

Haven't heard of PVD, and I can't find any reference to them. My best performing share is Treatt, I bought it last December because it was operating in a niche market, lets hope mincon is the same.