Mitchells & Butlers Share Discussion Threads

[neilavery] 02/10/2003 14:55

Sorry Larry, I haven't been ignoring you - just away from the screen (I still have to work for a living (that's because I buy shares like this!!))
If you look at the chart above you can detect a left shoulder at just below 240p then the head and a right shoulder just above 240p. The neck line runs from the base of the left shoulder (about 220p) to the base of the recent peak (about 230p). The share price has aleady fallen through this line but hopefully the present rally will breach it again (about 240p) and continue upwards. However IMHO if it fails to breach the neckline I can see the share falling to possibly as low as 210p. I'm not an expert chartist by any means and alternative views are welcome. Neil

[manojranaweera] 02/10/2003 13:47

Onehanded, How did you arrive @ 54p + 20% buyback? Manoj

[onehanded] 02/10/2003 11:08

It will be a 54p divi plus 20% share buy back. Once Scottish & N sale is complete, see this get the rumour of a buy out pushing price up.

[larry the lamb 2] 02/10/2003 09:33

neilavery,

could you please run through the " head & shoulders" formation and its impact.where do you think this share is going.
it looks as though the £400m is coming back through a special dividend and a buyback scheme.
Results due around Dec 4th,so any news will probably be announced then.

anyone elses views


baaaaaaaaaaaaaaaaaaaa-larry

[neilavery] 02/10/2003 08:28

Although I'm a holder of this share, I'm a bit concerned that a head and shoulders formation is developing. We need a move up fairly quickly and an announcement regarding the way the 400m is to be returned to shareholders would help IMHO

[larry the lamb 2] 01/10/2003 15:01

Reading through the trading update,it looks as though the co is going to return £400m of suplus cash to shareholders through a special dividend and a buyback scheme.
Is this a good opportunity,your views please



baaaaaaaaaaaaaaaaaaaaaaa-larry

[larry the lamb 2] 01/10/2003 14:53

does anyone know anything about a rumoured 50p dividend for this share ?



baaaaaaaaaaaaaaaaaaaaaa-larry

[onehanded] 26/9/2003 09:30

I'm pleased as in the long run this has £3 as it's true value, once the bids are over for SCTN this will be the next target. The money being used will increase the share value by at least 20% over the coming months IMHO.

[bigboyo] 25/9/2003 10:59

well that depends

if you want to pay tax on divis than fine -- i would rather see a capital gain and use my cgt allowance !

[tainanmike] 24/9/2003 09:47

Spot on, Manoj

This isn't what I wanted, and I would imagine is disappointing to most investors. I was hoping for a nice surge in the share price as investors piled in for a massive special divi. As it is, it'll probably be another Securicor: absolutely zero price-movement across the divi, but lots of confused and disappointed small investors who expected something else.
What bugs me most about this is that they're allowed to ramp it up by calling it a special divi, when in reality it's payment for shares they're taking from you (which they are then cancelling, of course).

So really, this is a share buy-back and cancellation, which we will benefit from, but somehow it doesn't have the romance of a big juicy special, does it!

Oh, well, life goes on...

[jpdm] 24/9/2003 09:35

.... & possibly capital gains too

trding stmnt in line with my expectation - worryingly predictable

[manojranaweera] 24/9/2003 08:42

Extract from today's press release

"We have made excellent progress with the securitisation process and we expect to commence marketing in October. We are on track to return at least £400m of
surplus funds to shareholders. It is our intention that such a return would be
made by way of a special dividend accompanied by a consolidation of the number
of shares in issue."

Would this be through, let's say 3 shares for 5 existing, and cash equivalent for 2 shares lost, given as a special dividend. If this is the case, in my opinion there is no real benfit to the shareholders, other than seen some cash
early, which could again be used to buy the 2 lost shares. But this will also results in dealing charges and stamp duty....

[badtime] 23/9/2003 22:04

Yes interesting points JD..u sure statement due tomoz?...must admit having been in at 228 a week back took profits at 245...may dip back in at some point.

[jpdm] 23/9/2003 21:14

I wonder what recent trade has been like - think trading stmnt due tomorrow ?

I imagine drinks sales have had a few good weeks in the heat wave , but don't forget a significant part of the profits come from "restaurants" that don't perform well in hot weather (eg Toby Carvery or Harvester or All Bar One ). How has the in town segment performed ? Tired Brands & competitive pressure must be hurting here. How successful has Tim Clarke's sales promotions strategy of buying volume by discounting price eavily been ?

Look out for spin on year on year sales growth being better (or at least showing less decline) but without mention of bottom line performance ??

I wonder if we will get any data on how the ex Allied business are performing ??

These boys must be vunerable to takeover , unless the proposed securitisation gives them some protection . I'm sure we'll get an interesting comment on this tomorrow . But pulling out of the S&N thing seems like they have given up on getting market domination - unless they are working on an Allied mark 2 deal with the successsfull bidder . In which case lets hope they don't overpay , get some good sites and are geared up operationally to cope.

Should be an intersting day..

[onehanded] 19/9/2003 09:34

Saw it in an article in F.T last week but no news to date. Just waiting.

[badtime] 16/9/2003 20:03

Onehanded..where does it state news is due? tia.

[onehanded] 15/9/2003 09:05

News this week on sales and on if a massive share buy back or divi. Can only see a win win. Not yet bought any more but I am 1k up so far , holding my nerve as I feel this week it make or break.

[onehanded] 09/9/2003 17:54

I'm waiting to see what happens tomorrow. If it says in, it will shoot up 10 -15p in not will drop that amount and I will pick up some more.

[21tigers] 09/9/2003 16:57

ASH
agree but timing is everything,missed this mornings low
so will wait and see what tomorrow brings??

[ashtongray] 09/9/2003 16:48

That's probably it: still, that presents a buying opp imo.

[21tigers] 09/9/2003 15:59

ASH
there is fear that it may get kick out of
FTSE 100 tomorrow.

[ashtongray] 09/9/2003 15:25

Slightly at a loss to understand price weakness. Elimination from the SCTN contest arguably a positive since it removes possibility of overpaying, and also the return of capital should now go ahead. Plus, MAB could now be a takeover target itself. Whatever, added some today @ 226.

[onehanded] 09/9/2003 14:01

picked up more at 2.27. Have 12k invested and another 3k waiting to buy any dips. Very confident.

[onehanded] 08/9/2003 14:50

Hey just bought a stack full for £2.29. Looking good as trading statement next week. Rumours of share buy back of 20%.

[gillam] 01/9/2003 10:35

Could anyone please remind me how much cash per share was returned by SXC when they did the MAB/IHG split.