Mitchells & Butlers Share Discussion Threads

[manojranaweera] 25/2/2004 07:57

One handed, Still not performing as I expected. May decide to sell soon if it does not move. I know DYOR, but what is IMHO?

[onehanded] 18/2/2004 08:30

WAS sent this by member on another board.

Mitchells and Butler (MAB) is found in the leisure, hotel and entertainment section and is a former FTSE 100 company now listed in the FTSE 200. Was demerged from Six Continent last year. MAB owns and operates 2077 managed pubs in the UK, these include All Bar One, Embers inns, Harvesters chains, Vintage pubs, Toby carvery pubs and O'Neills and most are found in residential areas. Tim Clarke is the chief executive.

These ARE APPROX-
Market cap - 1.200 M, Shares 520 M in issue, PE 13, yld 4.2. Forecast PE 2004- 11, 2005- 9. Gearing 40%.

Competitors i.e. Weatherspoons PE 16 yld 1.3

This company trading statement reported 6.4% sales growth among traditional pubs (represents 70% of the estate). Across the whole estate sales were up 5%. Retails sales up 4.1%, while volumes of food and drink up 8%.

Director's practice of 'retesting' (executives can extend the period to pick up options to meet target) so directors can pick up bonuses is stopping.

No 'happy hours' promotions are used.

Problems areas - regulatory costs (minimum wage, national insurance costs and higher business rates). Add to this they are vulnerable to cost pressures. Yet this stock is lowly rates among its peers.

This stocks trading range is from £2.25- £2.32 with a break out of £2.38 - £2.40. Broker's generally see this a cheap stock in the sector, and fair value from £2.40 - £2.70p. The real value is in the break up sum of £3.20 -£3.40 zone. The support line at £2.20 is very strong and will prevent any breach. Previous approached by Laurel pub have been too low but the assets and very strong brand names make it an ideal target soon.

It in my opinion that by the end of this year this company will be acquired or taken private by it's management. With a strong healthy yield this stock is worth an investment and at present undervalued. It's slightly defensive quality, yet play on growth and the likelihood of being acquired, make this a low risk investment with potential for large rewards. At the present price this is a buy.

[onehanded] 13/2/2004 07:52

Morning, well the newspapers liked the trading update. Might be the uplift needed. Earnings targets raised to 6%.

[onehanded] 12/2/2004 19:38

I WAS at the AGM. A lot of talk about cost cutting and hitting performance targets. They talked how sales were higher than most in the industry and were seeing good cash returns.

The real chat came when talking to pin stripe men who see this as a very likly acquistion target with it being on a very low valuation among peers.

Will wait and see how the market veiws this. A few upgrades would help. Must break £2.40 to get a real jump. Holding at these levels, has massive support around £2.21-23 level. Management sounds good but can they deliver?

[bigal18] 12/2/2004 14:17

well looks like some profit taking after the results however i feel that over the next week or two these will creep up.

[bigal18] 12/2/2004 14:17

well looks like some profit taking after the results however i feel that over the next week or two these will creep up.

[pawsnjaws] 12/2/2004 11:15

Awweee what a quiet thread hope the Agm is brill and it brings life back to this share.. just out of interest what caused the drop in Dec.. I missed it completely

[onehanded] 30/1/2004 14:49

ALLD said very strong trading over Christmas period, though some of this froth may be taken off of if the dollar remains high. Well, mab will be very strong but no dollar factor. Looking good.

[onehanded] 30/1/2004 14:32

JakNife
Sorry 2 week! Going to be one hell of a good update IMHO. Looking how strong others have been can't but help think this will retest some highs for the last few months. Bought more this am after selling some of my more risky shares in profit.

[onehanded] 30/1/2004 14:10

Here we go , leaked news of an update next week. Can't tell you if it's good but a birdie is singing. I bet it's a share buy back and news of a good sales.

[onehanded] 23/1/2004 16:08

Just been sent a report by private investment group. It was free this time, which states than Laurel group who previously were interested have returned to cast a eye on this. I must point out the share divi with a reduction in shares was a reponse to defend a buy out bid and not to jump in on a buyout bid. The way this moves with such small buys and sells is great.

[washbrook] 22/1/2004 17:11

Bad day today.

[onehanded] 08/1/2004 16:50

Hey on the way up, hit bottom and support £2.20 mark. Look for slow upward tread till news. AXA stake building, good sign for take over gossip.

[willso] 22/12/2003 17:08

Look for 2.50 early next year.Nice good solid stock this,merry xmas y,all.

[onehanded] 19/12/2003 21:27

HOPE you all were buying sub 2.20p. Next year this will be the stock to watch. I have now 15k invested at a average of 2.16p plus the divi next year. Hoping monday or tueday would allow 1 more buying oppotunity as sold shares this week to free up another 5k but my not happen. Have a good weekend looking forward to this stock next year.

[bigboyo] 18/12/2003 14:37

onehanded your post 143 ( yes someone does read your posts ! )

3.30 ? were u typing one handed or er em doing something else ?

[onehanded] 18/12/2003 09:11

Rebought my shares I sold pre-divi at £2.18. Being kept low as FTSE 100 managers to offload by friday. Then by monday expect a return to £2.30 range. Good time to get in , may drop lower today , friday,but like to take a risk. ops edited

[neilavery] 18/12/2003 08:33

JakNife, your Head & Shoulders has been breached. Let's hope that support at 220p holds. I wish I'd waited before I bought more, but got in again at 229p.

[karateboy] 17/12/2003 17:05

When Special div of 50p will be paid ?