Mitie Share Discussion Threads

[bagpuss67] 19/6/2017 14:20

Robin. Yes. There is a huge cash inflow from working capital reduction. Not yet sure how much is a permanent reduction but I guess it won't all be. Which means a possible funding requirement for increasing it

[targatarga] 19/6/2017 12:24

Robin - yep, downhill from here me thinks. Timed to perfection imho

[robinskardon] 19/6/2017 11:23

Surely this is bound to tank sooner or later the current share price is bonkers! I think the thing to do is watch the chart for a reversal before shorting. I lost money on my last short trying to prejudge the market reaction to the results! Re the reduction in net debt in the results I see that trade receivables are way down and trade payables are way up, adjusting these to normal historical levels would give a big increase in net debt and not a reduction. The cynic in me says that they have chased up every last penny from clients pre the year end perhaps even offering discount for early payment and delayed payment to suppliers and subcontractors until after the year end. Note this is just conjecture on my part I have no evidence to back it up except the unusual changes in the sums against historical figures.

[bookbroker] 19/6/2017 10:45

Horrible company this, saw what looked like a tramp outside Co-Op this morning in Silsden, then witnessed him again in the store carrying a small shovel and a broom with a Mitie tea shirt on, I understand equal opportunities, but this poor soul looked like he was being paid with bread and water, I can see how the margin works here, the staff are on destitution wages while the company keeps like sixty per cent of the labour costs that it tenders for!

[bagpuss67] 19/6/2017 08:48

But at what point do they think they are paying silly money to close. Do they pay more than the all time high? The business still has to actually deliver the turnaround in a chpppy market. Currently only paper thin net assets and the income stream will be plagued by exceptional for a while. Doesn't even pay a dividend now!

[bagpuss67] 19/6/2017 08:48

Cant argue with that. Short squeeze taking place.

[pvb] 18/6/2017 20:15

Ah! If all the things that "should have been true" were laid end to end... etc, etc.

[bagpuss67] 18/6/2017 11:57

And should have been true!

[pvb] 17/6/2017 12:06

Err... It's still there.

[rackers1] 17/6/2017 08:07

Simon Cawkwell 12 Jun '17 - 07:47 - 476 of 485Well, I think we open sharply lower on this statement.Deleted his commentI wonder why

[muffster] 16/6/2017 11:22

Turnaround story though. Bought in a few days back and see Eps growing substantially

[bagpuss67] 16/6/2017 10:09

I wonder what the market believes that the value of this is. Heading back to levels when they were constantly buying back shares and pre profit warnings. Net assets 90m. Market cap 1b!

[bagpuss67] 14/6/2017 15:47

The institutional shorts have barely moved. Although I appreciate they could be late reporting to disguise their activities. Sorry I've looked again and now a reduction is showing

[wiseacre] 14/6/2017 14:44

I take your point Kazoom. The problem for shorters is this is an index stock with funds indiscriminately tracking the market. However the company's earnings are, for the most part, UK based and it is unlikely to generate the increased earnings it is banking on. With US interest rates rising and renewed problems with sub prime lending the whole market must at some point crack. The bull market is, in any case, running out of steam. Mitie cannot defy reality. It must raise cash and soon. The UK picture is bleak with those who voted for isolation and poverty likely to see the error of their ways.

[bagpuss67] 14/6/2017 08:28

This company has totally depleted its capital and wasn't far off being balance sheet insolvent. Dividend and share buy backs cancelled and a raft of restructuring charges still to come and disrupt the quality of earnings..still don't get it...

Unless as lefrene says its being lined up to be bought out..

Simon may I ask your current view?

[kazoom] 12/6/2017 21:53

Even if you are right, I think that the better quote is that “The market can stay irrational longer than you can stay solvent.”

Sold into the rise today (a little too early as it goes) so no position currently.

[wiseacre] 12/6/2017 20:41

I remember Maggie Thatcheer saying you can't buck the market but today's volume and price rise is completely mad. Was it a short squeeze or what? The company urgently needs a capital injection and must take advantage with an equity raise. I have increased my short at 283p

[lefrene] 12/6/2017 20:38

Now the numbers have been 'kitchen sinked', is it a likely takeover target?

[pvb] 12/6/2017 19:57

Simon Cawkwell 12 Jun '17 - 07:47 - 476 of 485

Well, I think we open sharply lower on this statement.

Any opinion as to what is going on here, Simon?

[bagpuss67] 12/6/2017 18:53

Could be short closing. We should find out from the FCA short disclosure over the next few days. As predicted scheme deficit significantly up.

[bend1pa] 12/6/2017 16:42

Well I never thought I'd see my money back on MTO. However it rose through my breakeven point and quite happy to sell at 280. The stockmarket is a strange animal.

[razorlid] 12/6/2017 16:07

I wonder if any could help? I don't understand the share movement. Have been a holder since last year so happy with it going up - I just don't understand how the results and the share price relate?

[deadly] 12/6/2017 15:48

Good call Simon.

[meijiman] 12/6/2017 11:55

Shouldn't the previous management duo be in prison?

[bagpuss67] 12/6/2017 09:00

Cash outflow of about £20m if you ignore working capital movements. I closed out todays 10k short at 261p. Will reload if it rises again. Still sitting on a big loss on the other 10k short I have.