Mj Gleeson Share Discussion Threads

[retsius] 18/6/2011 18:49

Des
Hope rise is sustained next week.

[retsius] 18/6/2011 18:48

Des
Director buys 24K of shares. Is this reason for rise?

[retsius] 09/6/2011 22:57

Des
Thanks very comforting as I bought in at 149p and sitting on a large paper loss. We`ll see what tomorrow brings.

[deswalker] 09/6/2011 19:39

No and so I added more this pm.

I was looking back at OIG's results last year. The manager (Chris Mills) stated the following ...

Gleeson is a small builder with operations in the Midlands and North of England. The company has no debt and was modestly profitable for the six months ended December. Our estimated private market value of the business is over 50% higher than the current share price.

At the time (23 Jun 2010) the prevailing share price was approx 116p so "over 50% higher" equates to over 174p. Since then we've had the successful disposal of Powerminster, a strong performance and pipeline at Strategic Land, news of government initiatives to free up land which has been warmly welcomed by the builders, and the recent IMS with good sales numbers and the following Outlook (with my bold) ...

...the Board is very pleased with the continuing success of Gleeson Strategic Land. The Board remains confident that a very disciplined approach to land acquisition in the North of England, coupled with an exceptionally rigorous control of construction costs, is laying a very firm foundation on which to build the continuing growth of Gleeson Regeneration and Homes.

All sounds "very" good to me and one would now expect Chris Mills' target price to be over 180p IMO.

As for the share price weakness I have no idea. It is on tiny volume though and I just put it down to small scale selling whilst the big boys steadily build value and work towards an outer. In the meantime I suspect it will more than wash its face in capital returns / dividends as Chris Mills will want the capital for other things.

I really must stop myself from buying any more until some liquidity events happen elsewhere in my portfolio. But I regard this share as one of the three in my portfolio that I feel most comfortable with and I wouldn't hesitate to keep adding once my liquidity levels increase.

Des

[retsius] 09/6/2011 18:42

Des
Any reason for share fall? Nothing I can find.

[deswalker] 19/5/2011 19:37

No idea on share price movement. It is simply unfollowed as far as I can tell. Institutions can't build a stake because it is so tightly held and it isn't on private investor radars because they're generally chasing the next hot stock.

However this is a slow burner for me. It has so many assets and cash cf the share price and also a large shareholder who will be keen to extract value (Chris Mills) that I'm happy to forget this one for a year or two.

Wish I could say the same for some of my others that are keeping me up at night. Not this one though.

[retsius] 19/5/2011 18:26

Des
Why no share price movement? I agree with you on overall tone.

[deswalker] 19/5/2011 07:51

Very good IMS ... IMO

[retsius] 10/5/2011 09:30

Des
Very informative.Thanks

[deswalker] 09/5/2011 21:18

Dermot Gleeson and Jolyon Harrison own fairly sizeable stakes of approx 2% each and Chris Mills obviously controls over 18%.

The others do not own many shares it's true. The only other exec is Alan Martin and maybe he's just decided that his COO, FD & Comp Sec salary is sufficient. The other non-execs clearly have no interest in making money from the shares, appearing to be professional non-exec types.

Also we don't know how free they are to deal at the moment besides the regular pre-agreed share purchase schemes. If deals are in the offing then their hands would be tied.

I'm a big fan of Chris Mills and his style is very much one of complete silence followed by a corporate action out of the blue. He achieved this several times last year so let's hope he's got a plan here too. At the very least I feel he will push for further capital distributions or special dividends as his style is also to get excess cash out of investee companies back to his funds rather than allow them to sit on large piles of cash themselves. He does seem to prefer a degree of gearing in the portfolio constituents plus a centralised cash pile for whatever reason.

Des

[retsius] 09/5/2011 18:48

Des
The directors hold a miniscule amount of stock.If its so good you would think they would have topped bigtime. Thoughts,please.

[deswalker] 09/5/2011 17:02

A nice rise today. Hopefully it won't be a short-lived tip effect. No reason why it should be IMO.

[retsius] 06/5/2011 21:25

Interesting Des if the share rises on Monday.Big spread between buying and selling.Might top up to even purchase-- Paid 149p in a moment of madness.
IC recommended the share{simon thomson Sitting on a big loss.

[deswalker] 06/5/2011 17:43

Cheers retsius.

Must say it looks like the least speculative share in my portfolio. Loads of assets, loads of net cash, very overcapitalised Balance Sheet, skeleton staff of only 95 to pay for, history of special divis, Chris Mills controls 18% on behalf of JO Hambro and will be looking to extract value.

I've been buying a load since the market completely disregarded the Interims which IMO showed they had completely replenished the Balance Sheet since the year before when they felt able/compelled to return 15p per share.

IMO if nobody comes in and takes it out near NAV then they'll just progressively unwind the NAV and give it back to shareholders.

Des

[retsius] 06/5/2011 15:02

Meantioned in Money Week mag as speculative buy. Assets of 186p. Trading statement on 17 May.

[retsius] 28/4/2011 20:02

This share will do my nut in

[retsius] 20/4/2011 17:16

First rise in weeks

[gargoyle2] 16/11/2010 12:39

Thanks. I've taken advantage of the spike to trim my holding.

[ashishmeswani] 16/11/2010 11:28

Recent uplift in the price has been due to a buy recommendation in the Investors Chronicle online version. Reckons the stocks based on NAV is highly undervalued.

[gargoyle2] 16/11/2010 09:27

The buyers have been in here the last few days.. anyone know why? Just because it has fallen too far, or is there something more sinister afoot?

[gargoyle2] 29/7/2010 13:19

A few more people having a nibble at these the last couple of days. I reckon the results are going to be good..

[gargoyle2] 27/7/2010 10:55

This is attracting some buyers today.. not many, but there seems to be a lot more volume than usual.. results due in a couple of weeks I think.. may have something to do with it..

[arthur_lame_stocks] 21/6/2010 23:24

Don't they do a lot of social regeneration work? Might be fears over what the budget is going to do to them.

[gargoyle2] 21/6/2010 21:03

Anyone know why this is just heading lower? had a good solid rise up until the special divi announcement in March, but has been heading only south since then...