Morgan Sindall Share Discussion Threads

[kibes] 08/7/2008 22:21

alter ego - yes I agree it had £219 million cash on hand showing on its last balance sheet. However, this is not net cash because it also had a total of £835 million in liabilities. When you balance these off against receivables due you are left with shareholders funds of £165 million which are supported only by £122 million goodwill and £35 million intangibles, neither of which will have any value at all if the going gets tough. Of course the £219 million cash is a useful cushion but in reality it is only partly balancing liabilities. I am not short but am interested in companies which look cheap, however this one doesn't look too promising to me in the current environment.

[alter ego] 08/7/2008 13:08

kibes, you overlooked £219m net cash. Commercial property accounted for just £4.9m profit (out of total of £57m) last time so it's hardly worth a further 75% off the share price even if profits halve. I'm not saying everything is rosy - just that it's nowhere near as gloomy as it's priced. Yesterday MGNS won a £28m contract for T3 at Heathrow for example. Of course if you are short or you've only looked at this stock in the last couple of weeks £1 must be the right price. No analysis needed - just pluck a number out of air and deramp for all it's worth.

[adyfc] 08/7/2008 13:03

Commercial property has already fallen 40% this year with more falls to follow.

[zimzoot] 08/7/2008 12:27

commercial property will be worse then residential...

target £1

[kibes] 08/7/2008 11:13

alter ego - the balance sheet looks weak to me, when you take out the amounts owing and amounts due you find that shareholders funds are supported only by intangibles. Therefore if anything goes wrong they are up the creek. And furthermore it is in the housebuilding business which is currently being crucified by the market. And so is commercial property. It doesn't look like a buy to me. Is that irrational? Sorry but I have been in this situation before where a company seems to be making fantastic profits but has no assets and has gone bust when times got hard. Do you think things are going to get better or worse over the next six months?

[benson] 08/7/2008 09:51

Could the chart be put on this please?

[alter ego] 06/7/2008 17:07

well said WCB - totally irrational pricing but I doubt anyone is listening as they are running around the chicken yard with no head.

[westcountryboy] 06/7/2008 12:33

I see there are three new broker estimates since the trading statement. They have kept 2008 earnings as before, but have reduced 2009 ones to between 97p and 107p, with dividends 43p per share. 2009 earnings had previously been for about 120p. So at 488p, subtracting 84p of dividends by the end of 2009, we have a company on 4 times projected earnings. Even if profits in fact turn out to be only half these new estimates, this would not be expensive.

[sheps2] 04/7/2008 11:03

Recent share price fall not justified. Morgan Sindall does not just build homes, its civil engineering division should deliver more profitability to compensate for a fall in its house building profits.

[sheps2] 04/7/2008 11:03

Recent share price fall not justified. Morgan Sindall does not just build homes, its civil engineering division should deliver more profitability to compensate for a fall in its house building profits.

[adyfc] 03/7/2008 15:53

But he is by me.

[alter ego] 03/7/2008 15:07

well he's not going to benefit from any selling by me!

[benson] 03/7/2008 14:58

FWIW: Simon Cawkwell (Evil Kneivil) is short of this and has a target of about £1.

[zimzoot] 03/7/2008 08:58

sell for the next profit warning :)

[kenmill] 02/7/2008 10:43

Yes - I think a lot of people would be attracted to a 20% divi - might even make it recover to over £3 !

[mitzis] 02/7/2008 09:34

lol Eelsworth..

[westcountryboy] 02/7/2008 05:43

Well, that would mean a yield of over 20% which would be very attractive indeed for a cash-rich business.

[elssworth] 02/7/2008 00:04

I remain unconvinced and reiterated my SELL note to clients today with a Level 4 target of £2.03

I hope this helps

[kenmill] 01/7/2008 09:23

It looks like 2010 will be the recovery year, so the only attraction in the meantime is the divi

[piedro] 17/6/2008 10:08

MGNS have a thorn in their foot which is the heavy construction division...... a slow plodder - IMHO

[hectorp] 16/6/2008 15:18

Panmure - sell note recently... like with RBS they say sell. Its that charlie chan guy.
Phillis, still here?

[hectorp] 16/6/2008 15:18

Panmure - sell note recently... like with RBS they say sell. Its that charlie chan guy.
Phillis, still here?

[hectorp] 16/6/2008 15:16

up 5%.. why.

[gswredland] 16/6/2008 11:41

Blimey what is happening here?!

[kenmill] 10/6/2008 09:51

Now getting to an interesting level. Going down on very low volumes - now nearly 60% down from its peak last year. I think I will be buying soon as this is being priced for a disaster and, if you take a 2 year view and a 5%+ divi it must be worth a punt