Mountview Estates Share Discussion Threads

[konradpuss] 12/1/2021 21:32

jonwig, I think that the stock price is reflecting a partial recovery (only small mind) in 'value' investing. I further think Mountview have probably found a few more opportunities to buy (so they said) and the sales market for their 'kit' has been O.K. of late. I wonder if they have received 'the keys back' from a greater number of tenants due to Covid? I just wish they would do a survey of the age of their tenants and whether they are the first tenant (you can pass a 'regulated' on once).

[jonwig] 12/1/2021 17:28

Nope - it's been a head-scratcher since Christmas!

[twells1] 12/1/2021 17:26

Mountview up 8% today. Does anyone know why. No RNS, no press comment. Have the Murphy family and Mr Sinclair made up. Only 82 shares traded. Very odd

[konradpuss] 31/12/2020 12:21

Jonwig, Mountview own some good locations in London. They bought a big estate in Southfields a while back which must look very good now. The chief executive told me at the last AGM I attended he was much criticised for buying it at 'the wrong time'. I think he has been vindicated. Yes an odd share price move. I think it is just the market makers not the market.

[jonwig] 31/12/2020 09:27

Yes, that's possible. But I thought people were moving out of cities so down-market London prices wouldn't take part in that.

[greatgiginthesky] 31/12/2020 09:18

Odd indeed. I have found that the share price reacts more to the trend of house prices than anything else the company does. Plus ca change!

[jonwig] 31/12/2020 09:08

Quote now 122-123 (£) and no marked trades today. Odd, to say the least!

[konradpuss] 29/12/2020 08:27

Well we have got a deal from the EU! Low volume as usual and no news feed. I guess, little stock with the market makers and a bit of demand.

[catsick] 29/12/2020 08:07

Wierd move is there something going on here ?

[jonwig] 27/11/2020 15:31

A good link, thanks. Here's the clickable version (for "blue" users): https://www.allsop.co.uk/media/rarity-value-regulated-tenancies/ [Hint, capitalise a letter, eg: Https, etc. and you're OK.]

[greatgiginthesky] 27/11/2020 14:51

hxxps://www.allsop.co.uk/media/rarity-value-regulated-tenancies/ Written last year, but a useful take on the marketplace and commentary on the discounts available. Replace xx with tt. Methinks the increase in inventories will have arisen from a block purchase.

[jonwig] 27/11/2020 07:12

konrad - the header title was based on the idea in 2008 that MTVW would benefit from the GFC by hoovering up properties from distressed owners. The same could be happening again considering that London was worst hit in the first wave. The main question is whether the prices were low enough to make a good enough profit margin.

[jonwig] 26/11/2020 20:28

Yes, that shows as "increase in inventories" (£17.226m) in the cashflow statement, which dwarfs recent previous periods. I haven't had time to look much into these numbers, but I'm pretty satisfied.

[konradpuss] 26/11/2020 20:04

Interesting, Duncan says the company has made 'substantial purchases'. Dividend maintained. How many companies have done that this year?

[jonwig] 26/11/2020 12:14

Here, bare bones! https://www.investegate.co.uk/mountview-estates---mtvw-/rns/half-year-report/202011261045146291G/

[jonwig] 26/11/2020 08:12

I'm sure they usually have results out at 7:00. Mind, they're so detailed and complex that delay can be expected. And Duncan is still busy writing his lengthy narrative.

[konradpuss] 25/11/2020 16:30

I remember quite well at the 2018 AGM I attended the CEO, Duncan Sinclair (who looks and acts much like Benny Hill!) expounding on the history of the company and giving reasons why they have only every really bought regulated tenancies. I did not attend the 2015 AGM so I cannot comment on what was said then.

[strathroyal] 25/11/2020 15:28

jonwig - agree re 2) but they don't seem to be able to find anyone within the family to take over from DS and they have always acknowledged that their areas of expertise are those quite narrow ones of the existing business so I do think that they will reluctantly accept 1).

[jonwig] 25/11/2020 12:31

They have a choice of two strategies: 1) manage the existing porttfolio, buy best of offers that crop up, essentially go into run-off. 2) diversify into other areas of residential property rental. At the 2015 AGM they were tending towards the second one. I can see how this might split shareholders and that asset run-off might suit a bidder.

[konradpuss] 25/11/2020 11:04

Strathroyal, interestingly the management has said previously that they thought the supply of regulated tenancies would have dried up years back, however they keep finding them to purchase, not in the quantities they previously did mind.

[strathroyal] 25/11/2020 10:09

We shouldn't forget that this is a very mature business. There haven't been any regulated ASTs created since 1988 so the age of the tenants must increase year on year. Add to that the fact that MTVW will find it increasingly difficult to replenish these (which account for 90% of the business) and at some stage in the future, the cash flow from sales will remain available for distribution, debt is less than one year's property sales anyway. That's what I'll be looking for tomorrow as they struggled to replenish their sales last year, a trend which I hope has continued.

[konradpuss] 25/11/2020 10:02

Great gig in the sky, I think it is very much a business. The skill of running this business is the buying. Then there is the management skills of holding the units and spending as little money as possible on repairs. Then there is the two yearly application to review the rents etc. etc. plus strategic management and trying to buy out tenants. There is currently no enthusiasm from any in the concert party to sell as they perceive this company is the goose that kept paying the golden eggs, which is only my soundings. I think in the long run the Murphys and some younger members of the concert party might will consider selling to the Peers Group. I might be very wrong mind. The tax consequences might well put them off.

[greatgiginthesky] 25/11/2020 09:29

Where I differ is that I do not regard buying regulated tenancies and holding them to ‘maturity̵7; is a business, any more than me buying a share and holding it for many years is a business. And where the comparison with an investment trust falls down is that ITs don’t have a blocking majority of its shares held by a family. Maybe the family will wish to reassess its position on the passing of the CEO. My point is that if the family then seeks to realise its investment, selling the company at a (reduced) discount to NAV is one option, whilst selling the assets and liquidating the company at no discount is another. Tax considerations excluded. No change in dividend expected tomorrow.

[konradpuss] 24/11/2020 21:07

Look at the performance of this company over time - and it is even run by what Warren calls "your stupid son-in-law'!