Mountview Estates Share Discussion Threads

[greatgiginthesky] 09/2/2015 11:09

Extract from Chairman's statement 26 June 2014...
"Whilst it has never been a requirement to value the trading stock it has been a concern for some of the shareholders. The Board has decided to undertake the valuation of the trading stock and anticipate that the results will be published together with the Interim Report 2014."

[chri5 wright] 09/2/2015 10:30

Engaging Allsop to tell the family what it already probably knew would strike me as a pointless waste of money.......

The valuation cannot be admitted onto the balance sheet, so the only purpose can be that another party wanted it, as I doubt the Sinclair family did it for us, the minority shareholders, do you?

It feels like a bid, and I'm coming round to it being Grainger

Chri5 Wright

[jonwig] 09/2/2015 10:20

topvest - I don't think there's a lot of disagreement between us - but I am looking for a 400p total dividend for the year, and I want to see what the next AGM has to offer.

[greatgiginthesky] 09/2/2015 10:19

Jonwig is correct. The valuation was conducted on an 'as is' basis (why would it be conducted otherwise?) so the £160 is a true NAV figure. Therefore, the valuers applied a discount for the fact that the properties are tenanted and not available to sell unoccupied for some years ahead.
I think you may be confusing the uplift that MTVW gains when the property becomes vacant with the other 'uplift' that has been recently revealed as a result of the properties having been held on the balance sheet for many years at cost.

[topvest] 09/2/2015 09:53

Agreed. Yes, but I would say true net asset value is about 120p which is adding on about half of the uplift given the properties are not free to be sold for an average of 5-10 years or so. That's why I have sold - 2% yield and near asset value for a family controlled property company in a bubble London market is good enough for me, particularly when they have tripled in 4 years and the share price has gone vertical because of what I see as a poorly informed/slightly misleading Investor's Chronicle comment which has clearly caused a bit of buying in an already illiquid share.

It's a very good company though, so will probably still perform well over the medium term. There is also an outside chance of a bid as the Sinclair's may decide it's a good time to exit as well. The property valuation was the first hint of that. I think Daejan Holdings is better value than this now.

[jonwig] 09/2/2015 08:36

topvest - strictly speaking, IC say it right.

The TPs are on the balance sheet at lower of cost and present value. So MTVW had a present valuation done, which they never needed to do before, I assume.

The present valuation is "as seen" with no assumptions of occupier status or future refurbishment. So a wild optimist could add a bit to the £160.

[topvest] 09/2/2015 08:04

It was tipped in the Investor's Chronicle quoting a £160 net asset value. Isn't that a little misleading actually? The assets are only worth that when vacant, so obviously it can take years to actually gain access / the tennant to die! I've sold my few shares today - happy with tripling my money in 4.5 years with dividends on top.

[eggbaconandbubble] 09/2/2015 07:31

Did anyone spot any press comment over the week-end?

[jonwig] 06/2/2015 16:03

mad f - on balance, I think you're right to be cautious of others' stock suggestions. I've missed a few good ones, but also avoided some lemons.

Actually, I first noticed MTVW around 1971 when I started looking at the FT share pages - it was the only share in the property sector which was quoted in £ (something like £6+7/8 or thereabouts). I had a broker, and in those days they expected to give advice and charge for it. I mentioned MTVW - he said he knew nothing about it except it was hardly ever traded and, anyway, he wasn't going to trade them for me! In those days there was no access to live news for ordinary folk and all I had was FT and Investors Chronicle.

Then during the GFC and property meltdown I thought it might be a big beneficiary (low gearing tipped it for me). Patience might be paying off now!

[mad foetus] 06/2/2015 09:52

I am currently kicking myself very hard, having watched this at £80 and waited for a pullback since the last results. Well done holders.

[tmfmayn] 06/2/2015 09:49

I see the open was not that chaotic. But the price is up anyway :-)

I recall last year REC jumped 40% when they were included in ST's Bargain Shares 2014.

This year REC are once again in ST's Bargain Shares portfolio, but have budged <5% this time.

Just goes to show what a difference a year can make.

[tmfmayn] 06/2/2015 07:30

Not sure to be happy or sad given his record from last year with those Chinese tips.

But could be chaotic at the open here, with little share liquidity normally. Let's see

[jonwig] 06/2/2015 07:04

MTVW is the top-rated tip in Simon Thompson's "Bargain Shares" portfolio for 2015.
This was published yesterday evening.

He says nothing we don't already know here, but he has a lot of followers - I don't see the share price falling this morning.

[eggbaconandbubble] 05/2/2015 08:08

The Sun has got his hat on, hip hip hip hooray!

[jonwig] 05/2/2015 07:35

Normally don't post full RNSs, but MTVW's are so brief I might as well:

Mountview Estates PLC ("the Group"), publishes its Interim Management Statement covering the period from the beginning of the Group's financial year, 1 April 2014, to date.

Turnover is up by 18%, Gross profit by 41% and Profit before tax by 47%. Earnings per share increased by 48% during the third quarter compared with the same period last year, although this was at a slower rate than during the first half of the Group's financial year.

The Group continues to make good purchases and remains well funded.

[greatgiginthesky] 04/2/2015 15:45

Sure, egg. I was hypothesizing that some, but not all, family members would want cash and some would want paper. If Grainger make a cash only bid, then CGT will apply to all, but if they make a paper bid then the shareholders can make their own decision to sell their new paper or keep it according to their own wishes and CGT position.
On the matter of price, I think that Mountview's profits and NAV per share are most important - dividends and gearing less so.

[eggbaconandbubble] 04/2/2015 12:17

Grainger have much higher gearing than Mountview. I'm not sure that they would be that favourable to MTVW share holders if an offer involved paper.

[greatgiginthesky] 04/2/2015 12:03

With earnings for 2014 likely to be around 800p per share I think that a total dividend of 400p is slightly optimistic. I would plump for 100+200=300p if I were a betting man, which I am not, wait, I buy shares so I must be!

[jonwig] 04/2/2015 07:07

greatgig - following the doubling of the interim, I think there's a reasonable chance the total dividend for the current year will be 100+300=400p against 50+150=200p last year.
Certainly a maintained final would be a disappointment.

This would also fit in with the idea that the company is returning cash rather than chasing more expensive regulated tenant properties.

[greatgiginthesky] 03/2/2015 16:23

The right buyer has to offer shares and that will do away with the CGT problem. However, Grainger's shares trade on a yield of 1.22% and Mountview's is 2.22% so a reduction in divi income would occur.
A cash offer around £150 would leave the family with oodles more in their bank accounts than seemed likely a couple of years ago, even after taking a CGT hit.
GRI has been in the news quite a bit recently and is in quite an acquisitive mood.

[eggbaconandbubble] 03/2/2015 09:10

Chri5, Sorry! Belated thanks there. I think I have been watching the price more than this BB.
Councils are ghastly institutions. I spent 18 years managing my own small portfolio and in the last few years came to the conclusion that landlords are easy pickings for bereaucratic 'hits', because they are a sitting target and the vast expansion in the private landlord sector now makes it a lucrative one.
Along with selling my lot the CGT bills have been 'not good' (this has also got worse in recent tax years) which brings me to think that the major shareholders of MTVW are wanting an 'out' but the CGT is clearly utmost in their minds.
They will have taken the best advice but still.....
That makes a sale difficult cos they need to find not just a buyer but the right buyer who will help mitigate this situation.
Still all in MOO!
PS. Apply for the job...WTF!

[eggbaconandbubble] 13/1/2015 15:34

Chris5, HMO = houses in multiple occupation? Right? can you please quickly explain. Thanks

[chri5 wright] 13/1/2015 14:54

Jonwig. To answer your question....why make a hurdle difficult to jump?
_ no gold bath taps, just discomfort ( with in the law obviously ).
I wouldn't worry about mansion tax, the main concern would
be the local councils hunger to print cash, by the changing of
the local planning requirements to create ''HMO's'' - quite
disgraceful, and the real risk here.

eggbaconandbubble. I am way too small to be of interest to these guys. A few years ago my ego would have had me place a call, and it did cross my mind. But I'm simply too small and my business growth is solid but not earth shattering. I doubt I'd get a second interview. But tempting, yes...

Chris

[eggbaconandbubble] 13/1/2015 14:42

chri5, have you applied for the position or are you on for a reverse takeover?