Mpac Share Discussion Threads

[castleford tiger] 23/7/2020 09:01

Big Dave
At what price?
I can’t buy under 293

[shanklin] 23/7/2020 08:37

Arregius

Thank you for your post 998

[bigbigdave] 23/7/2020 08:31

10p off last night's close - added here.

[mfhmfh] 22/7/2020 18:44

Edging to 300p. Breakthrough this week?

[thewheeliedealer] 21/7/2020 22:13

Hi all,

My mate Peter @Conkers3 and myself did a ‘Twin Petes Investing’ Podcast a few days ago and part of our discussion covers MPAC which I hold myself and it still looks very undervalued. We also chatted about loads of other Stocks and as always a fair bit of general Portfolio Management educational stuff. Anyway, if you use Apple, Audioboom, Overcast or Spotify you can find it under the 'Conkers Corner' Channel (you want TPI Podcast 27) and you can find it on Soundcloud at the link below.

I hope you enjoy it and find it useful,

Cheers, WD
@wheeliedealer

[castleford tiger] 21/7/2020 20:05

Ready to break through 300p
Tiger

[arregius] 20/7/2020 20:04

https://mpac-langen.com/resources/adapt-grow-2020-moving-forward-in-a-changing-world/For those who want to see #mpac webinar again can register here ?

[mfhmfh] 20/7/2020 17:57

320p next stop hopefully

[fuji99] 20/7/2020 11:30

If it closes this week above 294p it will go over 320p.

[andyview] 20/7/2020 10:30

I think so, undervalued presently and good upside potential, 300 p minimum imho.

Gla

[arregius] 20/7/2020 10:21

300p this week?

[castleford tiger] 18/7/2020 18:49

Buying and adding a good bolt on acquisition would be a further bonus.
Anything that can earn like Lambert could add another £1/2 a share to the price.
A huge amount of my DTG money is in these now some of it from the sub 40 p days.
My fear is we become a target long before we reach our full potential.
This could easily be a £200 m market cap company in 5 years or less.
We need to make sure the LTIP reflects this for the management .
Tiger

[arregius] 18/7/2020 10:22

I agree entirely. And hopefully we can use that cash to buy smth as good as lambert for our company, #value

[fuji99] 18/7/2020 09:29

Fully agree Tiger as Mpac did upgrade their already upgraded trading update numbers this year to reach £3.75. I think their very efficient packaging system incorporating Artificial Intelligence (AI) for remote follow up and support is becoming very popular worldwide. Adding to this a very important statement: Business is growing in the US. This is very promising indeed. A 50 million market cap will easily become a 500 million in just a few years. This was always how hidden gems became huge companies. Mpac R & D is very innovative indeed; top all this with an excellent management and you have a receipt for a great company in the making. When it'll come under many radars, there won't be enough shares remaining to buy in the very limited pot of issued 20 million. Those who understood the huge prospects buy and hold. We know what will happen to the share price under such conditions.

[castleford tiger] 17/7/2020 23:50

That target could be due a serious revision come September
Tiger

[bwm2] 17/7/2020 16:32

I will qualify that. I bought for a trade on the results. I think that it is a great company but am holding little in the medium term except a few stocks that have thrived in this adversity

[bwm2] 17/7/2020 16:20

As usual a good strengthening in price and increased volume to sell into. Thanks ST

[arregius] 17/7/2020 07:23

Investors Chronicle Simon Thompson wrote MPAC up yesterday. Target 330p. In the printed magazine today

[andyview] 15/7/2020 11:47

Agreed fuji, I’ve added a couple more today and think it seems primed to push on. A little volume here would see that happen imho.

Gla

[fuji99] 15/7/2020 11:22

This hidden gem will be on the radars only when nothing to buy from the issued 20 million shares is left. I accumulated a decent amount of these during the last few weeks. These will be tucked away for a few years to maximise the benefits.

[andyview] 14/7/2020 13:01

From an early mark down, the recovery is almost complete. Added again and would like to see a blue finish here...

Gla

[fuji99] 13/7/2020 15:54

Cheers Standish.

[andyview] 13/7/2020 14:18

Great assessment, thanks for posting Standish

Gla

[standish11] 13/7/2020 14:07

Packaged for economic recovery

Mpac (MPAC:263.5p), a small-cap niche packaging engineering business has issued a reassuring pre-close trading update ahead of interim results on Thursday, 3 September 2020. Entering the second half, the order book is up almost 14 per cent year-on-year to £45.4m, and there have been no Covid-19 cancellations. All sites have been able to remain open throughout the pandemic, so providing essential support for customers in the pharmaceutical, healthcare, nutrition and beverage industries.

Mpac continues to win new orders with original equipment manufacturers (OEMs) and service orders, too, highlighting resilience in the healthcare sector (accounting for three quarters of annual sales), and in the Americas region (almost two-thirds of sales). Moreover, debtor days remain at pre-Covid-19 levels, and net cash has surged from £18m to £22.1m since the start of 2020, driven by tight working capital management, deferral of discretionary spend and access to government support.

Admittedly, there will be an impact on Mpac’s operations this year. Analyst Sanjay Jha at Panmure Gordon estimates a 24 per cent decline in revenue to £67.6m ahead of a strong recovery in 2021 when he forecasts sales of £81.5m. On this basis, expect operating profit of £2m rising sharply to £5.3m in 2021, although in the absence of management guidance I feel that Panmure are being far too bearish on this year’s profit estimates and overly cautious on their 2021 numbers. In any case, Mpac's shares are only rated on 10.5 times low-ball 2021 EPS estimates, representing a 36 per cent discount to the UK engineering sector average even though the company has net cash of 110p a share.

In my opinion, Mpac’s current rating fails to adequately factor in a pick up in second half orders (thus reducing the 2020 profit shortfall) as lockdown restrictions are eased and potential for a stronger than forecast earnings rebound in 2021. Mpac’s management is ahead of the game, having put in place a ‘Fast Recovery’ plan to position the company for growth as activity levels return to normalised levels. Initiatives include the launch of a new website, a virtual exhibition for customers to demonstrate the range of newly developed products, and offering customers digital solutions for artificial intelligence-enabled equipment and robotics in their production facilities and warehouses. The Covid-19 crisis will undoubtedly accelerate these trends as more blue-chip clients reappraise their manufacturing efficiency.

Mpac’s share price is up 22 per cent since I last rated the shares a buy (‘Coronavirus winners’, 9 March 2020) and the holding has delivered a 66 per cent gain since I included the shares, at 156p, in my 2018 Bargain Shares Portfolio. A recovery back to my 330p target price, which was surpassed in February when the shares hit a 16-year high of 377p, is not unrealistic. Buy.