Ms Share Discussion Threads

[cockneyrebel] 08/1/2006 12:37

I suspect 100% might be nearer than the 50% by year end but asking for another 100% this year is tough, but who knows, it deserves a decent re-rating imo.

CR

[bigbigdave] 08/1/2006 12:35

...and change the header from 50 to 100%?

[cockneyrebel] 08/1/2006 11:37

Great find Rivaldo - I think the punters might now see why these are a buy and hold - when news or tips hit the press these often fly and with the illiquidity you just can't get in and out and back in again. Been holding for 18 months and it's one of if not thee best buy and hold I have, and I will be saying the same in a year I suspect!

As the pension fund holds 10% on MS International it's deficit is gonna fall faster than most with the shares doubling year after year.


What The Business doesn't point out is the growth rate:

7.7p eps first half 2005 (theier weaker half)
10.8p eps 2004.
4.2p eps 2003.
2.0p eps 2002.

Looks like being their third year in a row where they do well in excess of 80% earnings growth. If these were a tech company you'd pay a PE of 40 for this sort of growth, because they are engineering you get it for a miserly PE for the current year of around 7, a forward PE of perhaps 6 or less!

They also never mentioned fork lift forks which, with growing global groth are also in strong demand, especially for larger speciality forks.

Perhaps I should add it to the doubler thread today :-)

CR

[nurdin] 08/1/2006 08:47

Thanks Rivaldo..dont know where you find 'em :o)

The pension deficit comment may be incorrect...seem to recall that the deficit has shrunk to around £1.5m but I might be wrong.Regardless,note that the acturial gains in their defined pension scheme rose to £635k at the interim stage last year from £23k in 04..a near 28 fold increase!At that rate the deficit will be cleared in no time at all imo.

Monday will be interesting..thanks once again :o)

[rivaldo] 08/1/2006 08:11

Tipped today in The Business!


"Small-Cap Investor
By : Andrew Hore January 08, 2006

MS International is a small engineering company that is managing to prosper in stark contrast to many of its peers. It has a low profile that isn't helped by the fact it doesn't have any broker producing research on its prospects.

MS makes a wide range of products including, mountings for naval gun systems, forgings for fork-lift trucks and canopies for petrol stations. One of its strengths is that it has strong market positions in niche markets.

The naval gun mountings business is doing particularly well. The Ministry of Defence has awarded a £15m contract to upgrade 24 of its 30mm naval gun systems to help the warships cope with faster, smaller boats. MS designs and assembles the equipment.

Deliveries start this year and they will be phased over a number of years. Even more naval guns are not covered by this order so there appears a good chance of more work.

Similarly, canopies for petrol stations are in increasingly greater demand.

Interim profits rose by one third to £2m with growth in profits and revenues coming from all three divisions. Net borrowings were £420,000, but there is always a significant cash inflow in the second half.

MS's net asset value has been hit by the introduction of new accounting standards for pensions deficits. The company's pension deficit is £3.5m and after subtracting this from net assets the shares have a net asset value of 38p a share. MS has cash in the bank so the balance sheet is still relatively strong.

Two directors added to their shareholdings in the second half of 2005. Chairman and chief executive Michael Bell bought 5,000 shares at 122p increasing his stake to 19.1% while non-executive director Roger Lane-Smith acquired 35,000 shares at 123.5p a share taking his stake to 0.5%.

The company has been buying back its shares. Since September it has bought 50,000 shares at 120.5p a share and 100,000 shares at 146.5p. This should help to hold up the share price.

The interim dividend was increased from 0.5p to 0.58p a share. The shares went ex-dividend on 4 January.

In the past 18 months the shares have trebled, but the MoD order underpins the business for the near future. The shares are trading on 13 times last year's earnings; on the basis of the last two six-month periods the rating is 11.

MS should continue to improve its profits if trading continues to be strong."

[rogerbridge] 07/1/2006 19:53

Thank's to C.R. and others for your number crunching and insight.
Added a tiny amount on Friday, had a small amount of dividend payments from my ISA to reinvest.
Aerospace and defence seem to be good sectors to be in this year.Investors may be more interested in MSI,once the defence contracts are more widely known.
They seem to be juicy for a company of this size and offer a great amount of stability going forward.

[rogerbridge] 06/1/2006 17:44

Well I have joined the party. I think next week we should back on track.

[rivaldo] 05/1/2006 19:42

Well, judging from the chart it's about time for the usual upturn - these occasional pauses don't last very long :o))

[cockneyrebel] 05/1/2006 15:38

Hope the bored keep selling, I'm gonna take some of these at the most opportune moment I think - a small bit of ISA cash left.

CR

[cockneyrebel] 04/1/2006 20:07

yes, was holding VPC. They do have a history of letting investors down and I'm not totally happy holding oils/resources, I never understand what they are on about when they put out drilling updates! :-)

Good growth promised tho, if they deliver.

MSI have been delivering for some time now, that has to be worth a few points on the PE for the reliability factor, imo.

CR

[gardenboy] 04/1/2006 19:18

CR,

o/t but have a look at VPC..... (eps growth of 179% forecast for 12/05 and 240% for 12/06)

holding msi, regards gb dyor etc.

[cockneyrebel] 04/1/2006 17:39

just someone banking their divi and selling 2K making it tick down.

On the PE of 7 or less I'd sooner keep hold, I can't find 100% earnings growth ISAable anywhere else on this PE, doubt anybody else can either.

CR

[gringostar] 04/1/2006 08:37

It's a tick up

[janeann] 04/1/2006 07:26

CR at .58p I hope it is only a small tick down! Not that I am complaining either!

janeann

[cockneyrebel] 04/1/2006 07:09

ex divi today, if you are holding the divi is yours.

if there's a small tick down at the open that's why

CR

[cockneyrebel] 01/1/2006 17:39

yes, and I think the current rating suggests punters are not factoring in the growth continuing. But director buys and the big gun contract(s) says it will imo.

Sustained growth over several years is worth a few points on the PE ratio too imo. A re-rating again this Jan perhaps, another 20% like last year will be nice and it will still be cheap imo.

CR

[rivaldo] 01/1/2006 17:29

A happy and prosperous New Year to all MSI'ers.

CR, just gone through the figures again and reckon you're right about the P/E to May'06 being about 9 given 8.1p EPS in H1. Given the traditionally weaker H1, plus some benefit to EPS from this year's share buybacks (and the director buying) MSI should be on for 18p EPS or better, i.e a P/E of 9.2.

With the large MOD contract kicking in next year we could hope for 23p EPS to May'07 and a P/E of 7.2. The thread title sums things up pretty well, as a 50% rise would give a P/E of 10.8, probably a bit conservative, but I suppose appropriate for a company unheralded in the City which just gets on with making money in its own understated way.

[rivaldo] 29/12/2005 22:39

Couldn't have summed it up better CR :o))

[rogerbridge] 29/12/2005 14:16

Cheers CR.

[cockneyrebel] 29/12/2005 14:03

Who can say Roger?

I feel they have a load more in them, ISAable, 1.5% yield, growth of around 100% year on year and a PE of about 9 or less for this year, 6-7 for next year imo and pretty recent director buying.

At the very least I can't see any downside myself but it's your decission.

CR

[rogerbridge] 29/12/2005 13:54

Is it too late to jump aboard?

[cockneyrebel] 29/12/2005 12:46

Well mm's took 7.5K sell on the nose today and then move the price up - filling a larger buy I suspect.

A nice New Year rally like last year I suspect - rose 20% in a week last Jan.

CR

[cockneyrebel] 22/12/2005 07:55

35K historic trade through before the open at nearly 164p - must have been a buy early yesterday imo.

CR