Ms Share Discussion Threads

[cockneyrebel] 02/3/2006 20:41

10K buy at the close, done at the mid, reckon that's what caused the late tick up in the afternoon.

CR

[cambium] 02/3/2006 20:38

This has got to be the cheapest stock on the ftse, which means its isable too.

Absolute bargain Spinkydink

[spinkydink] 02/3/2006 17:22

cheers boys

[cockneyrebel] 02/3/2006 11:10

Yes Spinkdink - the last few days has seen a couple of 'bored' sells.

Buy from the bored, sell to the excited imo. The time to sell these is when they spike 20% and all the punters can't buy enough in their greedy frenzy - that's the usual scheme of things but even more so here. So many need their daily fix of a tick up but trying to grab it here on news is a killer opens up way higher on news frequently - very illiquid.

Timing is key - good luck - certainly some bored around to buy from at the moment!

CR

[xdavid] 02/3/2006 10:35

Best to read back through previous posts - mostly all relevant (none of the off topic stuff that you get sometimes :-)

[spinkydink] 02/3/2006 09:05

I am looking at buying into this, any comments guys?

[gswredland] 01/3/2006 08:15

thanks guys.

[diogenesj] 28/2/2006 22:46

They are ISA-able, and will continue to be so. They considered a move to Aim last year, and then decided against it.

[peladon] 28/2/2006 19:49

Yes, they are.

[gswredland] 28/2/2006 19:33

Are these ISAble guys please? Thanks in advance.

[puregenius] 20/2/2006 13:46

Thank you all for your comments.

[smiler1] 20/2/2006 12:49

According to accounts, MSI had an overdraft facility of £3.1m which was renewable at 31 Oct 2005. They also make mention for y/e 30 April 2005 of need to maintain higher raw material contingency stocks. Having said that, inventory reduced in the half year just ended.
The working capital did increase by £1.8m at the half year but given the growth in turnover(increase of £4.5m - 24%- compared to previous 6 months), an increase would be expected. As CR says above, the new contract will make the cash flow more lumpy.
The reassuring aspect at the half year was the reduced value of stock and wip which taken in conjunction with the improved output of the business might indicate that a very prudent view was taken at the half year in recognising profit on current contracts. Certainly, historically the profit margins are healthier in the second half.

[xdavid] 20/2/2006 12:03

There is a note in the last results about the reduction in cash being due to working capital increases and in particular forward purchase of steel to avoid any problems from supply and/or price increases. At the last interims I noted that they actually moved into a small net debt position - but saw this as a good sign on balance - working capital increase again, suggesting that business was just as good if not improved.

They do seem to have a high reliance on steel supply etc - one division does forecourt canopies (probably buy in prefab steel sections for this) and another, the castings division, surely uses basic commodities. The defence wing - no idea whether they produce their own castings for the guns etc.

They did also note in the last results (I think it was results) that they were able to pass on increases in supply costs to customers.

If you do pursue this with management I'd be interested to hear their response too.

-david

[cockneyrebel] 20/2/2006 11:38

they have virtually no debt.

The cashflow is most likely to be down to the large gun barrels contract and other working capital requirements from ongoing orders.

From their balance sheet I think that banking facilities are nothing of a problem.

Along with buy backs their has been good director buying from non-exec director quite recently.

CR

[puregenius] 20/2/2006 11:34

I am thinking about investing in MSI and was having a look at recent results. I have noticed that their profit to cash conversion from operating activities has been poor over the last eighteen months or so: eg 6m to Oct 04 operating profit of £1.29m, cash inflow of £13k; 12m to Apr 05 £2.97m op. profit, cash inflow of £2.03m; 6m to Oct 05 operating profit of £1.57m, cash outflow of £253k. Their working capital management seems weak. Does anyone know what banking facilities they have in place? They have been buying back stock so must be confident in their ability to generate cash but it's not borne out by the numbers. Has anyone else looked at this or spoken to management about it?

[cockneyrebel] 17/2/2006 16:10

Well we are on the verge of a long awaited breakout - go through this level and we should see one of MSI's awsome rises :-)

Happy Monday :-)

CR

[sidebar] 17/2/2006 15:50

Rivaldo: MSI completes my portfolio! Although my trades at 9-45 don't appear (3007, 3007 and 1651) Not that easy to trade medium blocks online.
Now have NCH (obviously), API (in loss), VOD, LLOY, RST, OPTS (new issue - small loss). All in Pep's and Isa's. Excitement provided by 2 aim companies IBG and GTL.
GTL would be my favourite to double, maybe more, this year, small spread for a penny share (methanol producer)
All the best.

[rivaldo] 17/2/2006 14:39

We meet again Sidebar :o))

MSI's as good as any imo, though BOI, CGR, MEG and PDT are all other stocks which are doing OK for me and should catch fire over time - none are exactly exciting, but then that's what's been great about MSI...though I also think PTI still has a long way to go for a bit of excitement in an ISA.

[onlyonestorm] 17/2/2006 12:56

milesy - Yes but out of MNW at present!!

Stormy

[sidebar] 17/2/2006 12:13

Hi Rivaldo:
Is this the place for my NCH money? :-)

[liarspoker] 17/2/2006 11:47

LOL - Fools and all that. ;-)

[milesy] 17/2/2006 11:46

Hi Stormy, you're here too I see as well as MNW. Great minds and all that!

>M

[onlyonestorm] 17/2/2006 10:03

Finally!!

Needs to test 165p now!!

Stormy

[rivaldo] 17/2/2006 09:23

Yep, thx again Tole. I still find it amazing that MSI didn't put a £15m contract win out on RNS. It may not have strictly met the class tests on an annual calculation, but it's surely fundamental to the business and price-sensitive. They really do hide their light under a bushel compared to companies who issue an RNS if they buy a new light bulb...

MSI were buying in 100k shares at 146.5p only a couple of months ago, and the share price isn't much higher than that now. I wouldn't have thought they'd bother if they thought the share price was only going to stay 10% higher than the buy-in price.

[xdavid] 17/2/2006 09:07

"has the sleeping giant awoken !"

Well, if you reckon 200% in two years is 'sleeping'. I'd love to see your other stocks! ;-)

To be serious, and as CR mentioned earlier, MSI moves in real sawtooth motions but the spread and volatitivity make it a buy and hold rather than a trader. Results are not until June and they are very reticent on giving any news (not even an official results date!) so if you need info flow while you wait, this is probably not for you. Difficult to predict another 100% this year but looks good for a 50% target (by end of 2006).

-david