Ms Share Discussion Threads

[sja123] 25/5/2006 15:24

Unable to buy even small ammounts online at the moment........I had to send a small trade to the MM and it still isn't showing as a trade.......if ADVFN are correct.....it is less than NMS too....

[cockneyrebel] 25/5/2006 11:11

Also lower now than last November - these have sat out the general euphoria over the last 6 months.

Show me another stock that's done year on year eps growth of 1.8p, 4.2p, 10.8p and 7.7p eps in H1 and trade on this low a rating. You'd understand a low PE if they never had a continuous record of earnings growth but this is bustingly good.

18p eps this year indicates something like 30p eps next year. We're only playing safe with a guestimate of 24p next year imo. 24p is a PE for the current year of 6.5!!!

CR

[rivaldo] 25/5/2006 10:59

Agreed. If we get the same sort of rise this year as in H2 last year the share price should be well over 200p and more like 250p.

Meanwhile the current price remains only just above the price at which MSI were buying shares back in (146.5p). A bit of a signal from the company you might have thought? :o))

[cockneyrebel] 25/5/2006 10:07

Well we can't be surprised these are rising - they have been ignored for months despite the fabulous growth record and low PE.

Results in June will highlight the value so punters starting to buy ahead of them imo. Set your alarmclock for a massive market wake up call in June imo.

CR

[cambium] 24/5/2006 22:59

From Cornhill

Dear Client,

Here is the view of our Head of Trading, Richard Earthrowl, on the current state of the stock market.

Global Equity markets have taken a battering in the last 10 days. The FTSE has given up over 9% and is now at similar levels to the end of last year. The sell off was triggered by macro-economic data from the US. The falling dollar, rising interest rates, the US trade deficit, and inflationary pressure were the reasons that people have been reeling off to explain the fall. These problems have been with us for a while, which is why people are calling the sell off a "correction", that it is healthy for the market and that it has been due for a while. It is easy to say this with hindsight. People are looking at the dollar weakness as a leading indicator; the decline started at the end on March. If you sold equities then, you would have missed five weeks of gains and the top of the market. The US trade deficit has been a burden for years, energy prices are at historical highs and have been there for a while, so people were aware of the inflationary pressure high energy prices cause.



The main fallers were in the oil & mining sectors, obviously the sectors that we are mostly involved in. The FTSE350 Mining Index is down 26% but two weeks ago oil and mining stocks were trading at or near new highs, with China's insatiable appitite for resources fueling unprecedented gains. Record profits have been seen at the oil and mining majors and the high price activity has attracted "speculators" who fuel their own fire and push prices further, both in commodities and stocks. Hedge funds and commodity traders are exposed to some heavily leveraged positions, and a lot of this sell off has been caused by these highly leveraged positions being unwound. The FTSE has fared worse than most indices as it has a larger weighting to the oil and mining sectors. There has also been a large increase in margin calls at all CFD providers over the past fortnight. As dark as the past 10 days have seemed, all is not doom and gloom. Money has been coming out of oil and mining stocks and the relative commodities, but it has been going elsewhere. The dollar has rallied and the bond market, which has seen little interest for so long, has perked up. This is why this fall in global indices has been called a "correction" rather than a crash. If there was complete panic everything would be sold off.



A pull-back in the oil and mining sectors is healthy as it gets the speculators and the "hot money" out, and these stocks will find a base at a level where new money can come in and value can be found. The situation has not changed. There is still a real demand for resources from China, whose economy is still growing at a very fast rate. The main fear is that interest rate rises will be used to curb inflation and this will stifle global growth. China is growing at around 10% per annum and interest rates are historically low. Other sectors have been pulled down by the sell off, but company earnings are still good, and, if the market is rebased to take into account inflation, there is still a long way for stocks to go up. There is still value, which is shown by company earnings, the corporate merger activity and private equity interest. In April 2004 the AIM Index fell 10% but then rallied strongly. In March 2005 it fell 19% and rallied again to reach new highs this year. It is currently down 15% in this sell off. My advice to you would be to hold, and see this correction out.



On a level that is more specific to Cornhill Asset Management, we select primary issues (IPOs and pre-IPOs) with real upside potential that is not based on a pipe-dream but is based on hard assets, or a superb management team in the case of our cash shell companies, or both. We get in at a valuation that is attractive to all our investors and offers real opportunity for maximum returns. Our net returns for investors are still over 100%. Yes, sentiment has been affected greatly by the quick and vicious sell off of late, but these companies still have a valuation that is well below what we believe it should be. The clever investors buy in when everything looks bleak and sit on their holdings. I'm not picking the bottom of the market, and volatility will be high over the quieter summer months as volumes will be down. But The FTSE is technically oversold at these levels due to leveraging of the commodity traders, the hedge funds and the CFD margin calls. The correction has been vicious, but I think it has gone too far. I believe this is a buying opportunity.

[cockneyrebel] 24/5/2006 11:35

I think they are probably Esso still, with a rebranding.

The bit I noticed was this:

"If you need a system built shop to look more traditional we can do it cheaper than conventional build. We use tile effect components insulated roofs and look-alike over claddings to replicate just about any finish

The Esso On the Run Shops use both simulated tile and brick finishes throughout Europe"


If MSI are constructing these throughout Europe then they must be up to the gills in work imo.

CR

[milesy] 24/5/2006 11:34

CR - now you mention it I think it is Esso's offering, a la BP's Wild Bean Cafe etc. Have just recalled a recently refurbed Esso station on my commute home that I think has been given an On the Run makeover.

Nice!

>M

[cockneyrebel] 24/5/2006 11:26

You can watch their video for constructing "On the Run" stores here:

[cockneyrebel] 24/5/2006 11:25

I'm not sure who owns them - our local Esso became an "On The Run" recently, they seem to be springing up everywhere. They seem more geared to selling food and mags rather than fuel but they undergo a big refurb when they become "On The Run" which includes the canopy for the pumps and the building that is often pre-fabricated that MSI do.

Must be some cracking business going on there at the moment.

CR

[milesy] 24/5/2006 11:14

CR - "On the Run forecourts"...could you expand....do these belong to one of the big retailers (certainly lots of expansion in petrol stations lately)?

Thanks

>M

[gswredland] 24/5/2006 11:13

Yep.I think we will head for 200 quite quickly

[cockneyrebel] 24/5/2006 11:05

DJ MARKET TALK: UK CBI May Industrial Output +10 Vs +12 Apr

1001 GMT [Dow Jones] UK industrial output balance came in at +10 in May versus +12 in April, according to the CBI industrial trends survey. DJN forecast was for +9. The CBI notes the highest export orders performance in over a decade - export orders were at a balance of 0 in May compared with -13 in April, reaching the highest level since +1 in February 1996. CBI chief economic adviser Ian McCafferty says "the outlook for UK manufacturing is more encouraging...on the back of the stronger performance of euro-zone and ...the US." (IAB)

--------------------

MSI forks must be selling like hot cakes imo.

We know the defence gun barrels have huge orders.

Canopies? Well the oil industry are making massive windfall profits and to jeep them from looking excessive they are re-investing - bet a lot of that is goin into new forecourt work. Definitely seenin a lot of new 'On the Run' forecourts around here that MSI build for.

CR

[rivaldo] 24/5/2006 10:15

And still only just above the 146.5p at which MSI bought in £150k's worth of shares...

Good to see the chart uptrend continuing too with a nice bounce. Not long till results.

[gswredland] 23/5/2006 19:36

Yep these can shift 30 - 40% in virtually one month.The chart shows this several times.The situation has not changed here.

[cockneyrebel] 23/5/2006 08:36

the bounce will be all the bigger on the results after this fall imo - now back to where the co was buying share back recently, all but 2p

CR

[gswredland] 20/5/2006 09:18

Considering the falls in any small caps these have held up really well. Not long till results though.

[rivaldo] 19/5/2006 11:06

Agreed...especially when you consider MSI bought in 100,000 shares at 146.5p, just 5p below the current price. Why do that unless it was going to enhance earnings?

Not long to go now anyway.

[cockneyrebel] 19/5/2006 09:36

A lot has conspired as far as timing from sellers, market sentiment etc to see this share price this low.

All I would say is 100% earnings growth year on year for the past 2 years and this year too.

EPS in H1 7.7p

Earnings usually weighted to H2.

I think 18p looks on the cards for this year, 24p next year. That would mean a forward PE of 6.3 for staggering growth and a diversified business winning some huge contracts.

A PE of 6.3 - the lowest PE on the LSE? And fully listed so ISAble. Are punters really going to keep ignoring that with results just 6 weeks away? My be is the nearer we get to the results the steper the rise will be either before the results or on the results.

CR

[puku] 18/5/2006 18:27

Diogenes - many thanks Mike

[chopshs] 16/5/2006 22:16

Bought in today at 157 although my trade hasn't shown up. Looking for a nice recovery (and more) up to and beyond results... These seem to do well second half of year after finals are out and market sees how cheap they are...

[cockneyrebel] 16/5/2006 16:17

sorry, wasn't it on there? I thought most carried the details.

Looks like Diogenes has provided a good link.

CR

[diogenesj] 16/5/2006 16:08

Aim and Ofex trading companies (companies not carrying on significant non-trading activities, such as investment) are business assets for CGT purposes. Shares quoted on Aim and Ofex count as unquoted for this purpose.

See:



The effect is that the CGT liability is reduced by 50% after one year and by 75% after two years.