Ms Share Discussion Threads

[cockneyrebel] 27/6/2006 08:46

sensibility will return imo.

As for the golf ranges, yes, part of the comopies business so an extension of that imo. Part of the investment may have gone into this for payback in the coming year or two along with the guns imo.

I'm delighted to be holding a PE this low and a solid company with an excellent track record.
Earnings in H2 may have bee sacrificed a bit for investment but that's the right thing, not the short term thing.

Those that get bored will drift away and miss the payback I suspect - probably buying back higher when it gets tipped in the tip sheets or ecognised in the press. I'm holding, it's done me well over 2 years and I expect it to do even more over the coming year.

CR

[iandippie] 27/6/2006 08:28

Well, still happy to hold, but wont be adding just yet. I was hoping for 18 eps, and although MSI is going great guns, I don't think this will get to 270 in the next couple of months. However, happy to be heavy in these, and happy to be proved wrong about 270.

[cambium] 27/6/2006 08:20

Thats for standing doubleorquits, the seating is more.

;o)

[doubleorquits] 27/6/2006 08:19

Take your own sandwiches definitely. I understand they are charging £10 per head for all attending the AGM as well - but that does include a cup of tea.

;0)

[diogenesj] 27/6/2006 08:06

Nice results, still looks cheap, but the shares would be a lot higher if they did a bit more in the way of investor relations. I'd take your own sandwiches to the AGM, xd: you can't count on getting any out of these people. :-)

[cambium] 27/6/2006 08:05

What is the bet that we fill that gap by the end of the day.

[bigbigdave] 27/6/2006 08:04

LOL! Tinned tuna.

[xdavid] 27/6/2006 07:57

Hi Goatman. This is a company which did not put out an RNS for a £15m MOD contract because it was spread over a few years and anyway, is what their business is and so not exceptional! A small start-up venture expanding on their petrol station capabilities is just not going to make a show! The only comment/outlook in the results comprises half a page from the chairman (and the first paragraph of that gets repeated :-)

I'm seriously thinking of going to the AGM this year. I'm really curious to see what sort of sandwiches they provide...

[goatman] 27/6/2006 07:43

Good morning CR,

Nice results, I see. I was reading Xdavid's posts regarding golfing range manufacture and it appears that MSI is indeed involved in this. I know that this is a company that doesn't spend more than necessary on visibility, but should this activity not get a mention in the results? I don't see it there! I would appreciate your view. Thanks.

G

[xdavid] 27/6/2006 07:40

Gosh, wasn't expecting it this morning!

24% growth (on diluted eps) - damn good considering the cost of sales seems to have risen by 17% (against +14% for revenue) and the effective "tax" rate is 34%, a full 1.1p per share above last year. Presumably the latter a one off? (Can't say I understand tax and amort' stuff). Distribution costs (oil?) have also gone up a third but this was offset by a comparable reduction in the larger admin expenses (which seems like good control!).

I'm stunned at the cash back up to £5m - this is supposed to be an engineer! And they have still made record capital expenditure on new equipment etc, LOL! Still to look closer at the rest of the balance sheet but looks good at first glance (as Michael Bell states).

Comment wise, the "record forward order book" bodes well, as does the continuing investment in capital and R&D. The export order for the new gun is excellent news (maybe Australians?) and must surely lead to more. Finally, a nice comment on the forgings division - "gathered added momentum through enhanced capabilities" - this must be the stuff on the new web site (which link escapes me at the mo).

From the initial mark-down in price, looks like there has been some recent speculators taking a quick buck but seems to be bouncing back - would have been a good window for those who waited to buy on results - don't usually see that!

All in all, I'll tuck them back into the drawer - see you all in 4 months for the interims? :-) Hopefully, a bit of news would be nice before then but I won't hold my breath!

[cockneyrebel] 27/6/2006 07:30

Yep, let's get real here. Yesterday the shareprice was pricing in beggar all imo, almost pricing in a decline in earnings on that rating. H2 eps slightly lower than it might have been due to investment for new gun orders I suspect but the PE is still way low for the sector and such a great performer.

Doen't make it a sell because it's very cheap rather than screamingly cheap does it? And if those gun orders are as good as it sounds it may well be screamingly cheap still

CR

[sidebar] 27/6/2006 07:27

Accountants can massage most figures but you can't argue when a company puts cash in the bank. £5.19m, excellent.

[bigbigdave] 27/6/2006 07:27

Anyone catch the bottom?

[gardener1] 27/6/2006 07:21

This fallback in share price looks like a great investment opportunity. Not yet bought but finger poised on the buy button. Not a big investor but have followed CR's comments on a number of boards with interest

[rogerbridge] 27/6/2006 07:19

mm's seem to be desperate to shake a few out today. Well they are not having my shares. Quite happy with long term prospects. Off to work.

[cockneyrebel] 27/6/2006 07:07

I think it must be the Ausi order - can't remember the size but looked large on the number of guns.

Suspect a few of Robbie Hood's merry men who bought yesterday won't stay the pace. But longer term the business MSI are doing looks huge and the investment has gone in - payback for those with the will to wait imo. 2007 looks very bright with gun sales so strong imo.

CR

[rogerbridge] 27/6/2006 07:05

looks as though mm's are trying to get some cheap shares, but this may be an opportunity to tuck some away for the pension.

[gringostar] 27/6/2006 06:47

"I am now able to report, that in addition, we have won our first export
order for the new guns"
Anyone know the size of this export order?

[shanklin] 27/6/2006 06:29

Also worth noting the big improvement in the funding of their defined benefit pension scheme.

[cockneyrebel] 27/6/2006 06:28

Excellent results. Appears these gun orders are huge in comparison to MSI's size and now a second major foreign order. Looks like the investment needed trims H2 eps a couple of pence of what I hoped but should mean greater growth in earnings in the year ahead.

All divisions still trading strongly and still a single digit forward PE om any best estimate, perhaps very low single digit if the real profit from these guns start to fllow in this year and the bulk of the investment done.

Will be interesting to see if we get more director buys or co buy backs here again.

C

[rivaldo] 27/6/2006 06:20

Not quite as good EPS as hoped for, but MSI are obviously in great shape and the outlook statement is as bullish as I've ever seen it!

To be pedantic there's a bit of intangible amortisation this year, so the real EPS is around 15.4p.

Plus MSI are back to £5m in the bank on a £31m m/cap...

You can't argue with figures like this and an excellent outlook in all 3 divisions:


"• All three operating divisions increased revenues and profitability
• Turnover £44.44m (2005 - £38.24m)
• Pre-tax profits £3.81m (2005 - £3.19m)
• Earnings per share 15.0p (2005 - 12.4p)
• Cash at bank £5.19m (2005 - £1.01m)
• Forward order book at record levels
• Final dividend 2.20p (2005 - 1.65p) per share making a total of 2.78p
(2005 - 2.15p)"

[bigbigdave] 27/6/2006 06:13

I know its bad form to say so......
But just wonder of Robbie had 'inside information' about the date?

[iandippie] 27/6/2006 05:51

on further inspection, it looks like volume rised on the day, not the day before, so perhaps we are getting an early boost this time...

[iandippie] 27/6/2006 05:46

Volume traded rised significantly the day before last yrs finals in June and interims in Nov. Yesterdays volume was the 4th highest this calendar year, so my money is on results beig released in 16 minutes...

[iandippie] 26/6/2006 19:38

rivaldo

cheers for the heads up on BOI. Will take a look.

Geez, the Iti's had it lucky. And they get to play the "mighty" Ukraine or Switzerland next! Jammy sods.