Msb Share Discussion Threads

[farsight] 05/4/2006 10:25

Anyhow, the company is worth £13m according to the balance sheet. OK they made a little loss, but business is looking up, and they've just got a prize for being the best IT recruiter. So that's got to be worth a million or two. Let's call it £15m. Then there's the the turnover, which is the thick end of £100m. That's worth £10m easy. So we're looking at £25m. It really is worth this. Compare with HVN marketcapped at £40m with double the rurnover but with £8m debt and you can see it. But let's not get carried away, let's call it £20m. And with just under 20m shares we are looking at 100p.

[farsight] 05/4/2006 09:42

How we doing guys?

When I bought these last week I forgot I had a big meeting yesterday. I was out at 7am and home at 8pm. Bummer. So I cracked open a bottle of wine with the Mrs then things kinda got hazy.

[stemis] 04/4/2006 17:49

ct98,

Although MSB's debtors are £17,846,000, not all of this is trade debt (there are some prepayments in there). At the end of last year, £14,033,000 of the £16,659,000 was trade debt. So lets assume that trade debt at the end of this year was £15,000,000 - against which you might raise 75% = £11.25M.

But you are generally correct - the balance sheet is the key to valuation in a takeover of MSB.

[ct98] 04/4/2006 16:23

lols

Look at MBS's balance sheet and then look at Quantica's!

Night and day!

Absurd and unusually rare perspective C.B.B.! With the utmost of respect!

[cornelious billy bee] 04/4/2006 16:17

LRG had a tO appraoch, took one look at the books and the company walked away, maybe sam with MSB, lucky really as I just nearly bought 20000 shares at 52p

[ct98] 04/4/2006 15:17

Apologies SteMiS!!

This is being deliberately held down IMO. Why does a fund sell 5% of its position after a (pre-lim) takeover approach has been made and announced?????

Having not traded their position either way for ages!

I wonder who sold that last "500" shares?

Receivables are approx 17mm. If you can't raise at least 80% of that in a heartbeat you shouldn't be in the take-over business. And that's a minimum.

A floating charge and a kicker on the upside realised equity value to the lender would allow more.

[stemis] 04/4/2006 15:10

LOL

A buyer could mortgage the receivables for nearly 15 million, ie 75p!!!!!!!!

I don't think so. Maybe £10M.

I have averaged down all the way from 77p to 40p over the last 2.5 years, so I'm not raising my hopes too far. If we get 75p I'll be very happy!

[ct98] 04/4/2006 14:16

A buyer could mortgage the receivables for nearly 15 million, ie 75p!!!!!!!!

And you have the business on top!

Get real - or back to the buying camp! LOLs

[ct98] 04/4/2006 13:52

Sounds like you're working for the buyer to me!

[stemis] 04/4/2006 13:40

75p might be pushing it a bit but I think 60p+ (= £12.3M) is quite achievable, based on:-

2005/6 EBIT - £373,000 + annualised savings of not less than £750,000 plus, say, £1M head office savings = benefit to trade acquiror of ~£2.1M.

Net currents assets - £11.0M (including net cash)

Net tangible assets - £11.3M (no debt)

[ct98] 04/4/2006 13:39

The 7 quid comment is to put value into perspective. 4p eps is only 800k profit, a snip more than they are paying out in dividends currently!!

Any take-out must pay a substantial premium to book value (which is approx 70p).

I stand by my thumbnail valuation posted earlier. As would any acquisitive party! Of course if you can try to buy out a cheaper price, good luck to you!
The upside potential here though is way too transparent though.

[cornelious billy bee] 04/4/2006 13:27

ct98, I think the 7.00 comment is irrelevent, so is has been disounted.

MSB need to have an eps of at least 4p to justify a share price of 80p (take pe 20 as just above standard)

Can this be achieved?

[jemtang] 04/4/2006 12:54

Who has replaced Pete Brown?.....Pete was OK but not really a good director...good salesman....didn't ever get the respect off people - deserved more. 100m t/o run by better management should return much better....here's hoping to a good takeout price.

[cornelious billy bee] 04/4/2006 12:17

really what is yur valuation based on?

[ct98] 04/4/2006 11:54

Has to be substantially north of 75p.

[cornelious billy bee] 04/4/2006 11:52

what do you thnk will be the take out price ct98

[ct98] 04/4/2006 11:46

What about the take-out price?

When it comes of course. Which it will!

[jemtang] 04/4/2006 11:44

looking good, if we get some more buying could easily move to 55-60p..we will see...

[cornelious billy bee] 04/4/2006 11:38

good call fs

[ct98] 04/4/2006 11:37

Does ANYONE post on this??!!

[ct98] 04/4/2006 10:28

MGMT has virtually zero stock. Kinda disappointing, I remember when this was over 7 quid with similar revenues.....................