Mucklow (a & J) Share Discussion Threads

[losos] 22/2/2018 10:00

redartbmud - It is not often these days that one comes across an old established firm with major family shareholding. I am starting to build a position, some years back I was in SEGRO but MKLW seem to me to be a better proposition. Time will tell, I've had some real disasters with my stock picking in the past haha. Sincerely hoping I don't jinx your long term position :-)

[redartbmud] 19/2/2018 10:19

QP

Long term holder.
It is a small cap, specialist, local to the Midlands and it is controlled by the family.
On that basis, it is only relevant to a particular type of institution.
The others do not know what they are missing.

[my retirement fund] 16/2/2018 13:52

Should add i did pick some up at 498 earlier in the week so its always worth waiting fir a weak day imo.

[my retirement fund] 16/2/2018 13:48

IC rating as a buy on account of further NAV gains awaiting to be crystallized.Also the dividend although it incorrectly misleads its readers over the dividend which should be more like 22.4p per annum.

[my retirement fund] 10/1/2018 17:41

Nice to see a bit of volume and liquidity for a change.

[skyship] 05/1/2018 09:36

Sleepy - yes, it is an excellent story; and no-one can dispute a performance of 16%pa compound growth. Their more recent flatlining of the past 4yrs is presumably because the share price got too far ahead of the underlying NAV.

Also agree that the Bull Ring Trading Estate must be a development opportunity; but still doesn't totally explain how/why they had the Book value so wrong.


free stock charts from uk.advfn.com

[sleepy] 05/1/2018 09:08

Comment from the Edison (EPIC) thread:

if you are interested in quality players in Midlands property, you should look at MKLW. Their track record is exemplary. Div might be slightly lower than some of the others discussed but look at the cover, low debt and progression over a very long period.

I own shares in all the above so please DYOR.
SKYSHIP3 Jan '18 - 17:44 - 57 of 58
0 0 0
Ho Jombaston

Yes, I have MKLW in the Header on the Commercial Property thread - (CP+) - see link:



Not one I really like as I won't buy propcos at an NAV premium. At 30th June valuation the premium is just over 8%; though that could well come down to 3-4% with the Interims in February. Aided by that bizarre sale of the Birmingham Trading Estate for £13m v. £5.4m valuation! How could they have the value so wrong in their books!

Also the yield @ 4.3% is hardly generous these days; and their gearing is over-cautious...
Sleepy4 Jan '18 - 21:13 - 58 of 58 Edit
0 0 0
Sky

Respect what you say about Mucklow and very much thank you for the 2018 JDT thread

I have followed Mucklow for many years (occasionally have been a shareholder (not currently or for some time) and I also have direct commercial property interests) and would like to make two points:

1)They are family owned and run. Their objective is to benefit the family through growth in asset value and dividends. This compares to the recently established REITs where a major (main?) objective is to increase AUM so that their investment management fee income is maximised

2)as stated in their 2012 interim statement

“50th Anniversary

In April 2012, A & J Mucklow Group will be celebrating 50 years as a listed company. Its principal objective has always been to deliver steady, long-term income and capital growth for its shareholders.

The Group's financial performance has been exemplary since it was floated on the London Stock Exchange in 1962. The ordinary dividend has increased in 45 out of the last 50 years and never been cut.

An investment of £1,000 in Mucklow shares in 1962 would today be worth around £1.6m, assuming dividends were reinvested. The total shareholder return has averaged over 16% per annum for the last 50 years‡”

My understanding and belief is that their asset valuations are conservative (is that always the case with REITs?). I have a little knowledge of the Birmingham property market but no specific knowledge of the Bull Ring Trading Estate

I have not studied their last annual report but two possibilities come to mind regarding the very large excess to book value of the Bull Ring Trading Estate sale

1) properties are valued based on their existing use or

2) given its size and location its value is as a development property. By their nature development properties are more difficult to value than most other properties and the valuers took a conservative (over conservative?) view. Possibly a special purchaser (eg a developer who owned adjoining property) was prepared to pay a premium price?

Perhaps someone more familiar with Birmingham would like to comment?
Go to previousJump to the specified articleSubmit

[my retirement fund] 19/12/2017 12:35

Clearly you need other people to think for you because you dont have much up there do you?Merry Christmas.

[my retirement fund] 19/12/2017 12:33

Show me some peer reviewed credible research which can be duplicated if required....Have you actually got any?Nope thought not so do one. Kiddo !

[my retirement fund] 19/12/2017 08:48

I dont buy that because all this stuff you buy online these days were once sold in shops only a few decades ago yes but back then it still needed to be produced just like it is today and back then it still needed to be stored somewhere until someone bought it.NOTHINGS CHANGED !

[dexdringle] 21/10/2017 11:56

Presumably, the valuation of £5m three months ago was done by Charlie Cairole ?

[topvest] 21/10/2017 11:47

Yes, that's what I thought. Makes you wonder how cautious their valuations might be!

[ntv] 21/10/2017 10:30

interesting sale at well above asset value
it would have been nice to know the exit yield

[my retirement fund] 05/9/2017 09:34

So the spread here is not great. You don't buy these to sell them though. So 3% dividend increase and chalking up a 55 year unbroken dividend record. What's not to like?Interesting comment from Rupert Mucklow. 1K invested in 1962 now worth 3.3M.That's pretty good but not close by any stretch to that of Warren Buffet where it would be worth over 13M excluding currency movements.