|I see the offer has come in
150p per share with Mountain buying the eletrical business for £9.25m in cash
also the interims were published
people were buying at 147 after the announcement|
|This morning's increase where I see people are getting 137p+ has got me looking at what I should do.
Trouble is that there is not much to go on.
The news site of the website has no updates since Jan 1.
Trading volumes are low...the largest turnover in the last 20 days is 41k on March 2 and indeed total trading volume of 300/325k over last 20 days compares to total shares issued of 14.85m
Checked to see if there is a property play here...does not appear to be book value of freehold which the directors specifically say is close to market is £3.2m so no plays there.
The last two trading statements talk about demand issues in the UK but note that at £5m non UK sales in the FY tp 6/06 were 1/3rd of total waste sales.
I have decided to hang on
If the third party does bid, management can come into the fray..I feel that something will happen.|
|bought 5k yesterday wednesday morning based on the local goverment association report on monday and subsequent Telegraph headline on tuesday about councils putting in weighing chips in their wheelie bins..I went thru my full service/commission broker and he had real problems getting hold of them so not surprised at this morning's strength.|
|This is starting to creep up - perhaps the I.C. was right about it - shame about the spread though.
It's just come out of a two month break-out - I know that that's not much to go on but these recovery plays always start off like this.
I'm in for a nibble tomorrow.|
|just a thought but maybe BIFFA looks a more solid proposition?|
I am having a sniff around as well. Much the same conclusions as you. I was vey excited by the strength of the b/s and the divi and cash flow etc etc and thought it looked like a buy because the intersting bits, which may or may not take-off, are in for free at this price but then I saw the corporate wheeling and dealing in the background and have decided to stay on the sidelines.
I see that Impax have a big holding, I might try and see what they think of it all but in the short-run I am extremely cautious.|
|Doing a trawl through companies in the waste management business and noting this week's share price increase I have been looking at this.
In some ways it is a no brainer buy ie a good balance sheet-perhaps more intangibles than I would like; no debt; a div yield if maintained at 4% and trading on an historic pe of 6.5x with a good acquisition in the buoyant electrical installation business not to mention exposure to waste management. I even liked the fact that while they had understandably enough their agm in Bradford they held it at a time that London people could get there.
I take the point that the spread is wide but no wider than for your average £14marcap company with 50% of the shares with the ceo; indeed while I have missed the comments about a buyout referred to in these pages,I guess that when the ceo owns so many of the shares he may find he can do without the hassle of outside shareholders. There is also the issue of what will happen to any further shares issued to the sellers of PW and indeed any lock in period they may have.
Despite the above I am hesitating before buying...lack of clarity in the waste management business , spotty track record and erratic share price...do not understand why they fell so much in the autumn.
Something to think about for the rest of the weekend but views welcome|
|With a quote of 83p to 93p who would buy these ?|
|The man in charge is no muppet. It all sounds like setting things up to line someones pockets at the expense of the shareholders.
I wonder who's going to come out of this with a big fat pile of cash?
|The Managment should all be sacked - Why
Becuase If they cannot deliver the orders they said they would, they cannot be any good. However Now they have managed to fail the shareholders and the price has gone down, they are willing to buy the company (and work as they should have) to get the orders.
Do not reward them with a management buyout - SACK THEM|
|I made a bit of dosh out of these a year or so ago and thought they could be a strong performer in these days of waste & recycling.
Now glad I'm out. I agree this has the look of the 'night' about it!
Classic scenario would be privatisation by management buyout, followed shortly by sale to a larger player. Net result: shafted shareholders, apart from GM of course.
Leaving well alone.|
is this another company about to be snapped up by management just when it hits it's lowest ebb?|
|I used to sell to this/ these companies (I also used to be friends with a director of PM - don't know if he's still there now) & at the current share price I think it looks good, especially as market cap / pre tax profit is only just over 5 (very low).
However, one thing I'm not so keen on, is that when I used to sell to them I always understood that both PM onboard & Pitts electrical were owned by Geoff Mountain, ie he was the major shareholder in both (don't know how true that is, but thats what was implied), so you have to ask the question:
Who does the aquisition of Pitts benefit the most - GM or the shareholders of PM Group?
If Pitts have one major customer who accounts for 85% of business, then it isn't going to look good if/when that contract dries up. Also, just how much use are 120 electrical engineers for fitting the waste management systems, especially as that seems to have dried up, for the moment at least.
I still like the company, but I'm going to sit tight for now until the future becomes a bit clearer.
Just a few thoughts/ observations that it might do well to bear in mind.|
|O/k So I had to buy some @121 not showing yet|
|On Friday They were up 1p 7p spread then they changed it to a 10p spread and down 2p . Is this the norm for this ?|
|back at £2 soon|
|big sellers gone back up she goes|
|have a look at the results and tell me this isnt worth double this|
|no reason for drop back too £2|
|oh forgot, there is director buying too!|
|Correct me if i am wrong but there is an island reversal showing on the price chart, plus the share price is up on really good volume, me thinks this is a short term buy purely on technicals with a stop @ 116p|
|finals out today. Headline numbers looked strong but the future is very unclear. Electrical contracting had a brilliant year but they expect to do (a lot?)less well next year. Waste management side is suffering and there's no clarity as to when or even if it will pick up. All in all there was a lot of hope in the share price and that's just popped. Still look pricey to me even after recent fall.|
Questor (James Quinn) says Buy
The Telegraph, 28 March 2006
Investing in rubbish may not sound like a good idea, but it could lead to considerable returns.
PM Group is a fine example of a company that spotted a niche some years ago, and has managed, through organic growth and a large acquisition last year, to make money from it.
The company does not actually handle the waste itself, rather the most interesting part of the business develops and sells vehicle onboard weighing systems for bin lorries and the like.
Although this may sound odd, as most British households have their rubbish collected for free, it is a growing area that could reap dividends for PM.
As has already happened for businesses, households may soon have to pay for domestic waste to be taken away because of the lack of suitable sites for landfill.
To this end, the Department for Environment, Food and Rural Affairs (Defra) launched its waste strategy review, which is looking into a number of strategies to combat the problem. PM is taking part - either directly or indirectly - in 22 of 36 Defra-sponsored recycling initiatives as part of the waste strategy review.
PM's technology allows the operators of these schemes to work out who is recycling what and when. The upside is phenomenal, although as yet, because of the uncertainty, the company has guided sector analysts to keep this out of their forecasts. Although sales of PM's BinWeigh product slipped in the first six months to December 31, the potential is great.
The rest of the company's operations,- in bulk haulage and electrical installation, is ticking along nicely, as seen in yesterday's interim results.
Sales more than doubled to £19.6m, thanks partly to the acquisition of Pitts Wilson Electrical last July.
Profits rose almost six-fold to £2.1m, and cash flow has been transformed from a negative net cash position of £2m in 2004 to £536,000 at the end of December.
The company's shares are on the rise again and sit on, a price-earnings ratio of just under 15 times to 2007. With a forecast 2pc yield, the shares are worth tucking away for future growth.|
|seems to have gone quiet on the pm group front. Any thoughts on having to wait until 16 September for the full year results RNS for any news? Or sometimes in the next 6 weeks there will be an RNS regarding the 'anticipated increase in orders' stated in the EGM RNS.|
"Ken Jackson, Chairman of PM Group, commented: 'The delay in sales has been
caused by the political uncertainty surrounding a pending general election and a
return to strong growth is expected within 12 months.'
'The Board believes that the company is in an excellent position to seize the
opportunities in the waste management market and expects strong growth in sales
and profitability as councils implement incentives to UK households to reduce
levels of domestic refuse.'"
Sounds like growth is on hold at least until election is out of the way. Will that suffice to get sales growing again or is pressure to keep council tax low going to hold up investment which even the company calls "incentives to UK households" ?|