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And that’s where the 273m balancing payment then came in. Doesn’t really matter what happens, there will always be one or two that find a reason to complain haha
Joint venture in my opinion would be a 50/50, however carlsberg take the controlling share with 60%, for the contract period yes this will run as brewing however when this ends I would not be surprised with it going down the tetley route
(Joint Venture) Clue is in the title. They haven’t flogged anything off. By the same logic every time a junior miner JVs with a major they give there license away to the major, fortunately this is not the way it works and you know that.
I'm a bit dismayed by some of the recent comments below suggesting that the future of Marston's lies in flogging off it's remaining brewing assets. I agree that the JV was probably a forced option in order to reduce the debt level, but please God don't let Marston's disappear down the same hole that Carlsberg took Tetley's
Good enough for me. I think Marston's are going to pick up some steam on the Carlsberg joint venture. I am also invested in cv19 tests. The new generation tests are going to help us manage the pandemic much more confidently. Marston's will survive and thrive in a slightly smaller market with a few less competitors by the looks of it.
Thanks for your very non personal comments which encourages me to write.
I only see as the Pandemic spreads a slightly lower rating than Marstons should be all being equal based on the Pubs not off sales. I will say I still feel this a very good longer term holding. If Carlsberg bring to the party increased volume for the 60% lost plus the money purchased for the 40% this will help I am sure. I have not studied what Carlsberg bring apart from short term cash from the distribution side. Ralph Findlay has said he will concentrate on the Pubs well that is the sector suffering at the moment as we know but the sector that will come back once a vaccine is out there. For the time being I was surprised how well some of my other shares have been doing especially the Uk banks so perhaps the Uk economy and prices of properties will help shore up the business too. I will also say that Carlsberg in Europe are also buying up a German beer so they appear to have a lot of money from somewhere. Good luck Jed and Pitter P you deserve it.
Only a few days to go now and we should get that extra £200+m from the Carlsberge Deal. and then we should see the sp back into the 50's / 60's no trouble.
It’s not upsetting, it’s your opinion. If people want to drink, they’ll also have to eat. As for a rise in local lockdowns, that’s a positive if it also results in reduced infections. Clearly the way it was being done wasn’t working and it’s about time a more proactive approach was taken - A means to an end ? 8 days until the JV completes by my reckoning with some debt reduction on the pub side off the back of it too - what’s not to like ? Best of luck in sitting it out
Marstons as Yoyo, Fairtrader and Barchild have said relies on its pubs - I have always said I am not so sure as they have been selling increased amounts coded as off sales. However the deal is not yet signed and if it is as the so called experts to which I have referred have said then more reliance is to be made for Marstons on the Pubs. I am therefore concerned at the moment with the growing pandemic and tier 3 lockdown expansion and even tonight on the news I see Stoke On Trent being moved into a higher tier so I am concerned and quite depressed with the Virus and hence my weak sell recommendation. To be fair my opinion is changing to the worse of a number of shares not just Marstons. I see some benefit in sitting on my hands for a while. I hope my rating for the time being is not too upsetting. If the virus continues its current path across the Country and /or if the deal is not signed I will increase my rating to a stronger sell. I am not as optimistic as I once was with many shares -sorry, which is why I have kept away Yoyoma but you keep writing if it helps you. For all those with a safer mind set be careful as I have said before.
Better late than never!
Marston’s
It probably sounds odd to be tipping a pub stock in one of the worst years in living memory for the industry, but Marston’s has been pursuing an altogether different path to its quoted rivals, making it worthy of consideration as an investment (Dominic Walsh writes).
There are two issues in recent years that have called its strategy into question. The first is its debt burden, which stands at £1.3 billion, although the flip side up until the Covid pandemic was its generous dividend policy. The second is the market’s failure to properly value its brewing business. By injecting its brewing unit into a joint venture with Carlsberg, Marston’s is killing two birds with one stone.
In addition to having a 40 per cent stake in the venture, it will collect £273 million — £230 million of that on completion in the next couple of weeks — which will reduce its debt and means it will not have to raise further debt or equity to ensure it has sufficient liquidity to get it through the pandemic.
The joint venture, which this month got the green light from the Competition and Markets Authority, also means that, at some point, the company that traces its origins to 1834, when John Marston established his brewery in Burton upon Trent, will deploy the exit mechanisms enshrined in the terms of the deal to exit brewing altogether.
Mind you, as Ralph Findlay, 59, the chief executive, has made clear, the deal already represents a move away from Marston’s being in control of its beer business, adding: “Operationally, it will be a pub operator.”
With the strategic issues neatly filed in Mr Findlay’s out tray, he can now focus all his efforts on keeping the group’s 1,379 managed, franchised and leased pubs ticking along in survival mode.
He has already announced up to 2,150 pub-based job cuts, possibly with some head office casualties as well, while the 10 per cent decline in like-for-like sales since reopening on July 4 represented outperformance of 7 per cent relative to the wider pub sector.
The path to recovery will not be smooth, however, as local lockdowns compound the impact of measures such as the rule of six, table service and the 10pm curfew.
Advice Buy
Why Brewing exit cuts debt and bolsters its finance
Fair Dealer
Indeed so !
But back to Mars, something that has not been aired is with the new round of "extra help" the Treasury are now promising, is it not likely that the hospitality industry, so badly hit all year, might be a prime beneficiary ?
I say this because of the number of people employed in it & to provide help for business in this area would be a cost effective way of getting things moving again, particularly with the outlook currently so bleak.
In a nutshell I just wonder if this might not be the dark before the dawn ?
barchid here's a better one "Confidence Trickster"
YoYoMa
A great summation, I thoroughly enjoyed it !
still delirious I see "Weak Sell"
I guess you have become bored and lonely on the HOC and CPI boards? You comment on here and yet your still in CPI ? Where is the logic in that? It's good to see that you mention contacts, contracts, and press offices in other boards so I have drawn up my conclusion of your presence on here....... During the day there is nothing on Cbeebies so you come here for company! Be nice and come back in or do you know more than the public eye and Freeths?
Every day the news is getting drierier than the weather I am holding in the sweep until I can come back in. I do not feel it fair giving an impression on price to disappoint so many others that have invested their hard earned cash at the moment.
I will be back but I am waiting for events to further unfold.
Well done for all those invested on the rise over the last few days.
Technically every post has an agenda, including yours - So WHO is bang on the money there. As for any relevance, I’m failing to see it. Good morning
Plus some of the long term ones hehhehehe - shame everyone cant be honest like me -- but thats life...
Reckons these small time posters have a agenda hehehehe
62p 28th oct
2nd November 3pm 58p
30th October, 2pm. 60p BOSH!
I believe this is the time to buy and think time to sell will be early next year
Agree with trader 113 BUY BUY BUY
I read that this morning and thought it was encouraging yet it still points to fact that RF has firmly got a grip on this brewery business. I guess the jobs cuts were already envisaged in an agreement part of the JV where duplication of duties overlaps. You also have to think bigger picture also....RF is nearing 60, whilst still young in the eyes of HMRC he may want to cash his chips in within the next couple of years and enjoy his retirement before handing over 100% to carlsberg IMO..... (I do think a HOLD/BUY) is the only option at present.
It is too long to post & is behind a paywall but you can usually get a free trial with the Times, then go to business, then more business and at the bottom there is an article headlined follow tech stocks the 1st article is about Polar Capital tech trust as a hold then the next article is Marstons.
Times is behind a paywall. Can you please post the text, if possible? Thx.