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McBride is going to be presented at the London Value Investing Club next week.
I am not sure if it is still an opportunity after going 10x or so. However, I may re-evaluate my opinion after the insights from the presentation.
Rns shows a big position taken…16.95%
Something must be happening here to cause this spectacular share price increase?
Maybe to do with two director buys late March. £10k on 25/3 and £50k on 28/3. See RNS.
This stock has risen 10% in the past fortnight. Any idea why?
What do you think are the best opportunities?
Pathetic accrol board accept an 11 per cent premium offer from Portuguese
Definitely bnt that
Mcbride should make a cheeky 40p counter here
Ridiculous to accept 38p
This was hidden at 25 12 months ago, at 4x that its not hidden at all. still cheap but as you point out 100% more and thats it. dozens of better opportunities out there
There is the perfect storm here of increasing sales (+9.8% H1 2023-2024), improved profit margins, strong operational cashflow, significant debt reduction (£21m down H1 2023-2024) and low valuation multiples. If the company can maintain its performance of July-December 2023 then we have a fabulous deleverage story over the next 3 years. This stock has been held back by low profit margins, high debt levels and pension deficit concerns for too long. All 3 of these factors seem to have been addressed and the near future looks bright. Strong arguments can be made for the share price being nearer £2 than £1 within 18-24 months if management continues to deliver. We doubled our stake this morning. DYOR.
Big buy recommendation
Let’s be having a stonking one tomorrow Mcb
Struggling like hell
We are eating their lunch
Long may it continue
Check out #MAST news. easy 200% rise. come and join the party. MAST
Shhhhh
Keep it secret !!!
....
"£145m debt vs £145m market cap still makes this extremely risky, especially with such minuscule operating margins..."
Operating margins are forecast to be about 5% for the next three accounting periods (including the one we are in). That translates, on huge sales, into a decent ROCE on such a small asset base. Sure, you can't expect big OMs selling to financially more powerful customers, but as the net debt and the pension deficit fall (payments into the latter to rise sharply from October?), the net assets should rise considerably, and falling interest rates too should help. Forward PE of nearly 5, admittedly with a flat to small volume growth profile, seems cheap unless you are expecting closure of the Suez Canal and WWIII to start.
Indeed, Yahoo Finance shows a consensus analysts' price target of about £1.04. In about a year's time, the share price should be past that. JMV. No advice intended.
P.S. Once the debt falls and the net assets rise decently, Paul Scott and Graham Neary of Stockopedia will adjust the risk rating back to adventurous - they were asleep on the job increasing the risk rating to "speculative", so don't expect them to do the reverse in a timely fashion.
Looks like sellers all done. hope this should move up past 100p very soon.
Saw @baroninvestment on twitter saying he holds. That’s a very good endorsement, he’s smashing it. He was mentioning a PE of 4 so it’s obviously too cheap especially when backed by very strong cash generation
Sometimes, it just needs some TLC to prime.
This is primed to move north once the seller clears out. Double the price could easily be achieved. 190 or 200p.
Profitable performance across all five divisions
Mad
A classic case of what happens when something is pumped by SCSW. £145m debt vs £145m market cap still makes this extremely risky, especially with such minuscule operating margins...
"Record Xmas sales at Aldi and Lidl
Will mean more sales for mcbrides"
Yes, for Almat (Aldi?) but no for W5 products at Lidl's: I think Dalli make the own label W5 stuff. But we do make Morisson's and Tesco own label laundry liquids.
I hope for an early exit from the last financing agreement, maybe towards the end of calendar 2024. Falling interest rates, falling debt and a signal towards the possibility of dividends/buybacks in 2025 hopefully to keep the share price momentum up?
This will £1 soon, buying quite strong.
Happy new year holders
Record Xmas sales at Aldi and Lidl
Will mean more sales for mcbrides
Just keep patience here and more rewards should come
Still wel below peak when this is a much better business once confirmation debt is falling a lot