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See also a very encouraging set of results from Compass where HL report a doubling of underlying income. COuld help raise the sector profile as the good news continues.
Marstons can now deliver up to 10,000 pints per day by Electric lorries -savings diesel costs? Trial looks interesting as sales will increase in hot weather so they previously have reported. If in May they were meeting 97% of 2019 sales then maybe the sunnier times will help them further - Maybe we should have a further update on sales soon? GLA.
Thank you.
30% off food until 31 Jan 23
Are these still valid and if so, how much discount do we get ? Very grateful for info.
sam... anyone who buys and sells shares commits a Trade. There is a subtle difference between TRADERS and an Investor who commits to a Trade.
Traders inherently have little or no interest in the long term health of a Company, but rather seek to make a quick profit in under 1 year. LTH's have as the term infers, the fundamental business structure which will generate growth and returns to investors(Dividends). In an Economic cycle these basic investment blocks can and do fluctuate.
In more precise terms, many of us here invested on what was a good div. return, That has now disappeared and many, including me, have evaluated our investment here.
At the current SP MARS does represent a fair investment for Traders, whereas LTH's have been let down previously when a TO was on offer and consequently even though assets outstrip current SP, there must be a fear should another offer come forward the dogma that existed previously will again come to the fore.
It could be a gamble which may pay off, however each investor need to weigh up the risks on a company heavily in debt.
AIMO
@ Fairdealer. Yes, you're right. RF has a lot to answer for. No question about that.
That said, I have offloaded a fair bit of my Marston's holding at a small loss & topped up on a couple of others that I hold that I see better growth potential in. I do still have a small holding in here of 500 shares though.
I suppose we are all traders if we buy or sell a stock, but I never think of myself as a trader per se as I "trade" infrequently.
I have bought and sold MARS quite up bit through the ups and downs over the years and generally kept above water. More recently I have been convinced that the business is undervalued and have bought all the way down.
I have not done the numbers but I would thought that my averaged down entry price is now in the low 50s after the latest blocks I bought in low 40s.
If I was being rational I would say as I was over exposed now but I console myself that I have put less into MARS this year than my BP and SHEL are up.
Time will tell. Can always tell Mrs M to stop shopping at Waitrose.
sam thanks for the update, assume you have a changed strategy as your previous posts state TRADING.
BATs and IMP's obtain the majority of Tobacco income from other territories and not UK. Yes they are a good bet on Dividend alone.
Hydrogen, I believe, is going to be the energy source of the future, Shell are investing and building a huge plant in the Netherlands. I also believe hydrogen will overtake electric cars where motive power is concerned.
The Pub sector is only under valued from the return on assets employed, sales and income have been reducing for years, hence the move by many Groups into provision of Hotel space.
Location is the area where Pubs are likely to succeed.
Many of us here would wish to company return to the dividend list, alas that seems a long way off.
Some very bad decisions have been made by Marstons past Executives, the consequences of which LTH's are suffering.
As your say DYOR.
AIMO
Not a trader. I do live off my investments though.
I appreciate the sentiment on tobacco but then my BAT are 20%+ yoy and IMB about 13% plus I have had 7% Divi from them so they may be old hat but they put bread on the table and vino in the glass.
Other sin stocks - oil and booze doing pretty well too. Defence stocks zipping along.
Not sure about hydrogen hopium and windmill stocks, I still think that particular bubble as some deflating to do based on fundamentals.
So no, not puffing stocks and no double secret mates with amazing insight - I just think the whole pub sector is undervalued and will ride out the current bumps better than people think.
As always DYOR.
FD
Succinctly put.
Essentially Sam should p@ss ot get off the pot.
I am still hoping to hear from Tesla man as he always has the reverse Midas touch on this stock, but he is probably still puffing nitwits into Southrnd Airport, which was always one of his favourites !
sam you are clearly a trader, so any short term advance will suit the strategy.
It used to be the case ports of security ( Investments) were Food retailers, and Drinks. Forget Fags they are being outlawed.
Listen to who you will, those at the coal-face know better than anyone how profit and loss is affecting their business.
As I eluded earlier, and you agree, MARS is in the realms of Asset strippers. Carlsberg are only interested in the 40% of the Brewery they do not own.
Come the end of Summer many Hotels/Motels will be struggling for a variety of reasons.
The s**t will be good for your roses!!!
Always struck by the abundance of horse guano surrounding MARS . These chat forums are a great source of info from the people with the inside track from "secret" reports and their mate down the pub.
I think things will work out fine from here. I have no particular insight beyond the basic - if there is going to be a recession buy beer, fags and carbohydrates. 45p is low for this stock on a 2-3 year view, even against the sector, which is oversold.
I have added a few times as we have lurked in the low 40s. If we do hit 41p , it will be disappointing, but I fully expect to be well ahead come this time next year.
Trent as stated many times we have RF to blame for the mess the company finds it self in. Not sure Andreas is up to the monumental task of turning MARS around. There are too many uncontrolled and controlable issues facing Marstons.
40p may well be on the cards, which then puts the company into Predator zone.
Either way it show market consolidation, as such still looking at 41 as an entry point for the next 2 months
So do you think they are trying to sell all the branches to one company in one go, otherwise it could take 6 months+ to sell off the odd one here and there.
I wonder if they are already in talks with someone.
Maybe they should have looked harder at whether the Brains deal was worth the bother to be fair.
That said, Marstons are my smallest holding now to be fair, so I'm not really too worried.
Pub group Marston's has confirmed it is considering selling a number of pubs across its estate which "no longer satisfy" its core strategy.
The company currently operates approximately 1,482 pubs across the UK and employs around 12,000 people.
Propel reported this week that around 50 Marston's pubs spread across England and Wales had been put on the market.
A Marston's spokesperson said: "As you would expect, we review our estate from time to time as part of normal course of business.
"We are potentially looking to dispose of a small package of non-core pubs which no longer satisfy our pub strategy.
"In the event of a successful transaction, any disposal proceeds raised will be used to further reduce the Company's debt in line with our stated strategy. A further announcement will be made as appropriate."
https://thecaterer.com/news/marston%27s-mulls-pub-sale-reduce-debt
It is just a struggle at the moment to make a reasonable ROCE return on the finance costs of having those borrowings , despite trying to squeeze the increasing operating costs , and despite the quality assets obtained from those borrowings
Good decision to sell non-core pubs , but not likely to get best price at present .... c.43p for a Marston share or a Restaurant Group share ...both with good assets struggling with the cost inflation and customer disposal income situation , both trying desperately to squeeze costs out of their businesses .... suppliers in the sector under pressure to pay higher wages too and avoid strikes ....all round it is difficult to keep a tap on the costs and prices
Having a chaotic government doesn't help either
Serious headwinds are facing the whole Hospitality Sector. MAB is marginally better placed than MARS, simply because they were wise and raised funds a year ago, MARS just negotiated Loan Waivers, which could be a real issue at present now Interest rates are inreasing. PNB Paribas, who have taken over the waivers from HSBC, may not be so accomodating.
Have been away on Business, have I missed something, sale of Pubs?
As a point of interest, stayed at a Motel, similar to Marstons, was surpised to discover this Motel had ceased serving food and drink( Bar closed and Restruant closed). ASking the manager, is it staffing issues ? NO the closure is permenant, the Motel is losing money on meals and drink.
This is a sign of the times and does not augur well for financial health of many Hospitality businesses.
The reason see "share news" above. Wetherspoons and M&B too!
Another car crash day here.. has the news of selling 50 pubs caused this 7% drop ? Surely not..
No need to read reports JH, the sp charts of hospitality companies of the past 12 months will tell you the markets think things look dire. A Good management team and initiative will help most get out of trouble. Sadly we’re really lacking in those areas.. with a large debt. With the sp where it is, and unfortunately lower to come, the markets punish us more for it.
The difference is I was shown a report by a major fund on alcohol retail and pub sales for the past 2 months, and projected revenue. It looks very dire.
Jon
I am confused, yesterday you were a "strong buy", today you are a "strong sell", yesterday Mars were going to benefit from staycations & today, with the market up 2% you are now predicting a 15% fall, or "nose dive".
Or am I missing something ?