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McBride is Europe's leading manufacturer of household products - many of their products are sold in our major retailers such as Sainsbury's and Aldi. Simply wall Street has fair value at £2.46. The company is going through a tough time due to rising costs etc same as most businesses right now it seems. Assuming the company survives and recovers, there's clearly multibag potential from the current price. Would be good if someone more knowledgeable in the accounts dept could give their analysis of this company....
https://www.mcbride.co.uk/our-business/mcbride-brands/
Morning.
I have been given this share as a tip but not got a clue what the company does. Can anybody shed any light please
Up and down like a Parsons Collar.
a bit of blue today. rot has stopped? maybe. who knows..
maybe the following line from the RNS about Dec 2021 covenants is causing the drop " The Group is working with its banking group to agree the June 2022 covenants ahead of McBride announcing its interim results for the 6 months ending 31 December 2021." As we get near to the end of June and have not heard anything on this topic, it may be the case that there is concern about agreement not being reached.
Milnrowmug, I was extremely bullish at one stage but sold last year in Feb at over 80p. I am not tempted to buy at present. I will wait until I know more about how the company is doing.
looking at the the recent BOD buys they look to be small under £10K am I right?
Justt, as you say, all insiders. How can institutions know more?
Sorry, less than 2y, October 2020.
Aarya, might I ask your exit price? My average 28p, not sold any for 3y.
I agree. Management silence is shocking. Shares more than halve over a matter of weeks and they say nothing. On all standard metrics it looks cheap - albeit current PE smashed by input cost inflation… hopefully over longer term this can recover.. market a short term voting machine, long term weighing machine.
I’m starting to loose confidence here, bought initially on turn around hopes. Topped up on the back of the insiders buys. Now we have big drops on no news and the BOD seem to have vanished. I’m guessing the institutions think there is bad news coming and are getting out ahead of it.
I sold it last year after holding for a while. I got concerned due to rising inflation and their thin profit margins. I am concerned that market cap is too small compared to debt and from personal experience, these kind of companies don't end well. I will wait and watch and see how it pans out but not looking to buy back at present.
I wish I knew something, my average is 44p and either this is a great buy opportunity ( of which I'm preparing for another average down purchase) or the market thinks it's going bust or going to do a rescue fund raise. Doesn't help when the Company makes no comment or update to reassure the market.
ffs 35% drop in 5 days! no news, anyone know what's going on?
Hi debs1.. I agree that oil and other input costs are a major headwind, but in an environment where economic growth slows materially, is there not a good chance these costs recede substantially as demand weakens with the cycle? At the same time, I do not see people cutting back materially on laundry and cleaning products, in fact there is a reasonable argument to suggest they will trade down to cheaper Mcbride brands. It is also difficult to see why government would allow the masses to get into a situation where they do not have access to basic sanitary products. Another factor is the pension liability/asset equation, which is substantial - with corporate bond yields rising substantially this year, the discount rate may eventually result in them having a metrical surplus to show, offsetting some of the net debt build… price:sales of 0.05x, with meaningful flexibility of the debt side… imo has good chance to survive and thrive (eventually)… big volumes going through over last few trading days - the more shares that move from those who do not want them, to those who do - the better..
I think the main point driving the sp down are production costs. Most of MCB’s products are oil based and as we all know oil prices have increased substantially therefore their margins may be under massive pressure. Their products have a wide market and the company has always been well run - I have often wondered why P and G haven’t swallowed mcb up. I don’t hold any shares at the moment. The share price is sure to rise to reflect the reasonable value of the company.
Millennium International Management have increased their short position on McBride….which may explain decline in SP. Trading update in mid - July will confirm whether recent modest purchases by insiders herald a recovery.
Wigwammer.
With the SP under 20p will somebody speak up please! I have invested here on the pretext of management buys
were being made at near the bottom, however it seems we were all on the 10th floor and not on basement!!
Something very fishy going on here.... couple of large buys filled below 20p! Lets hope....and pray etc.
Such aggressive selling though.. usually presages 1) a weak update .. 2) a cash call ….. If either or both are true it does beg questions - why have management taken so long to update the market, and allowed investors to continue to buy in good faith (MCB has been falling for months)… and why undertake PMDR purchases and create the impression everything is ok? …. Anyway, fingers crossed they inform PI’s soon and that it isn’t ALL bad, always last to know…
I emailed MCB a few days back re when the next update was due and told Mid-July, hope it turns out to be good news.
I agree the management should give some sort of update to steady the ship. To be fair they have bought too at substantially higher prices. The SP is a joke atm, however with the way markets are atm everything good, and bad, is being panned.
I have invested here (Average 28.7p) because I believe the SP is pretty much rock bottom, and with any kind of good RNS we should
move substantially north. The market cap is so small now that we could be easily snapped up. I feel for others who have invested at a higher price, but the way things are all should hold or average down. Good luck all LTH.
You would think the trading down effect and continuing demand for necessities would put McBride in some sort of sweet spot, yet the shares get demolished on a daily basis. It falls even when buying volume exceeds selling, a pretty shabby situation for a company with a full listing - no transparency and all
a bit amateur. Yes the net debt is going up a bit this year - probably two years worth of profit to bring it back down again, but nothing to warrant this scale of fall. Also the pension deficit may well be eradicated as corporate bond yields rise. But down down down we go… shabby that management let it go on day after day, with no update, and having encouraged PI purchases by buying themselves (at materially higher levels).
A trading update was given last year on the 5th of May. Judging by the SP bounce it won't be far off now perhaps. However any meaningful SP appreciation shorter term will depend on the next update. I have a few just in case it's good (relatively good) as I don't expect much of a profit, if any at all, this full financial year. Debt is a slight issue perhaps but if they can get back to pre tax profits of £20m (not this financial year though) like they used to then that won't be a problem. It's Mkt Cap is around a historic low I think.
There's a rational possibility McBride will benefit from some people moving away from the Big Brands during this Inflationary squeeze.
Hi all,
Sp is a bit disappointing, but interesting that there have been a few dire or buys.
This chat is very quiet, anyone have any ideas when we are next due an update?