Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Anyone watching? I'm finding it's cutting out quite a bit but might be my connection. Anyway lots of good info in there. I'd hate to see them presenting bad results though :-)
I was thinking 0.3-0.6p final dividend depending on whether they were cautious or bullish about future prospects so 0.5p is good and FD says they can keep increasing the dividend due to recurring revenue from fund management. So full year divi yield is 2.7% and rising which is fine by me as I'm in for a significant capital gain with the divi as a bonus. Patience required as we've come to expect but they keep delivering and that will be recognized in due course. Priced at a 36% discount to NAV and fund management business on top. I enjoyed reading the report. MHC is the drag on the portfolio but, being listed, it has certainly been hit by adverse sentiment and I think their share price will recover.
A decent set of figures from MERC, pleased I kept picking some up on the dips (of which there were far too many!), but the discount to NAV still looks too high to me so hopefully there is a fair bit further for these to run up.
At the end of the day though it is all about sentiment in a stock like MERC & that is less than helpful at present.
tosee a few buyers a few days before the expected trading update.
Agree. My holding here is one I’ll add to
Did anyone see the news today re Jim O’Neil and his fund? What impact do you see on Mercia here?
£250m fund which is in our sweet spot. Plenty to go around I’m sure but we’d have like the performance fees on that
Goldy
Golden
The dripping tap fills the empty bucket...
A chance to speak to Management!
I for one will be asking about buybacks
£5m or so would be a great start given the gap to NAV
Quite a while to July so no need to add to this holding immediately
Goldy
I’ll be snagging more hopefully soon!
Impatiently waiting for July and next reporting date.
On a 33% discount to NAV (historically)-a bargain!
tbf, awful weakness across the board
but still hope for 25p ish
Drip, drip, drip
Golden
No, K3 is not on my list but tbh why I am in Mercia is because I have eis' with them & saw what I perceive to be value in their balance sheet, not a particularly inventive way to pick an investment but I do like buying on large discounts.
clearly weird pricing here, but trend is still down...
so tp to buy back c25p
Well I might give it a go
I’m happy to drip some more in here if needed
Also bought K3 Capital if that’s one you have on your list?
Goldy
Golden
Welcome to the club !
WRT contacting investor relations this has been tried various times but a sensible response seems to be as rare as rocking horse manure.
Obviously as I’ve bought it now moves lower. This looks like it’s in a negative trend so unless management do something it might just carry on drifting lower and lower
Why they don’t buy back some stock given we have £50m on the balance sheet and it’s an instant 50% return is astonishing
Has anyone emailed investor relations?
Goldy
Been looking to diversify my portfolio recently and decided to add here
Buying shares at 30p with c.12p of that in cold hard cash is just madness
mcap of £132m less the £52m of cash at Sep (should be higher from recent disposals) leaves £80m
The fund management business will be £3m - £4m profit annually so at 10x is half of that
This means the £110m portfolio (at Sep) is worth £40m. A £70m discount!
Makes you wonder why management don't buy back some shares? £5m or so would have a real impact here and we'd still be flush with cash
Goldy
*No Debt and even more cash".
Barchid,
Mercia *No Debt, loads of cash" is as you say, still a bargain and safe horse. But it seems everyone is being short term and cautious atm, which is understandable. Ref. Dark Horse - "Black Beauty Rides Again" sound dubious, but Disney + gave it a punt. Lets hope others share the vision.
Gents
An interesting Edison review today comparing various direct ways in to PE/VC & Mercia comes out as a potential dark horse with a discount to their nav of 42p against SP of 32p is almost 25%.
Given it paid a divi last December it might well be worth a dabble. FWIW I have topped up.
dyor as ever
Boards
You are most welcome !
Am in S Africa at present where booze prices are a fraction of UK so it'll be a cheap round.
A Castle or a short ? Schnapps are a little passee down here since German South West was not defended properly by the fore runner of Scharnhorst and was absorbed into RSA in 1915.
Sorry but I can't give you a you tube link to that...
Barchid,
I do believe it's your turn to buy :)
Which in the great scheme of things is not very much at all, especially considering that a few years ago 40% of the company was owned by 2 holders, namely Woodford & Invesco.
With the FT showing market cap today at £149m and a free float of 309m shares 2.8m shares overhang is like a schnapps in the wardroom of the Scharnhorst.