Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
This has been rising steadily since Oct '23
Still believe its underappreciated. I don't think investors actually understand their business and the importance of the materials they produce...
Perhaps I'm missing something regarding the underlying management or Balance sheet. Sure they have leverage, but they have been paying debt down.
Noted that J O Hambro have recently acquired 1.9 m shares.
There has been a noticeable increase in trading within the past 3 weeks. However no RNS as yet.
Looking better and better
The Q3 trading seemed positive with comments about considering opportunities for enhanced returns to shareholders.
Jefferies cuts Morgan Advanced Materials to 'hold' (buy) - price target 315 (400) pence
Not sure what prompted that.....not paying deb down quick enough? More cash burn than expected? Dividend cut?
They either boost margins or get bought imv
tp £5++
That's a very specific target date, Stargate.
I totally agree MGAM is valued very cheaply. It lacks press.
They've got a £1bn+ in revs planned, they pay a dividend...Leverage is 1.3x (though has been rising).
How good is there branding and global reach? I'd say they could become an acquisition target.
Target date for 323.5, is 4/3/24.
Sp, target is 323.5.
Rev to £1.4-£1.5bn
op margin to high teens
===> mouth wateringly cheap
plenty of execution risks, but I quite like Raby (and he is putting some skin in)
RBC cuts Morgan Advanced Materials price target to 330 (370) pence - 'outperform'
@Canchat
Believe it or not, I actually like what this company is. Produces something tangible, pays a dividend (not sure about the cover though), their products are in need and from markets I'm aware of, demand is only going to increase assuming they can go out and win market share. They have products which people need, just can they aggressively market them?
The negatives on this company are that their management seems a little laid back. The Security breach for example is not a new thing. This sort of thing has been happening for donkey's years. If they had a breach, it shouldn't have even made the news because it was locked down quickly. What the RNS shows is there's a lack of investment in the right places and management are responsible for that.
As well, I hope they're sensible with their divi. By that I mean they're not afraid to adjust if cash flow is falling or negative. I hope the don't borrow to pay it.
As with all investments, only bet what you can afford to lose.
Tambo210 - you sound negative, noticed 1/2 yr. comment in Inv. Chr. - down 12p or 4 and a half % since priced at 268p. I have been a follower for many years but never dipped my toes in the water. Have you faith in the directors management?
CHAT
Free cash flow before acquisitions, disposals and dividends1 = -37m
So they're using cash on hand to pay a divi? That's nuts! FCF should be positive before those payments.
Pretax profit was down 37% to GBP28.4 million, from GBP65.7 million, due to a cyber incident in January that cost GBP11.2 million.
How is 65.7 --> 28.4 equivalent to 37%? Even if I add back the 11.2, we're still a few percent off.
Their net debt rose due to 100m+ burn of cash on hand? Or they tapped the debt markets?
Citigroup raises Morgan Advanced Materials target to 435 (425) pence - 'buy'
Citigroup cuts Morgan Advanced Materials target to 425 (437) pence - 'buy'
Was it even worth it?
Looks like MGAM was attacked first.
IS there some kind of pattern? Industrial espionage with this companies?
N.Korea? Russia? China?
First Vesuvius has a cyber attack, now MGAM.
Shame this company trades where it does. Growing, profitable, pays a dividend.
£8m -£12m costs associated with recovery....That's some fee + damage. Whilst frustrating, incidents such as this are not uncommon and if you're going to be connected to the Interweb, you really need to have robust security. Either they have in house IT or outsource it, in both cases they need to be looked at. If management have been thrifty and denying the need for robust security, they need to be held to account. I'm sure being savvy in this area in today's day and age is almost a legal requirement of an executive/director member of the board. You can't just say ''no' to securing your infrastructure. That's a complacency and your customers have a right to be concerned. ISO9001 anyone?
One thing about this which is interesting is why MGAM? WHy hack them? Do they have secrets which could give competitive advantage? Or was it simply denial of service and to cause nuisance?
..............
Exceptional costs associated with the incident could amount to approximately £8m to £12m, comprising specialist professional fees, as well as costs associated with recovering a number of systems across the Morgan Group.
It remains challenging to estimate precisely the extent of any impact on our H1 2023 trading. During January, a number of sites experienced a delay in restarting production and shipping due to the cyber security incident. Whilst demand has remained strong during January, we are experiencing production inefficiency during the recovery period which, based on current estimates, could lead to adjusted operating profit for FY2023 being approximately 10% to 15% below our previous expectations.
Liberum reinitiates Morgan Advanced Materials with 'buy' - price target 400 penc
Shame about today's RNS regarding the cyber attack. Wonder who would pick on them and why? If its anything IP related, I'd say that's bullish.
Anyway, hopefully it'll give management and IT a kick up the @rse and get that firewall sorted.
Agree with that.
It doesn't have exposure sadly to investors. They're growing. Paying a healthy dividend. Disciplined financial management.
Ceramics business is moving forward, particularly EV applications.
How do you raise the profile of this company? reddit?
Nice try peaky, but I don't think Morgan is going to indulge you. That said, regular as clockwork, the SP sags between updates and results, and then rises significantly on the earnings beats and resilience to macro economic factors. So deffo worth trading the dips.
Sell on the pump, back in 220 ish...