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just come across this share and have read the recent posts on here...there is so much building going on in manchester and i guess all over the country....
I bought in last week at 268p.
If this drops any further, I am going to buy some more for the following reasons:
1. Good financial position. I can forgo the divi in favour of a higher sp
2. Directors have bought recently at a higher price than me from the open market - what do they know that I don't? (lots, obv)
3. Revenues have grown since the Marley acquisition
4. The industry that they operate in is understandably reliant on consumer sentiment - but landscaping is not going to disappear overnight.
I bought Barratts at 100 when the market was spooked and have done well at their current sp. I hope MSLH also proves to be a resilient investment in the longer term.
I will certainly be topping up if the sp falls any further.
Hello Goldenyears, I agree on the divis, most likely they wanted to prevent the SP from drifting further down but it seems that the bearish sentiment is there because of a slowdown expected in the construction sector over the coming months.
Writing down goodwill doesn’t really mean anything anyway. It’s not a tangible number
What matters is cash and profits
While it might be that Marshalls overpaid (I bought after the deal), there isn’t a huge amount of debt. The consumer side might slow but the construction side is driven by a lack of bricks and products etc. even if the construction market slows it doesn’t mean we are at parity
Also the story of levelling up is likely to rear its head and push more public works spending
If Marshalls has issues so will smaller suppliers. I’d rather Marshalls not raised the divi and kept the cash for any further M&A as I imagine there could be some good additional bolt ons to come
They don't if it happens going into a very grim economic period.
It seems to me that in the current market, people who drive share prices do not like big take overs - Marshalls have tanked since buying Marley, 888 also since buying Wm Hill. And there may be a point that taking on large debt with rising interest rates is not a good idea. But it is a short term view rather than looking at the long term synergies of the take overs. I'm optimisitc for both
A goodwill write-down of that magnitude is now priced in given £570m reduction in market cap since the 650p placing. If the extent of directors’ buying is yesterday’s purchase of 2,512 shares by an NED, that is a unconvincing vote of confidence.
It appears the large drop yesterday was on the back of a sell recommendation in Investors Chronicle. They say Marshalls overpaid for Marley and now has over £500m of Goodwill/Intangibles on its balance sheet, which may have to get written down.
https://www.investorschronicle.co.uk/news/2022/08/18/marshalls-roofing-business-gives-margins-a-lift/
Hi banbury, nope it looks like the 15 was calculated on historic earnings so excludes the Marley numbers. Thanks for the heads up.
Looks like the PE drops to single digits with them included. Definitely interested in buying at this price now!
"I’ll buy when the directors buy, not until." One was buying today - 2 were buying after the pre close trading update a month ago.
So get buying.
Marley was not a well timed acquisition, the structure of the deal creates a potential share overhang and consumers are slashing discretionary spend, so nobody can have any confidence in forecasts right now. I’ll buy when the directors buy, not until.
Archy is the 15 ratio adjusted for Marley - they made £8m in two months (£48m on an annual basis).
Ratio must have fallen massively as share price has halved and Marley been acquired.
This looks a very solid company but a PE of 15 is perhaps a bit toppy for a company likely to suffer from a downturn in discretionary spend?
Stanley I had a good look at £4.20 yesterday evening. Logged on 8.30 and bagged 1000 shares at £3.82. Pretty pleased albeit sold some PSN at a 10% loss so I'm no expert
15% down over two days, seems a bit harsh. I thought the results were quite promising.
MSLH down like many share prices of companies at the moment. Back to 2017 share price levels. When the market returns on St. Ledger's Day and the end of the year approaches I hope we will look back on this as a buying opportunity. In the meantime Friday 1st July is dividend payment date so there may be some re-investment then or the following week. GLA.
I'm with ii & seem to have them in my account.
Not surprisingly given the share price movement since the announcement, the shares were under subscribed. I wonder how they will raise the cash now.
Does anyone know what's happening with the placing of new shares? Admission is expected to become effective on 29 April but I assume those have all been purchased by IIs @650p?
Nice opportunistic move by buying Marley roofing business IMV. They have excellent history in making good aquisitions and generating higher profits year after year. One of my strongest investments ever. Wish all my other investments over the years had paid off as handsomely as this one but heyho thats life!
what a slide...
probably, dividends is the main reason
1 million shares bought at 845p mid afternoon today but only disclosed after closing. What's going on? These seem to be defying gravity but is there a reason? Something to ponder on? Maybe!
I have Ibstock too. I did not know about Marshalls just Forterra. I will do some homework on these guys.
It is claimed that the companies with quiet BBs are those to keep an eye on. MSLH certainly fits into that category. No post in nearly a year! Results should be out soon. Perhaps even this week. Should be interesting to see how their UK focus has benefited them given the current logistical issues facing many companies around the world.
MSLH aren't exactly a "racy" holding as the price of 750p vs. 619 a year ago shows, but they pay a dividend and are one of my core holdings. Expect that to continue for years to come.
Huge surge in demand at this time of paving products driven by homeowner market. Many producers now reporting extended leadtimes for concrete paving (paving flag, CBP) manufactured in the UK. Some paving contractors now fully booked for 2020 and only accepting installations booking in next year.