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I really don't think you can compare MARS to NEX.
MARS is a real recovery play and this whole community pub thing and the type of events they are establishing are interesting. I hope it succeeds but I think it's commercially touch and go for them. I fancy they will at some point need to restructure the debt and that will get messy.
NEX on the other hand has a proven revenue stream and margin stack that may need to recover from some wage inflation but aside from that has little long term risk. Growth might become challenging but that's purely because of management's focus to bring down debt without selling assets.
This board has got a lot busier of late and usually with so much focus on a debt and in some cases I'm not sure posters know pre/post IFRS and what net debt actually looks like.
The director buys have been done just before a closed period so it puts to be the 'somethings bubbling' argument but it does open up the discussion about how July's results will be. My fear was wage inflation would compress margins significantly in H1 (which would bring in divi pressure based on covenants etc, etc). No-one throws good money after bad so I am of the opinion July will be in line or possibly better in the bottom line/cash generation aspect because of increased revenues already mentioned in last update.
AIM style spread to put off buyers? Bid/Ask: 111.30/114.50
" Interesting that you say Mars debt burden is high when it’s around a billion less than nex, and is property backed. "
I looked it up....MARS has MORE net debt than NEX .... what is he talking about ?
how can it have a billion less ?..utter nonsense
NEX - Net Debt of £1.2b incl leases
MARS - Net debt of £1,594 million incl leases
MARS is a property group that sells beer,chips and salad - the profit of each pub isn't that great , tough market
Not wishing to get embroiled in the discussion either way… What’s the significance of November?
I find it so hilarious that someone would go to the effort of setting up another account profile thinking they could spout their stupid vitriol on here & the smart money that's in here wouldn't cop on straight away! Really pathetic!
Come November you’ll probably be wishing you had invested in Asos & Tui instead 😉
& now as we know up to the neck in MARs bars too!
Those with the patience & outlook of a cranefly always lose money!
I never bought ASOS & TUI!
I get it paddy, you’ve done no research other than looking at the SP chart and have lost a fortune.
If you need a shoulder to cry on…
When the alter ego is unmasked the moronic cretin reappears in full stupidity!
I haven’t disappeared Denfos. I’ve highlighted the risks, people can make their own mind up.
Paddy’s comment below shows the level of analysis people do when investing, not realising there are more than 4x the shares in issue now compared to 1996, hence the share price.
Anyway, you’re a fine one to talk doomsaying on every board on here!
Between 1996 until covid this only dropped below £2 during the financial crisis. That in itself is a good enough reason for me to invest here aside from the fact the company is operating along just fine & no reported issues unlike other bargain stocks
Quickdip disappears - only to be replaced with registerme….. !!
Goodbye & good luck with MARS. I may buy a few there soon!
Paddy, what’s bizarre is that when I mention MARS you immediately say “quite a risky one due to large debt burden”. The debt burden is 50% higher here, and without all the property backing it at yet you “can’t understand what all the fuss it about” when nex debt is mentioned. I’m confused.
Anyway, I’m done here. It caught my eye as it was in the top gainers list on Friday, but having done a bit of research I won’t be investing. But best of luck to those that have.
Genghis, just a few peeps wanting in on the cheap. Once this rises a bit all the naysayers will vanish overnight! I think a few were frustrated seeing this come back from the 103 & concerned about missing the boat forever!
Gonna be very interesting becasue NEX was being over taken by doomerism lately . I know this board doesnt affect the SP but it does reflect wider sentiment
If you think NEX has a book value of £34m why all the interest? surely one to avoid like the plague! bizarre that the company would have just shelled out it's worth in dividends!
Goodwill is an Intangible Asset and it is not worthless...although it is rather subjective
Any write down really depends on whether the perceived added Goodwill made at the time of acquisition still applies in determining a fair value.....
You could have a goodwill based on future potential , that then is no longer deemed to be appropriate ..or if fact could turn out to have been under assessed if indeed the company does better than the predicted potential added within the Goodwill...eg ALSA goodwill for potential probably is undervalued what you would assess it as now, if ALSA were sold
Goodwill is not worthless
it can cost a lot of money to acquire and is actually a barrier to entry.. Otherwise some PE firm could setup a bus company to rival some of NEX operations instead of taking over NEX
To get that branding inside someone's head requires years of persistent marketing efforts. That costs lots of money if its even possible to duplicate. NEX is well positioned in coach travel (for example) becasue its the default go to name when you need a bus for intercity travel
I didn’t say all intangibles are worthless, I said goodwill is worthless. It’s nothing, hence why it can be written off so easily- it just sits on the balance sheet to show excess capex. Sure, other intangibles have value such as IP, software, contracts etc.
There are no tangible reasons for NEX's current SP, only intangible ones!
To disregard intangible assets as worthless is rather bizarre. I't 's like saying the McDonalds or Coca Cola brand is absolutely valueless in itself. If intangibles had zero value they wouldn't sit on company balance sheets!
I really can't understand what all the fuss is about here. The company is operating just fine. The debt is fully managed as we've seen from the updates. It seems to me that people are extremely eager for the SP to weaken further so they can buy cheaper than an already rock bottom price. A lot of non existent issues being raised here i believe!