Member Info for horace678

Still a long way to go in my opinion - have faith

Yes, up again this morning - not bad at all.

More good news - the directors are putting their money where their mouths are.

I don't think it will affect the SP at all, apart from the fact that the website will probably show that the SP has increased by 5000%. So much for this share going through the roof - we're in for a long wait.

Now available here: http://www.mavinwoodplc.com/

http://www.growthbusiness.co.uk/news/smallcap-spotlight/1263428/mavinwood-scouts-restorative-trail.thtml

The results aren't particularly good. The company made a loss in the year ending 2009. The shareholders' equity (book value) at the end of 2009 was £4m as against a market cap at today's share price for the number of shares at the end of 2009 (466m shares) of around £2m. However, the assets of £42m (as against liabilities of £38m) include intangible assets (goodwill) of £18m and if this is discounted, the company has a negative amount of equity. Cashflow was strong. The only reason this share is worth holding onto is because of Ashcroft, the majority shareholder, who can control the company's fortunes, e.g. with a possible Impellam merger, or can bail it out by lending it money in return for equity. There's a long road ahead.

There was a whole load of talk about big rises when the company issued a load of shares and Ashcroft paid 0.75p for them, and when it actually happened, the SP didn't move in particular. In my experience, the SP moves because MM's adjust the price in response to buyers and sellers, not because the MM's read the results and then crank the price up. I doubt the price will rise 100% - it might go up a little however. It might rise a lot if the company gets taken over or sold off, however.

I don't think a takeover bid is particularly imminent, it's just a possibility at some time in the future. Ashcroft would be privy to the MVW accounts already and doesn't have to wait till the results are made public.

We will be able to study the balance sheet when the results come out next week. The balance sheet will include the "true" value of the company, rather than the market cap. Therefore any possible takeover would have to have this value factored into the price paid for the company.

Unfortunately, it's a reality of investing that it's possible for a company to be priced at significantly below its asset value, so there is no guarantee of a soaring share price. It means, however, that if the company were eventually to be taken over, the final price would have to reflect the underlying asset value.

Yes, I am also a believer in the IPEL-MVW merger theory. Makes sense since both are in the field of support services. Notice how Cenkos is the broker for both companies and there are shared staff between the two (e.g. Andrew Wilson). In fact, Ashcroft unil recently had a stake of 57% in IPEL but put it into a trust for his children and other relatives, maybe a step in the direction of having to avoid paying tax on his interests.

There were some sizeable trades of this share on the PLUS market and this seems to have the effect of sending the price up.

My comments seem to have knocked it up another couple of pence haha

The share is grossly undervalued, that's why! If you look at the annual report, p.33 at the bottom, the shareholders' equity is £85.2m while the market cap (as of writing) is only £34.47m. If the company were to be liquidated tomorrow, it would have to be worth the former figure. When OneSource was sold off in 2007 the sell price was just over twice the shareholders' equity. The company still has a large debt that needs to be cleared but I predict a final sell-off price of £3-5.

The share price is turbulent simply due to day traders buying and selling and talking the price up. Even if there are good results on 23rd June, this doesn't mean that the share price has to go anywhere. I can think of a number of companies with excellent results that aren't going anywhere. If people say stuff like "soon this will hit 1p" it might encourage people to buy, but there are no guarantees.

"Never before in the field of stock market investing has so much talk been generated about such a little share".

With gas !

Do you think we might hold out for .....0.03p? Better sell some stock soon and buy another house...

And the increase of 0.01p is not enough to be able to take profits given that the spread is 25% of the bid price.