Member Info for mountainous

@BeingTheBanker, I’ve seen that you have quite a bearish outlook here.

Like it or not, the mcap is laughably small. The company and its model as a whole isn’t completely doomed imo, the convenience model is something that even big companies like Morrisons and Amazon’s are trying to get into.

McColl’s allows for exactly that at a very cheap price. Morrisons would benefit greatly. Amazon are notoriously silent when it comes to acquisitions and there is very little speculation around until they actually do it from what I’ve seen. So you never know what is around the corner.

All imo.

Out of court settlement is still very much on the cards imo. Cineplex isn’t stupid, they know full well that Cineworld doesn’t have $1bn+ in their back pocket to pay.

If Cineplex wants to see any money from us, then it needs to be out of court settlement or reduced award upon successful appeal, otherwise Cineplex will see nothing and they know it. Cineworld doesn’t have the money and they’ve made it clear to everyone and Cineplex knows they’re at the back of the queue as an unsecured creditor.

In my opinion.

This could very easily be a proxy purchase as has been previously mentioned.

I would not be surprised to see a few companies buy significant stakes in the company, and then perhaps Morrisons will make a tender offer to them knowing full well that they will accept it and then take up the shares that they’ve accumulated.

That way, Morrisons doesn’t directly go to the market to get the shares, because if they did this sp would shoot straight upwards as it then becomes clear that a takeover is coming.

Then it may be a case of Morrisons becoming a very big shareholder and they accumulate a lot of power which will give them good leverage in the talks for an acquisition. Management may say they want 10-15p, Morrisons may want 5p, now they can say ‘well we own x amount of the company’, and plus if they can get a good chunk of the shares in the 1p or 2p range then an acquisition at 5p would be cheaper for them overall.

All imo, that is my view of how a proxy purchase would play out. It could be taking place right now, a company wouldn’t buy stock here for the fun of it, so I think there is something going on in the background.

Thank you for that onthecoast

I always said I would never buy >100p. It dropped to 90s a month ago and then I saw it rise again and I said ‘damn it!’

Now we’re at 84, I will increase further in the coming days most likely.

Great stuff, thank you for the further explanation.

Opened a position at 84.0 :)

What justifies such a large P/E? Is there that much growth on the horizon whilst the company has adopted going concern?

Majority of the big tech stocks in the US have P/E ratios less than half of that?

Hi all, hope everyone is well. RR has been on my watchlist for over a year now, and 84p is looking like a fantastic entry point.

RR isn’t going away anytime soon, simply too big. They have a very solid business base. I just wanted to ask, with a P/E of 57 doesn’t anyone think that this is overpriced at all? The pipeline of orders is loaded, so I see no issue there, but P/E of 57 is quite on the high side.

The interest for 2021 has increased substantially and the debt is getting quite high now (then again, I am also invested in CINE so I don’t think I have much authority to talk about high debt :)

Those are just my main concerns, what are people’s thoughts?

Just out of interest, what got MCLS in this position in the first place? Bad management screwed the company to this extent?

My average currently is 0.98p, if this sp drops tomorrow I will increase further.

Number 1, TR-1 today shows that there is still large investor interest. Someone doesn’t buy for the fun of it, either they see something coming or it’s some sort of precursor for an acquisition.

Number 2, as brought forward by a fellow bb member, McColl’s are hiring in Manchester. When Peloton and other companies were sending profit warnings they halted hiring, I think the same thing is happening with Netflix now too. Nobody would hire if the company is about to go bust, it is simply ridiculous.

I said it previously and it’s been echoed by many others, the company is desirable in terms of it’s assets. We have also discussed the volume today, it is all very interesting.

Tomorrow is on the way, I think it will be interesting also. All imo and all the best for shareholders, let’s see what happens.

@RachelsDad, I also read the RNS on Monday. Take note that it never said ‘there will be no chance for value’ it said ‘increasingly likely’.

Likely can mean a lot of things. Back in Feb-March 2020 we were told that the UK is ‘likely’ one of the best countries to handle a global pandemic and look at where that got us. The RNS came from the same place that issued a nonsense RNS about them not knowing why the price was increasing. As many have said here, there is some sort of agenda to keep the price low for some reason, management don’t even appear to want to hide it.

At the end of the day, if Morrisons/Amazon decide ‘we want to buy’ and make an offer, McColls can’t stop that no matter how hard they try.

All imo.

New shareholder with 4%?

In at 98p, spread is large, already 10% loss :)

Let’s see what happens.

I think I will buy a few thousand shares shortly. Never invested in MCLS, but this price is just derisory. As someone said, it’s a pure lottery. If the price rises back to 3-4p like it did just a week or two ago then it’s an easy 300-400% gain. If it goes bust, it won’t be more than 2-3% of my portfolio.

Easy scoop up for anyone who wants vast amounts of retail space in the UK, Morrisons may intend to acquire, why would they go ahead and build individual stores again when they have a chance to buy a company with all the real estate already there. Even Amazon may be interested to further increase their Amazon Fresh offering.

All imo.

Spot on RS, thank you for your objective analysis and congratulations on your top up :)

@Cruis1, no TR-1 from them, so yes I presume so.

@FunInvestor, please see the link below:

https://www.cineworld.co.uk/static/en/uk/blog/new-movie-release-dates-everything-you-need-to-know

As you can see, big names such as Top Gun, Jurassic World, Minions, Thor, Spider-Man, Black Panther and Avatar are all coming towards H2. This year is skewed towards H2 with the big film releases, so I don’t think that your comparison is fair. It very well could be the case that we see a top-heavy 2022 revenue-wise, with H2 dominating in those terms.

I doubt you will agree, but that is my view. I personally hope that we see a bumper H2.

FunInvestor, how many times are you going to repeat this point?

The cinema industry is one that fluctuates month by month, some will under-perform and some will over-perform. If you take a look at the release schedule, the vast majority of the big movies are towards the end of the year.

@Bonkers, it was a similar thing with GME and AMC, when there was demand they allowed voting.

Recently I’ve seen Trading 212 even send me proxy voting forms for Apple and Johnson & Johnson, so they are certainly expanding. Hopefully they could allow for AGM attendance too, I’m sure a lot of people would attend if it weren’t too much trouble.

@Bonkers agreed, sure there is nothing massive in this interview, but it’s nice to hear from Mooky himself. He doesn’t seem overly concerned and is happily going about his travels.