The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Millennium Capital Partners Llp Opened a short on Mks at 188p 0.50%
With BR that’s 1.29% short activities. We could discount BR impact due to their long holdings on Mks.
It should be noted though that Mks may have many other growth opportunities that can only be influenced or realised through Mks control. There are so many bargains around due to interest rate hikes as money becomes more expensive.
Only a healthy balance sheet could or should take on more considerations for potential growth.
Lucky Mks have a sound leadership team that can look at opportunities together with differing perspectives and experiences, and lucky Mks have Archie to take emotions out of decisions and of course new blood ego.
The contract Chilting does state 10 years from the start of the agreement - however, the agreement also covers many many other contract clauses with targets to be achieved which forms part of the whole agreement. If one or more sections are not triggered the whole is in contradiction.
http://tools.morningstar.co.uk/tsweu6nqxu/globaldocuments/document/documentHandler.ashx?DocumentId=219719557
Page 11 shows the 10 years, but this could be superseded if not all triggers achieved.
I would agree that any action subject to both parties agreement could also override the contract.
It’s a fair and reasonable assumption that a substantial change in positions could effect and would effect any legal outcomes, but I assume both parties would continue a solid relationship because of the intellectual interests for the ongoing service and use of technology.
It would perhaps be in both parties interests that Mks does eventually take over the Ocado retail operations and have sole benefits, plus a branding change of course.
At a price based on what Mks have paid to date £563 m and goodwill added.
It’s not a coincidence that Mks Alex Freudmann has been given accountability from a Mks perspective.
BR slowly dropping its short and now at 0.87% from 1.06% last week.
PE still at 10.09X, sector on 13X which simply shows the city still needs time to get over the 3 years volatility of Mks.
Healthy balance sheet now and lowest net debt!
US due to open higher JJ in 40mins. Maksy/Mks parity adrift with US higher. Either UK lifts or US drops to close gap. Mks is gaping down but will have to lift o guess
Should be a good bounce on Mks tomorrow JJ.
Maksy US has hit $5 a share and Dow/Nasdaq big move upwards
Net debt is £355 m (excluding lease liability)
This is 0.28% of ebitda !
This is one of the lowest in the sector and ftse100!
Don’t believe anything including this post without checking the facts would be my steer.
Trust is everything on these markets and Mks do need to convince still.
Good Stuart thro Archie have prioritised Mks financial health and aiming for that top investment rating.
P/E multiples is one of the clearest measures of trust in a company’s leadership and financial health.
To date Mks has less P/E than before it released its FY kpi’s at 10.26X net profit. It was 10.33X before FY.
BR risk adverse short is also another insight into how a long share holder sees things.
JS PE is currently 30X, Tsco 25.75X, Frasers 10.96X, Nxt 11.30X and sector av is 13X
Mks should be at least 11X or £4b mcap but probably nearer to 13X based on forecasts.
More likely Mks is on the shopping trip. Huge bargains around.
BR increased short to 1.06% opening price 189.75p
Increasing interest rates in June or whenever is simply antagonising the housing market, however, foreign holidays are higher now than pre pandemic!
BR have made more money on their long Carrington, and their short is mistrust in Mks sp stability as it’s still volatile-hopefully Mks becomes a boring equity that pays a constant dividend.
Steady & reliable should bring in the low risk investors and we see a steady sp growth back to 11X short term and then into the 14/15X net profit multiples over next 5 years. Mks should get back to above the 500m£ and mcap of 7b £ in 5 yr.
Mks have to lead the medium to high demographic market and do things to its competitors, not wait to be done to.
Even with lower carbon supply chains from Asia and near Europe on clothing due to new energy tech’s Mks does need to get a balance of UK manufacturing and import.
Medium term probably more made at home in order to achieve its carbon targets.
A strategic move in UK based clothing retail that has manufacturing at home would make sense, depends on how cheap it could purchase. Even partnering.
Carbon reduction that is genuine can generate huge investment from strategic green investors, these investor types are long term-so at least another 2/3b mcap increases just from them.
BR closed its 0.84% short alright with its loss!
Then reopened another 0.92% with start price 187.6p!! Determined to get its losses back!
Interesting to see what they’ve done with 0.84% short BR UK.
That’s on the 11X post tax profit m/cap which seems a very safe spot, it was 10.33X before 24 May based on 306m ptp.
US futures look strong for opening today, Biden signing off the debt ceiling bill on Sunday ready for Monday is all immediate good news.
The US Mks secondary listing appears more bullish than UK-atm
Marks & Spencers PLC - London-based food, clothing, home and bank services retailer - Says it has tendered GBP107.2 million of GBP300.0 million 3.750% notes that are due in 2026, and that it has tendered GBP120.9 million of GBP324.6 million 4.750% notes due in 2025. This follows the invitation made to holders of outstanding notes to tender their notes for purchase by the company for cash in an aggregate nominal amount of up to the 2025 notes and 2026 notes maximum acceptance amount. The offers were announced in May 2023, and were made on terms and subject to conditions contained in the tender offer memorandum. The company also announces that the 2025 and 2026 notes final acceptance amount is expected to be set at GBP219.4 million in aggregate nominal amounts of notes.
Marks & Spencer to Buy Back GBP219.4 Million of Bonds due 2025, 2026
More activity to strengthen books ready for upgrade from Moody’s
Mks is still on 10X P/E which is .33 lower than pre 24 May FY results, sector is on 13X
Tesco is on 25.7X due to its retail price investment and market doesn’t appears comfortable JS on 30.7X for similar reasons to Tesco. Next 11.21X
We should go to 11X short term or £4b mcap. Especially with Mks net assets.
BR is still winning due to its 2.9% long on Mks. However it will need to close its short position shortly. 0.84%.
Great Mks appears to have broken the 185 resistance! Up to 204p short term