The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
NigeCo As much as I'd love to see the divi reinstated I don't expect they will. One could argue an advantage to doing it now would be to quickly drive the SP up before the FTSE reshuffle in a last ditch attempt to raise the SP and maintain the FTSE-100 status but I don't think they will.
I'm hopefully of a better set of results this time around but nothing ground breaking. I admit I brought back in to this to early in the very low 70s but I have faith that as a long term holder the grass will be greener in a few years time. As for now so many stocks are constantly drifting lower I wouldn't be surprised if we do drift down further but in these times no one could call the direction.
Vaccine news will inevitably drag all stocks up and give it a boost but I would not expect to see new highs (since the June high) until at least the start to middle of next year.
AIMHO. DYOR. GLA.
Personally I don't see there being a rights issue at all... MARS leadership acted quickly in March and limited Cash Burn to £10 million per month. 3.5 months later and adjusting for a slow restart in July there is approx 40 million lost due to the shutdown.
Now, in Q3 there will be a 237 million windfall which will eventually be used to pay down debts due in 2023 but in the interim one would assume they will hold the cash incase of any further imminent cash burn such as one caused by a second lockdown (which is unlikely IMHO).
Yes capacity is down but the govt have just given all pubs and restaurants a further 15% saving for food etc so although the consumer will still pay full price (apart from during the Aug 50% off scheme) companies like MARS will generate more from food sales. This will last even in the less profitable months as the scheme ends in January 2021.
I see this share being a strong performer in the long term from the current levels and have a moderate holding of a fair few thousand shares. All hospitality stocks tracked down after the speech and they will probably all slowly rise over the next 12-24 months with there being a huge lift once either a vaccine is found or once divis are reinstated.
Not to mention MARS get another 40 million by Sept 2021 should a basket of 5 shares (Britvic, M&B, MARS, AG Barr and C&C) achieve levels they were at on March 5th (in the middle of the CV downturn)... At least that's what I got from the RNS.
All in my opinion and as always do your own research but currently I'm sat in the red not phased happy to ride the long term buying the dips but I don't see this going much further down now we've seen a 40% drop since the 75p high. Good luck all
*Sorry 2-3 years time not months... Short term this could hot 60p but equally it could hit 75p. No one can predict the next step in the markets.
It is just getting bashed along with most other stocks in the FTSE100 due to the CV news etc. I myself am back in at an average of 75p having sold my last holding for 82p. I felt at the time 75p was a steal for this share come 24-36months time once all this has blown over. IMHO all stocks are attractive for 2-3 months time as long as you can "set and forget" them and not worry about them dropping 20% before they climb another 50-80%? DYOR. PYOG.
Surely unless I'm missing something the share price page states 2,604,106 shares sold and 4,368,679 brought today yet the price drops 1.28%??? Even taking the UT out of that we are looking at 1.5 million difference? This has happened for days according to LSE so why does the price keep going down?
Two non-executive directors and the chairman. Definitely a positive sign.
IMHO I never saw the 22p slide from Boris' speech until yesterday as I don't think many did. I'd like to see this north of 65p by the end of the month and hopefully not below that again if all goes well with the lifting of restrictions. DYOR.
Some huge buys came in towards the end of the day? Only a good thing right?
Another one through for 25000 shares at 58p. Always good when the directors are buying
fairdealer - Very true, I'd be hopeful the government will maybe come up with a way to cover the losses for inventory I the hospitality sector as one of the schemes to help them out seen as the loss has been caused by their decision to shut down? It's a hopeful thought but that would make a difference especially to small independent organisations in the sector.
Thanks for your insight, have a good weekend. Time for a pedigree or two from the fridge.
Apologies, this was what I was referencing " Cash flow supported by very strong off-trade sales - up 55% since half year"
I completely agree, I always enjoy hearing an opposing view to mine as more often then not you can take something constructive away from it.
I believe sales will recover quicker than planned and I hope I'm right but acknowledge I may well be wrong but that is a risk I can afford to take. With 90% of Marston's pubs having outdoor spaces and those that don't being predominantly located as more upmarket inner-city venues I see MARS generating a good amount of sales compared to a lot of the competitors who have a higher indoor-only estate.
Also, if I am not mistaken wasn't it reported in the accounts that wholesale sales were up 55% since the lockdown?
Thanks for the insight barchild. I admit my £1 estimate is pure speculation I hope I had made that clear before but if not I will endeavour do so next time. I take the point about spending habits changing in the short-medium term but again it is my speculation that in the long term things will recover. If a vaccine is around next year and all the big sporting events are back up and running we should see a much more positive spending spree in summer 2021?
Oh wait I see what you mean now draft you were referencing fairdealder. My apologies.
Thanks for that Fairdealer I shall take another look.
Do you mean I've gone short draft? I've never made a short in my life as I'm a passive LTI. I took time to read Fairdealer's post and tried to offer an alternate opinion, is that not the basis for healthy debate and discussion after all? I've seen fairdealer post on a few other shares and I value their insight.
I find your post to be a little pessimistic about Marston's future fairdealer. I'm intrigued how you calculated the NAV to be 74p?
IMHO this will be £1 plus come 2-3 years time, the joint venture will be nothing but good news for Marston’s. An additional 34 million will be paid to Marston’s PLC in Q3 2021 when share prices have recovered and Covid-19 is behind us. The JV will IMHO bolster the dividend funds in a few years time and create good value for shareholders.
Slightly off topic but relevant to the SP I believe a vaccine will start to be circulated in Q1/2 2021 around the globe. The world is working on it with unlimited funding and I expect we will hear some very good news by September 2020. I wouldn't be surprised if we see 2-5 successful vaccines being used and circulated in 2021 which will enviably cause another bull-run and the saying "a rising tide raises all boats" will apply here.
In regards to the near term, I'd like to imagine the government will cut the hospitality/events/tourism sectors some slack and make it easier for companies to recover their operations through various schemes. Personally, I'll be buying the dips but then again I'm a long term investor only risking a small amount of capital that I could ultimately afford to lose (event though that is not my intention obviously). If you need access to your money within 12 months I'd be more hesitant to invest now but then again it always depends on your situation and risk appetite. For me, 0.1% interest on a savings account or buying Marstons at 60p I know what I'd rather have!
AIMHO. DYOR. Have a great weekend.
I wouldn't sell anywhere near the current level for this stock. It may take a while but in the long term they will recover despite all the doom and gloom people are projecting with lower sales and customer experiences etc. I admit the near term could be really choppy but I'd like to think in the long term this is one you wouldn't want to miss out on. This is obviously all in my humble opinion and you should always do your own research. For the record I've just topped up now that we are below 60p as to me this is a real bargain and hasn't been near this level since a month ago on the day the merger was announced.
Topped up today on the lows, this is a bargain and offers a wide safety net for the med/long term investor. Savings rates are 0.1% atm... This could land you a 100% return within 2-3 years. Online revenues increasing, Euros next year followed by the World Cup the year after? Ad revenues will recover if not exceed 2019 which was a tricky year as was. DYOR. AIMHO.
Gutted I missed out on the 59p minutes this morning... Well done to those who got in! IMHO this will be worth 80p+ come the end of the year and 100+ come 12 months time. DYOR. Much better option than a 0.1% interest savings account.
Probably just a low point of the day, 4p movement either way isn't too much given the state of the markets right now. I'll top up below 60p if we get there, I'm in this one for the long term 3-5 years. IMHO. DYOR.