Member Info for RogerMellie50

Certainly could have improved your average selling and buying back in the 60/70p range. I've never had any success doing so in any holdings over the years, barring stocks from a clear cyclical sector. I could guarantee if I sold today, I'd then fail to get back in cheaper. Maybe I should sell and do the SP a favour?

I was pleased with contributions from non-defence sectors, lumpiness from Indian 5G backfill market to be expected. MWE presenting at Mello next week after AGM and Investor Meet. Well worth watching Moni and submitting questions - very thorough and engaging CEO.

Morning John,

H/Y numbers were pushed back 4 weeks or so to mid-Jan this year (" to allow for more time to prepare accounts owing to substantially increased business volume in recent years" etc), so we might not get FY report until end of July (think they've got 6 months grace from end of April anyway). I shall email the company and ask if they intend to do similarly going forward, although I doubt I'll get a firm answer (in fairness, that's likely price sensitive).

What was the share of yours you mention that's down a third ytd?

Hi Pharmall,

Yes, pleased with MWE. As you say, you could have done well taking profits at 70 and buying back, but I'm happy staying put. With the divi, 80p would represent a 'bag' for me too. I'll be in London when the AGM's on. Thought about going, but their IR is really good (Moni is very good with regular Investor Meets), I don't think there's much benefit. I'm hoping for an improved contribution from non-defence divisions.

I always have a good look at any suggestions you mention, very much appreciated. I'm glad my sole 'tip' in MWE is working out - yours are certainly more numerous and better informed! You mentioned THG the other day (not on my radar), saying your wife loved the products. Remembering you mentioning she was a consultant, I was expecting a med tech company, and was a bit confused until the penny dropped!

Should have said, "Cash funds are still paying out quite well, until Rachel and Torsten decide to start taxing them in ISAs from next year".

Hi Pharmall,

Hope you're well. Will give DEC a look. I was thinking about buying another of your tips, ENSI, a few weeks ago at 49p. Missed out there. However, I've been doing quite a bit of reading on another you mentioned, Celebrus Tech, and I think I'm in. Seems very cheap, cash to Mcap ratio provides a (theoretical) floor to the SP, and seems mostly sold off due to AI hysteria rather than fundamentals. 

I sold 2k today, having bought it at 12 quid a month ago. I still hold 14k shares, which is my biggest holding by far currently. I intend to keep holding and will attend the AGM and re-assess then. 24/25/and year to date have been my best in the market, hence why I'm about 2/3rds cash now. I've learnt the need to book profit from a good run, and cash funds are still paying out quite well. 

Are you still in MWE? Should get a trading statement around or on the AGM in a few weeks. Was a bit cheesed off, as I'd overlooked the withholding tax on the divi (Israel/UK taxation agreement is lop-sided on taxing divi income). Still think it's one to tuck away for a few years. 

Hi John,

Midas? Nooo! That's the kiss of death!

Hi Ox,

'Don't quote me', but my understanding is that this is a second, separate order, as the contract mentioned in previous financial report was for the existing Brandenberg class frigates. The new order is for the future F127 air defence frigates, which is an ongoing procurement programme (8 frigates by 2034). It's 'permission for export', which I assume is a step prior to an actual contract.

The BoD mentioned at last AGM they had effective planning permission for production expansion at their Carolina, US site, which this order will support. My (limited) understanding is that with the 'Big Beautiful Bill', companies in the US can fully expense their capex against tax, which is another positive for MSi.

This man's knowledge of defence systems and procurement is extraordinary. Anyway, good news for MSi.

https://www.fw-mag.com/shownews/1046/german-f-127-frigates-obtain-us-approval-for-a-huge-fms-package-for-aegis-and-related-systems

This is the system referred to.

https://msi-defencesystemsus.com/products/msi-ds-mk38-mod-4/

Morning John, Nice to 'see' you. Hope you're well?

I think Shore Capital is subscription. House Stock articles should always be taken with some generous seasoning, but nice to finally have a bit of promotion.

Divi paid tomorrow. Q1 nos will be 4 or 5 weeks, which should be another positive.

Morning West,

I appreciate defence sector entails a lot of confidentiality, but MSi's board are wilfully uncommunicative with shareholders. This for instance - OK, it's nothing to write home to mother about in itself, but it's still positive for the company. Why not just put it in an RNS-Reach and let shareholders know? Takes, literally, a few minutes to do. Anyway, I imagine we'll be waiting for F/Y and AGM for anything substantial. On that score, does anyone know if they'll be reporting later than previously (given the delayed H/Y nos in January)? I want to be at the AGM again, but have quite a busy summer ahead.

https://www.themanufacturer.com/articles/five-uk-defence-smes-selected-for-750k-aws-digital-transformation-pilot/

I think this year is crunch time for MSi. Their land-based systems have moved from the hypothetical to the actual, that's to say they're being used actively in war as I write. Lots of questions - are small callibre systems like MSi's effective? Are MSi's providing better results than competitors? If so, does MSi have capacity to deliver at the pace and scale required, or will larger manufacturers be better placed? This is where it helps to have current 'in the know' sector information about what's going on on the ground, which a punter like me doesn't have. 

Certainly, the inflationary situation in the UK is not good news for prospects of divesting the non-defence divisions, but who knows. Current price could turn out to be extremely cheap if the situation in the Gulf works out to MSi's commercial advantage. If I wasn't already holding a substantial amount of shares, I would on balance be a buyer at these prices, but not without some risk. We shall find out, anyhow. 

Https://mapledefence.com/

https://www.pinnaclessd.com/

https://www.gov.uk/government/news/uk-defence-industry-steps-up-support-for-gulf-partners-facing-iranian-attacks

https://www.linkedin.com/in/herndonrb

https://www.navylookout.com/canadian-navy-reveals-latest-modifications-to-river-class-destroyer

Just about to ask the same question myself - glad you're still around John!

Trying to give a bit of a summary of where we're at.

MSi have exclusive agents in Jordan and UAE (all links below). We can guarantee MSi's systems are seeing action in Jordan currently, I suspect they are also present in UAE, although can't say for sure (the UAE-based agents were recruiting for maintenance personnel: why do that unless MSi's systems are present?).MSi has just recently participated in UK government meetings with Gulf defence attaches. We also now know who the sales lead mentioned in the F/Y report is. Canadian Navy have just revealed MSi's replacing of a different manafacturer's systems for their new T26 frigates.

My uncle was telling me that he learnt to drive during the Suez crisis and was temporarily allowed to drive with L plates by himself, as there were so few cars on the road!

I noticed recently that MSi registered 'MSI Defence Systems Europe' as a LLC in October last year, with the registered address as their existing premises for the signs division in Krackow. I don't know if the new capacity in Poland that they mentioned in H/Y report is at the same premises or not. Looks like they're continuing their recruitment efforts, with a few new vacancies posted the last week or so.

As foretold, an excellent set of results. PSK back in profit. Was hoping for more a fair bit more on the divi, frankly, but buy-back continuing for another 2 years, supporting EPS growth. Look forward to a positive Q1 update in 2 months, maybe a contract announcement in the meantime.

A while off, but as West mentioned it, you should make the effort for the AGM, John. Barely 90mins on the train from Kings Cross, and much cheaper if you book in advance. As an incentive, I'll drop you off at the station and stand you to lunch and a few pints, how about that?

Morning John,

There was a 'rumour' of a land-based system order by another GCC country a while ago, although I have no idea of delivery status. I can't remember now if I read it in actual company literature, or trade press. MSI have already sold land-based systems to Jordan, which I imagine will be being put through their paces as we speak. I mentioned before here that this outfit has just sprung up, agents for MSi's products based in UAE ( I mistakenly said Jordan previously). They are also recruiting for maintenance engineers based in the Gulf. MSi has been partnerimg with various Gulf-based companies at recent expos too.

https://mapledefence.com/about

Monitoring the company's 'Linkedin' and a few other sources, some interesting developments.

Firstly, there's been a flurry of recruitment the past few weeks, jobs including a Bids Engineer, Financial Controller and an 'Executive Assistant' to help with directors' workload. Secondly, they've been presenting at trade shows 'in association with' different companies, most recently with WAHAJ, who are a Saudi Engineering company. I notice WAHAJ havr had previous 'teaming' agreements with UK defence companies to expand production within Saudi Arabia.

Last couple of days I noticed this outfit, who appear to be an 'authorised distributor' for MSi and APS' products (APS are the Polish company with whom MSi collaborated on their Palladin land systems), based in Jordan.

https://mapledefence.com/

They also appear to be recruiting themselves. As ever with MSi, we aren't provided with any clarification from the company, but one one would hope it bodes well.

Hi Pharmall,

You're welcome, I do very occasionally pick a decent one! Think I'm about 42.5p here, bought in a bit early but averaged down. Went a bit overbaord with 50k shares, but hoping for 2.7p divi, and then perhaps another buyback, given cash pile, to boost EPS further next year. Very well diversified business, CEO is excellent on Investor Meet presentations also.