Member Info for TobyHurmam

They almost own 10% now, the unbalanced risk reward here is being taken advantage of by a very clever team.

Rockwood strategic up’s position to 7.2%, very nice indeed

Agreed, considering book value is £4, I like it a lot. And am buying. Just cautiousness never hurt since cyclicals always look too cheap when they’re doing well. But, with £4 being book value; I like that kind of margin of safety , especially when the actual business you are buying is of high quality and should grow that book value over time as you hold.

I’ve dipped in here, but i got a different message from severfield, outlook is poor. Looks cheap but if earnings take a hit then suddenly doesn’t seem so cheap, all the best :)

Aqstn looks good to me, paying a good price. Good margins and geographic footprint improves.

Trough level acquisitions of quality little co’s like Albion should bolster ROCE (& earnings big time) when the cycle starts to change. We’ll see..

From hearing management it seems like a great opportunity and with such low competition there, could be a decent pricing mix too. Good value even without the Canadian optionality. Excited for the next few years.

Hi Rich

yes I logged on and watched it! Was a good one, few comments made that clear some things up for me. I like management teams that do things like mello, I think it says a lot about them.

Thanks,

I also think it could be a good entry point here, as long as the industry doesn’t go down much further, you’re getting the business for the price of its PPE & therefore the any growth or margin expansion comes free? Also with the £11 million available debt facility should mean no dilution, & a 3% yield whilst you wait is nice..

Can you/anyone tell me any substantial risks? Seems I’m painting a very sunny picture when I’m sure there are plenty of good reasons not to buy that I’m not considering.

Thanks

Annual report says replacement value of ppe is c. £50 million,

So buying today at £46 million EV seems a bargain, especially as management seem to think worst is now behind them, and helps they’ve been buying a decent amount at around todays prices, so essentially buying a business below its PPE’s replacement value, valuing its industry leading brand at 0, it’s potential margin expansion and cyclical upturn also at 0? I’m not a professional by any stretch so would love to know what I am missing? Any replies would be a real help