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20-02-2020, 12:02 PM
#181
Originally Posted by percy
MGL.Mercer Group Ltd.64,520,706 shares on issue.Market cap at 25 cents is $16,130,177.
Good to see them making a profit.Has it taken 20 years or longer.?
After tax profit of $ 447,000 on turnover of $27,864,000 is very slim margins/pickings.
76% of revenue is now coming from recent acquisitions H&C and Milmeg.
Positive was the strong cash flow of $2.6 mil and the big reduction of debt down to $2.2 mil.
Fabrication still has issues.
So current 6 months profit is $.447 mil.Say they managed to get it up to $1mil for the year, the PE ratio would be 16.1.
Now I am not going to pay that for this type of business, in the sector they are in.
Also remember they are not paying a divie,and if/when they do, it will not be imputated.
This wonderful "window of opportunity" I will leave for others....lol.
No question at a margin for around 1.5% is slim as things stand. Question of whether they can grow revenue without adding further to overhead.
Last edited by black knat; 20-02-2020 at 12:27 PM.
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20-02-2020, 12:03 PM
#182
Originally Posted by black knat
No question at a margin for around 1.5% is slim as things stand. Question of whether they can grow revenue without adding futire to overhead.
Where exactly will the " growth " come from, what is their core reoccurring business ?
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20-02-2020, 12:23 PM
#183
Originally Posted by whatsup
Where exactly will the " growth " come from, what is their core reoccurring business ?
I can't answer that. At a high level they are converting the company from the traditional stainless steel fabrication to focus on automated processing and packaging systems... seems to have been a positive move thus far.
Last edited by black knat; 20-02-2020 at 12:26 PM.
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20-02-2020, 12:26 PM
#184
Originally Posted by black knat
No question at a margin for around 1.5% is slim as things stand. Question of whether they can grow revenue without adding future to overhead.
Yes the correct question to ask.
As the acquisitions make up 76% of the revenue, and this is the first time they have shown up in the accounts it impossible for me to guess.
Also with fabrication going backwards we do not know the margins for the different sectors.
I think I will have to wait for the full year's result, before I can make an informed judgement.
Possibly if we see insiders buying we will be able to make a better guess.
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05-03-2020, 08:03 PM
#185
An interesting Shareholder change -
https://www.nzx.com/announcements/349455
Asset Management Limited has today advised that it has unconditionally sold 13 million Ordinary Shares in Mercer Group Limited (MGL) to interests associated with Colin Neal. This means on settlement of this transaction Mr Neal’s interest will be 19.81% of the Ordinary Shares on issue. Colin Neil recently sold his interest in Big Chill distribution business to Freightways Limited.
The relevant statutory notices of Substantial Holdings will be made on the settlement expected within two weeks from this announcement.
Asset Management Limited a remains the company’s largest single shareholder owning 22.5% of the company.
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05-03-2020, 08:25 PM
#186
" Possibly if we see insiders buying we will be able to make a better guess. ".
In view of this... Comments percy ?..
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05-03-2020, 08:32 PM
#187
Originally Posted by janner
" Possibly if we see insiders buying we will be able to make a better guess. ".
In view of this... Comments percy ?..
I think if I were not sitting on the sidelines at present,I would be having a bit of a good look at Mercer.
No price mentioned as yet .
My guess is it is very interesting..lol
Last edited by percy; 05-03-2020 at 08:33 PM.
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05-03-2020, 08:35 PM
#188
Of course... Softee Softee…
Disc. Not a holder.
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05-03-2020, 08:39 PM
#189
For sale 1470 at 24.5 cents,then 108,332 at 25 cents.
Not many wanted by buyers,and only 628 traded today at 24.5 cents.
I would have thought there would have been more interest.
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05-03-2020, 08:43 PM
#190
Been a S Her in and out over the years, but with the Ch-Ch "inc imho " in control, one
would want to know what the weeze is before climbing onboard ( again ) . ps looks like their silo issues are getting sorted finally !
Last edited by whatsup; 06-03-2020 at 04:23 PM.
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