MPG - Metro Glass

[winner69]

With all and sundry making huge provisions and writing down asset values it’ll be interesting if Metro ‘review’ the carrying value of that goodwill they have on the Balance Sheet or worse still own up to some losses on a few large fixed price contracts they may have

[Onion]

... a very valuable lesson.

What were you taught Jeremy?

• Be wary of floats
• Don't buy shares that are dropping
• Only trust promises that are backed by past performance
• Things that are cheap are cheap for a reason (and often get even cheaper)
• ???

PS: I'm still learning these (the latter ones at least - I wasn't in at the listing) with MPG !

[nomis]

What were you taught Jeremy?

• Be wary of floats
• Don't buy shares that are dropping
• Only trust promises that are backed by past performance
• Things that are cheap are cheap for a reason (and often get even cheaper)
• ???

PS: I'm still learning these (the latter ones at least - I wasn't in at the listing) with MPG !

The best lessons are hardest learnt. Well are for me anyways with MPG

[Onion]

The best lessons are hardest learnt. Well are for me anyways with MPG

A lesson is not "ouch that hurt" -- it is "I know not to do that again - I now know how to identify a potentially bad investment because it looks like X with a Y tinge.".

What lesson did you learn nomis? What is the thing you won't do again? What will help me identify the next MPG?

[nomis]

A lesson is not "ouch that hurt" -- it is "I know not to do that again - I now know how to identify a potentially bad investment because it looks like X with a Y tinge.".

What lesson did you learn nomis? What is the thing you won't do again? What will help me identify the next MPG?

I went hunting perceived value. And went against my number one rule of investing which is to invest in a company I believe in. AIR / NZK (dropping) ATM - tick that box and have been a part of my portfolio to date

The three lessons I particularly learnt from MPG you summed up very well. below:

• Don't buy shares that are dropping
• Only trust promises that are backed by past performance
• Things that are cheap are cheap for a reason (and often get even cheaper)

[JeremyALD]

Agree with all of the above. I still think the upside for this is bigger than the downside, however it might take a year or so to fix the mess

[hogie]

Walked past the Metro site during my lunchbreak ... their building extension is almost complete and progress on this has been swift over the past few months ... interesting to see how "more production" will impact the company bottom line in the future

[crighton100]

Must say I enjoyed you guys & your information.Thankfully I thought the markets were overvalued here & overseas & much to my wifes surprise I sold my whole $160000.00 portfolio in January,that included the 20000 shares in mpg at a modest loss,but an overall profit of a few thousand.Then we had the upheaval in the dow,which looks like it will continue for a while & if I had sold out this week I would have been well in the red to the tune of quite a few thousand.I must be lucky as just before the 1987 crash we upgraded to a lifestyle property & to do that I had to sell all my shares at the time [$300000 worth],if I had kept them I would have lost a fortune.So it just goes to show that no matter how much you know there is always a bit of luck [I'm in my 70's now but when I worked I was an auditor & it does not surprise me that FBU is in the crap at the moment].Looking forward to T/D interest for a while,to pay for the cruises we enjoy in our twilight years.Good luck to you young bucks..

[Onion]

no matter how much you know there is always a bit of luck

It's good of you to acknowledge your luck - but let your wife keep thinking you are an investment genius.

[BlackPeter]

A lesson is not "ouch that hurt" -- it is "I know not to do that again - I now know how to identify a potentially bad investment because it looks like X with a Y tinge.".

What lesson did you learn nomis? What is the thing you won't do again? What will help me identify the next MPG?

Great question. I guess as one of the people who lost out on MPG myself (though selling earlier) - I was wondering how to avoid a similar disaster in the future.

The indicators I could come up with are:

1) never buy or hold in a downtrend (but there are as well examples in the past where I made exemptions to this strategy and it worked out for me, so it is a small "never". Just depends on how close the bottom is ...

2) Be very careful with companies which carry sh*tloads of "goodwill" on their balance sheet

3) Be careful with business models which optimize the business of the past without noticing the changes of the future.

4) Do not think your broker has any better information about companies than you have (I did my own research, but his recommendation sort of moved the scales at that stage a wee bit into the as I know now wrong direction).

Still - will I manage to avoid the next MPG? Who knows. Hope at least that I will make different mistakes next time (actually - looks like I did that already -holding CBL - ouch - another broker recommendation).