MPG - Metro Glass

[nomis]

Should have followed your lead and got out at around $1. Still hold a very small parcel that I am tempted to sell at a loss and turn into a milk shake

Feeling along the same lines. in at $1.40 originally doubled down and keen for a milk shake myself

[Leftfield]

Feeling along the same lines. in at $1.40 originally doubled down and keen for a milk shake myself

You are learning a valuable (but hard) lesson about the risks of buying and holding a down-trending stocks Nomis.

IMO it is best to quit your losses early and invest only in clearly up-trending stocks. Buy in small increments and only buy more (eg, doubling up) if it retains it's uptrend and proves itself as a good investment.

IMO - Doubling down is an extremely risky play and ties your valuable money up in a non-performer while other shares climb.

[nomis]

You are learning a valuable (but hard) lesson about the risks of buying and holding a down-trending stocks Nomis.

IMO it is best to quit your losses early and invest only in clearly up-trending stocks. Buy in small increments and only buy more (eg, doubling up) if it retains it's uptrend and proves itself as a good investment.

IMO - Doubling down is an extremely risky play and ties your valuable money up in a non-performer while other shares climb.

totally agree. But agreeable later than i should have been

[t.rexjr]

Metro Glass now expects Normalised NPAT for FY2018 to be at or slightly below the bottom of the previously provided guidance range of $18.5 - $20.0 million. This is principally a result of weaker than expected Australian performance as it completed a complex and protracted capital program.

Oh dear...

[winner69]

I like this bit, deserves every penny for getting screwed -

Outgoing CEO, Nigel Rigby, will receive his contractual entitlements of 1 year’s salary and also consideration for extending his restraint of trade to two years. No portion of the annual STI or LTI schemes will be paid. A one off incentive that was proportionate to performance criteria for the current financial year (in particular, delivery of the capital installation program and manufacturing improvement plan) will be awarded.

[winner69]

Hey reading of the parts about the strategic review is that their ‘strategy is all OK’ and doesn’t need changing and the operations aren’t really in a mess but we need to spend some money (heaps) on upskilling our people.

What the punters (ie the market per se) don’t get is that investment in plant and skills is needed to just stay in the game ..it’s not the magic bullet to provide growth.

Metro remains in a fickle market .....that’s the game they are in ....but even $18m profit isn’t too bad. Metro’s ebit margins are more than reasonable for this type of business.

They’ll be OK

[winner69]

Bit of a worry when a spike in electricity prices is treated as a non-recurring cost.

Jeez they run big furnaces .....hope there are no more spikes.

[percy]

No surprises there.!
The sorry saga continues.

[Beagle]

Mr Griffiths said, "the strategic review announced in October 2017 is well
progressed. After very strong sales growth over a number of years, we expect
that activity in our core New Zealand market will remain flat and may
eventually soften. The South East Australian market continues to show strong
demand. Accordingly, this review has challenged the historic focus on revenue
growth, protection of market share, and reviewed the Group's ability to
generate acceptable returns over time from its investments.

Now hang on a minute there. Ever since listing this company has told us its a growth company and their whole focus has been about growing their capabilities to meet that ongoing sustainable growth. Further, a huge amount of the goodwill valuation of this float was predicated upon assumptions of ongoing growth.

That they have had to have outside consultants give them a reality check that this is a cyclical industry (apart from this telling us the bleeding obvious) sheds light on the "integrity and vision" of the directors and management. This has been plainly obvious to most experienced investors for some time.

Hoping they won't get more electricity spikes in costs when the market is clearly headed into a tighter supply demand situation with electric car demand is frankly quite ludicrous and gives another important clue in terms of shedding light on the degree of foresight management have.

The goodwill the balance sheet is built upon was predicated upon assumptions around ongoing strong growth in demand, and this basis is clearly now a falsehood so this fundamentally undermines their balance sheet going forward.

This will continue to be a woeful underperformer going forward in my opinion. They're paying some bonus to the former CEO just for working through a capital investment program...surely part of his core responsibility ? What was he paid his very high base salary for then ? Surely this sets some new low in "performance" based incentives ?

Investors should keep in mind the net tangible assets of this company is -2.2 cps, i.e. there is a vast amount of goodwill in the balance sheet that is based on fundamentally false assumptions of ongoing strong demand growth. Another classic case of a well timed float, investors sold old and tough mutton dressed up as fresh lamb.

[winner69]

Now hang on a minute there. Ever since listing this company has told us its a growth company and their whole focus has been about growing their capabilities to meet that ongoing sustainable growth. Further, a huge amount of the goodwill valuation of this float was predicated upon assumptions of ongoing growth.

That they have had to have outside consultants give them a reality check that this is a cyclical industry (apart from this telling us the bleeding obvious) sheds light on the "integrity and vision" of the directors and management. This has been plainly obvious to most experienced investors for some time.

Hoping they won't get more electricity spikes in costs when the market is clearly headed into a tighter supply demand situation with electric car demand is frankly quite ludicrous and gives another important clue in terms of shedding light on the degree of foresight management have.

The goodwill the balance sheet is built upon was predicated upon assumptions around ongoing strong growth in demand, and this basis is clearly now a falsehood so this fundamentally undermines their balance sheet going forward.

This will continue to be a woeful underperformer going forward in my opinion. They're paying some bonus to the former CEO just for working through a capital investment program...surely part of his core responsibility ? What was he paid his very high base salary for then ? Surely this sets some new low in "performance" based incentives ?

Investors should keep in mind the net tangible assets of this company is -2.2 cps, i.e. there is a vast amount of goodwill in the balance sheet that is based on fundamentally false assumptions of ongoing strong demand growth. Another classic case of a well timed float, investors sold old and tough mutton dressed up as fresh lamb.

That strategic review was always a window dressing initiative ....that was patently clear. I said so at the time. the grumpy market demanded something be done so they did something.

If there was to a review of anything it should be around ulterior motives of the IPO promoters and still big shareholders. They are the ones who have duped the punters.

Amazes me it’s taken so long for the market to realise that Metro is what it is ...a solid but not sexy company that’ll make around $20m in good years and probably a bit less when the market is not so robust.

As such it will be price accordingly ...maybe more than where it currently sits.

how many years has MVN been a growth company? Some still think so