In_the_dark_yet_again
17 Oct 2019
Interim Results It’s not often I get it right! Then again I do think MBH is significantly more risky than IBST or FORT so need the extra reward to justify the extra risk. It’s quite a strong move on the back of those interim results so, while I believe there is more upside here, I’m not sure how much before the final results next March. In the meantime I think macro economic factors (Brexit and Trump/China in particular) will have a much bigger impact on the whole market than anything specific to MBH. These AIM stocks can get thumped pretty hard when the market wants to, often for no specifically apparent reason - I think they have a good solid business going here but things can always turn pretty fast. Regards, ITDYA
pelim
16 Oct 2019
Interim Results Should have followed you. See MBH are up 17% since 6 September. Split 50 /50 FORT and IBST. They are only up 3% and 7% excluding dividends.
In_the_dark_yet_again
06 Sep 2019
Interim Results @pelim I did look at both before buying MBH. IBST is the big player, pretty solid but seemed to be going nowhere fast IMO. Very exposed to the general housing/building market, the mainstream bit which, with the Brexit uncertainty, who knows? FORT not too dissimilar. What I liked about MBH is it’s much smaller and focuses on the higher end of the brick market (I’d never known there was such a thing but apparently there is) - so designer bricks for top end builds. It strikes me that the rich seem immune to the financial chaos than is so often inflicted on the rest of us. And anyway, the bricks themselves are the inexpensive bit, the bricklayer is where you spend the money so why skimp unless you’re building to the accountant’s budget? Plus it’s size makes it bite size in any potential takeover - I don’t see one in the immediate future but there’s always hope. Over the years I have been lucky with some of these ‘smaller’ companies, bought in, held for a few/5 years getting dividends growing 10% p.a. (only 8.5% here but they have so much cash they could do more if they wanted to), watching the SP rise accordingly then in comes a bid at a chunky premium. To be honest I hate losing a share holding like that as it’s so hard to find a decent replacement but you can’t really argue. Not saying that will happen here but it seems far more likely with MBH than the other two. Then again, because of the size and low visibility, if they do get it wrong, it really does get hammered so definitely more risky than the other two. So far so good - the financial numbers have been great yet the SP hasn’t really fully responded. Brexit uncertainty clouding the whole market - people (private and businesses) are holding back on serious spend, wait until the waters clear and you can see how things are likely to roll out; can’t say I blame them! I like MBH. I know it’s risen recently but financials have been much better than the SP performance so I’m hoping they can just keep it up - the market always notices in the end. Regards, ITDYA
pelim
05 Sep 2019
Interim Results Nice results. Any views on holdings in FORT and IBST? I am no LKH so do not expect incisive remarks! Galliford, Barrett and others still seem to be building. I only visit here about once a month. plm at home, looking at the sea and wondering if Vulganis (was that its name?) is still sailing.
In_the_dark_yet_again
03 Sep 2019
Interim Results LSE:MBH [link] Another very decent set of numbers. Same comment as last time - generating even more cash and even higher margin (so that same small concern). Onwards and upwards. Obviously a lot of fear, uncertainty and doubt around the market at the moment otherwise I think this would be gone, sky high. Regards, ITDYA
In_the_dark_yet_again
12 Apr 2019
Interim Results LSE:MBH I know, a couple of weeks late in getting around to it because I’m probably just talking to myself… just in case… [link] Very decent set of results again but then that is what they had telegraphed. What I like is they are generating loads of cash. What I’m slightly cautious about is the sales huge margin - not that I don’t like healthy profit margins just I tend to wonder how sustainable they are in the long run; if you’re making that much money doing something sooner or latter it will attract others to try the same. Anyway, very happy with this at the moment (famous last words!) Regards, ITDYA
In_the_dark_yet_again
05 Sep 2018
Interim Results LSE:MBH Maybe just talking to myself here as no one else seems to comment but here goes anyway. Yesterday was just one of those days when I had no chance to read anything but I did see the MBH SP jump so figured the interim results might have looked good. Just had a proper read and they not only look good, they are good. Very, very good! [link] I know last year’s interims weren’t the best but, having read the RNS, it’s hard to find any fault (possibly because there aren’t any?). Me, I’m slightly surprised the market didn’t lift it quite a bit more. If they were going for 100p plus back in April (I know, a very selective high point on a relatively illiquid smaller stock) I do start to wonder what was expected and/or what the management needs to do - maybe the market half thinks it just a one-off? Otherwise I can’t explain it. Super set of results. Regards, ITDYA, thinking about taking some more at 91!
In_the_dark_yet_again
17 Jul 2018
I'm in LSE:MBH. Have been watching for a while, looking for clues but precious little. Very quiet page and limited discussion elsewhere but have just taken the plunge at 83p. I must admit it’s a bit of guesswork from me but there wasn’t much else out there I fancied. I like that they are relatively small so more likely to be a target at some point. I like that they specialise in the ‘quality’ end rather than the bulk end of the market - even if Brexit and/or Trump cause chaos in the markets in general, wealthy people will still be wealthy and want (and be prepared to pay for) something a that looks a bit different/better. Anyway, it’s done. Obviously me buying is a very strong short-term sell signal as I never get the bottom but I’m not in it for a few pennies. If it falls through my stop then I’ll eat my loss and have a rethink. Regards, ITDYA, probably on his own yet again.
Geminic
30 May 2018
brick shortage brick shortage......rising brick prices....looking good..
Weildy
22 Jan 2018
News ? There is allegedly a news release of some sort today, but the last news posted on this site appears to be in December 2017. Is this some of technical glitch?
RAConnell
24 Aug 2017
Re: price [link] you were looking for the perfect long-term wealth preservation vehicle, it’s unlikely that you would alight on a brick manufacturer. But beyond the day-to-day business of Michelmersh, Britain’s fourth largest, lies a fascinating story of hidden value.To understand why, we need to appreciate the life cycle of a typical brick factory. They are normally built on the site of clay deposits, the principal raw material, and have long lives of perhaps 30 years.Then, when the clay deposits are exhausted, the factory closes and the owner is left with a large hole in the ground. These holes, it turns out, can be extremely valuable.To start with they are normally used as landfill sites. Then, once filled with refuse, they can be built over with housing. Given how large the claypits are – one site sold by Michelmersh earlier this year, in Chesham in Buckinghamshire, covered 25 acres – there is scope to build housing developments of considerable size.Thanks to Britain’s chronic housing shortage and the consequent high value of development land, a former brickworks can be a hugely valuable asset.It may seem strange, therefore, that Michelmersh is valued by the stock market as if it were solely a brick maker, with no scope to sell on its assets at highly attractive prices when they become redundant. In fact, the market valuation seems cheap even if the company is seen purely as a brick business.“Investors never make money if they buy at the wrong price, no matter how good the company,” said Django Davidson of Hosking Partners, the asset management firm, which owns a 20pc stake in the brick maker. “But Michelmersh is a very cheap company, with the shares trading on single-figure multiples of earnings.”He said the firm had more than 300 acres of clay deposits at various stages of the planning cycle. “Development land in the Home Counties is worth about £1m-£1.5m an acre. If the company were able to sell half of its land at that kind of price, it would be worth perhaps £150m over the next 20 years,” he added.Michelmersh, which is listed on Aim, is currently valued by the stock market at just £69.8m. Better still, the value of the land is likely to be even higher by the time it is sold, Mr Davidson said. “The value of this land will not stay fixed. We do not build enough houses in Britain, so the price of houses and therefore of land will go up.”Despite the compelling story about the company’s real estate assets, it’s important not to forget the qualities of the brick business itself.Many brick factories have closed in recent years, roughly halving the supply in Britain. Demand for property, of course, remains strong and bricks account for a negligible proportion of the cost of a new home, so price rises should not be strongly resisted by house builders.“There is a long-term runway for the price of bricks to increase,” Mr Davidson said. “The UK brick market is very attractive.”Of the major brick makers, Michelmersh is the only one to be virtually debt-free yet is the most cheaply valued relative to its sales, he added.Another of the company’s attractions is its management team.“Michelmersh is run by a stable team of its founders,” Mr Davidson said. “The founders and managers own about 40pc of the company and this ownership structure allows them to invest for the long term. In some ways the firm resembles a family-run private company even though it is listed – and such firms tend to outperform massively in the long run.”As a result, he said the stock could make a great investment for older people who wanted to leave assets to their children or grandchildren, especially as these younger generations were likely to face problems buying property as a result of the same factors that made Michelmersh’s land so valuable.“These shares should at least keep pace with rising house prices
pharmaspecialist
23 Aug 2017
Re: price Yes Geminic, I just read part of the article but can't read it all as I don't subscribe to The Telegraph either but the essence is that the land/quarries which Michelmersh owns are worth a significant amount relative to the company's market cap. My comment on this board on 27th March suggested that the share price was perhaps a bit stronger than you might expect from the admittedly good financial performance so this may be the reason why.
Geminic
23 Aug 2017
price According to share chat Questor recommended mbh today because the value of the land held far exceeds the share price. Don't take the Telegraph myself so cannot confirm this.
pharmaspecialist
11 Jul 2017
Re: What are these worth? I am confident that the company will continue to prosper as long as there is a reasonable amount of building activity in the UK so whether to sell might depend on your outlook for building activity. As far I can tell, there does not appear to be much reduction in building activity despite the softening of house prices.
WelshJew
11 Jul 2017
Proactiveinvestor article [link]
