Melrose Industries (MRO) ?

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5th Jun '16 by Joy Woodstock

5 comments 5116 reads

This looks a potentially interesting company, and it qualifies for a number of guru screens, but for some reason the Stockopedia stock report says "This company is no longer active. Data may be out of date or incorrect." When I look at Hargreaves Lansdowne though, where I might make a bid to buy it if I decide to, all seems to be active and buyable.... Also, considering there are so many screens it qualifies for, it seems weird to me that there has been no discussion on this stock ever...

Can someone clarify the mystery of all this to me. Maybe I am missing something obvious! Thanks.

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About the Author

Joy Woodstock

Premium Member

5 comments

gus 1065

5th Jun '16

I think it must just be a Stocko glitch. Company website seems fully live and up to date as does the LSE company page as of Friday June 3rd (see link below).

http://www.londonstockexchange.com/exchange/prices-and-markets/stocks/summary/company-summary/GB00BZ1G4322GBGBXSTMM.html?lang=en

Seems to be primarily an investment company so no surprise it hasn't been a major source of discussion. Company specific discussion threads tend to be driven largely off the back of Paul Scott's SCVR report.

Maybe worth raising an enquiry on the green Feedback prompt on the side of the Melrose Industries (LON:MRO) screen.

Gus.

Jeremy Rea

5th Jun '16

Definitely still trading. I owned shares in them a few months ago. They are an engineering firm who work on the "buy, improve, sell" model. Their track record is quite good. Although the continued share consolidations when they return value to shareholders following sales, did annoy me

JohnEustace

6th Jun '16

I hold them. As Weasel says they buy engineering business that are trading below potential and turn them round and sell them on. They then return capital to shareholders so the share price record looks a bit odd unless you understand the model. You are basically backing the management team which I am happy to do given their record. They aren't holding much at the moment so I am keeping a few shares and waiting to see what their next move is, which could involve raising more capital via a rights issue to fund their next opportunity.

Wol

10th Aug '16

Melrose is in the process of raising money via a rights issue to buy a US company called Nortek. This is the way Melrose operates. It buys a company, improves it and then sells it, returning most of the proceeds to shareholders. It then raises money via a rights issue for the next purchase. The nil-paid rights shares have just hit my account today (I am an owner of Melrose shares). So it is possible that the issue of these nil-paid rights shares has temporarily confused stockopedia and caused this erroneous message. Melrose is still very much trading. But the price for existing shares has dropped significantly, not because there is any problem but because of the dilution of the company caused by the issue of nil-paid rights at a discount to the previous share price. So you might want to give it a few days for the price to stabilise at its new (lower level) before buying.
My opinion (personal opinion, not investing advice) - Melrose has a very good record of buying companies turning them round and then selling at a significant profit. Returns to shareholders can be a bit uneven (nothing for several years and then a bumper return of capital when the most recent acquisition is sold). I will be holding on to my shares and taking up my rights in the rights issue.

gus 1065

2nd Mar '17

Very positive update from Melrose Industries (LON:MRO) this morning.

http://www.investegate.co.uk/melrose-industries--mro-/rns/final-results/201703020700092916Y/

Looks as though their Nortek acquisition (referred to in post #4 above) is going gang busters and that there are further acquisitions in the pipeline. Strong opening with shares up over 12% at the moment.

Best,

Gus.

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Melrose Industries (MRO) ?

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About the Author

Joy Woodstock

5 comments

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