http://www.meriden-group.co.uk

Finals released couple of weeks ago:
http://www.uk-wire.com/cgi-bin/articles/20050128162319PC2DC.html

Market cap is 3.3M
Profit (pre-exceptionals and applying 30% tax charge) circa 0.5M
Net current assets = 1.5M
NTAV = 1.9M

Paid small dividend.

Very upbeat outlook is the outer for me:

"......we anticipate announcing some very significant key account wins in the next few months which will have a very positive impact on our future turnover and earnings."

PE of 8 now after rise last week.

PE down to 7 again.

Interesting stuff courtesy Rescuer from the other side

the share has been un-noticed for a couple of years and at 1.5p per share (my entry price) and a divi of .02 pps, it looks very undervalued.

I've a copy of the last annual report of which i'll post some extract.

There's no downside (medium term)(short term as a result of my accumulation and another traders accumulation, we've pushed the SP up 25%, so now we've stopped accumulating (for now), any selling pressure may see a slight fall off.

however there is one piece of downside (illiquidity) which i'll post at the end.

MRD,

are split into 7 business, ALL of which are now cash generative and are growing.

The strategic highlights are

31% growth in t/o
new divisions launched and cost already absorbed into last years figures, so no exceptionals for this FY
All divisions will have earnings potential in 05/06
Focus on Corpoirtae clients
More aquisitions on the cards
Closure of it's publishing joint venture absorbed
Significant growth prospects from major key accounts.

They pay a divi and it's cover is 6 x

This year, (even if the company stands still, which it won't), the EPS will move to 0.17p (last year it was depressed due to the closure and exceptionals from it's publishing division),

hwever with growth expectations i expect the EPS yo move to a min. of 0.25, based on steady growth.

Thye business to date has grow organicaly, but cash generative aquisitions can't be ruled out.

Thye company expects to announce "some very significant key account wins in the next few months"

These aquisitions are expected to "enhance the groups earnings stream and dividend flow will be significantly improved"

The company has minimal debt, a strong balance sheet and a well motivated team.

"The board believes that the coming year will see a significant and profitable leveraging of the services they now have in place".

As metioned the group has had a successful and profitable year however the SP has been dissapointing, The board intends to addr5ess this issue by ensuring that the market in general and the institutions in particular have a full and comprehensive understanding of the group and it's business stratergy.


OK

The downside >> it's flucking illiquid to the extreme.

as a result of my 700k, i move the SP 12% and as a result of the other buying it's moved up a total of 25%.

there are 290m shares in issue of which the directors hold c78% of the company. there are no ther major shareholders.

every 100k moves the price a tenth of a penny, so therefore if and when you come to sell them the reverse will happen.

It's too bloody illiquid.

I expect the results, (towards the end of April), to be exceptional, there'll be a mark up of some size (if the SP is that of today), but nay shares tippoing service, or mag, tipping will have an unstabling effect on the SP.

It will lead to dis-orderly markets and sharp, in fact very sharp rises and falls in SP.

so if you are interested in buying, BE VERY CAREFULL.

Also i would expect at some stage , possibly this year, for a placing or funds raising of some sort, to enable the aquisitions to go ahead. Even if it was a placing the downside on dilution will be nil as the purchases as they've stated will be cash generative and Earnings enhancing, so swings and roundababouts.

Thats me lot

have a look at them and if you'ev any questions like always feel free.

ps we've no wine tonight, so i'm finishing off the Bombay Sapphire (gin to you Hatto)

i've cutted and pasted this piece for the MDR thread also.

regs

glenn

PS >> sorry guys you want some SP's

FV SP today is 3p, (current 1.75 / 2.05), on results, based on average growth (i'm expecting more), then an SP of 4p is not unrealistic.

from there we'll have to see what the figures are, but i'd hope to approaching the high single digit's for the finals, (end of 2005),
so all in all mutli-bagger potential for the next 9 months.

HCI agreement signed up 20% today.

gone all quiet

I like the look of this one. If they deliver according to their last figures it could well be substantially higher by this time next year. Pays a nice divi at todays price too. Well worth holding a few IMO

this scheme is indeed becoming huge however why is the CEO dumping loads.....i would be interested in this as a long term hold if the CEO was not getting rid of shed loads...will keep an eye on it though

Ouch thats a drop today

Can hardly buy any online now !