Is Molins a value play?

This is a discussion on Is Molins a value play? within the Stocks forums, part of the Markets category; Maturing business Molins is struggling to grow. Revenue is 33% smaller today, then 2004. Market valuation decline by 80% since ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Mar 16, 2017, 3:19pm   #1
 
Walbrock Research's Avatar
 
9 Posts
Joined Nov 2016
Is Molins a value play?

Maturing business Molins is struggling to grow.

Revenue is 33% smaller today, then 2004. Market valuation decline by 80% since 2003. Are Molins shares still value for money?

Molins management made a recent trading update suggesting the poor results is for last year. Because customers were delaying orders till 2017.

The second good news is their pension situation. With the UK Bond Rates (known as the 10-year Gilts) rising. Their assets pay more in cash flow to Molins retirees.

The downside to Molins is capital expenditure. Because they havenít spent big for a long time. Molins asset age in 14 years (is a record), and 60% of their assets meet that age.
Their last big spend was in 2003 at £13.6m. Since 2009, Molins average £4m in CAPEX. Donít be surprised if they spend £10m.

On share price, Molins could average 80 pence per share in 18 months. But, donít be surprised if it falls back to 40 pence because of the markets at all-time highs.
Walbrock Research is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Let's Play the US Markets NickElliott Trading Journals 50 Jan 11, 2011 6:02pm
Who do I play against? tequaz First Steps 14 Jan 15, 2008 6:30pm
In-play betting Ferru Fixed Odds & Binary Betting 1 Oct 19, 2007 7:04pm
Anyone play the CAC! cd173 Indices 5 Feb 15, 2005 4:11pm
Play trading? KIG Spread Betting & CFDs 3 Feb 7, 2005 11:37am

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)