Investment for July

Discussion of the proposed Cashback Investment Club

Moderator: CIC officers

I would like to invest in

Poll ended at Mon Jul 15, 2019 5:34 pm

Science in Sport
0
No votes
Merlin Entertainments
3
27%
Medica
8
73%
None of the above
0
No votes
 
Total votes: 11

garindan
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Investment for July

Post by garindan » Mon Jul 08, 2019 5:34 pm

This is the poll for our investment for July. Some updates:

- Last month's poll, where members could vote for multiple options did not seem to work so I've decided to return to the tried and tested one option only format....

- I'm using the tips from yesterday's (Sunday's) Sharecast News round-up from the papers, so these are current tips and not 6 months old this time. Please review the article link.

- I'm adding in Medica as has been suggested, to make three choices in total

So here are the choices:

Science in Sport in the Sunday Times
Merlin Entertainments in the Telegraph
Medica - our previous investment on two occasions

What do you need to do?

- review the information and investigate the companies
- please do post about your thoughts and findings on this thread so we can all benefit from it and discuss!
- take a view on each company and decide if you would invest or not
- the poll opens now and will end in 7 days time unless we reach a majority decision before then

What will the officers do?

- we'll remind you to vote before it closes
- we'll implement the result, invest in at least one share £1000 if there is support to do so and let you know the details
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AAAlphaThunder
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Re: Investment for July

Post by AAAlphaThunder » Tue Jul 09, 2019 10:22 am

Science in Sport [SIS]
Sun 07 July 2019 18:41

While protein supplements were principally seen as the beverage of choice for muscle-bound gym goers for some time, Sam Chambers at the Times called them "a potential gold mine" on Sunday.

After AIM-listed sports nutrition retailer Science in Sport acquired protein brand PhD Nutrition for £32m back in November, the group instantly doubled in size.

Chambers noted the despite its partnerships with Manchester United and British Cycling, and having "credibility in spades", Science in Sport was yet to turn a profit since listing in 2013.

"Can protein bars and tubs of whey powder now pump up its bottom line?", he asked.

"The protein push puts Science in Sport into competition with Myprotein, part of the Hut Group's rapidly growing stable of online brands. Myprotein has an 18% share of the UK's protein market, almost three times that of Science in Sport," said Chambers.

Chambers, who hit SIS with a 'hold' rating, added that the company had "a solid base" as it makes its own products, with "healthy" gross margins and a 25% sales growth year-on-year over the last five years.

"It is estimated that the enlarged group will generate about £52m of sales this year," he wrote in his Inside the City column.

"However, big acquisitions are prone to complications, and Science in Sport does not have a proven record. It's worth waiting for proof before rushing in."
https://www.hl.co.uk/shares/share-resea ... ertainment

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Re: Investment for July

Post by AAAlphaThunder » Tue Jul 09, 2019 10:29 am

Sun 07 July 2019 18:41
With the hype surrounding the next Legoland park opening sixty miles north-west of New York already going into "overdrive", James Ashton at the Telegraph took a fresh look at Merlin Entertainment on Sunday.

While the new visitor centre will not begin admitting fans until next spring, Ashton pointed out that the company behind it was "gushing" about the 50 attractions it will offer.

However, Ashton noted the park was "not cheap" to build.

"Merlin Entertainments, the parent firm with attractions including Madame Tussauds and Thorpe Park in Surrey, has spent something like £250m on this single site. Developments such as Legoland New York help to explain why the company agreed to a £4.8bn takeover late last month that will see it go private after less than six years in the FTSE 100."

Ashton said much of Merlin's long-term growth prospects depended on the opening of Legoland parks.

"Once New York is up and running, all eyes turn to the next prospect, in South Korea. But long before kids will be enjoying the Ninjago ride, the cost of construction is sitting on the group's balance sheet," he wrote in this week's edition of Questor for the Telegraph.

He also highlighted that with plans for many more Legolands in Asia, the spending "will go on".
https://www.hl.co.uk/shares/share-resea ... ertainment

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https://www.hl.co.uk/shares/share-resea ... ertainment
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AAAlphaThunder
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Re: Investment for July

Post by AAAlphaThunder » Tue Jul 09, 2019 10:34 am

[Secretary] imutual Cashback Investment Club

garindan
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Re: Investment for July

Post by garindan » Tue Jul 09, 2019 10:52 am

6 down and 8 to go!
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Re: Investment for July

Post by an6ypan6y » Tue Jul 09, 2019 1:17 pm

Very brief comment on my decision to back Medica.

Merlin have received an offer for the business so I assume present price is optimal and will only increase a noggin at best.

Science in Sport have never operated in profit and with fairly recent acquisition and I take the HL analysis as a bit of a warning - this is high risk in my mind.

Medica have served well in the past and seem to be clearly cyclical in nature - I favour jumping back on this for the next wave.
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garindan
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Re: Investment for July

Post by garindan » Tue Jul 09, 2019 1:33 pm

an6ypan6y wrote:
Tue Jul 09, 2019 1:17 pm
Very brief comment on my decision to back Medica.

Merlin have received an offer for the business so I assume present price is optimal and will only increase a noggin at best.

Science in Sport have never operated in profit and with fairly recent acquisition and I take the HL analysis as a bit of a warning - this is high risk in my mind.

Medica have served well in the past and seem to be clearly cyclical in nature - I favour jumping back on this for the next wave.

This is also my thinking. I really think Merlin has had its uplift and I'm not sure it offers great value as an investment for us. I think the risk of it going down a bit greater than it going up more.

Medica has been fine for us before. I've not found out why it dropped in value so much recently creating the opportunity for us to reinvest - that might be enlightening. If there is nothing in the news to create this drop then it must be a decent punt again.
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Re: Investment for July

Post by AAAlphaThunder » Tue Jul 09, 2019 6:36 pm

Head to head, Merlin Entertainments and Medica with four votes each.

Interestingly, Science in Sport has zero votes.
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Re: Investment for July

Post by an6ypan6y » Tue Jul 09, 2019 8:14 pm

AAAlphaThunder wrote:
Tue Jul 09, 2019 6:36 pm
Head to head, Merlin Entertainments and Medica with four votes each.

Interestingly, Science in Sport has zero votes.
This isn't meant in an aggressive way but I would love to know where anyone thinks value will come from with Merlin.

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Re: Investment for July

Post by timco » Tue Jul 09, 2019 10:49 pm

I used to hold SIS I got them when it was demerged from Provexis which had bought it a few years earlier.

I sold them after a while (2014) as they were not core to my portfolio and had no intention of holding more. Cannot see why a business in this area that seems to be everywhere is not rated more in share value. The price now is less than I sold at (72.1 v 60.5 today) so is on that basis reasonably good value but still why so low and not growing.

Not one i could support us buying
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