Yes - people seem to have a lot of respect for Mr Morgan. I don't know the people or business first hand (which is clearly the best way if possible - as you say above board - just knowing first hand that people are competent is good). What clinched it for me though was the extent to which the directors are sinking their own money into the firm. It shows great confidence in what they are doing - and will focus their minds - both very good things. Even before I topped up in November they had a lot invested - but as you will know - the big buys in November at around 7p happened - and that gave me more confidence to buy - so I bought 2 more times since.
Just because they have invested a lot themselves gives no guarantee - but it is a good sign. One of the other shares I hold is Aga Rangemaster - and the tiny director shareholding seems like a bad sign to me (for e.g. I suspect they would have dealt with the pension situation more aggressively by now if they had a lot of shares - rather than taking the easier option).
The only reason I bought them was because I knew quite a few of the directors at Bray Leino - I would quickly add they have not and would not provide me with any information. When TMMG was formed part of the group contained some rotten apples and the share price dived as you will be well aware.
I heard that David Morgan had taken over the running of the company so I'm thinking I can't go to far wrong by investing a few bob!
First by 22 October then topped up on 18 November and 21 December (so bought just below 10p at cheapest and 14p at most expensive). I'm quite bullish about the company (dont know whether I am right to be though - just from what I have read etc).
that would make some sense; except that the prices move in different directions than each other some days. You must be right though - but vvv weird to be moving in opposite directions. Makes my portfolio movements very random.
Hi, this is probably a stupid question, but I use the FT portfolio manager and have bought Mission shares twice - and one time I entered the share using the LSE code and the other time with the PLU code. So each day I now see what the movement is on each - and, bizarrely, sometimes it may be up say5% on one of them while down 4% on the other etc. The difference today is not as large as normal but is still more than 6% - and the prices as I say often move in opposite directions.
Mission Marketing Group Plc
Mission Marketing Group Plc
Isnt this a bit weird? Choosing which exchange to use could mean a more than 15% difference on some days!!
I guess like many I see this as a recovery opportunity.
One thing that I can say about Robson Brown, having visited their website, is that the quality of the content is extremely unimpressive and, dare I say it, written very poorly. The website details a number of case studies, and if these short write-ups provide an insight into RB's quality of work, then I would suggest that there should be no surprise that they went into administration. At the very least a design/comms/PR agency should be able to demonstrate strong writing and content skills. Hence, the removal of the management team could be a very good thing.
There is a website called thedrum.co.uk, which focuses on news in the UK ad world.
There are quite a few articles about Robson Brown, who have had an appalling year....taken over in Feb 2010, begining of Dec appear to have lost biggest client, Dreams (bed retailer), then forced into admin.
One article, dated 14th Dec, suggests TMMG has acquired 'what remains of the client list'. Presumably, they have acquired an office, some staff but seemingly not the top management, who were attempting their own MBO. Whilst that is fine as far as costs go, presumably it is those chaps who were responsible for winning the clients.
The main point though, as you have written, it does indicate a turning point.
Does the acquisition of Robson Brown indicate that TMMG is moving from the fire-fighting stage towards expansion and a return to profitability ? We don't know exactly what was acquired - how many of the existing clients and staff
(if any) - nor do we know what price was paid. But it does look like a step towards recovery.
Yup, I think I'm bright enough to get the drift.
But actually it's very encouraging news that the directors are buying. The Finance Director has a reputation of being very shrewd. I don't know if he was part of this summer's 'concert party' or not, but the price they paid then was 13p, so topping up at 7.5p will average their buying price down.
I could not understand yesterday's sharp fall in the sp. It was impossible to work out whether it was a buy or sell, and I assumed that it had something to do with yesterday's RNS. The rumours have it that TMMG is progressing well with its re-organisation under David Morgan, that the debt problem is being successfullu tackled and that turnover is holding up. On that basis, I topped up yesterday at the ridiculously low price of 7.7p. The problem with this share is that the mm's bounce the sp around from 7.5 to 10.5p on the smallest of transactions.
I think the basics are good - David Morgan has a superb track record and is determined to turn the company round. I also think he will be willing to sell to a trade buyer. As I've posted here before, I think TMMG will eventually be taken out for around 30p a share.
Good to see significant commitment by Executive Director, Robert Day and Finance Director in acquiring further 911,743 and 133,334 respectively at 7.5p to add to their holdings. Surely an indication of confidence in future of tmmg.
Agree roughly with you Brocks. However, I am a bit disappointed by these results who did not bring any new information.
From a company who has been disappointing consistently since one year,
I can understand that some people are losing patience and hence the low PE.
We are half way through the H2 and the comments about H2 remain really vague. We also have no indication about what is being done to enhance falling margins. I will also be curious to see if David Morgan and Co are going to top up at these levels which are below the 13p paid in June.
All this to say that there is potential at the Mission ( especially with the recent small cap rally) but investors will ask for more tangible improvement in H2 before paying more for the share.
Not too interested in brokers opinion and nor am I trying to get anyone to buy in here if they have any doubt. All i would say is give them a call and get a sense of what's going on, ask about the client list growth, the volume of market interest/sign up, and then estimate what you think might be in the results statement in a week or so.
I've bought in here very recently, but only after looking in great detail at their activity and market position.
Just noticed on the Sharecentre web site "The Mission Marketing Group is in the media sector and is currently trading at 10.25p per share. In the last year The Mission Marketing Group's share price has ranged from 8.75p to 35.50p and brokers are currently rating this stock as 'strong buy'.
Look forward to positive September results.
It seems that the market did not read properly the market update issued in July.If you read behind the lines you will see that the company is generating a good cash flow that even if things do not improve it will be more than enough to pay back the debt,
Total debt was 50% of equity as of 31/12/2009 which was 20.1m of banking debt + 3.9m of acquisition liability that makes 24m in total.
Now update said that it was net debt was 30% of equity. Equity was 49.419M at end of 2009 add 4 m from the fund raising + 1.5m of estimated H1 profit that will make 55m in H1.
So net debt would be 16.5m so there would be a reduction of 7.5m in debt , 4 m coming from the fund raising which gives an operating cash flow of 3.5m in H1 !!
Market cap is 7.5m guys !! Which means that in just 6 months the company generated half of the current market cap.
And the group said that H2 looked much better than H1 so you now all understand why I bought back some of the shares sold at 14p at 10p.
Just watched an interview on Doomberg with CEO of WPP, he reckons advertising is picking up, with no sign of a double dip. Obviously, the mission aren't in the same league as WPP, but it's the same business.
Easy to understand why the stock is rallying: the stock was trading at 3-4x pE, below the recent capital raising and the stock market is rallying across the board. Plus greenshoots of recovery announced by the management you cannot ask more better news. I am glad that I kept on buying when teh stock dropped below 10p as I am now in the black on the stock.
That is the turning point for the share as people feel more confident about economic prospects in UK ( growth 1.1% in Q2) and people are looking for recovery plays and cheap companies like TMMG. Another important point is that the final H1 results should be published soon ( indicative date 13/08 for Bloomberg). Possibility of group upgrading its forecasts as management was hinting at clear signs of improvement in H2.
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