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Tyrion Lannister
Posted: 20 October 2017 18:02:11(UTC)

Joined: 03/03/2017(UTC)
Posts: 195

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MoMoney;52189 wrote:
Bought Merlin this week long term hold good economic moats imo


I've been considering Merlin too, though admittedly only since the recent wobble.

Apart from the value price, what else do you see that makes it an economic moat?
steven goffin
Posted: 20 October 2017 19:19:06(UTC)

Joined: 29/02/2012(UTC)
Posts: 3

Was thanked: 4 time(s) in 3 post(s)
Tyrion Lannister;52190 wrote:
MoMoney;52189 wrote:
Bought Merlin this week long term hold good economic moats imo


I've been considering Merlin too, though admittedly only since the recent wobble.

Apart from the value price, what else do you see that makes it an economic moat?





Revenue was up 12.4% in sterling terms and 5.9% on a local currency basis. That sounds good, except that on a like- for-like basis (which excludes new openings), sales grew by 0.3%. That’s a long way from tragic and the two analysts (Credit Suisse and Shore Capital) have both upgraded the stock following the price drop.
The company blamed the slow growth in existing attractions on poor weather and the threat of terrorism. The weather excuse, (often used by pub chains), generally doesn’t go down too well with the market and the shares reacted accordingly.
The company is very cash generative and has a really strong balance sheet. It's diversified by geography and brand with a focus on adding more hotel rooms for the destination attractions.
The dividend yield is now 2% and the p/e has dropped to 17 years.

I think, along with others, that Its long-term investment programme will bear fruit in the coming years.
I'm not invested, but I've had it on watch for a year, awaiting the long term strategic changes to take effect, (as I did with Moss Bros)
If I wasn't expecting a general pullback, ( the ftse's banged its head on 7550 3 times now) I'd be in at 375.
GL.
1 user thanked steven goffin for this post.
Tyrion Lannister on 20/10/2017(UTC)
Chris Ould
Posted: 20 October 2017 19:40:45(UTC)

Joined: 13/01/2014(UTC)
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Micawber;52101 wrote:
On Monday I opened positions in TAM (thank you Citywire - http://citywire.co.uk/mo...ey-latest-news-list#i=2) and BEEP, and increased in AFX.


Micawber,
See Hargreaves added a sizable chunk to their AFX holding today...so you are in good company.

Curious why BEEP? Certainly had a good run this year, and Russia is cheap (as KL keeps reminding us), but so are natural resources...CYN, for example.
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