• Australian (ASX) Stock Market Forum

MCE - Matrix Composites & Engineering

Discussion in 'Stocks I-P' started by System, Jun 29, 2010.

Tags:
  1. System

    System Administrator

    Posts:
    1,742
    Likes Received:
    1
    Joined:
    Jun 27, 2010
    Matrix Composites & Engineering (MCE) is an Australian based engineering company providing engineered product solutions for the offshore, subsea, mineral processing, military and manufacturing industries. MCE designs and manufactures products through its oil & gas, mineral & industrial and advanced materials divisions.

    http://www.matrixap.com.au
     
  2. todster

    todster Well-Known Member

    Posts:
    629
    Likes Received:
    0
    Joined:
    Feb 17, 2010
    I did some work accross the road from there Malaga workshop last week,very busy but sorta looked they have out grown there premises.
    The place i was at was making more moulds for there floats,with all this oil&gas work around i would imagine there will be demand.
    Anyone any thoughts on the tech side?
     
  3. tahpot

    tahpot Active Member

    Posts:
    36
    Likes Received:
    0
    Joined:
    Jul 18, 2006
    See the latest report. Look like a great company. PE is around 11 with > 400% revenue growth expected next FY.
     
  4. robusta

    robusta Well-Known Member

    Posts:
    1,555
    Likes Received:
    0
    Joined:
    Oct 25, 2009
    Yes what a great company. I now own a nice part of it (20% of my portfolio).
    Expected to double profits again next year, 49% ROE low pay out ratio, not much debt, great cash flow, excellent growth prospects - a real compounding machine.
    Wish I could find more companies like this one. I also lucked out in timing sp up 8.3% in 2 weeks I have owned it - I know wont make much difference when planning to hold long term but very happy.:):D
     
  5. drlog

    drlog Well-Known Member

    Posts:
    162
    Likes Received:
    0
    Joined:
    Apr 5, 2008
    I also hold this one - looks like a great company no matter which way you look at it.

    Interestingly, the share price has gone down today. I am guessing it is because of the 2nd oil rig in the US exploding? Or could it just be some profit taking since it has gone up a lot recently?

    Either way, it's still a bargain even at yesterday's price! :D
     
  6. robusta

    robusta Well-Known Member

    Posts:
    1,555
    Likes Received:
    0
    Joined:
    Oct 25, 2009
    Time is your friend if you own a great company. It is great to feel so relaxed about short term sp fluctuations.
     
  7. robusta

    robusta Well-Known Member

    Posts:
    1,555
    Likes Received:
    0
    Joined:
    Oct 25, 2009
    Time is your friend when you own a company like MCE. It is great to be relaxed about short term sp fluctuations.
     
  8. The Trooper

    The Trooper Active Member

    Posts:
    29
    Likes Received:
    0
    Joined:
    Mar 27, 2008
    Found the attached valuation of MCE among other stocks from Roger Montgomery's valueline portfolio. Bought the stock on this basis. Does anyone know much about the future prospects of MCE?
     

    Attached Files:

  9. robusta

    robusta Well-Known Member

    Posts:
    1,555
    Likes Received:
    0
    Joined:
    Oct 25, 2009
    Manufacture of subsea flotation devices give this company exposure to the oil and gas sector. As the oil price goes up it makes it more economical to deploy more oil and gas platforms into deeper water. MCE is building a new state of the art facility in Henderson WA with direct access to docks. MCE also has very little competition (only 3 other companies worldwide).
     
  10. The Trooper

    The Trooper Active Member

    Posts:
    29
    Likes Received:
    0
    Joined:
    Mar 27, 2008
    Thanks, will stick with it and see what happens. The low debt and expansion prospects are definitely appealing.
     
  11. pjsh

    pjsh New Member

    Posts:
    3
    Likes Received:
    0
    Joined:
    Sep 4, 2010
    in montgomery's valueline portfolio above, why would he buy cochlear at $74 if he thought it was worth somewhere in the low-mid $50s?
     
  12. drlog

    drlog Well-Known Member

    Posts:
    162
    Likes Received:
    0
    Joined:
    Apr 5, 2008
    That column is just the market price at the start of the financial year, not what he paid.

    I think he did originally "pay more than what they are worth" but the difference wasnt that much.
     
  13. robusta

    robusta Well-Known Member

    Posts:
    1,555
    Likes Received:
    0
    Joined:
    Oct 25, 2009
    Great to find MCE getting cheaper in todays market. Picked up a few more.
    Happy days:)
     
  14. drlog

    drlog Well-Known Member

    Posts:
    162
    Likes Received:
    0
    Joined:
    Apr 5, 2008
    So did I - There was no announcement and the oil price didn't plummet so it was just Mr Market being in a bad mood :) Still trading well below IV so there is a nice margin of safety. Awesome :cool:
     
  15. MEGALADON

    MEGALADON Active Member

    Posts:
    27
    Likes Received:
    0
    Joined:
    Oct 28, 2010
    I cant wait till the next quarterly report to see how big the order book is. Industry is starting to become highly aware of their reliance on Matrix product and the long lead time in the current order book. Placing an order with matrix is very high in the list of things to do if you plan any new commisioning in the next 2 years.
     
  16. Tightwad

    Tightwad Well-Known Member

    Posts:
    141
    Likes Received:
    0
    Joined:
    Jun 20, 2010
    I had a giggle at this:

    Current Broker Consensus Recommendation
    Recommendation : Sell
    Recommendation Date : 26th Oct 2010
    12 Month Target Price (average) : $3.73
    Brokers Surveyed : 1
     
  17. robusta

    robusta Well-Known Member

    Posts:
    1,555
    Likes Received:
    0
    Joined:
    Oct 25, 2009
    Yes have got to love the Consensus of one.
    I think UBS broker based this on no new orders for MCE. Do you think he looked hard enough to see MCE is currently at full capacity and building a new facility to significantly increase capacity?

    I was wondering why sp dropped in such a positive week for the market in general. Anyway, filled my existing holding up @ $4.68 on the 25th and 26th October sp now $5.15, I should buy that broker a beer. :D
     
  18. ubtheboss

    ubtheboss Well-Known Member

    Posts:
    88
    Likes Received:
    0
    Joined:
    Jan 27, 2010
    It's been following market sentiment in the last few days after a good run but that just gave us all a chance to buy more at a cheaper price. Picked up some more at 5.25 last night. My own valuation of MCE for 2011 is $7.08 with a 14% required return.
     
  19. magicmoment

    magicmoment New Member

    Posts:
    4
    Likes Received:
    0
    Joined:
    Nov 1, 2010
    I get $8.35 using a 14% threshold. I bought in at $2.71, $$5.09 and $5.16

    Good luck Ubtheboss - MCE is my biggest holding!
     
  20. ubtheboss

    ubtheboss Well-Known Member

    Posts:
    88
    Likes Received:
    0
    Joined:
    Jan 27, 2010
    Thanks Magic! Don't think we need luck with MCE though. Luck is for speck stocks. MCE is value all the way :) The only luck we need is for the nervous Nelly's to sell in the short term so we can keep picking them up.

    I think the macro-market situation may hold some choppy times ahead with unemployment in the US ticking up and sovereign risk still a worry in Europe. Just means more dip buying for MCE holders though :)
     
Loading...
Similar Threads - MCE Matrix Composites
  1. System
    Replies:
    0
    Views:
    562
  2. Trader Paul
    Replies:
    0
    Views:
    1,385
  3. Stan 101
    Replies:
    81
    Views:
    11,782

Share This Page