Primary Recommendations

Michelmersh - Dividend yield 4.9% and NAV per share of 98p suggest material under-valuation

October 2024

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

The GB brick industry has attracted investor interest since the public listing of the two largest players in this heavily consolidated market a decade ago (Ibstock, 183p and Forterra, 174p, together >70% market share). Much further down the pecking order and focusing on premium bricks is Michelmersh Brick, based in Romsey in Hampshire with a 6% share, which had floated a decade earlier. The key demand driver for the sector is residential new builds; the UK has a mounting shortage of homes, and I see multiple factors helping to address the issue in coming years (e.g. government support, high mortgage availability). Although I do not expect the Labour government to meet its target of 300k new homes per annum in England in each o ...

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Michelmersh Brick - Three “reverse profit warnings” in two years! (May 2024)

Michelmersh (January 2024)

Michelmersh (November 2023)

Michelmersh (May 2023)

Michelmersh - Significantly eps enhancing acquisition (February 2023)

Michelmersh (November 2022)

Michelmersh (June 2022)

Michelmersh Brick - Manufacturer of premium bricks beating expectations (February 2022)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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