British takeover target

(Full access for Members only)

Alexandre Rotenberg / Shutterstock.com

John Menzies plc: British takeover target

13 August 2019

What readers said about this report

Connoisseurs of bid targets will like this report. It contains a wealth of background information about the ground handling industry, i.e. the industry that John Menzies plc is operating in. If you like investment cases that are backed up by lots of industry data, now is your opportunity to geek out.

Summarising the scenario

Among the areas covered by this report are:

  • Comparable transaction in this space over the past ten years, including difficult-to-find information.
  • Critical evaluation of the company's current cash flow projections and why these will likely form the basis for any valuation in a bid scenario, and based on what range of multiples.
  • Detailed analysis of the shareholder roster, which plays a crucial role in why this company is likely going to be sold.

A niche opportunity for a potential quick profit

Undervalued-Shares.com usually looks at companies with a market cap of at least USD 1bn or USD 2bn. John Menzies plc is significantly smaller than that, and it is not a long-term investment either. I'd very much like to see shareholders bought out soon, rather than hold the stock for an extended period. As such, it's not the typical kind of company to be covered by me.

However, it was too good an investment case not to run past my readers. The stock could go up 75% (or even more) once a bid is launched. Its downside is limited. I like situations where investors can enjoy significant upside without having to accept much of a downside.

Not a Member yet? Sign up for a Membership - just USD 49/year.
Already a Member? Log into your account to download the report.

|  What readers said about this report

Giovanni U.
February 2021

Already put my money where YOUR mouth was, really like the investment thesis in (company name hidden by Undervalued-Shares.com) and Menzies, amongst others.

Aaron W.
January 2021

And thanks again for all your great investigative-style analyses. I've been riding with you on Menzies and Gazprom too – I missed the first Gazprom window (though that's how I found you) but bought a bit in early Q4. I also took a small Menzies stake in 2019, then your insights and corroboration on it through the crisis helped me meaningfully increase the position near the lows last year. So thank you!!

Andreas F.
September 2020

A brief question about your report on Menzies, which by the way I found very interesting and detailed (it was my first report from you that I've read).

J. W.
March 2020

Thank you for your valuable insight into company's and their growth prospects. I really like it when I see one of your emails in my inbox! Ive bought into Menzies/Just eat/Twitter/IAG on your research – and I don't think I would have done that on my own.

Robert V. B.
November 2019

BTW, Menzies is my biggest portfolio position by now and I personally think clearly one of your best reports so far.

Arnis D.
October 2019

While not really a value investment, I like your thesis about Menzies and am considering to buy some of their shares.

Roger N.
September 2019

I liked you piece on John Menzies.

l  Report updates

Not a Member yet? Sign up for a Membership.
Already a Member? Log into your account to download the report updates.

2 March 2022

Report Update (PDF - 0.2MB)

9 February 2022

Report Update (PDF - 0.2MB)

6 September 2021

Report Update (PDF - 0.2MB)

30 August 2021

Report Update (PDF - 0.3MB)

13 May 2021

Report Update (PDF - 0.2MB)

10 March 2021

Report Update (PDF - 1.3MB)

15 January 2021

Report Update (PDF - 0.2MB)

2 December 2020

Report Update (PDF - 0.2MB)

15 September 2020

Report Update (PDF - 0.1MB)

22 June 2020

Report Update (PDF - 0.1MB)

27 May 2020

Report Update (PDF - 0.1MB)

1 May 2020

Report Update (PDF - 0.1MB)

30 March 2020

Report Update (PDF - 0.4MB)

17 January 2020

Report Update (PDF - 0.9MB)

26 November 2019

Report Update (PDF - 0.6MB)

25 September 2019

Report Update (PDF - 0.1MB)

Most recent

Latest reports (for Members only)

Mid-cap bid target

Mid-cap bid target

The company's CEO and COO have been given a strong financial incentive to at least double the share price by mid-2026. They are likely to succeed.

British going-private candidate

British going-private candidate

This small-cap has 50-100% upside in case of a going-private bid, and at least just as much upside if no bid materialised. How is that possible?

Frasers Group: The Berkshire Hathaway of British retail

Frasers Group: The Berkshire Hathaway of British retail

The stock of leading British retailer Frasers Group should have investors chomping at the bits to buy a stake.