It is not uncommon for a management team to claim that shares in their company are undervalued, particularly at the start of a capital markets day designed to drum up investor interest. However, the new chair at Marston’s (MARS), Ken Lever, seems to take the brewer’s valuation as an almost personal affront.
Tip style
Value
Risk rating
High
Timescale
Medium Term
Bull points
- Balance sheet improved by sale of brewing arm
- Trades at big discount
- New management targeting cash flow improvements
Bear points
- Net debt still very high
- Share price gains have run out of steam
- Dividends suspended until debt is cut
“The UK market seems to be having more and more difficulty really establishing the values for businesses,” he told investors last month.