Will the Melrose share price recover in 2021? Zaven Boyrazian owns shares in Melrose. The Motley Fool UK has recommended Melrose. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The Melrose Industries (LSE:MRO) share price took an enormous hit at the start of the pandemic. But now that the vaccine rollout is progressing relatively quickly, it’s back on the rise. And over the last 12 months, it has nearly doubled. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. The company has yet to make a complete recovery. But the question is, can it return to its pre-pandemic levels this year?5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…The business and the impact of Covid-19I’ve previously explored Melrose’s business model. But as a quick reminder, it works similarly to private equity firms. Using its ‘Buy, Improve, Sell’ strategy, it identifies companies within the engineering sector that aren’t living up to their full potential. Melrose then acquires them and begins making necessary improvements to maximise their profitability. And after a few years, it looks to sell them on as much stronger and more valuable businesses.The pandemic has and continues to disrupt many industries. But the aerospace sector has been particularly hit hard by Covid-19. And unfortunately, Melrose has considerable exposure to it. The firm recently published full-year results for 2020, and the impact of the pandemic was made perfectly clear. Total revenue fell by 20%, while losses came in at £523m. So why is the Melrose share price going up?The rising Melrose share priceDespite these seemingly poor results, upon closer inspection, there are some encouraging signs of growth. The increase in losses is not too concerning to me. Why? Because the management team stated in advance that it had adjusted its strategy to focus on cash generation rather than profits in 2020.While this resulted in dividends being cut, shareholders gave their blessing. And it seems to have worked. Free cash flow increased by 6% to £628m, despite the unfavourable operating environment. This helped bring down total debt by around 25% and ensured R&D budgets weren’t compromised. As a result, Melrose appears to be in a much stronger financial position, despite reporting a massive loss – quite an unusual achievement. So I’m not surprised to see its share price rise.In terms of its enterprises, only the civil aerospace portion of Melrose’s portfolio seems to be struggling. Its automotive and power metallurgy divisions both saw margins and sales improve. Meanwhile, the company is also disposing of its Nortek Air Management business for $3.6bn. It originally acquired Nortek in 2016 for $2.8bn. But considering this business generated around $1bn of cash flow, it effectively places the purchase price at $1.8bn. In other words, the investment generated 15% annualised returns for the last five years. That’s not bad at all if I say so myself.The bottom lineOverall, Melrose looks in relatively good health, with plenty of cash to see it through the remainder of the pandemic. What’s more, with travel restrictions beginning to ease, its civil aerospace division may soon be returning to growth.Having said that, I don’t believe the Melrose share price will return to its pre-pandemic levels in 2021. Nortek generated around 13% of the revenue stream last year, which is obviously going to disappear when the disposal is complete. But the sale proceeds will ultimately be used to pay down debts, contribute to pension funds, and the excess will be returned to shareholders. Therefore, I won’t be selling my shares any time soon. See all posts by Zaven Boyrazian Simply click below to discover how you can take advantage of this. Enter Your Email Address I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Image source: Getty Images I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Zaven Boyrazian | Monday, 17th May, 2021 | More on: MRO Our 6 ‘Best Buys Now’ Shares “This Stock Could Be Like Buying Amazon in 1997”
57 total views, 1 views today Tagged with: South East AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to LinkedInLinkedInShare to EmailEmailShare to WhatsAppWhatsAppShare to MessengerMessengerShare to MoreAddThis 58 total views, 2 views today AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to LinkedInLinkedInShare to EmailEmailShare to WhatsAppWhatsAppShare to MessengerMessengerShare to MoreAddThis The post will be full time and will command a competitive salary and an attractive benefits package. A Fellowship may be available for an exceptionally qualified candidate. Further particulars may be obtained from the President, Queens’ College, Cambridge, email [email protected] should be made electronically to the President ([email protected]), by 22nd April, 2013. About Howard Lake Howard Lake is a digital fundraising entrepreneur. Publisher of UK Fundraising, the world’s first web resource for professional fundraisers, since 1994. Trainer and consultant in digital fundraising. Founder of Fundraising Camp and co-founder of GoodJobs.org.uk. Researching massive growth in giving. Development Director Queens’ College, Cambridge, wishes to appoint a new Development Director from 1st September 2013 in succession to Dr Diana Henderson.This is an opportunity to join one of Cambridge’s most beautiful and prestigious centres of learning, known for its academic achievement and friendly community. Queens’ is an ambitious college, anxious to enhance its contribution to higher education both in Britain and the wider world. The Development Director will play a crucial role in inspiring donors with the practical expressions of that vision and delivering substantial income to further develop teaching and research excellence.The Development Director will manage the College’s Alumni & Development Office, and work very closely with the President to lead and inspire the Queens’ family of alumni and friends. S/he will direct all development activity, ensuring success in the major gift, legacy giving and annual fund programmes. S/he will take direct responsibility for fundraising from major donors – the job will involve ‘doing’ as well as ‘managing’. Advertisement Howard Lake | 27 March 2013 | News
A.I. default Macine Learning Technology 2020-04-20 Seth Welborn Home / Daily Dose / Leveraging Machine Learning for Better Default Decisions Leveraging Machine Learning for Better Default Decisions Share Save The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, News, Print Features, Technology Previous: DS5: What Servicers Want to Know Next: FHFA Addresses Mortgage Servicer Liquidity Concerns About Author: Miriam Moore Subscribe Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago April 20, 2020 1,567 Views The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago Editor’s note: This feature originally appeared in the April issue of DS News.Hardly a week goes by without another report on how machine learning and AI will transform the way we work and live. AI’s ability to digest huge amounts of data, identify patterns, and predict likely outcomes make them critical components in many areas including self-driving vehicles, breakthrough diagnostic tools, and personal recommendation engines. Not surprisingly, the mortgage industry is now turning to these advanced technologies to enhance the speed and precision of everyday decision-making.Fannie Mae recently reported that 27% of lenders are currently using AI in some form and another 58% expect to use it shortly. To date, early-stage AI/machine learning efforts have primarily focused on enhancing origination, fraud/risk identification, and customer retention. But there are critical servicing functions that can benefit, as well, including the default life cycle and critical disposition paths.Most industry observers agree—and a study by Fannie Mae supports—that the best way to reduce default losses is to avoid taking properties through conveyance or REO and instead dispose of them through other means as quickly as possible. However, this isn’t always possible as evidenced by the number of properties that continue to convey or move to REO. According to ATTOM Data Solutions, more than 143,900 properties went into REO in 2019, a number that could grow exponentially in a default market.When a property goes into default, the servicer’s challenge is always, “What can be done to minimize losses?” This means determining the optimal disposition strategy for a property or a portfolio. For example: what are the best alternatives to taking the property through conveyance or REO? Is the Claims Without Conveyance of Title (CWCOT) route the best one, and what would have to be done prior to conveyance? Can or should it be sold in an online auction? Does it make sense for the servicer to hold the property, invest in repairs, and develop a marketing plan to list it?Currently, servicers and their service providers are using limited historical information, time-consuming spreadsheets, and best practices to make these decisions. But what if machine learning and AI could provide faster, better answers?The Machine “Learning Process”That was the challenge we gave our data scientists and technologists two years ago when we set out to build a revolutionary asset-decisioning tool that complements servicers’ core operating systems and processes and provides a new opportunity for automation. The starting points were deciding how many models would be needed to produce the inputs behind the recommendations and what were the best data sources to “train” them.Ultimately, technologists developed the models to solve complex problems that are critical inputs in the disposition decision process. The way machine learning works is that the models are fed massive amounts of data and taught to identify patterns so that they are able to predict certain outcomes.In this case, the models were “trained” on historical operational data from our field services and title companies. In addition, leading property, neighborhood, and real estate databases were integrated into the training process.Several of the models are designed to predict how a specific property will fare at third-party auction sale. One model gives a “yes or no” answer as to whether the property will sell at an online auction. Another looks at property and neighborhood characteristics and forecasts the timeline to sell, at a given price, in the CWCOT Second Chance program. What’s the probability, for example, that this property in one particular ZIP code will sell online for Y dollars in one versus three weeks versus four? This model allows banks to understand timelines to sell at different price points and helps them develop more informed disposition and contribution strategies.The next questions that the models answer are about the physical and title condition of the property. The remaining models predict and price for the problems that the servicer might eventually encounter and potentially have to remediate. They can be used with current title and field services information or simple basic data and property characteristics from the loan boarding process. For example, without an inspection, the models can forecast, in some cases with more than 90% accuracy, the likelihood a specific property will have certain outlier issues. These include mold, water damage, hazardous conditions, roof, or demolition issues. They then show the cost for repairs, ranging from minimum cost to maximum and provide a forecast and project timeline for conveyance back to HUD under CWCOT.As new properties are run through the platform, the models, thanks to machine learning, will continue to improve and its recommendations will become even more accurate. In the end, the ultimate decisions will always rest with the servicer, not a machine, but these tools will aid in making better and informed decisions more quickly. Tagged with: A.I. default Macine Learning Technology Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Miriam Moore is the Division President of Default Services for ServiceLink. In this role, she is responsible for the overall management and performance of the Loss Mitigation Title, Pre-Foreclosure Title, REO Title & Close, ServiceLink Auction, ASAP, Process Solutions, and Field Services groups, as well as the expansion of default products and services to meet servicers’ strategic needs.