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The monthly chart , shows the high peak of July 2021, and subsequent low trough of January 2022, has contained most subsequent price action, prior to the breakout. This price pattern, suggests compression, indicating that there will be significant upward sp, movement. Measuring the July 2021 price peak to the January 2022 trough, gives two price projections, 305, based on close, and 365, based on high/low. The average price target is 335. DYOR.
Research by Investors Business daily, shows that overhead supply, resistance from previous trading, at a higher price level , diminishes after 18 months to 2 years. The October 2017, price gap, being nearly 6.5 years ago, and a multiple of more than 3 x the maximum 2 year limit for possible overhead resistance, has effectively expired potential for resistance.
Good results and the market is giving it a pat on the back. Now it needs to fill the gap at 280, established in Oct 2017, and then it can head to 350 and beyond.
Sorry, I forgot to provide price target of 230, for CTEC. There may be some resistance at 220, from overhead supply , relating to previous trading activity.
Chart position, sector chart is bullish, having broken above down trendline . CTEC, is above price pivot of 212.80. It is important that close price today is above that pivot of 212.80, to confirm a valid buy signal. I had examined the top three sector charts today, and the sector, for CTEC, was the best bullish chart.
"We now expect organic revenue growth for 2023 to be between 6.75% and 7.5% (previously 6.0%-7.5%). Adjusted operating profit margin is expected to expand to at least 20.5%, on a constant currency basis.
Karim Bitar, the Chief Executive Officer, commented:
"We are pleased with the execution of our FISBE strategy this year. Convatec has pivoted to a higher level of organic sales growth over recent years. We are on track to deliver a mid-20s adjusted operating margin in 2026 or 2027, and double-digit compound growth in EPS and free cash flow, from 2024 onwards.""
Anyone know if this exposed to this region given its weakness since last week?
Thanks
Raised guidance seems to be going down well so far today : )
$511m revenue and EBIT of 18% - 19% suggests a doubling of profit (2020 averaged $475m and circa 10% EBIT per quarter).
The outlook remains positive with a global backlog of operations; northern hemisphere winter and talk of 4th/5th etc waves of covid could be a dampener..... but at sub 200p is already in the price.
Convatec is a company that steeps heritage and has been around for a very long time with a healthy market share to this day.
With the wound care market growing due to demographic changes, growing population, people living longer, younger people presenting wounds, complex wounds needing innovation in products on the market ,I can only see convatec being part of the journey ahead and with it the business growing.
To be fair the shares had a great run in H2 of 2019. Keeping their head down and getting on with business has helped them. Looking at the fundamental results they still look overvalued to me on an EV/ebitda basis and they don’t generate much free cash flow. However the market clearly expects the new management team to deliver big time in future and gives them the valuation accordingly.
Current virus shouldn’t impact them too badly unless hospitals start delaying procedures etc in a big way to keep their beds free. But hard to tell at present if that’s going to happen. GLAH.
Both ctec and scapa are doing well for me :)
Thu, 11th Jul 2019 07:00
RNS Number : 1609F
Scapa Group PLC
11 July 2019
11 July 2019
LEI No. 213800QIPVTK5ES5UU36
Scapa Group plc ("the Company")
Scapa commences legal action against ConvaTec
Further to the announcement made on 3 June 2019, Scapa Group plc (AIM: SCPA) announces that on 10 July, Scapa Tapes North America LLC. ("Scapa Tapes"), a US subsidiary of Scapa Group plc, filed a complaint against ConvaTec Inc. ("ConvaTec"), for breach of contract with regard to a Master Supply Agreement (MSA) between those respective parties, in which Scapa Tapes is claiming damages in excess of $83.81m and a declaratory judgement.
In addition, Scapa Group plc and Scapa Tapes have filed a motion to dismiss the complaint filed by ConvaTec with regard to the MSA between ConvaTec and Scapa Tapes.
The complaint is available for public review on http://civilinquiry.jud.ct.gov/CaseDetail/PublicCaseDetail.aspx?DocketNo=HHDCV196114103S; and the motion to dismiss is available for public review on https://ecf.njd.uscourts.gov/cgi-bin/login.pl.
Perhaps they should cosy up with scapa group instead of trying to terminate contract?
Prepare for Court action by Scapa Group over early termination on contract :(
Both Chair and SID now departing, neither of them had any prior healthcare experience anyway. Two big City names probably employed just to get the IPO away. No CEO until 30 Sept. the directors are unlikely to have walked if a bid was imminent. Not much to get excited about here.
In today’s Sunday Telegraph. Recommendation - SELL. Comment “Margins are falling and too many of its products make no money”. Jeez.
Well what a pile of mush this has turned into. Spend now for a “return” in 4 years. Of course why not. No doubt a whole new strategy will emerge when the permanent CEO (poor devil) is eventually hired. As the Dragons say “I’m out”.
i bought some just under 120p. i think i will add if it get close to 113p but not before.
Ffs lucky I didn’t buy anymore. Will try to average down and get out of this as been a waste of time gif the last 15 months. Long road to recovery here
fallen even more BillTucker89. 113.25p..
Anyone think this will pick up some lost ground? This has fall way too much imo and should be at £2 at least.
Final results due later this month. Hopefully we will also get an update on their search for a new CEO and someone to lead their US division.
The big guys appear to be edging towards the exit door here. Quietly reducing their positions. Not exactly been a great public company investment and unless investors are prepared to wait around for a long time I think more big boys will cut their weighting. Tough space for Convatec with downward price pressure every year and lots of different and huge competitors around the globe offering keener prices and new products. If they paid a decent dividend it wouldn’t be so bad, but I always get concerned when a company struggles to pay a meaningful amount of cash out every year.
Needs a strong and experienced permanent CEO appointed and quickly. Also need to replace their US President. Then drive this baby for several quarters without any bad surprises and with some steady growth the shares will recover some of their lustre.....IMO
Dyor and GLA