Devalued sterling and recovery in oil price must result in an improvement in the business that has been affected by strong sterling and low oil prices. This should be a buying opportunity the current share price gives much upside potential.
The problem with profit warnings is they are often a prelude to a dividend cut. One of the redeeming virtues of SNR is the plus 3pc divvi. If that gets tampered with then you'll see even more selling. It all depends on cash flow. But hopefully the devaluation of sterling will help steady management nerves.
This looks like another marker overreaction to a disappointing , but not terrible, update. We had the same with Capita recently-these present opportunities for those of us prepared to look more than a week or two ahead.Even solid companies have their bumps in the road,but to wipe off 30%or so from the perceived value in a week is irrational at best.
I did wonder why it was dropping, not insider dealing of course naaaah!!, nearly sold some other shares to buy in @ 204p, glad I didn't. Would have bought this morning in the low 160's if I'd had immediate funds available.
Whilst disappointing the issues with Aerospace appear short term and not insurmountable. SNR are well embedded in a growth cycle. Clearly some of the issues have been known to some investors as the the sell off appears to have happened well before this announcement at least from the end of Sept, hence todays share price drop seems way overdone.
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