Price has only just broken out of a large head and shoulders, projections of which are around 450p
12 Jul '15
For what it is worth
Credit Suisse upgraded Tate & Lyle to 'neutral' from 'underperform' following the recent underperformance that has seen the shares fall below its price target. CS noted that the shares have de-rated to 15 times this year's estimated earnings and the dividend offers further support.
26 Jun '15
Another day, another fall in SP, does not surprise me anymore, the BOD do not seem to know what is happening. I see the final dividend is due soon, with shares going ex-dividend on 02.July, you would think the shares would rise in value, but with TATE anything is possible. I have also noted that just about every broker out there has downgraded these shares, they have do not believe the BOD are capable of turning this company around, meanwhile like Nero, the CEO fiddles while Rome burns. I am off to watch the Muppet show with my nephews/niece which does remind me of the BOD, which one would Javed Ahmed be, I wonder.
4 Jun '15
With a NAV of about £1 per share and a high PE TATE should be about 280p per share But I like them anyway so will wait for a good entry point.GL.
29 May '15
Tate of the art: Which masterpiece of modern art best represents the full year results of Tate & Lyle, a company whose co-Founder also set up the Tate Gallery? One of Francis Bacon’s screaming popes might encapsulate how investors feel about an 82% drop in full year pretax profits to £51 million. Alternatively, Tracey Emin’s unmade bed would convey a sense of how far reform efforts have got at the sweeteners group. The artificial sweetener Splenda is the problem. Sales have been depressed by low-priced generic competition since patent protection expired in 2009. Had T&L followed best practice in the analogous drugs business, it would have ensured its pipeline was full of replacements. The group held the full year dividend at 28p, but precariously. Free cash flow cover of the payout fell from 1.8 to 0.5 times. Proceeds from the sale of bulk ingredient plants will support cover next year. After that, prospects depend on a tilt towards speciality products that is fraught with execution risk. The forward earnings ratio of 16 times would befit a finished picture better than this work in progress.
28 May '15
Dismal as Expected
Today's figures were every bit as bad as we thought they would be, with no respite on the horizon. The worrying thing is the Speciality food ingredients business has suffered as well as the other parts of the business. The company talks about the evolution of Tate & Lyle into a global Speciality Food Ingredients business supported by cash generated from Bulk Ingredients, yet the results today do not support their vision. Another year of going backwards, with no improvement in sight. The only bright spot is the dividend has been maintained, but for how long before that too, is cut. I have no faith in the current BOD, but then I have been saying this for some time now.
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