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Indeed. Then again, the press do love a car crash right? Clearly risks emanating from the new factories, although it would now seem that the new Chinese plant is really ramping up. Might take a bit longer in the US, but I believe in the capability of this management to get it right in the end. Failing that, I wonder whether this might be a tasty morsel for Viscofan, the world leader?
Well, the price dropped because the analysis in the FT seemed sound to a lot of people. Does this still seem to obtain? My guess is...?
It dropped so I could buy in.. haha. Happy to hold this...
As I have stated before, cannot understand why SP DROPPED so dramatically, so small problems in South America rest of the world more than makes up for it. This should re-rate very soon in my opinion, long term hold for me.
Hopefully this share will boringly appreciate back to mid £2 next year. Slow and steady wind the race. Not one to day trade!
The directors are big shareholders and have kept buying. Good signs. If the investment the company has made start to bear fruit this share will fly. I just hope the bod spent the money well.
Chairman just bought 100,000 shares over the last three days. If the shorters have any sense they will close their positions, take the hit and leave this share alone.
Someone is clearly trying to short DEV at the moment. 83k sell just gone through. Hope they get their fingers burnt. The company is well south of fair value as it is.
Not sure why this is rising so quickly. Not complaining. Maybe a offer rumour??
Looks like it.
is ready to bounce back
They are ready and poised to take full advantage of the Chinese banger market. Even with a downturn in business they will still be cash generative, they are highly profitable when not spending oodles of cash. They have invested 100mill in their sausage skin business over the last few years and will reap the rewards with efficiencys that will enable them to wipe the floor with the competition. Only another 3mill needs spending and they can batten down the hatches and start generating cash. The sp can do what it likes, Devro will remain market leaders and carry on doing what they do, the sp will recover and those that bought at 145 /160 will be in the money. £2.50 this time next year unless a takeover bid is on the cards, any company trying to build a position will soon see they wont get it on the cheap.
Perhaps I am reading a different set of information to other people, but I fail to see that the business is anything but robust, it take time to re-gear a business and perhaps it was a trifle optimistic to try to make a lot of change at the same time. Who are we kidding is the world going to stop eating SAUSAGE lets get real before we all talk the business down try to be positive! Profit warnings are issued every day nothing goes up in a straight line this does not mean you don't arrive in the end; at this rate the business will get taken over at the current price it must look an attractive proposition Buffet usually buys up food companies alright along with everything else but food is a base product and SAUSAGE is a very big part of that. Any comments on the positive side please?
Good advise spindok. I would sooner see them cancel the next two or three dividends and concentrate on paying down the debt. They are cash generative and would soon improve the gearing. The sp would get floored in the meantime...or not.
My information is that divi not under threat yet . I agree about concerns on long term debt and this is without doubt a negative . However the quality of the product is without question . The demand for it another matter . I will keep adding as we go forward .
Interesting post, but doesn't the expansion improve the reach of the business, increase sales and diversify the currency. So few things in life are certain, death, taxes and sausages. Such a good product! I don't think having a lot of debt is such a problem although if it doesn't translate into sales then this will dilute earnings. The dividend itself isn't under threat and that's the main thing. I think they just need a bit of time for this stage in the business to fully develop.
Positives - long track record of generating cash flow and profits. Also hasn't missed a dividend. Competent board and has a big stake in casings market. It isn't going anywhere any time soon. Concerns - Long term debt. net gearing is over 100% although i appreciate the current share price level i am concerned that paying interest on servicing this eye watering amount of debt will erode cash flow (and the companies ability to maintain the dividend at its current yield). I'm not sure whether the investment in new manufacturing centres will improve margins or is a bid to keep market share / status quo. If its the latter then with a potential cut in dividend on the cards in future years, the share price maybe at a fair level. Any thoughts on this?
Never pays to think. Just watch... Very quiet day today because of the "Politics" They say fortune favour's the brave but sitting on ones hands keeps the powder dry... Nice though to see a bit of blue and Cranswick are not flying either..
Some hefty buy going through today, think this may be the bottom (160ish)
I get what the other poster might be saying momentum and the strength relating to a stock when it's breaking lows, or getting close but I think that is more trading and less fundamentals. I think it has a great product and markets. If it keeps going lower I think it will spring back. I don't think anybody should ever invest hoping for a takeover but at these levels it must be attracting some attention. I guess it all depends on your timeframes and ability to keep mopping up shares but at these levels this has a got to be a good price.
Too early to average down. This has not finished being caned yet... Prefer prayer..
again! Hope this bottoms out soon, am well underwater here. A rise back up to 180 would see me break even. These guys are world leaders, their investments in new factories in China and America should make them the most competitive in their field. Whats the old saying....speculate to accumulate. Some RandD required for the sausage boilers in Latin America but I am sure they will overcome. Anyone new to this stock, this is a good entry price and you should do well. Not without risk, but you can say that for any stock. Just need to concentrate on their core markets and build up some cash.
About 9 years ago the company was approached with a bid at approximately this level. The company looks to have spent a good 100 million on capital expenditure in this time. I know there's some set backs but the business seems to have professed fairly well. I keep buying. If anything that I'm saying isn't correct please let me know your thoughts.
Topped up at 161 . Fingers crossed
A very short sighted review indeed.