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Smiths soars on pension progress http://www.sharesmagazine.co.uk/news/market-report-smiths-soars-on-pension-progress#.Vks3TnbhDb0 London shares rally sharply in early trading on Tuesday as gains among supermarkets and resources stocks provide strong direction for a string of UK companies. The fact that both Wall Street and Asian markets also rose adds to the run higher. The FTSE 100 index jumps more than 100 points, or 1.7%, to 6,252, while midcaps leap back over the 17,000 mark, the FTSE 250 hitting 17,056.
Smiths Group benefits as pension deficit drops Share 14:05 17 Nov 2015 The group said its pension deficit was £250mln lower than in 2012 http://www.proactiveinvestors.co.uk/companies/news/119295/smiths-group-benefits-as-pension-deficit-drops-119295.html
Smiths leading the way http://www.theguardian.com/business/marketforceslive/2015/nov/17/atkins-climbs-8-as-it-expands-nuclear-business
looks like finishing biggest mover on the ftse today
biggest mover on footsie 100
bigs buys sea of blue
17,500 per share.yes please
After US activist investor ValueAct built a near-5% stake in Smiths Group, Credit Suisse calculated a 1,500p-per-share break-up value for the aerospace engineer. According to reports, ValueAct, an $18bn activist fund which has previously influenced the direction of US companies including Microsoft, Valeant Pharmaceuticals and Motorola, built the stake on Monday, less than a week after its 5.5% stake in Rolls-Royce came to light. Credit Suisse pointed out that ValueAct becomes the third activist on the Smiths shareholder register, which already includes Harris Associate, with a 7.4% stake, and RWC, with 1.4%, making a likely combined holding of over 10% by activists. Given the conglomerate corporate structure of Smiths Group, the Swiss bank felt a potential break-up valuation scenario was appropriate, calculating the sum of the parts of the organisation. "In this scenario, we value all divisions except John Crane at peer average multiples plus a 20% premium while John Crane is valued at an average UK Industrials multiple," analysts wrote, adding the view that a John Crane disposal was unlikely given its asbestos liabilities. Also within the break-up scenario, it was assumed that £800m of the disposal proceeds would be contributed into the pension fund as a remediation on top of an assumed circa-£800m of net debt and £150m John Crane asbestos liability. The multiples implied for the divisions in this scenario are 17.8 times 2016 EV/EBITA for the medical arm, which is consistent with recent take-out multiples of Covidien and CareFusion, 16.1 times for the Detection business, 13.4 times for Interconnect and 13.8 times for Flex Tek. Taking the above scenario and assuming current balance sheet value for pension deficit "would increase valuation to circa 17,500p per share".
paper talks of sale of one of there divisions.
boooommmm
may be more blue days ahead at smin ,getting closer to dividend day ,while there may be some selling currently ,trying to watch this and watching pel also as buyers there ,so flicking between the two shares to watch movements today , hoping smin share price may finish this week even higher
nice to see this moving up more again from I last looked in this morning
Ex divi soon.28p per share.easy money.
My info is that the recent rise was due to Scott McAuley's appraisal being leaked to the market ? That he's a top man and a credit to the company ? And the recent drop was due to KB coming back and Norry complaining about it ? Still, iif it wasn't for Ian Cunningham we all know this company would be at 10 bob a share :) GLA :)
BUY TARGET 1230 The Major trend of SMITHS GROUP PLC shows buying side. If it breaks the resistance level then one can initiate the buying position in the stock. If it breaks the level of 1218 then it can test upside level for the target of 1230 CHART:- Stock is trading in a range and trading near the trend line. Breaking the resistance line will lead to upside movement. Stock is trading above the 50 DMA with positive bias. Skype tayal.smith1
Buy engineer Smiths for long term: Smiths Group is an unfashionable stock that persists with an outdated business model, but that’s exactly why Questor thinks the shares are worth a closer look. Conglomerates like Smiths do not enjoy the highs in the good times, because the different industries it is involved in don’t all perform well at the same time. However, they don’t all suffer such sharp falls in the bad times, either. The engineer said it had made £131 million in profits from revenues of £1.42 billion during the six months to the end of January. That result for the first half of its financial year was largely flat on the same period in 2013, while the performance across the business was mixed. Overall trading was varied, but cash generation improved as Smiths looks to cut £60 million from its costs by 2017. Some investors these days seemingly eschew companies that have a long track record of manufacturing products, and instead prefer to pour billions into technology companies which are run by a few people and which can’t even make a profit. However, Questor is more than happy backing shares in a reasonably-priced engineering company that makes something, generates a profit, and pays a dividend that yields 3.6%. Smiths Group at £12.06+6p. Questor Says ‘Buy’.
Smiths Group expects lower oil prices to impact trading: Smiths Group has warned that trading at its biggest business could be hit by a slowdown in spending by oil and gas customers adjusting to lower oil prices.
Steady as he goes: What Philip Bowman, Smiths Group’s Chief Executive, has to say about quantitative easing is pretty much unprintable, writes Kate Burgess. But then QE has reduced gilt yields and inflated the current value of Smiths’ pension liabilities to a level where they permanently block a break-up of the 164-year-old conglomerate. When Mr Bowman hands over the keys to his office this year and heads to Sussex to tend his bees, investors are unlikely to line the route. But they shouldn’t be too ungracious. Running an outfit like Smiths is Sisyphean: overall, half year earnings (down 3%) were in line with expectations but the mix was different. The medical division did better than hoped, airport scanners and telecoms components did worse. “Lower volatility — that is the strength of conglomerates,” says Mr Bowman manfully. He has tackled what he can — costs, margins and now expansion into China. But oil prices, forex, government spending and of course, QE, remain outside management’s reach. And it will be 30 years before Smiths is clear of its promises to 60,000 pensioners and employees.
Given all the current uncertainty surrounding Smiths Group, it could be a while before shares return to levels seen at the beginning of last year. With that in mind, a PE ratio of 13 times 2015 forecast earnings does not seem so palatable, especially as many of its peers face brighter prospects and trade on similar ratings.......but as always dyor gl
Smiths' other core divisions seem unlikely to pick up the slack. For example, its medical device business, which accounted for 30 per cent of profit last year, faces years of turmoil as the US healthcare industry adjusts to budgetary constraints and the Affordable Care Act (ACA). A gain in patient volumes and procedures as a result of ACA has not succeeded in offsetting the 2.3 per cent medical device tax paid by manufacturers such as Smiths, leading to ongoing volume and pricing pressures. Elsewhere, Smiths Detection continues to battle with tight government budgets, a shift to larger contracts and increased competition. The US Budget Control Act of 2011, which sets out caps for spending through to 2021, means that investment in expensive, high-tech radars at ports and borders aren't likely to match post 9/11 levels for quite some time. Given its net debt of £817m, a £242m pension deficit and £227m of gross asbestos provisions, the group also looks as though it lacks the financial flexibility to use acquisitions or major investment to reinvigorate prospects. What's more, Panmure Gordon reckons free cash flow will only average £200m between 2015 and 2017 compared with last year's dividend bill of £157m, which means fears of a cut could soon come into play, especially in light of the impending appointment of a new boss.
Life hasn't been rosy for Smiths Group (SMIN) of late. Shares in the engineering giant steadily fell through most of 2014, following a series of poor results, and then tanked when the price of oil went south, finishing the year among the worst performers in their large-cap peer group. We believe 2015 could continue to prove torrid for shareholders. Alongside a host of other issues, Smiths now finds itself in a position of management uncertainty. This month, chief executive Philip Bowman announced plans to retire at the end of 2015, joining the group's finance director, who is due to leave early this year. Given the lack of momentum over recent years a change in leadership could be seen as positive, but it also means that the widely discussed and required break-up will probably not occur until a new boss is installed. When Mr Bowman joined Smiths in 2007 speculation was rife that his reputation as a dealmaker would spark a break-up of the five-division conglomerate. When we tipped Smiths off this potential and healthier end markets back in 2013, the chief admitted that he was keen to sell a division or two and refocus the group, yet issues including pension liabilities and asbestos litigation complicated things. The value opportunity looks to have passed, too, now that the group's breadwinner of recent years, John Crane, is under threat from a falling oil price. Providing seals that help extract and transport oil and gas safely at extreme pressures and temperatures was in strong demand over the past decade as global demand for energy soared. But now, with oil supply continuing to outpace demand, the segment that accounted for almost one-third of group sales last year and 44 per cent of underlying profit looks likely to struggle due to expected cancellations and delays to projects. In fact, broker Panmure Gordon expects John Crane's sales to fall by 2 per cent in 2015 and a further 4 per cent a year in the following two years
Which would a newbie investor side with on starting a position here with Smiths Group? Technicals or fundamentals? It still looks expensive at a PE of 22 at present versus FTSE around 16-17.
One to keep a close eye on for breakout of range SMIN, see chart below. https://pbs.twimg.com/media/BxFsosRIUAIKDPF.jpg
Now trading at 1271 and has possibly turned the corner. This is a first class company hit by the high pound and difficulties in one division. A PE of under 15 and yield of over 3% on a first class UK company with a strong international outlook - up to you, but to me looks good for a position investor (6 months to 5 years say). Hit too by analyst ratings - we know these guys, how they like to gang up to push shares as they are coming to their highs in distribution days to please their clients who have an inside track and are selling; and similarly will encourage despondency at the bottom to loosen your grip Ie the ratings will have you sell low and buy high, ho ho. Difficult to say where this stock is going to be honest. I would guess at 1340 at some point which is a miserable 5.5% I agree on today's price. But then again, the surprise can only surely be to the upside ie little risk here outside of a major market correction. Up to you of course and any feedback welcome on this mysterious number.
a UBS downgrade to 13.40 sensitivity to the Defence industry (hit like BAE and RR by govt defence spending cuts in US and Europe) and the CEOs refusal to sell the medical services division, which could make more money if run as part of the American suitor and so the cash is greater than the value to the Smith conglonerate It is an excellent company and at this low price worth hanging on to.