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Good call RetiredBanker. Looks like your patience has paid off. Finally got all businesses making a profit and their shift to sustainable products was a great move. I like the management team so feels like a good long term investment. Back to the £2+ me thinks.
I've found this year has been an excellent one to double down on your holdings if you have conviction that the market is mis-pricing long term assets. I took advantage of recent weakness to get my average down from 160p to under a quid. I see this rising towards 125p by Mid Jan when the next quarterly update comes out ... then we'll find out whether that level becomes the new 'floor' for price rises back to 2015-18 levels !
So this morning we have a good set of results? I haven't read them fully but that's the headline.
The more reassuring thing for me is a return of a dividend, okay a bit less than last final div and even more off from full year, but still something. This company has always been a healthy dividend payer and is keeping it up with an early return.
I've been a sufferer invested in Alumasc for over a year now and still believe a return tp 160p is well within reach this year.
But I've noticed that price movements seem to happen before official announcements of results - suggesting this is one of the many companies listed on AIM and the Main Market which "leak" information to insiders.
I still have some belief in "fair" markets and still invest my SIPP in equities but this sort of activity leaves a very sour taste.
Just hoping that in this case the rise today continues and full year results reflect about 100m revenue and 5mm net profit so making the current valuation and dividend remarkably cheap.
Madness.....
Dividend increased too, which in relation to price is much more.
50glass, I agree. To be fair it was a very hard winter for the external building products (such as EWI), throw in the effects of the disastrous Grenfell fire tragedy and Brexit uncertainty, It is good to see that the ship is being captained with a steady hand. Further acquisitions in the cladding industry with a solid based product and exciting future should be considered in my opinion as the industry is moving forward at great speed and we need to be seen as a front runner and innovator in this sector. All IMO GLA.
Looking fair to good. Groundwork for future success in place.
Not much action on here since last year.
Share price has fallen significantly.
Trading update predicted good last quarter, even in comparison to previous years strong quarter.
Will be interesting to see effect on overall year and on price.
Have topped up a little.
Hope for onwards and upwards this time!
Results out tomorrow. Let's hope today's increase is supported by them and we can move further. Onwards and upwards!
Any ideas, after quite an upbeat report? Just price rises? Or the fall in the $? Really should have sold out before now but at every stage I thought it was overdone...
What was the purpose in pasting the RNS in messages when it is available on Live RNS above?
Alumasc Group PLC £5m contract wins 21/02/2017 7:00am UK Regulatory (RNS & others) Alumasc (LSE:ALU) Intraday Stock Chart Today : Tuesday 21 February 2017 Click Here for more Alumasc Charts. TIDMALU RNS Number : 3741X Alumasc Group PLC 21 February 2017 Announcement 21 February 2017 The Alumasc Group Plc ("Alumasc" or the "Group") THE ALUMASC GROUP PLC - CONTRACT WINS Alumasc (ALU.L), the premium building products, systems and solutions group, is pleased to announce that since the publication of its interim results on 31 January 2017, Levolux has secured three contracts to supply bespoke balcony and balustrading systems in the UK. The total value of these new project wins is approximately GBP5.0 million and will benefit the group's next two financial years. As a result of these and other new work wins, Alumasc's overall order books have risen to GBP32.9 million, a new record level. This follows a 17% rise in Alumasc's first half revenues to GBP50.7 million, well ahead of UK construction market growth. Paul Hooper, Alumasc's Chief Executive commented: "The emerging success of Levolux's relatively new balconies business is an exciting development for Alumasc and demonstrates the group's ability to leverage its proven expertise in the design and manufacture of specialist building products into significant new markets. We are pleased with the continued development of the group's overall order books, which supports the Board's expectation for further sustainable growth across our business into the medium term." Enquiries: The Alumasc Group plc Paul Hooper (Chief Executive)
Building the case for transformed Alumasc Get in quick before the market ‘renews’ its enthusiasm for the small cap firm The market valuation attached to building products business Alumasc (ALU) does not reflect its earnings potential or inherent qualities. The market doesn’t appear to have picked up on the Kettering-based company’s transformation from an engineering conglomerate to a pure play on premium building products. The stock trades on 8.2 times forecast earnings for the year to June 2018 which looks far too low, in our opinion. The last of Alumasc’s engineering-related businesses was sold in July 2016 with the £4m disposal of Dyson Diecastings. The focus is now on ‘fast flowing streams’ in the building products space. This encompasses a focus on sustainable products which help conserve energy and water and solutions which help constructors meet building regulations. The investment in these areas and an increase in marketing spend was rewarded by a 17% increase in first half revenue to £50.7m. Unfortunately, the impressive top-line growth was not replicated at the bottom-line. Adjusted pre-tax profit only nudged ahead 2% to £4.1m as rising input costs hit margins. The increase in costs can be attributed to sterling weakness and rising steel prices and although these have now largely been passed through, there was a lag which hit profitability. BUMPER ORDER BOOK A near-record £27.6m order book and the timing of completion on several large contracts underpins boss Paul Hooper’s confidence that margins can be rebuilt in the remainder of its current financial year. This could act as a positive catalyst for the share price. The company’s operations coalesce in four key areas: solar shading and screening; roofing and walling; water management; and housebuilding and ancillary products. The Levolux solar shading business and Gatic drainage systems arm are successfully winning orders overseas. Mainly driven by Levolux sales in the US, export revenue almost doubled to £7.5m in the six months to 31 December 2016. The niche focus and international expansion should help the company outperform the modest growth expected in UK construction in the coming months. Keep a close eye on the £33m pension deficit. Annual cash contributions of £3.2m didn’t prevent Alumasc from hiking its first half dividend by 5.6% to 2.85p.
Post from a branduk website today I found of interest. The Vectorvest website put out a sort of broker note on ALU, where the system showed a 200p value on the chart a month ago before the results today. Came up on the Unisearch programme there. Anyone used Vectorvest, I would like to know how many other stocks it has flagged up before the move!! http://www.branduk.net/alumasc-alu-solid-fy-results-in-line-with-vectorvest-uk-buy-recommendation/
Think we could have a nice jump here when results are announced later this week, certainly overdue
Paid - next leg up?
Revenue 30% more than MCAP and profits up. This is looking oversold.
This is taken from the October issue of growthcompanyinvestor.co.uk: Alumasc building orders. Alumasc has been around a long time. Past performance has been chequered, but it looks like the company has moved firmly onto the front foot. It's been benefiting from focusing its efforts on building products, having exited the loss making engineering business., The year ended in June showed the group's best performance since before the financial crisis - revenues up 10 per cent from continuying operations and earnings per share up 19 per cent. It's certainly true that the UK building market is doing well at the moment and seems set fair. But Alumasc is also outperforming the industry. That's because it occupies some interesting niches. Building regulations continue to get lighter, and ALU specialises in the environmentally important segments of energy and water management. These regulated premium products should be less vulnerable to competition and leave plenty of scope for further innovation. ALU products will often be specified by the architect or structural engineer. For example, rainwater management products are made from aluminium and steel rather than plastic, which occupies the commodity end of the market. Roofing and walling was particularly strong last year. New products and improved management that came in three years ago drove sales up 22 per cent in the division. One division that isn't yet making a full contribution is Levolux. This installs solar shading in commercial buildings to manage heat and light into the building. It's a late-cycle business and won't really start to pick up until after the current year. Overall, the order book in June was 27% higher than the previous year, which is a healthy reflection of the market and ALU positioning within it. Following the disposals, the balance sheet showed a £1 million net cash position at the year end. There is therefore scope to make bolt-on acquisitions, though management say this isn't a priority. However, it's important to note that there's a pension fund deficit that could require further funding in future. Despite that, the dividend was increased by 20%,which gives a nice yield of 3.2%. Looking at foreasts, we should think in terms of mid to high single digit revenue growth, with earnings coming in a bit better than this. As long as the UK building cycle remains healthy. AMU should do well with its new found focus. The stock trades on a price to earnings ratio of around 10 times and looks ripe for further rerating. GCI recommendation - BUY Hope this may prove useful/interesting. GCI have a pretty good record of recommendations; although not in the same class of Robbie Burns. I have followed ALU off and on during the day. Could have bought in anywhere between around 170 and 178. Need to do some more research; no rush. Incidentally, it has a very high overall rating with stockopedia. Regards CM
NT next update I expect he will either have topped up or sold out just before any drop! I looked at these but thought they were bit higher risk!
Cheers Chequemate. Nice to know that. ALU has had a good run of late so I think that some may be prudently taking profit here following that RNS. If I had been in a while that would probably have been my action yesterday. However, I wasn't but I am now and hoping for a burst back through 200 shortly and onwards and upwards after that.
Taken from Robbie Burns, the Naked Trader, blog 24 Sep: "I've bought some Alumasc (ALU). This one looks to be in the middle of a rerating and deservely so. Profit is up 15% and it's moved into a net cash position. It is benefitting from a much improved demand from UK construction. It seems to be re-focusing, getting rid of some poor performing businesses which means its debt has now gone. Dividend is up substantially and unless the market as a whole really tanks it looks to have some decent upside of 25% or so. It is certainly breaking out very strongly - a break through 200p would be very promising for a rise up to 225p area quite quickly barring a market collapse but I feel fair value is around 250p so for me plenty of upside left. I think a lot of investors find it hard to buy a share that has already risen a lot - but believe me - it's often better buy something that's gone up! ALU goes ex dividend next Thursday for a very decent 3.5p dividend, so that to look forward to" NT rarely gets things wrong. Wouldn't be surprised if he has topped up at lower levels. Tempted to jump in but funding getting lower than I want. Don't see anything seriously wrong here after reading RNS. Sitting on sidelines and watching for now. Regards CM
I was really tempted yesterday but the spread put me off, fortunately. I've got a fartly tight stop on but I think the dip was probably to let someone in on the cheap while they had a chance. I was looking at a rise to 230/240 before the AGM statement and I really can't see that much has changed. Been proven wrong in the past though so DYOR and GLA
You must have got in a few minutes ahead of me. Topped up at 174p. This will surely recover over the next few weeks.