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Three years ago, I posted this message. The quotation marks show CHG's statement at the time. "The supply of vehicle based mortar systems for a Middle Eastern customer was experiencing delays in the granting of export licences for a limited number of parts. This delay the group believes is unlikely to be resolved in the near term and will continue into its new financial year." Export Licences are required for arms, or high tech items that the West (often America) does not want to get into the hands of a potential enemy. Countries can also be placed on a denied parties list if the international community disapproves of these arms being used to surpress it's own citizens. Perhaps these mortars were ordered by Syria, or another now unstable Middle Eastern country. In which case it is possible that the license could be delayed indefinitely. -------------------------------------------------------------- To the best of my knowledge that delay was never resolved, nor was any further detail given. Now, here we are again 3 years on, in exactly the same position.
Had a few of this 1st thing for a quick bounce and am out now This is what was bad - this was only 6 weeks ago. why have things gone bad so quick? http://www.thisismoney.co.uk/money/markets/article-3234191/Shares-struggling-Chemring-rise-nearly-6-cent-turmoil-Middle-East-boosts-UK-defence-contractor-s-order-book.html
I should have sold out around 230. Not sure if there is any point in selling my small holding now and taking £ 1 a share loss. Perhaps best to forget about Chemring for a year or two.
Significant reduction in H1 profit, due to delays in order receipts and customer acceptance · Full year expectations unchanged - more than 75% of required H2 revenue now in order book · Order book £502.8 million at 30 April 2015 (2014: £401.8 million), £208.8 million for delivery in the current year · Significant orders exceeding £50.0 million received since period end, with deliveries scheduled to start in H2, and further material orders expected to be secured in H2 in all three segments · Key strategic wins on long-term US Sensors & Electronics development programmes · Restructuring of operations to reflect long-term programmes and opportunities · Interim dividend maintained at prior-year leve
Fizzled out and have the divi but will keep watching.
http://www.telegraph.co.uk/finance/newsbysector/industry/defence/11546684/Monday-Interview-Michael-Flowers-chief-executive-of-Chemring.html Going for a bit of walk since it went ex divi last week - particularly this morning how much legs it has left anybody's guess.
the press speculation has any substance. With some 200 trades in the first hour this morning The Mail has certainly got things moving.
new year high today? http://www.chemring.co.uk/media/image-library/videos/delivering-global-protection.aspx
why the drop,i thought business prospects would pick up
I would imagine that bisiness wil pick up shortly for obvious reasons
No need for anyone to reply to my previous post as it seems to have lost most of yesterday's gain already today. Guess I should carry on just talking to myself.
Anyone know of any risen for the last two days rises
We may see 240p as the price is rising steadily.
Irrelevant broker ratings as price is 203p. Upwards.
CHG picks up two sell ratings today. one target price is £1.50 the other is £1.60. This is not likely to help the SP, which is already depressed, along with a few shareholders.
You would not be saying that if you bought them at £7.10p
this is a quiet board for such a great share! Its done about 25% since I bought in earlier this year. Any thoughts on how far it can go? Great recovery share - I think it will go to 300p before thinking about slowing down.
Back where it belongs!gla
50% retracement gives a target of 248-250 ( still hoping ) but seems to be hanging around 230 a bit longer than is helpful -------usually means only one thing --largish move one way or 'tother very soon -----------GLA.
Priced at just 10.8 times consensus forecast earnings for the next 12 months Chemring shares trade at too big a discount to peers, such as Meggitt on 13.4 times, Ultra on 15 times and Senior on 16.1 times, especially given the potential impact of self-help on the bottom line. Cash from possible disposals adds spice, and humankind’s ability to self-destruct means fresh conflict is never far away. Upcoming results could be the catalyst for further gains.but as always dyor and good luck........
For now, all we are told is that "a number" of Chemring’s business units "do not form part of its longer-term strategy," and that management has kick-started the process to sell them. Few analysts are prepared to speculate which ones, but Citi admits it would cheer the sale of the lower-margin munitions operation, and Investec Securities reckons external buyers would value businesses dumped in Chemring’s Energetic Sub-Systems division. Management will likely use full-year results on 23 January to flesh out the detail, but as JP Morgan rightly points out, current uncertainty provides "the opportunity for a surprise on the proceeds." Remember, too, that US private equity giant Carlyle considered buying Chemring in 2012, and despite walking away after three months of talks, it definitely saw something of interest. Back then, analysts told us they thought someone like Germany’s Rheinmetall, or former Honeywell unit ATK would eventually buy Chemring. They still might. Clearly, Chemring will want to hang on to the sensors division, where margins are far higher than the other three units and opportunities to break into new markets are greater. Its countermeasures operation will remain core, too. Here, volumes have likely bottomed out and should recover when both the F-35 and Typhoon jets go fully operational. Of course, defence spending among NATO customers remains tight, and non-NATO clients have deferred orders. Indeed, having slumped by a quarter in the final three months of the financial year to £185m, revenue fell 16 per cent to about £625m last year. An order book worth £702m is down 8 per cent, too. This year, however, might be better than feared following an agreement struck in Congress last month. Cuts to military spending in the US, where Chemring generates just under half its sales, will be reduced by $31.5bn (£19.2bn) over the next two years - valuable time to diversify into civilian markets..............
And it’s the prospect of a cash windfall that could keep Chemring’s share price yomping higher still. Having spent the past year bedding in, Mr Papworth and new finance boss Steve Bowers have completed much of the strategic planning and are finally putting their master plan to work. Yes, they’ve identified further cost savings, and a number of defence and non-defence opportunities not yet fully exploited. Aggressive targets have been set for management, too. But, like rival Qinetiq, currently hawking its US services division, it is the decision to begin offloading unwanted businesses that is the really exciting bit.
Chemring (CHG) has lost many battles over the past few years, and the military supplier’s share price has surrendered significant ground. As a seller of consumables like flares, countermeasures and munitions it relies heavily on demand from conflict zones, so withdrawal from Afghanistan and Iraq has hurt. Its war, however, is not lost. New management is successfully tackling legacy issues, US spending cuts have been reined in and further restructuring should resurrect interest in the shares. In fact, a counter attack is already underway. In late November, just days after Chemring’s share price sunk to a seven-year low, chief executive Mark Papworth shot down talk of a possible rights issue - the company remains on good terms with debt holders, he says - and repeated guidance for full-year results. Admittedly, expectations had been revised sharply lower only six weeks earlier - the US government shutdown, production issues and strong dollar cost about £8m of operating profit - but conditions are, at least, no worse, and problems are being resolved. Much of the fallout from warring Congressmen has been cleared up, says Mr Papworth, and issues with production at Kilgore, Chemring’s accident-prone decoy flares factory in Tennessee, are being worked through. Further management changes have been made there, too. What’s more, and despite the impact on cash receipts caused by hold-ups shipping to the Middle East, net debt fell by £45m in the fourth quarter, more than expected. A £14m cheque received since should keep annual borrowing on a downward trend, underpinned by a sharp drop in capital spending, down two-thirds during the first half of last year.
a break from 217 p --- now @ 224-225 resistance. -- Break this and 250 p is next . ----come on CHG , don't make this too stressful for me --------GLA.