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Recovered on LSE to close at 107.35 0.47% (0.50)
Must be new year gremlins.
Sp moving right way recently.
Wish I had topped up below 90 ...
No issues on the London stock EX showing. Other than down 1.5%.
It's inactive and unable to be traded on Interactive Investor as well. Very odd..
DWL not listed ! Anyone knows why?
Car manufacturing not place to be during tough times, warfare, spiking commodity prices but this drop looks suspiciously overdone. Bad news somewhere ? Or time to buy ?
Sales is vanity, profit is sanity. Shareholders don't get paid from turnover, concentrating on bottom line is key to making any business sustainable
I listened in to the presentation this morning. Given the enthusiastic upbeat delivery from Liam Butterworth he might be surprised that the market's first reaction was to mark the shares down. The Automotive business is doing well with revenue and margin growth and on Liam's basis Powder Metallurgy is improving so rapidly we should gloss over the recent figures. Both CEO and CFO were at pains to say that they were committed to margin expansion not sales expansion for the sake of it so don't expect them to grow much faster that the industry. The problem for this investor is that the demerger from Melrose is so recent that it is difficult to compare like for like and have a stable base from which to judge progress. They said more than once that the cost of the stand alone PLC board would not be more than the forecast £30 m p.a.
First interim divided of 1.4p to be paid in October this year and they are "targeting a sustainable and progressive annual dividend of approximately 30% of adjusted underlying profit after tax" .
Should reflect in interim results on 12th Sept.
https://news.sky.com/story/electrified-models-help-power-uk-car-production-up-by-almost-a-third-12950940
I was rather pleased to have topped up at 113.4p but this further drop is painful.
Such large movement on thin volumes. I have faith that the company is well placed for growth and management buys must count?!
I am in exactly the same position but I held out and was rewarded. MRO are the clear winners at the moment and come September I am sure Dowlais will prove the haters wrong. You have to do what you feel is best, but I can share something with you in my limited experience of trading, its not for the faint hearted. I took the decision not to follow the masses and to stick with what I know about the companies I invest in. At one point I had a 15% loss on my ISA portfolio but decided to stick to my beliefs and was rewarded by RR and AML and whist I have a loss on others, these two have meant I can ride out the small losses I incurred. Take what income I need and leave the rest to chug along.
I feel like I am just sitting watching my investment slowly dissappear down the plughole. I don't know whether to wait or sell. Any advice.....anyone?
Another disastrous stock pick
Dowlais tumbled on Tuesday after Citi initiated coverage of the Melrose spinoff with a ‘sell’ rating and 97p price target, which implies around 20% downside.
The bank noted that consensus expects electrification to be neutral/positive for Dowlais, but said that its deep dive suggests battery electric vehicles (BEVs) could be a risk in the mid-term, with around 45-50% of sales seeing margin pressure.
"In this relatively technical and under-researched space, our due-diligence includes in-depth proprietary work on the EV powertrain sub-sector and feedback from those involved in EV design and/or purchasing at car-makers," it said.
"In a nutshell, many of the components Dowlais competes in are at risk of commoditisation and/or content-loss and/or over-capacity in the BEV world amid current or upcoming tech-disruptions."
Citi also said that relatively high net debt and near zero FY23 free cash flow add to concerns, should the cycle turn.
It pointed out that the shares are trading at a premium of around 20% to peers. The bank said it’s 5% to 10% below consensus 2024/25 and has opened a "negative catalyst watch" on the stock into results.
Going to buy a few. If this drop is based on one Broker rating, the drop is overdone. All the director buys of late must count for something.
With shares down nearly 7% and no RNS, what do some people know that others don't?
Citigroup set target 97p... Thanks for that
Took 3k yesterday and bailed out 5p higher. Covered all my losses on Parkmead punt.
Looks like I was on the same page as the Directors who bought another £0.8m of shares yesterday!
This has now dropped below the £1.22 odd that the directors waded in at so I am tempted to make a top up. There's c. 20% margin here based on recent highs!
Is bound to bounce back soon, couldn’t see anything negative; will keep adding if it drops
Dyor
Typical schizo market reaction to a decent report. Almost 10% down? Really?
Good to see management putting some of their own money into this with 1.7m+ director buys yesterday!
can see you in sight
Say you had 1000 Melrose shares cost £1650
Now you have 333 new Melrose share at £4=£1,330
+ DWL 333 at £1.17= £389
Total value £1,719
Overall positive; correct me if I have missed anything here ?
If price drops I will buy more , both looks solid business model
Dyor