Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Not invested here anymore, but yes, very harsh reaction considering that they reduced net debt by $55m.
I suppose the reaction is due to falling revenue due to COVID19 and further suspension of the dividend.
Still think that this company will flourish post covid19, with huge shareholder returns.
GLA.
I thought it felt harsh too. Had a little nibble at 60.6p, slightly holding my breath...
its a 100m swing
Ouch that seems a very harsh reaction to the midyear report.
I'm not about to catch a falling knife, but it is certainly one to watch if this stabilises
At today's depressed price I think you are right, while not rock bottom compared to March this does seem cheap or at least out of favour with the market. My money tied up in other punts but I have been a long term watcher of Elementis and have been impressed by the expansion of the business.
Well that was a pretty good week
UBS RAISES ELEMENTIS PRICE TARGET TO 115 (110) PENCE - 'BUY'
??? Makes no sense how these brokers raised target by 5p, when the current price is nowhere near it.
With every market soaring, this should be good for Elementis.
Chinese markets have been taking off. Elementis has a huge market for it's products in china as well as operations. Should see a good upside here if the rise is sustained for this week.
IMO, the main reason for the recent decline or undervaluation (in comparison to other shares) over the past month has been due to China/US tensions as well as Elementis getting kicked out of FTSE250.
Wouldn't surprise me if we're back in FTSE250 by the end of this month (if not earlier), following results.
Good job if you got in at low 60s.
GLA.
Just a few reasons why I still think the company at the current share price is valuable:
- New site being constructed in India (to be completed in H2 2020) that will improve margins and profit
- HUGE profits every year, enough to pay dividends (dividends suspended for 2020 to save $33m cash)
- Shareholder returns will likely return 2021 (dividends)
- Company is reducing debt with ease, likely to be 1.5x Net Debt/EBITDA by end of year.
- Capex of $45m in 2020
- Likely to be 17+% operating profit margin with 90+% cash conversion for this year
- Addition returns to shareholders when Net Debt/EBITDA under 1x (2022)
- Additional $15m in savings by 2022 through new plant in India and optimisation
There is uncertainty with COVID19 and almost all operations by Elementis (especially the Chromium, Personal care, coatings market in the USA).
Elementis lost 15% revenue in April (hardest hit month for COVID19) and the current price reflects this. However China and elsewhere in the world has recovered considerably since April.
Even at a 15% revenue hit, the company will make a profit and service taxes, interests, debt whilst also improving their operations.
The $33m savings from dividend is a hit to shareholders, but is a surplus to Elementis for operations (most likely used to reduce debt)
Trading update on 28th July 2020. I have increased my holding here and looking to hold for the forseeable future.
Guidance and interim dividend information will be provided at this update.
I do not see the interim dividend being suspended for Sept 2020, but let's see what happens following the results!
ALL IMO.
The Elementis presentation recording and stockopedia report from our recent company webinar can be found in our members area here: https://www.sharesoc.org/seminar/sharesoc-webinar-with-elementis-elm-27-may-2020/
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We are hosting a webinar with Elementis on Wednesday which may be of interest: https://www.sharesoc.org/events/sharesoc-webinar-with-elementis-elm-27-may-2020/
That is another nice big buy at the end of the day hopefully hold today's rise.
Have you all looked at the 2 big buys on this after close. should be around at least 80p soon. What do you all think.
Doing extremely well.
Another one worth looking at is Premier Foods. Was sold down by one large holder but now on the rise. Makes and sells food products like Mr Kipling, Ambrosia, Bisto etc. Next results will show a huge increase in volume and no doubt it will be in the 40s again given implications to cash generation
And massive volume by the way yesterday. Clearly some very large buyers now in this
Well done those that hold
Well done those that hold
Could see this pick up once we have covid under control
not much in the way of constructive conversation on this board is there. Mind you that may not be a bad thing.
another buy/ hold......
set for a big rise..............buy/hold
strong buy.....down here....price less that what the management team has been paying...:)
This scenario by the way is apparently extremely unlikely. Perhaps no point in asking the question.
It gives me great confidence to see these director buys:-)