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Another write up in FT about the directors buying shares, tipped again as a buy.This is going to fly after a the trouble in euro zone is sorted. When WHO KNOWS?
Good write up in the FT saying RNO are going to increase profits by 25% next year andf should see a large increase in share price.
Matthew Peacock, Chairman of Renold, said: "We are pleased to be able to report significant growth in operating profit and earnings per share for the second consecutive year despite economic conditions which were more challenging than 2010/11. We continued to convert incremental revenue to additional profit at a high rate whilst further reducing our cost base. We are aiming to deliver further growth in sales, margins and operating profit in the year ahead to support continuing robust growth in earnings."
Renold, a leading international supplier of industrial chains and torque transmission products, today announces its preliminary results for the year ended 31 March 2012. Financial Summary 2012 £m 2011 £m Revenue 209.5 191.0 Operating profit before exceptional items 14.1 7.0 Operating profit 12.0 4.3 Basic earnings/(loss) per share 2.8p (0.4)p Adjusted1 earnings per share 4.2p 2.0p Highlights · Adjusted1 earnings per share more than doubled to 4.2 pence · Adjusted1 operating profit increased by 101% to £14.1m · Underlying2 sales growth of 9% · Torque Transmission achieved underlying growth of 10% and operating margin of 16% · Average working capital to sales ratio3 cut by 9% · Initiatives taken to cut the structural pensions deficit largely offset the impact of lower net discount rates · Net debt leverage cut to 1.2x EBITDA
http://www.investegate.co.uk/Article.aspx?id=201205290700102679E
WH Ireland reiterated its "buy" recommendation for Renold (RNO) but with a reduced target price of 52p, from 58p. Despite more subdued trading during the last two months of the financial year ended 31st March, the gears and chains manufacturer is expected to meet the broker's revenue forecast of 209 million pounds. WH Ireland noted growth in North America, India and Asia, but raised concern over an uncertain European outlook. With the firm demonstrating good cash flow generation, the broker expects net debt to be reduced by around 7 million pounds from the half year, to 22 million pounds. The shares added 0.375p to close at 32.625p.
A couple of very large late buys may have steadied todays price and led to a slightly stronger close than would otherwise had been. However, tomorrow is another day and we will have to wait and see what happens. I never like to see a share fall by as much as it did yesterday; it generally means it will fall further. I suppose I should be happy with any profit, but it was disappointing to see it halve so quickly. I will keep this on my watchlist. Believe this will recover but not sure from what level; who knows, perhaps it will be from here. Regards and good luck. CM
Have sold my small holding in RNO, not because I don't think there is recovery potential but because I see this falling further, perhaps to around 30p or so; at which time I will consider buying back in. Want to preserve the small profit I have made. Good luck all. Regrds CM
I would like to think that yesterday's reaction was the unwinding of some speculative long positions that had been built up over the past few months. The amounts involved do not look like institutional selling. Hopefully the market will now stabilize before again recognising the recovery/growth prospects here.
Quite a positive RNS it may have been, but unfortunately the market has decided to concentrate on "growth having moderated" in the 2nd half in Europe where ongoing economic uncertainty has resulted in sales volatility and where Swiss manufacturing output has been reduced by the strength of the Swiss franc. This slowdown has been more than offset by the Groups rest of the world sales, which continued to grow and were above double digit levels in the Americas, , India and South East Asia. While European growth is likely to be moderated by the ongoing economic uncertainty, good sales growth is still expected to continue in both divisions in the rest of the world. Todays sp movement was very disappointing and imo well overdone. That is the market for us, concentrating on the negatives and not the positives. Nothing we can do about it. Expect further volatility. Had I had the time this morning before work to read the RNS and reflect on it more, I may have sold out, but the fall was pretty quick after the initial rise. I still believe in the long term prospects of RNO. Anyone any other thoughts?. Regards and good luck. CM
"This slowdown was more than offset by the group's Rest of World sales, which continued to grow and were above double digit levels in the Americas, India and South East Asia," it added. "While European growth is likely to be moderated by the ongoing economic uncertainty, good sales growth is still expected to continue in both divisions in the rest of the world."
However, investors took fright after the company said ongoing economic uncertainty in Europe had hit growth in the second half. "[This] has resulted in sales volatility and...Swiss manufacturing output has been reduced by the strength of the Swiss franc," Renold said.
Transmission products firm Renold saw its shares drop over nine per cent on Tuesday morning after it said growth had slowed in the second half. The firm said full-year adjusted earnings had doubled on the previous year, in line with expectations. It added that operating margins and profit improved further during the second half of the year (to the end of March) in both its torque transmission and chain divisions.
Good morning Pedant. Thanks for the post. Will look into it more later when back from work. Have a good day. Regards CM
any help? RPC (LSE: RPC) is a leading producer of plastic packaging. The industry is growing because there is an increasing amount of regulation relating to the use of such packaging. This is leading to plastic being used in place of heavier materials, such as glass and metal. RPC owns a range of technologies that allow it to benefit from this transition. Better still, many competitors are unable to produce plastic packaging that will keep food fresh for a sufficient period of time or allow the customer to print complex designs on the material. RPC recently acquired Danish plastic packaging producer Superfos. This will provide increased scale to their injection-moulding operations. Most of the industry is characterised by large operators who rely on being able to produce very high volumes of uniform products. RPC’s products, on the other hand, are generally customer-specific. This requires a nimbleness that acts as a barrier to larger operators who may want to enter the market. RPC trades on a p/e of 9.5 and yields 3.5%.
Have had a longer look at DOTD. Looks promising. Visited their website though which seems pretty limiting!. However, it has a glowing report from growthcompanyinvestor.co.uk in a report last October when the share price was 7.875p. In the companies latest update it is cautionary about the macro economic situation, which just makes me hesitate a little. This is one of those "do I?, don't I?" situations. What are your friends friend thoughts on this?. Good to see directors holdings and who some of the instituional investors are; notably Blackrock. Meets most of my criteria for investing; hmm!. Want to look at RPC again along with AVG. Did you notice SNCL move today (on my watchlist)?. Apologies for being off topic folks. Regards CM
Good evening folks. Good to hear from you again hugh. Not sure when the results are due, think it may be by end of May, with a trading update sometime in April. Latest update was positive. Pedant - thanks for your post. Have had a very quick look at some of the companies you mentioned; need to go into more depth. On the face of it DOTD looks most interesting; but needs a lot more research. Will get back to you with my thoughts. Have a good weekend all; I'll be busy working again!. Regards CM
I am sure this will break 40p easy before results, my target price is 45 to 50p. RNO are forecasting a big rise in profits this year.
http://www.investopedia.com/terms/g/goldencross.asp#axzz1nsrmbmKU Assume you know this but I only learned it today. It applies to RNO so looks very promising- waiting for the cross of 50-day and 200-day averages.
well done CHEQUEMATE. I should have sold some of my shares earlier to get on RNO boat :( The 'senior' one is my freiends friend:) He recommended TMZ, QPP, CPX, TLDH, GBO, DDD, DOTD, PBTY when SPs were low. He recommended LRM this Monday when it was 8 - 10p today.
Good afternoon Pedant. Just seen your post from Tuesday. RNO is having a good day, hmmm, looks promising. Have thought about investing more, but content in the holding I have. May await next trading statement before doing anything else. Looking at barchart.com shows that RNO has today broken through both the first and second resistance level and has a strong buy recommendation. Not long ago this was rated as a strong sell; sometimes you just have to trust your instinct and judgement and wait. IF RNO can break through the 40p barrier and hold it then things will become very interesting. Who was the senior investor who recommended CPX? (don't need to know). Have they recommended anything else and if so how have they performed?. Lacey mentioned CPX sometime ago on GBO bb; I too took it no further. Then again some recommendations by brokers have done diddly squit (at best). Still need to do our own research. We need to be confident (as best we can) in what we are investing in.......even then it can be a gamble, but at least we will have a better idea of what we are investing in. Don't worry about missing CPX, there will be other opportunities out there. A lot of the time you just have to wait, keep looking........and wait a bit longer. Regards CM
Well done. I am now also watching RNO and your research progress :) Another share, CPX, looks promising. I was recommended by a senior investor @13p, then 17p, but I lack the confidence to buy at high. Now it is 30s and I was just told that CPX very promising, worth a buy even @30. I remember your theory of 30p. I compare its chart with RNO, really interesting.
This is only one day Pedant, just one day. The real test is over the longer term. I am re-visiting my investment criteria after the recent fiasco when I broke many rules of mine by trying to make a quick buck; it went horrible wrong and I should have know better!. RNO fits much better into my strategy. I will post on here from time to time and also on the other boards where I have an interest; you know which ones. To all RNO holders, todays rns was promising, pretty much as I had hoped. May be an update in FT this weekend by David Schwarz........but this is PURELY a hunch.....nothing scientific....I know he likes this share. Don't bet on it please; I will probably be proved wrong. Regards CM
CHEQUEMATE, well done on RNO and TMZ. | am starting understanding your posts now. A bit busy for the moment and will come back later.