The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Revenue Reduce 28 from 312
and Trading Profit Reduce 13 from 38
Impact does not justify the huge fall in SP
Expect significant upward correction in SP
Further to the announcement on 3 June 2019, Scapa continues to prepare its response and pursue all appropriate rights and remedies against ConvaTec Inc. (ConvaTec).
The Company has taken steps to reduce the estimated impact on revenues and trading profit in FY20.
Following a reduction in direct labour, but assuming no further mitigating actions at this stage, the estimated exposure to revenue and trading profit in FY20 could be c£28.0m and c.£13.0m, respectively.
The figure includes the impact on other facilities which supply materials for ConvaTec products in Knoxville. The Company will continue to assess further revenue opportunities as well as reviewing its ongoing cost base.
Finally issued RNS
Chief Executive stays on. Damage to revenues and profit calculated. Should be positive.
Shorts reducing their position here. Merian Global Investors had just under 1.78%, 2.71mil shares, shorted up to June 3rd when they reduced position by 0.93% to 0.85%. Obviously they're expecting an up turn.
Volume adjusting to the normal level here. Tried to buy yesterday's low of 157p but IG not cooperating with that, looking for another buy if it dips back into the 150's but think I've missed the boat.
Volume wise indicating near parity for sells and buys so far today, indicating that this may be one of the last buying opportunities at these prices.
Tried to buy this afternoon with IG, quote of 157p but can't?
Numis 04/06/19 buy target 380p :)
Pleased it hadn't dropped more this afternoon it could have found support level here? Bought a few more anyway.
Guess so. Maybe I'll try to get out more. Didn't mean to annoy anyone..
Do you just sit on here stating the bleeding obvious all day?
Markets hate uncertainty, into the red now :(
Heading back down :(
A director buy would show confidence in the company just now.
Need RNS badly to clarify the situation
Then 200+ would be no problem
Goes Ex divi next month
Still way too cheap
Expect SP over 200p within days
It appears to have ran out of puff. Company needs to make an announcement quickly before it all goes txts up :(
Market Outlook
The market is finally giving hints of a bullish resurgence. Today a bullish pattern is detected.
Company very quiet on all this, good or not good?
fundamentally the RNS does not warrant the drop, but ultimately it's buys and sells that drive the SP... if an ii offloads the price takes a dip/halts until it's taken up.... the savvy will then wait until it settles and observe the fundamentals again bringing it up again.... timing is everything
Yes, it's because investors keep selling instead of buying. Apparently a fund has offloaded or is offloading their holding, several million shares. This has spooked private Investors to sell their shares. Plus with the incumbent CEO stepping down after a ten year tenure and selling his holdings, only natural, and now this contract worth 30mil up in the air, not to mention a drop in the revenue of the industrial arm of the business. Well it's a perfect sh.. storm, unless you look upon this as the perfect buying opportunity :)
Scapa lost £200m in mcap value on $30m future decrease in revenue, which is about 8% of the total revenue recorded last year. ConvaTec has Termination of Material Contract with Scapa because Scapa made a cash acquisition last year of Systagenix Wound Management Manufacturing and its operations, sterilisation services, warehouse facilities and R&D which is a direct competitor ConvaTec.
how can this stay at 164, plus 2.9p dividend in July - am I missing something.. why isn't this 300p +
Final shake out for today :)