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Started: L0ndoner, 8 Jun 2024 20:21
Last post: L0ndoner, 8 Jun 2024 20:21
Https://www.thisismoney.co.uk/money/investing/article-13406885/MIDAS-SHARE-TIPS-soon-wont-hip-cold-shoulder-Smith-Nephew.html
Article is behind a paywall but the summary reads as follows:
"S&N is paying a 3 per cent dividend and is trading on around 12 times the forecast earnings for 2025 – that means that the shares are priced at 12 times the profits that the company is expected to make next year. This is its lowest forward earnings rating for more than ten years.
Nearest London-listed rival Convatec trades on 18 times earnings so is much more expensive.
Midas verdict: Appropriately for a business that started off refining cod liver oil, the stock market seems to be finding Smith & Nephew's recovery plans a bit fishy.
Scarred by recent upsets and concerned by the slow resolution of US supply chain issues, it takes very little to knock confidence – and, therefore, the share price.
There is value to be had for brave investors, however. The business works in sectors that are ever more necessary, and its innovations show the company is still progressive.
S&N is far from perfect – but, overlooking the issues, the company is cheap and worth buying for short-term upside".
Started: L0ndoner, 8 Jun 2024 20:07
Last post: L0ndoner, 8 Jun 2024 20:07
Dozens of Articles pushing Smith and Nephew as a key stock to buy for 2024:
https://www.fool.co.uk/2024/05/30/x-uk-shares-fools-think-could-be-takeover-targets/
https://www.fool.co.uk/2024/05/08/2-dirt-cheap-uk-stocks-to-consider-buying-as-the-ftse-100-hits-new-all-time-highs/
https://www.fool.co.uk/2024/05/07/i-love-the-look-of-this-ftse-100-giant/
https://www.fool.co.uk/2024/04/17/down-27-but-set-for-major-growth-this-hidden-ftse-gem-looks-cheap-to-me/
https://www.fool.co.uk/2024/04/07/is-this-the-most-undervalued-ftse-stock/
https://www.fool.co.uk/2024/04/05/how-im-aiming-for-a-winning-stocks-and-shares-isa-in-2024/
https://www.fool.co.uk/2024/03/31/5-oversold-ftse-stocks-to-consider-buying/
https://www.fool.co.uk/2024/02/27/smith-nephew-share-price-an-overlooked-buy-on-2023-results/
https://www.fool.co.uk/2024/02/06/2024-could-be-a-lucrative-year-for-stock-market-investors/
https://www.fool.co.uk/2023/12/22/best-british-shares-for-investors-to-consider-buying-for-2024/
“By Edward Sheldon, CFA. There are a lot of UK companies that I consider to be takeover targets right now. But one I want to highlight is medical technology business Smith & Nephew (LSE: SN.).
There are several reasons I view this healthcare company as a potential takeover target. One is that it has a lot of long-term growth potential due to the world’s ageing population. So, established players in the medical device industry (like Johnson & Johnson or Stryker) might see an acquisition as a way to grow their revenues.
Another is that it’s currently trading well below its highs at a very low valuation. At present, the price-to-earnings (P/E) ratio using the 2025 earnings forecast is just 11. That’s a low multiple for a high-quality healthcare business.
Now, of course, we may not see any takeover action here in the years ahead. At the moment, the company is still recovering from Covid setbacks.
However, it’s worth noting that in 2022, analysts at RBC named the company as one of their top UK takeover targets. So, I’m not the only one who sees the potential for an acquisition here”.
Started: L0ndoner, 8 Jun 2024 19:59
Last post: L0ndoner, 8 Jun 2024 19:59
Https://www.sharesmagazine.co.uk/article/10-stocks-for-2024-our-best-ideas-for-the-year-ahead
The article reads:
“The shares are trading close to 10-year lows, and from a valuation perspective have rarely offered better value relative to the UK market and the firm’s US and European peers than they do currently.
Analysts at Berenberg estimate the shares are trading on a 2023 PE (price to earnings) ratio of 15 times, which looks stingy compared with three-year expected earnings per share growth of 16% per year.
We believe the current depressed valuation offers a buying opportunity which should be rewarded as better operational performance is delivered.
In the medium-term, the firm is targeting more than 5% underlying annual revenue growth and a trading profit margin of over 20%, which would bring it closer to its global peers.
At the beginning of November, the firm raised its full-year sales growth guidance to the top end of the range of 6% and 7% which is encouraging.
At an investor event at the end of November, chief executive Deepak Nath said the company had completed 65% of its 12-point plan (to improve operational performance) compared with 45% at the half-year mark meaning investors should start to see tangible evidence of progress.
One example cited by Berenberg is an improvement in commercial delivery in Orthopaedics (hip and knee transplants) which is leading to market share gains.
There is concern in some quarters that the widespread adoption of weight-loss drugs could reduce the demand for knee and hip replacements, as being overweight is a contributing cause of joint wear.
The chief executive believes the opposite is true. ‘As patients presumably benefit from GLP-1, (a class of weight-loss drugs), you could actually see some of these patients who are previously ineligible for joint replacement become eligible for that surgery,’ observed Nath.
The current senior management team appears to be gaining traction and delivering tangible financial benefits, and Shares thinks the risk of the firm not delivering on the turnaround are already factored into the low valuation”.
Started: MaryBr190, 5 Jun 2024 08:15
Last post: Quimada, 5 Jun 2024 11:34
Oh nothing to do with UBS raises S&N to buy target 1200
SN has been overpriced for way too long. The dividend yield is meh although with some possibility for growth. I don't see a re-rating at any time soon. Nor I can see a PE offering any more than the current market cap. Possibly a money pit.
Yeah, strange movement here this morning. Not normal for this one. Fingers crossed something is finally brewing.
A bid here today and I could retire from shares and free my soul. Let's see that £17 party.
Always unloved but so much potential. I am with you, keep adding below £10 - 30% to 40% return.
Add sub £10 and trim 60% on the rises and you end up with a quality super low average. That's the plan anyway.
Started: Mulder, 23 May 2024 13:05
Last post: Badgernator, 30 May 2024 09:46
I’m adding every time this goes below £10. One way or another there will be a turn around. With or without current management.
Best thing that may happen here is a takeover approach for £13-15 per share. I am still waiting to see shareholder value creation of the 12-point plan. Wouldn't a 12+1-point plan have been more appropiate? (+1 being change at leadership level)
Yes, it's all rather curious isn't it? Results didn't seem bad, and most brokers are moderately bullish on S&N. Yet every time we get above 1000 the share price sinks again a few days later. No wonder there was some rebellion against the CEO's £9m pay - what has he actually accomplished and done to move things forward? I feel that we are stuck in treacle here. Annoying as this is one of my bigger holdings and I was confident that post-covid things would progress quickly. Yet another mistake by me alas !
Well sentiment is completely washed out.
Faith in the CEO is at rock bottom.
Soames has proven to be very disappointing as Chairman, against expectations.
The board refuse to purchase shares with their own money.
Investor Relations are in denial when spoken to.
I used to be a Smith and Nephew shareholder and got out years ago but have kept an eye on it. It has had one hell of a fall over the years and is, as some of you say it is "out of favour" but I went back in this morning at 974.7p. The company is financially sound and in a product area that will not go out of fashion. So at this price it either recovers or it gets taken over........well that's the theory and it could do so from a much lower base than today.
Started: MaryBr190, 12 May 2024 08:42
Last post: Quimada, 12 May 2024 08:52
There is value to be had for brave investors.
By Rosie Murray-west
An ageing population and a hip and knee replacement company ought to be a match made in heaven. So why have Smith & Nephew (S&N) investors had such a hellish time?
The shares are down 38 per cent over the past five years and nearly 6 per cent since the beginning of 2024.
There are myriad reasons for this. These range from a well-publicised (but now resolved) revolt over new chief executive Deepak Nath's whopping £9.5 million pay packet to fears that the popularity of weight-loss drugs, such as Ozempic, may mean fewer of us rely on knee replacements.
What investors need to decide is whether pessimism over S&N's future has been overdone and if Nath's much-vaunted 12-point-plan will deliver a recovery that will produce a meaningful uplift in the shares.
First, let's look at what went wrong. S&N has three main divisions: orthopaedics, sports medicine and advanced wound management. Before Covid, the company had operating margins of more than 20 per cent, but this collapsed after the pandemic with the company struggling with supply chains and inflation, particularly in orthopaedics.
Nath joined in April 2022 and rolled out a new plan to fix the orthopaedics division with improved inventory management and training, while growing the other two divisions.
The first quarter trading update last week showed that much of this plan is on track. Orthopaedics is growing outside the US, while sports medicine and advanced wound management are performing to expectations.
On the other hand, the company is suffering from China's new Volume Based Procurement strategy, which forces huge price reductions on to manufacturers. This is affecting its sports medicine division while struggles remain with its market share in the US for hips and knees. Analysts broadly welcomed the figures, even though they slightly missed some forecasts for the first quarter.
Seb Jantet, healthcare analyst at Liberum, says the US is still battling with supply issues for hips and knees, but there is potential for upside if the business resolves this.
He adds that Volume Based Procurement will drag down revenues for sports medicine and joint repair by 5 per cent.
Jantet predicts 5 per cent underlying growth for the full year and believes the company is undervalued.
'The shares haven't performed well since February and it isn't entirely clear why,' he says.
Julien Dormois, at broker Jeffries, agrees that the current weak share price is an opportunity.
'Smith & Nephew is reaping the benefits from portfolio shifting toward faster-growth segments and recent R&D efforts, which support higher, sustainable growth,' he says.
'We think the lacklustre stock performance allows investors to revisit the case.'
There are headwinds, though, including the issues in China and the possibility that the company may not hit its ambitious targets.
But these should not detract from the fact that the shares are attractively priced.
S&N is paying
Started: MaryBr190, 2 May 2024 14:23
Last post: Troajan, 11 May 2024 22:24
Https://www.thisismoney.co.uk/money/investing/article-13406885/MIDAS-SHARE-TIPS-soon-wont-hip-cold-shoulder-Smith-Nephew.html?ico=mol_desktop_money-newtab&molReferrerUrl=https%3A%2F%2Fwww.dailymail.co.uk%2Fmoney%2Findex.html&_gl=1*e6wkdb*_ga*ODI5NDY2MDg4LjE2NzkxNzI1NjM.*_ga_XE0XLFFF16*MTcxNTQ2MTIyOC45My4xLjE3MTU0NjI1MzAuMC4wLjA.*_ga_GQE6MT7DLZ*MTcxNTQ2MTIyNy40LjEuMTcxNTQ2MjUzMC4wLjAuMA..&_ga=2.173914400.2030337593.1715461228-829466088.1679172563
Not that long ago you were waiting to go all in at £9.00, what’s happened, change of heart or maybe a bit of short talking?
Still £2.55 higher - when will the penny drop with investors ?
Jefferies cuts Smith & Nephew price target to 1,250 (1,300) pence - 'buy'
The Americans JPM raise target price to 1,381
Barclays cuts Smith & Nephew price target to 1,190 (1,200) pence - 'equal weight'
Started: Mulder, 2 May 2024 12:17
Last post: Mulder, 2 May 2024 12:17
Was a close run thing.
Shareholders are quite rightly unhappy with the performance here and the buck stops at the top. What's going on in the US?
Started: Mulder, 1 May 2024 16:26
Last post: MaryBr190, 1 May 2024 16:30
Trimmed around 1015/1018 and rebought around 971/2. A salary for many so worth a trade.
Usual corrupt BS!
Started: earnacrust, 1 May 2024 08:31
Last post: MaryBr190, 1 May 2024 15:28
On the back of CVS Healthcare miss ?
Lol haha adding back
Makes a change - progress and consolidation - market seems to like it without the usual sell off. Undervalued stock, unloved.
Nothing startling in trading statement.
Started: Mulder, 28 Apr 2024 23:08
Last post: Mulder, 30 Apr 2024 11:35
How is a P/E of 14 for this sort of company overpriced? When peers trade at 30x?
Smith and Nephew has always been way overpriced. Even at the current level still seems overpriced. The dividend payout is below what you get from a savings account and the prospect for growth is just about ...meh, especially now and the slowing Chinese market. The share price should be half as much to yield a healthy dividend of 5-6%.
I would buy only with the wish of seeing the share price back to historical levels but I can't put any weight behind my wish especially with the debt it carries and the rates.
Anyone going?
Need some fireworks.
Started: MaryBr190, 31 Mar 2024 14:55
Last post: Grezzz, 25 Apr 2024 16:20
Joined the top-up club at 962 today. I don't know why...
Hope you are right HumpyD, decided to top up myself today
Likewise, just couldn’t stop myself from a little top up today - despite the fact that this has the performance of a battered lada.
I’ve started adding. I believe either the management plan delivers or they get replaced via a takeover. They must know they’re on borrowed time.
Waiting to go all in at £9 - sub £10 is a bargain too.
Started: tickhilltim, 16 Apr 2024 09:14
Last post: HumpyDumpy, 16 Apr 2024 20:05
We’ve all been asking that for years! Too long really and I would not normally invest in the hope of a takeover - but I topped up again today. This is like crack - it’s wrong, i don’t like it, and it’s probably going to be economically damaging for me - but I just can’t stop!
- is someone not bidding for this company?
Started: Quimada, 16 Apr 2024 09:11
Last post: Quimada, 16 Apr 2024 09:11
Great headline, I hope all will be voting against giving our chief exec Deepak Nath a pay rise for his appalling service
Started: Mulder, 29 Mar 2024 18:25
Last post: sairfecht, 15 Apr 2024 23:03
“SN. will be over £18 within the next 6 to 9 months”
So the sp is going to double by the end of the year?
Great if it does. Doesn’t feel like it given the reaction the last statement (“I must remain patient”, I tell myself)
On what basis do you say this exactly?
The plan is working? Just needs time…?
Reading charts?
LMAO
So what does the chart says to you dummy?
You are one of the most clueless dummy I ever come across on these boards.
A person who post a mobile phone number for customer relation contact number for FTSE100 company must be totally clueless !lol
Pack up your garbage and do some study to educate yourself rather than throwing your dummy all over the place.
time for your lithium and quetiapine now.
lloyds above 100p by year end 😄 😄
bat **** crazy.
Spot ?!?
What is that dummy?
Spout... you mean right?
Move your dummy somewhere else and learn to spell too
My, my we are very sensitive arent we? You are the one who has spot your dummy out it seems.
Look up Katharine Rycroft you numpty.
You obviously can't read charts either and have no understanding of technical analysis.
Started: Mulder, 4 Apr 2024 17:05
Last post: Mulder, 5 Apr 2024 21:47
If you're a shareholder here contact Investor Relations, either by email or phone..
Apparently IR are under the impression Deepak is an 'excellent' CEO and stakeholders are happy with his performance!!!
In another six months they will award him another pile of free shares for doing nowt, he will sell them and the price will drop still further, unbelievable?
Deepak = crap CEO
Soames has also done Jack sh*t
Going back to 900p
Off more than 50% from its pre pandemic highs.
Dire Investor Relations team.
14-15x P/E but the market hates the CEO and board.
Started: Mulder, 3 Apr 2024 12:08
Last post: Mulder, 3 Apr 2024 12:08
.
Started: mango, 28 Mar 2024 21:00
Last post: Vmax24, 29 Mar 2024 11:15
Not overly critical at all. S&N is currently run by an incompetent senior team - and they want to pay them more!!! WTF.
SP down around £2 since decent end of year results. Two drops of 5% in a day in the past 4 weeks - all at a time when the FTSE is riding high.
Ex Divi...then change in finance director announced on the same day. I know the change was preplanned.. but it seems like very poor timing on a day when they stock was bound to fall due to being xd. .
Don't directors get paid the big bucks to think of things lke this?? And this bunch are I believe complaining they should get more in line with Yanks!!!
Or I am I being over critical??
Started: Mulder, 28 Mar 2024 15:15
Last post: Mulder, 28 Mar 2024 17:37
Why hasn't Soames bought any stock here?
Any question for Investor Relations.
Well the recent chairman Soames did a great job at Serco
Dropping every day in a buoyant market.
IR and the CEO not responding to emails either.
Did they not forecast a bit of growth also?
Don't pin your hopes on M&A....these bar stewards covet their highly paid jobs.
Clearly incompetent board - they won't get a job elsewhere, especially Deepak.
Started: Mulder, 20 Mar 2024 16:46
Last post: Grezzz, 28 Mar 2024 10:50
Also, any prospective American buyer will have to take a view on the currency factor. A bit like with physical gold, I think we might visit $2400 at some point in this year, but I have much less confidence in predicting the exchange rate. Will a new government be bullish or bearish for GBP? I can make a case either way...
Stockready1 - Ditto!
The usual ex dividend (18,286p) overreaction - just have to add at 997/1000. Bottom drawer.
This is a no brainier as a long term investment, this are great levels to be adding at.
I do both, I will trade if over 20% profit and add the profit to my investment and Divi stocks.
Started: MaryBr190, 26 Mar 2024 21:29
Last post: Craigb, 28 Mar 2024 08:41
Dropped a lot more than the Divi, so added at 1005.
Forgot about Divi today was about to come on here and see what happened! This has to bounce soon
Started: Mulder, 25 Mar 2024 20:19
Last post: MaryBr190, 26 Mar 2024 21:26
Just add be glad Divi Thurs.
This is really out of favour.
Soames as Chairman has not had a positive effect either it seems.
Started: NickLyon, 14 Mar 2024 17:33
Last post: NickLyon, 14 Mar 2024 17:33
SN is raising USD350.0 million in 3-year debt notes due 2027 with 5.15% coupon and USD650.0 million in 10-year notes due 2034 with 5.40% coupon. S&N says the net proceeds of USD990.6 million will be used to redeem outstanding private placement notes with coupons ranging from 3.26% to 3.89%, as well as for general corporate purposes.
Any idea why they would raise new debt at a higher rate to clear existing debt at a lower rate? Seems crazy to me.
Started: MakeSomeMoney, 11 Mar 2024 12:18
Last post: MakeSomeMoney, 11 Mar 2024 21:02
That's a lot of shares being awarded to the CEO. In his interest to get this SP boosted for when they vest!
Think this has bottomed. Results were good whilst not amazing... Since the sp has stabilised and imo looks to be ready for a good run. I've added... Let's see what happens. GL
Started: PlymouthMike, 28 Feb 2024 15:52
Last post: AquaeSulis01, 29 Feb 2024 22:17
Finished marginally in the blue on the NYSE so hopefully will gradually recover now
You CAN NOT manipulate FTSE100 companies
Forgethet that theory mate
I would say it’s being held down at the moment rather than holding up! This was over £18 not so long ago. To me it’s a recovery play once the margin improvement plan really starts to show results.
... which is how it holds up :)
The PE ratio for S&N is less than half of most of its medical device peers!