The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just 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.
Investors who take an interest in Senior plc (LON:SNR) should definitely note that the Independent Chairman, Ian King, recently paid UK£0.86 per share to buy UK£130k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 262%. https://uk.finance.yahoo.com/news/insider-buying-senior-plc-lon-070038153.html
There's some positive customer support for the suspended 737 MAX . This is an important aircraft for SNR, and may be a factor in the current SP rise. But another factor in the 737 MAX recovery struck me.
Talk for some time was on, who would get back onboard a 737MAX?
No doubt its return to service will attract some headlines, but I suspect issues around coronavirus will push those headlines and I'd guess the associated fears into the background. Production was suspended earlier this year but I recall a news item a week or two back saying it had restarted at a low level. Ramping back to full production takes some coordination but the numbers could look good a year from now.
Still awaiting clearance from the regulators.
An interesting piece on CNBC by an aerospace analyst.
We know about the pandemic's impact on the airline industry, leaving a large part of the fleet parked up in the desert. He expects the suppliers to the after market sector to feel the heat, while suppliers to the new build sector will fair better. The logic of his argument sounds reasonable.
As airlines bring aircraft back into service they will favour the newer aircraft that have lower servicing costs. Many of the older aircraft will never be brought back into service as they are replaced in the operational fleet by new aircraft. Many of the older and larger models which supported the 'hub' strategy will also be left out. Passengers prefer point to point rather than transfers, which supports demand for the new twin engine models from Boeing (737) and Airbus (A320).
The whole of the aerospace industry has taken a hit but some sectors are affected worse than others. The new build sector is expected to outperform the after market sector.
Senior supplies the new build markets. Boeing and Airbus are tough and persistent on pricing so no freebies. A tough market - Senior may never again see those 13% margins - but they are operating in the right sector. At some point the after market sector may be more favoured but probably not for several years.
Covid-19 Corporate Financing Facility
The Covid Corporate Financing Facility (CCFF, the Facility) will provide funding to businesses by purchasing commercial paper of up to one-year maturity, issued by firms making a material contribution to the UK economy. It will help businesses across a range of sectors to pay wages and suppliers, even while experiencing severe disruption to cashflows.
The facility will offer financing on terms comparable to those prevailing in markets in the period before the Covid-19 economic shock, and will be open to firms that can demonstrate they were in sound financial health prior to the shock. The facility will look through temporary impacts on firms’ balance sheets and cash flows by basing eligibility on firms’ credit ratings prior to the Covid-19 shock. Businesses do not need to have previously issued commercial paper in order to participate.
The scheme will operate for at least 12 months and for as long as steps are needed to relieve cash flow pressures on firms that make a material contribution to the UK economy.
I assume you mean yesterday's RNS.
Key points on the facility (if used).
First, all businesses that wish to draw from the CCFF for a term extending beyond 19 May 2021 will be expected to provide a letter addressed to HM Treasury that commits to showing restraint on the payment of dividends and other capital distributions and on senior pay during the period in which their commercial paper is outstanding. These commitments are intended to create incentives for, and promote the ability of, businesses to repay their borrowings from the CCFF where they mature after the Facility is expected to close.
Second, businesses that have drawn under the CCFF are now able to repay their drawings early if they choose to do so. This gives businesses greater flexibility to exit the Facility in an orderly way where they are able to access alternative sources of funding, for example in capital markets.
In addition, following detailed consideration, HM Treasury and the Bank have decided to publish the names of businesses that have drawings under the CCFF, as well as the amounts borrowed. This change will make the scheme more transparent and enable participating businesses to demonstrate their access to the Scheme. These details will be published by the Bank every Thursday, beginning on 4 June at 15:00hrs (GMT).
Looks like these guys had huge demand for ventilators.
Should see 150s shortly . Great recovery play here now
looks like it.. this stock quietly going about its daily business.... and has been missed by many i think, as its a decent business just panned through covid lockdown etc....
i bought in on the basis that its a military/defense product maker, but its a big co and in involved in a lot...
happy to wait it out till normal value is resumed!
imvho of course!
https://investing.thisismoney.co.uk/news/article/id/6931350/
has Aberforth Partners LLP just upped there stake in senior or am i mistaken?
I’ve just stumbled on this today, their trading update seems far too vague for my liking. Maybe I’ll buy in after the next update
Hopefully back to £1.90 or thereabouts..
Imo
Interesting, maybe the unlock effect or their mil biz getting a bit more interest...
Imo.
Won't touch these above 20p
Looking at your posting history you are worried about everything! Whilst you are correct to see tough times ahead for SNR I am pretty sure that they will survive. Undoubtedly there will be a profit warning shortly, I will look to buy following that depending on the outlook statement.
this has always been a good company but considering they were already suffering pre-corona because of boeing and actually were looking at selling off parts of company, and now corona will have quite a big hit on them, feels like a bit of a perfect storm so being a relatively small company I'm concerned about wether they will survive this, so not feeling tempted to buy any more at this point even though they are looking 'cheap'
Sadly I think 2rein is correct. Certainly on my watch list but lower to come.
But did you not read the ROlls Royce story? Things are going downhill, these shares will be available at a lot less than the current SP. They have already been at 45p before, each to their own, but I see these a lot below 45p soon.
Bought some today with countries relaxing lockdown this should recover
Pretty sure it got close around mid March 2009, I had left a buy order for 50000 at 19.9p but it didn't quite get there. Circumstances obviously very different this time around and they have great products with a high barrier. I also like the fact that they still send me hard copies of the annual and interim reports despite my shares being in a nominee account, not many companies will do that unless you repeatedly request them.
From the charts in google it appears that it's been to 18p in Nov 2002. I doubt if this will hit 20p as that means a market cap of £83m. But never say never in this market condition. GLA..
Did it go that low in 2009? do you know what the lowest point ever was?
Time will tell on the resistance point. Have to say their markets have been badly damaged by the virus so would expect lower. I would be a buyer around 40p. Missed the lows of about 20p back in 2009. I have always liked this company, recovery will come at some point.
So far looks like this is holding reasonably well considering the broader market condition. May be this is the bottom, but time will tell..GLA..
Hope not, .... its fought it corner today and the cash and available cash looks good..plus they were making parts for ventilators.....also their mil biz could be back in vogue soon.
Imo.
Agree this will re rate, but it fell to 45p for a reason. That reason is, 45p represents the recovery price from a new low. That low could be as low as 20p!!!