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Senior appears very undervalued to me at the current price.. With an adjusted PE multiple of just 3.21 compared to industry peers of anything between 6 and 17 suggests to me that this will re-rate with time. Also, it appears that they are financially stable and doesn't require rights issue from what i could read. Hold and dont give away shares on the cheap.
Keeps bouncing back off 64p level.
Senior will be a good indicator of larger general market sentiment , when that is restored or unexpected good news arises, Senior will gets it’s chance to prosper, until then I would expect this will just trade the 55-64 area.
alas like many no dividend will be paid this spring.
Bought some today..is it still paying dividend
Good Post. But I feel it will fall more than a " wee bit." I think the significance of the earlier fall to 45p suggests this is perhaps the " new recovery price" in other words it is going to fall below this and recover to 45p short term and from there back above where we are now.
This will go above a quid after the recession.
This will be a different world even after the covid crisis and aftermath has settled, but senior is involved in the production of products used and needed globally. Sure growth will be slow, but with precision equipment it is not always safe or prudent to “make do” and even if fewer mass transport systems are needed , they will still be needed. When production and transportation of goods begin on a mass scale as indeed it will Senior will be well positioned to fulfil the service’s needs.
While this may fall a wee bit I think this is at an appropriate level to but at, even with last years dividend being cancelled, and we can only presume this years will be too, as production through senior’s core companies has been decimated this year.
Thanks for your post. I agree we need to see where growth is going to come from, we know there is a recession coming and we will see less capital spending.
Personally, because this fell to 45p, I fee that this may be the point to which we see the SP recover to from a new low. Do you have a figure for the bottom?
As 2reincarnated mentioned, SNR price yet to find bottom.
Below is the sort of news Senior Plc need.
American Airlines Sticks By Boeing 737 MAX Commitment
April 15, 2020
The CEO of one of the world’s biggest airlines, American Airlines, is sticking to his guns with their Boeing 737 MAX orders. The airline has 76 MAXs on order and due to join its current fleet of 24 MAXs. But despite the challenges facing Boeing’s MAX program, American Airlines, and the wider aviation industry, American Airlines CEO Doug Parker isn’t planning to defer any 737 MAX deliveries.
In an interview with CNBC earlier today, Mr. Parker said his airline was ready and willing to take new aircraft.
“At this point, the new airplanes we have scheduled to come, we want. They’re great aircraft that will replace some of those aircraft that are leaving. We don’t have any intention of working with the manufacturers to defer or cancel any of those orders.”
https://simpleflying.com/american-airlines-737-max-commitment/
Balanced view:
Not all airlines are so 'sticky'. Boeing on Tuesday reported another 75 cancellations for its 737 Max jetliner in March, as the coronavirus crisis worsened disruptions from the grounding of its best-selling jet.
https://www.thenational.ae/business/aviation/boeing-737-max-cancellations-pile-up-during-production-halt-1.1006139
Agreed. Just taking a nibble to get it on the books.
This is a solid company, the SP will get hit further because of the recession coming. This has not reached its bottom.
63 percent wiped off market cap since Mar 4th.
56p looks like acceptable price point for beginning to scale in.
Very good result given the circumstances. One to hold and top up on any weakness.
Great results in circumstances but virus could hurt here!
well, it's been on the watch list for some time and today I have purchased some
Good luck all
Let's collect the dividends whilst the recovery is in play
Yep, buy order triggered at 166p today. Will top-up at 149p, should it get there.
Why?
Got a buy order in for 166p, should it get there.
SENIOR LAUNCHES RESTRUCTURING AMID CHALLENGES IN AEROSPACE AND FLEXONICS
Senior announced a restructuring programme on Thursday amid difficulties in its Flexonics and aerospace markets. Chief executive David Squires said: "Senior is focussed on delivering improved returns for shareholders with many of our operating businesses performing well. However, in recognition of the challenges in some of our Flexonics and aerospace markets, Senior is implementing a restructuring programme to drive improved returns. "These actions and our 'prune to grow' strategy will strengthen our business. Combined with a slightly lower forecast tax rate and lower central costs, this means that the group's performance in 2019 will be broadly in line with our expectations." As part of the restructuring programme, Senior will align direct headcount to match capacity to the sales demand profile and implement further efficiency improvements to reduce overhead costs. It will also transfer major work packages to South East Asia and close Senior Aerospace AMT's South Carolina facility next year. Senior said the opportunities identified will result in a total exceptional restructuring charge of around £20m, with a significant portion coming from headcount reductions. The cash cost is around £15m, of which £6m is expected to be incurred in 2019 and will be financed by improvements in operating cashflow. The balance of the cash cost is expected to be incurred in 2020 and the cost of the restructuring is expected to be largely recovered in 2020 and 2021. The company said revenue in the aerospace division grew year-on-year in the 10 months of 2019, but revenue in the last four months was lower than it expected due to weakness in wide-body commercial aircraft engine demand and the impact of the 737 MAX situation.
Becoming a bargain at these levels, when the 737Max gets back in the air, good upside. Tied up with poxy oil so will miss this chance sadly.
Have to guess SP will fall further once the bad news is fully understood by the markets. Set a 'stop' of 180p before consider buying in
All theory of course but the Boeing issue is getting worse so SNR will fall in tandem
So Barclays cut their rating and we fall 10%, Boeing who have the larger problem imv have fallen 2.4% . so looks like we will recover. Fingers crossed.
On 25th april they said 'modest reduction' and we will update the market should that change - so rns tomorrow? I think they will need to outline some numbers and maybe that is what they are working on!
Could get worse. 737 problems getting worse now with further extended grounding so Senior will see Boeing cut back further on production which will impact Senior 4sure.
All theory of course but logic suggests they will issue lower guidance. No choice out of their hands.
For shorters? looks like the 737max delays are being exploited here , overdone fall - so I added.
why the sp rise?