The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Where is this going in the short term?
How can it be that PE was prepared to pay 200p in May, presumably they'd be figuring a worth of 250 minimum, and now since September, the price sinks to sub-150?
By the end of this year, the company should be back making money and analysts forecast 10.7% revenue increase next year 2022 and 60.7% on earnings (average forecast). Figures for UK Aerospace and Defence are 5.2% and 16.4%.
How can this come to pass for a company so fullfull full of promise?
Is it the supply-chain stodge referred to here?
Is it the te hnically brill. but financially incompetent management?
Is it a downgrade for the whole sector and if so why? (Perhaos Travel is in trouble as inflation gashes away at disposable?)
I'd love to know your thoughts.
Long term hold for me ... along with Avon and CPI.
It's been hit this week by the Barclays analyst downgrading it because of supply chain stodge in aerospace ... but imho it will get north of 2 eventually. But then I'm not a short term trader and I always hold for a couple of years .... mostly :)
Jax, can't call that one.
Quite.
Could drop further as once this share gets on a roll it seems to run for ages. Sell half just in case?
That £2 a share getting ever further away...
Any thoughts ...??
This is a 680m company, with revenue after covid in 2023 expected to be 660m and earnings 30m with EPS 7.4P, divi 1%.
So, a great second half. The pres. evidently didn't convince everyone because on a bad day ( FTAS down .36% so far), SNR is down 3.56% at 1.624.
That puts it below a short-term buy-sell range of 1.65-1.76 and frankly once (ok if ever) the world economy picks up - say 2022-24 - the shares should trade in the 2 50-3.00 range plus divi. So plenty of upside.
What to take away from today's code?
Achieving net zero depends on a handful of IP-rich companies, of which SNR is one. They have the products and more importantly, SNR has the capability to manage technology change requirements and the capacity to conceive, design, ramp up and deliver.
Financial management from the figures will be stunning with ROCE at 13.5%.
I'm in, a strong buy and hold.
Yes, slow and steady is a good summary.
Hope everyone is watching the trading update, live on the seniorplc.com website.
Must say, this lookslike another engineering comoany focused on the product and technology and missing the business accent. The managers seem very cagey in explaining their business in answer to the analysts questions.
You can easily see how the business is worth 200 and likely 250-300 a share, but will this management put it into that orbit?
Debt down c25%, and " the outlook for the Group for 2021 remains in line with management's previous expectations". Slow and steady here.
close of play. Bit of a disparity between bid and offer.
Each to their own and respect your comment but that would be a shortsighted move.
SNR is primed for growth having pruned the business. This is now an efficient group of companies and with the right business acumen SNR should go way beyond £2 a share.
How many companies borrowed / raised funds via placings etc during the peak of the pandemic? Not SNR. Check out the BOD shares purchases.
Time will obviously tell and I’m looking forward to the future here.
On this rns I cannot see how the BOD's just say they are worth more than £2 bid offer, should have taken the offer.
"Trading in the Period has been ahead of management expectations....The Group's cash performance has been robust with a net cash inflow of £61m. Net debt at the end of June 2021 is expected to be around £71m (excluding capitalised leases of £76m), with headroom on our committed borrowing facilities increasing by £58m since December 2020 to £215m...."
Civil aerospace will remain stodgy, but "Defence markets are anticipated to remain stable. Based on independent industry forecasts, heavy-duty truck and passenger vehicle markets are expected to continue to recover in 2021. In power & energy markets, recovery in the oil & gas sector is likely to be at the end of 2021/start of 2022."
MUCH BETTER THAN EXPECTED. WELL DONE ALL AT SNR!
I’m delighted Senior Plc turned down a low ball takeover offer which seems to be an ‘against the grain’ move of late.
Happy days
United Airlines order 200 737 Max planes which make another boost for Senior
https://www.reuters.com/business/aerospace-defense/united-airlines-orders-270-boeing-airbus-jets-2021-06-29/
I think it's common practice for any company under offer that they always say the company is under valued, I know the bod's have a strategy that they say will push up the SP but why ia it that amny of the brokers still think their value is £1.12 - £1.20.
OK the SP might go back up to £3.00 ish in a few years but no one knows that so I think £2.00 was a good offer and we will just have to see if this settles down at £1.50 or below. Bird in the hand etc.
I am looking forward to the update. There’s got to be something special in it don’t you think?
“ The Board continues to believe that Senior has a focused and compelling strategy to achieve growth and create value for shareholders over the medium-term and remains confident that Senior is well-positioned to emerge strongly as the recovery continues across its end-markets.
As indicated in our announcement on 22 June 2021, we intend to provide a post-close trading update on 9 July 2021. Our interim results will be announced on 2 August 2021, at which time we will provide a full market and strategy update. In addition, we intend to host a capital markets day in October 2021, the theme of which will be our fluid conveyance and thermal management strategy.”
Balanced post Jed. I too believe if another bid isn’t announced the sp will drift which is why I’m half out.
This is a tough one. I was happy with it plodding along just over the quid mark and seeing how things pan out slowly slowly but now what, I’m torn. Yes £1.50 a share is where SNR should be and more just not right now given current circumstances.
The trouble is there is NO g/tee that the sp will ever get to £3.00, the directors have rejected the bid because they want to keep their jobs and perks. Anything could and will happen over the next few months and the sp could just as easy be back down to
£ 1.20 as the stock market drops back. I have always thought money in your pocket when you can, and see the sp dropping back to £1 20-£1.40 anyway. I don't hold any now but would sell now before the drop as I don't think there will be another bid and the bod's have missed their chance.
Would have preferred if the board accepted due to easy 33% upside from here. Some of the reasoning by management makes sense that it is undervalued. If bidder is paying £2 per share today, it means they value it at 3 to £3.5 in two years from now for them to make their ££. Instead of taking 33% now, I am happy to wait 1.5 to 2 years for 80 to 100% further upside. That is if another bidder doesn't step in. Melrose has cash and might be a good strategic buyer, come on Melrose lets go for £2.4
Archy147,
Yesterday was only around 7-10% under the 200p offer so you should not be disappointed at all. The market does not seam too me very upset. The price still 40% more before the offer.
Sop anyone with these shares now should sell now before the sp goes back to £1.20 - £ 140 ish before the bid.
OK the senior management think it's worth £300+ but that could be 2 years away. So what's the sp going to fall back to.