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Here after deal on 2nd October??
this should take off on the news that they will be fighting any descision to block the takeover all bad news bulit into the price now. Fly my lovely fly
the SP droped over 20% yesterday and this morning on a rumour. Now that the rumour has not materialised it will go back up 20% simples. Dont over think it, I am up £912 after buying yeaterday.
Again I ask for your reasoning to the 20%. Assuming no one knows the outcome of the proposed deal why take the risk. Surely those still in profit should sell
fill ya boots or boooom springs to mind here. 20% upside should be achievable next day or two.
I think evevryone heard you say "top up"
here, thats normally a good thing, no one to ramp or deramp - no news following yesterdays hearing so that has to be good news, merger is still on unless we're told otherwise. Not worried about a little drop this morning, soon recovered and will continue to do so - worth a top up at these prices.
L2 looking a bit stronger now. how scary was that initial drop!
mmm The price before the deal was announced is £14.02 http://www.theguardian.com/business/2014/oct/13/synergy-steris-takeover-tax-inversion Not quite worth the risk atm imo unless you know the deal will still go ahead. Looked at these yesterday but didn't buy
some stop losses no need to panic just yet......
Worst day in 6 years.... this a very good company based on my limited research. i wonder when the FTC hearing outcome will be announced, apparently the hearing might not even have anything to do with the takeover! All rumours then. It may even be worth holding these.
I got in yestergay up £500 at one point and decided to stay in overnight. Now down £750 so keep em crossed for me. If i get a couple of % increase this morning i am off......
What are your reasons for the strong buy? A share such as this does not drop 15% without good reason
Way over sold IMO -
this is a roller coaster! where is everyone?
be your friend, here we go.......
No not much chat which shows what a good company it is! It just shows how people are willing to debate some pretty poor shares to death and a share as solid as this is ignored. My broker recommended this and it has delivered good returns. Now lets move on and let this company get on with making me some money
Synergy Health: Investec downgrades from buy to add with a target price of 1170p.
Synergy Health: Jefferies lowers target price from 1150p to 1100p and downgrades from buy to hold.
Trading on almost 17 times forecast underlying earnings, Synergy's shares are rated just above the UK average for the healthcare services sector at a time when significant parts of its operations face slowing growth in its established markets. Granted, expansion into the US seems like a good move given the size of the market, and European austerity will not last for ever. Yet the rating has moved to a level that is vulnerable to correction if the company fails to outperform the market's expectations. Given the consistently high capital spending Synergy must undertake, the possibility of disappointment is higher than average.
As support services businesses go, Synergy is unusual because a lot of its capital is tied up in tangible assets. That's because often it has to fund and build hospital cleaning facilities itself for the contracts it wins. That means lots of upfront spending in order to grow sales, as each new contract can mean another round of construction. Analysts at broker CanaccordGenuity estimate that to achieve an adequate cashflow return on its capital of around 8 per cent, the company must invest between 15m and 30m annually to generate the required income. This inhibits shareholders' returns as the lead time between winning a contract and starting operations is between 18 months to two years. CanaccordGenuity estimates that the company will clock up capital spending of 75m over the next three years. Given the lag between spending and revenue-generation, sales growth will be deferred, making Synergy much more cyclical than is generally perceived. Synergy also has its share of immediate problems resulting from austerity in the European Union. This affects its Dutch business supplying hospital linen, in particular. Meanwhile, a spending squeeze in the NHS, while not affecting existing contracts due to the importance for patient care, could slow the pipeline of new work that Synergy could bid for.
However, it is not clear what effect the expansion will have on Synergy's underlying profit margins. These were more than 15 per cent in the first half of 2012-13, but there is a risk that the peculiarities of the US business could eat into them. This is because most US hospitals, unlike those in Synergy's core business with the NHS, have their own sterilising and cleansing facilities on-site. That means Synergy would be paid a fee as a service provider, rather than as a more lucrative full-facility operator. There is no doubt that the US market is far larger than anything Synergy has entered so far and the opportunities are there. However, the question hanging over the States-side project is whether investors have taken into account the amount of investment needed over the next few years to bring the service up to Synergy's standards. That could generate big one-off costs that may not be adequately priced in.
Shares in cleaning and sterilisation specialist Synergy Health (SYR) have been notably strong performers lately, outpacing shares in similar companies by 20 per cent over the past quarter on the back of some promising deals in new markets. True, Synergy almost certainly has a solid future in its key markets, but, in the medium-term, the share rating has moved too far ahead of the group's growth prospects. Really brave punters might try 'short selling' the stock; meanwhile, shareholders might simply opt to sell. The trigger for the big share-price move was Synergy's decisive entry into the US hospitals market. The acquisition of SRI/Surgical Express, in particular, for $25m (�17m) got the City's admiration, especially because the price paid looked good for a business generating sales of more than $100m.
Synergy Health: Citigroup ups target price from 965p to 1145p and maintains a neutral rating.
Shares are fairly valued for now The regulatory and economic background for decontamination and sterilisation services is conducive for outsourcing and Synergy Health is well placed to capitalise on these trends. Add the undoubted potential of the geographic expansion under way and a solid investment case appears. The balance sheet is geared (EV is £723m) but the net debt of £180m is well covered. However, the age of austerity is affecting things in subtle ways and, at these levels (based on FY13e, EV/EBITDA is 7.2X and PEG is 1.31x), the shares do appear fairly valued in the near term