Johnson Matthey Share Price (JMAT)

No it does not instil confidence ...some of the information also does not tie up for me. So would be useful to see what others think.

Finished last year 2018-19 with profits 566m, up from 525 with direction of mid to high single digit. So if we extrapolate that’s 2019-20 of 610m. H1 was reported at 265m which means H2 is expected at 345m, which is about 57.5m a month.
China was hit by Corona in the end of Jan and Europe by Feb end, just seems like around 50m seems light as a guidance.
With clean air being almost 65% of the group, which is intimately tied to the automotive sector. I fear for the outlook.
In H1 they talked about substantial capex for 2019-20 of up to 500m. That’s like a years profit in investment, with substantial amount of that related to the automotive sector. With The corona crisis not sure these investments with give great return.
The worrying thing is the debt and hence the interest charges, finance charges for 2017 -18 was (39m) and then up to (43) in 18-19 but if you look at the mid year numbers they go up (16) to (20) to (36) for 2019/20 so I expect the finance charges to be over (50) for this year.

Hence the question is there any reason to hold on or should I liquidate.

For the record - I still have holding in JMAT but did liquidate a substantial portion In 2019 post the H1 results.

Doesn't exactly instil confidence does it - "The ongoing pandemic has led to a deterioration in some of our end markets and consequently we now expect to deliver group operating performance below market expectations"

It's doing well to stay blue tbh.

Not good.

42trader - must congratulate you on your alert at 2050... What's your latest view ?