Member Info for Adastra

Q1 trading was well up and I expect Q2 to show similar. As more people have exited restrictions due to Covid and become more mobile then logically footwear demand will increase. Hotter shoes is totally produced and marketed in UK therefore very environmentally friendly. Solid. Expecting big jump here as Q2 increase confirmed. Very undervalued wrt assets.

The huge US orthopaedics players like J&J, Stryker, Zimmer and Medtronic have all looked to buy S&N since 2014. The company is an ideal fit into the portfolio of each, ideally J&J but it is restructuring so timing is difficult. The huge new S&N Malaysian factory due to open this year plus the relocation of the Hull facility to a huge new SOTA centre in 2023/4 is a whopping incentive to act sooner rather than wait. With the beneficial cable rate, low S&N MCap, and numerous tax incentives for large US corporates this is a window of opportunity that has not presented itself since bid interest escalated in 2014. The company has been the eternal target of bid interest due to its resilience in times of recession and excellent phospects. It has normally added a decent premium to the shareprice but is being discounted at present as the fundamentals are sound alone at this level. A 30% bid premium at this level would be significantly less than the value that Stryker was mooting in 2014 yet the company is considerably larger having grown by acquisition along the way. £15-16 would be a sensible opener as this opportunity looks too good to miss. All imo of course but consolidation in the orthopaedic/medtech arena continues apace and Smith and Nephew ticks all the boxes of provenance, trust, reputation, geographic spread, innovation and profitability. Solid.

The small volume of trades causing these big moves is indicative of how tightly the Instos are holding them. What we are seeing is most probably a smokescreen hiding the big potential transfers in the wings as happens so many times. Totally out of the hands of private investors. Best to follow your own research on quality, provenance and embedded trust of S&N and make an informed choice. Solid.

Your guess is as good as mine.....
I suspect there's a lot going on behind the scenes wrt institutional holdings and prices. Each insto will have an exit price and any predator would be keen to make sure a move on S&N would be viable. A decent opener of around £15 would start the ball rolling imo but that would probably precipitate moves from others. This is a high barrier to enter field where provenance, trust and reputation is king and the backlog of necessary surgery continues apace. Either independently or beneath a larger umbrella, S&N has a brightening future by the day.

Pretty much hit it on the head there as I see it. The Mms are trying to build momentum one way or the other, hence the large swings which are being led by very small volumes of shares being traded. Mms thrive on volume and if Instos sit tight then it's not there. MCap is so low that it must be attracting predatory interest given exposure to recession resistant field in which S&N operates. Other than waiting for confirmation of traction in the July t/u one has to assume that the only reason an insto would sell in quantity would be to a much higher bid. That would immediately cause a gap jump. However, that's pure speculation and, as you say, it's liable to bounce around between £11.50 and £12.50 pending a decent 3 month update from Deepak at end July. Unless of course he buys £1m of shares, but that's another story..

It's common for S&N to reverse and rise/fall by £1 and over in short order. Any news, or the t/u end July will magnify the effect so its a case of topping up and holding. The market will follow the momentum when institutional sentiment swings which can't be far away. Just wish the UK market would stand on its own two feet and disengage from the DOW and just it's Downturns!

Yes, did the same myself with GSK @£13-14 as I'd worked in the industry. Nice profit when it turned, and Aviva. You can never hope to catch rock bottom but for solid shares like this it's a no brainer as the next t/u will verify.

I have to admit that the whole way that the Market is currently treating S&N is a conundrum.
I held and accumulated S&N on fundamentals which had stood the test of time hence my positive stance. The appointment of CEO Deepak Nath looked a pertinent move as America and Malaysia were progressing rapidly and he is savvy in both markets through his heading Healthineers. I could not believe his naivety when less than a month in the role, he cashed in a portion of shares that he'd received as substution emolument replacements from his previous post. That was crass at best, stupid at least. Did he honestly think that the market would react in a positive way????...hence where we are now, and why I sold. BUT, the fundamentals here are so very strong, that despite 10 days solid, and very very in depth research, I could find no logical reason for the slide, hence my reinvestment at a lower price and reconfirmed bullish stance. With all the new equipment in place and receiving excellent user accolades, the ramp up in electives here, the increase in spread and use of ASC's in the States and the imminent opening of the huge Malaysian factory I am bewildered at the current MCap. The icing on the cake is the agreement with the government's cash/blessing to relocate to a new £80m SOTA production facility on the outskirts of Hull pencilled for late 2023/24. Yes I am picking up more as we go and I can see no reason why a transAtlantic predator would not follow suit. Tax breaks, 2 SOTA factories and a near 200yr old business with impeccable provenance and practitioner/surgeon trust. Solid no brainer that will bob to the surface when Mr logic gets a grip.

Too low, company must be in play now - prospects plus current cable will have US potential predators eying up below £12. Prefer independence but this is now a recession resistant bargain-basement price. Sitting Duck

You certainly won't regret that purchase..... once the company releases news of the resumption of big increases in hip/knee replacements £12/13/14/1516 + £17 Will be history....

But hopefully S&N is the strongest boat in the storm. It's customers are still queuing for its hips and knees and mobility equals independence. Independence equals massive savings for healthcare......no-brainer for governments wanting to control budgets. Sit tight with a solid share that should float fastest in a recession
Solid value

Whatever life throws at the world in the next few years S&N has put itself firmly in the growth arena. It's spent money in all the right categories and will reap the rewards even if recession bites hard. Fact is that mobile people cost the health services a shedload less than immobile. Hip and knee replacements are no-brainers. Backlog huge, replacements soaring and healthcare recession proof. As other stocks stumble just nice your time. 150yrs of provenance, expertise and unbroken divis will give you gentle nights- wobbles yes but future very very bright here.

Deepak's options were/are at £12.14 so I'm pretty sure the absolute floor is here. Didn't think we'd dip to the level but you can only defy the big FTSE100 losses for a while. Thankfully S&N should be a prime reverse mover in short order and then retest £13.29 again. Solid.

To think that US corporations are not contemplating an approach at this level is unreal. Beneficial cable rate plus a host of tax breaks makes this one of the best additions to a giants p/f on the market. Hyper resilient in the face of a recession. Solid......buying more.....

Excellent news with the one in Penang due to be commissioned anytime soon as well. More solid foundations for growth.... acutely undervalued.

Chris, was it about the new facility in Penang. That's due to open imminently but haven't seen any RNS confirming opening. Where was news issued?

I sold at £12.94 And bought back in at £12.50 after 10 days in depth research. CEO only sold shares that were part of his remuneration transfer package, he has a load more with various realisation dates in 2022, 23 and 24. The sale appears to have covered his personal expenses incurred in change of job. I also researched shed loads of clinical and medical data plus clinician and orthopaedic papers. S&N is in a sweet spot and is accelerating it's offerings in exactly the right fields....cementless joints, AI led robotics and small hand held ASC friendly devices. It's sorting it's disttibution chains and the opening of the huge Malaysian hub is imminent (which should certainly hike the price) All in all I decided that the risk of being out was far greater than the risk of holding Smith and Nephew . The latest reports from the USA show elective surgery getting back quickly to pre Covid levels. UK private healthcare is taking a huge burden of NHS hip and knee replacements and current price plus cable rate of 1.25 makes a transAtlantic bid much more credible. A really solid hold despite this temporary blip to £12.30 which should instantly reverse. Lots of news to come. Solid.

And another £5m uncrossing trade buy.... Nice to see the moodswing in motion as sentiment switches. Extremely good value at this level with lots of positives in the pipeline. Solid.

Shows that investor optimism is increasing here. The upside is too great to ignore as transglobal surgery ramps up in the wake of Covid. Solid.

Looking a peach of an acquisition at present... need to get the MCap motoring to distract transAtlantic predators now imo.