Member Info for Adastra

Looks like £12.52 is the new floor - sit tight.

And take it back up to test the last ceiling... simple

Nice saucer bottom formed on graph with bounce back from £12.50 giving rising low from which to retest £13.215. A breach of that ceiling would then allow the upward moves to continue and strengthen. General newsflow indicates an upswing in joint replacements with private care taking increasing numbers of NHS to address backlog. I personally know 3 close friends who have had knee/hip ops in last month after being on long waiting lists....all 3 in private hospitals but under NHS umbrella. Ramp up looks to be gaining traction as normal working continues to progress.

I have been through Smith and Nephew with a toothcomb and have coveted every aspect as you'll see from my delving.Notes 17 to the accounts give details on any claim cover and my research on numerous academic and professional sites gives me cause for overriding optimism here. The company is rapidly engaging in sectors that have excellent prospects and the huge and growing backlog of elective surgery is compelling. There is overwhelming evidence that hip and knee replacements save health services a fortune in future care requirements. It ticks all the right boxes for me, especially in a recession. After 10 days of complete and thorough research the pluses outweigh the minuses by 80%. Solid. The risk reward at this price is too good to dismiss.

https://www.drugwatch.com/hip-replacement/smith-nephew/

I am really digging into S&N to find a reason why a new CEO would sell shares so soon after his appointment as it sends a wave of unnecessary negative vibes through the investment community. Everything looks great coming out of Covid, pent up demand etc but the main problem I can see is litigation regarding problems with hip replacements stemming from 2000. These were active in 2019. Can anyone please identify where S&N are in resolution of these in 2022. It concerns me that such claims in the USA are usually substantial and class actions can be a real problem. Has the company made any provision for potential claims or is this a possible reason for the CEO caution. Help would be appreciated in order to make an informed decision on reinvestment here as I had not spotted this previously. Thanks in advance.
https://www.drugwatch.com/hip-replacement/smith-nephew/lawsuits/

Online is buzzing according to last report and each of the Hotter shops I've checked were very busy. The one in Lord St Southport was packed whilst other retail outlets were quiet on our flying visit. Playing to the over 55s definitely gives Hotter an edge as it expands both it's online and it's offerings in the likes of M&S and John Lewis. The inclusion of health and fitness into it's offering is scheduled for July onwards. Watch this space, and if the business interruption claim is successful it's bizarrely cheap.

Think £12.50 is possible but I doubt a big pullback unless FTSE tanks as I predicted post Jubilee fizz. Time will tell. I'm in cash save for a punt on Unbound Group today UBG as it looks massively oversold on the niche 55yr age group.

As Edison previously identified.....
The valuation above does not reflect any potential value arising from an ongoing business interruption insurance claim relating to COVID-related lockdowns. A range of recovery outcomes from this claim is possible, from zero to in excess of £15m. Resolution is expected in late 2022 or early 2023. Lots to look forward to as new platform additions come on line next month. Great niche play with 1 in 3 over 55yrs buying Hotter shoes and online.

https://www.edisongroup.com/publication/strong-momentum-in-q123/30897/
And the valuation excludes the potential business interruption claim worth £0-£15m. Cheap and I've loaded up today.

As a long term poster here who went to cash at £12.94 on the back of Deepak sale I really want to get back in but nothing imo will escape a correction. I'm waiting for the post-party crash out. I can see no reason why the 100 is pushing at the ceiling on current pressures e.g. oil,gas,grain,transport etc.
I just think a very sharp correction is imminent as Jubilee fever vanishes. ....and I'm essentially the over optimist. Suspended reality at present imo. Sitting on the sidelines in cash for now.

I'm waiting for the post-party crash out. I can see no reason why the 100 is pushing at the ceiling on current pressures e.g. oil,gas,grain,transport etc.
I just think a very sharp correction is imminent as Jubilee fever vanishes. ....and I'm essentially the over optimist. Suspended reality at present imo. Sitting on the sidelines in cash for now.

Please can someone give me a rational and logical reason why Deepak, with just over 6 weeks in the saddle as CEO would sell all the shares he held if he sees a positive short term outlook. It is the only factor causing me concern with this first class share. Thanks in advance as it sends out such a negative vibe due to the size.

Whichever way I look at it £340,000 of shares is a heck of a lot for a new CEO to sell if he sees a big upswing coming. It just bugs me and that's why I'm waiting on the sidelines.......for now.

Still actively watching and will re-enter at my target level.

This is still an £18 share but the ability to trade the peaks and troughs should never be dismissed as sentiment still rules logic in this market.

(£12.94)

If you read my posts you'll realise that it was based on market sentiment that the share sale invokes. S&N is a quality share and Deepak has a shed load of transferred incentive joining options at £12.13. Having sold out and gone to cash at 22.94 I'll happily reinvest at a more realistic level. That is what I now expect Mr Nath to do. I am patient and very happy with prospects here but not foolish enough to ignore both a director share sale and an overstretched FTSE down on Fibonaccis.

I spotted that but think it's a really poor time to do it. I'm sure he has sufficient assets to cover the tax demand and if he was really upbeat on S&N share price direction why sell something he sees as increasing in value in the near term. Sorry, it just sends out a real negative and I'd rather sit on the sidelines till things become clear. Is he seeing China as a hiccough.....will watch and wait even if it costs me going forward. My gut feelings are often correct and I've ignored them at my peril in the past.

Agreed, I sold out this morning and went to cash at 12.94. I really expected him to buy in as frequently cited. His sale was a major negative and a 100% turning point for me. He's been in the chair for 6 weeks now and a sale, any sale is a huge faux pas for investor sentiment. Solid share, crass move imo.