Member Info for Adastra

Yep......accept that - it will take herd sentiment to change. Just feel that after 2yrs covid doom and gloom we are on the cusp as Spring progresses. Difficult to find another FTSE 100 that's been hammered in a recession resilient sector primed for filling huge backlog. All I can do is point out the anomaly and give reasons, but I can wait for £18. I'm in no hurry and the unbroken divi record since 1937 lends itself to a secure future. I'll smile when Stryker, Medtronic or J&J appear on the sidelines........again if that should happen.

A mix of acceptable returns on capital, serving growth markets, cash generation that could afford higher dividends and takeover/break-up potential certainly gives the share price plenty of reach in the evolving landscape.

Just as you thought it was resting ex-d.......(boom)

First hurdle 1238, then 1257 then 1328......sorted

£12.57 should fall today, if not tomorrow. I really do feel that the tide is turning very swiftly in sentiment now.

April beckons......divi in the bag.....watch this fly now. New seasoned CEO starts tomorrow. Loads of street cred and trading update probably in 3 weeks time. Heck of a lot of ISA's going to be topped up with S&N in the new tax year too...
Tasty.

The discount to true short-term potential here is far too great.....parity will come as Covid becomes an accepted endemic virus like influenza.

Looking at the 2yr graph it would appear that the sellers are now exiting and closing their positions (hence the £5m uncrossing purchase yesterday). A saucer appears to have been formed and imo the share should retrace quickly in April to retest £13.57. For all the reasons I've mentioned I expect it to breach that level and start the long climb to around £18 where I and several analysts place value at this time.

Another point worth considering is the fact that I would expect a significant increase in sports related injuries due to the number of people indulging in jogging etc during the pandemic. S&N is also at the forefront here. Plus the increased inventories of surgical dressings required as a result of the current situation in Ukraine. S&N is a major supplier of dressings into the EU.

It's all pandemic related and the current backlog in elective surgery. The backlog in the UK is huge, hence the potential. The biggest problem is the myopic investment houses focussing on the UK situation and awaiting news of strong resumption of surgery. It is erroneous as 50% of t/o is from the USA where S&N is championing the use of ASC's. DYR on them. The CORI system is now a comprehensive joint replament platform offering all options with the new cementless now included and is again at the forefront of robotics. China is appraising global joint replacement prices which constitutes a possible negative, but S&N is a global player with RoW sales growing strongly. The opening of the recent Baltic educational hub and the huge SOTA distribution centre due to open this year in Malaysia all indicate that the company will be a major beneficiary as Covid recedes and implementation of higher margin products feeds through to the bottom line with much improved distribution channels. A lot of elements allowing analysts to start upgrading hence the recent recommendations to invest here.

:)))) 'UNCROSSING!!"

Certainly looks like the tide is finally turning as previous selling down is being replaced by substantial undressing trades. April is on the cards to be transformational as sentiment turns and gathers pace. The share is undervalued on so many counts given prospects. New CEO, dividend payout confirmed as ex-d on April 1st and a good little t/u due April should speed the rerate up.

April 1st is the trigger and APRIL is the month the rerate occurs. S&N goes ex div on Friday so the next 10 days will be volatile. The new CEO gets on board on the same day and will quickly put into action his ideas having assimilated all the info. The new tax year will also see both value and growth investors loading up for the next year as Covid anchors are thrown off. Plus we will get a t/u in April giving impetus as we exit all restrictions. If ever there was a tasty, grossly undervalued star of 2022 look no further.

1)Yes 2)Yes 3)Yes 4)£18 Yes 5)Will have to wait till 2023 for £20+ unless opportunistic bid occurs.
(Final point possible as bigger entities search for high growth avenues in times of increasing constraint). Smith and Nephew ticks all the boxes.

The company is also $75m into a $125m share buyback programme. Transactions are highlighted after 6pm uk time. April is certainly set to be a pivotal month for S&N. I think a succession of positive announcenents commencing on April 1st will herald a change in sentiment. The share should out perform accordingly. Provenance and history indicate that such changes are usually strong and pronounced.

TBQH I cannot see anything to 'kitchen sink' with S&N unlike so many other companies. It's exceedingly open with it's figures and profit components and has an open field policy about it's operations. It's fortunate in being an embedded global provider with provenance and 150yr history. The fact that it CAN be so candid is because of the huge barrier to entry that it's expertise is based upon. I think he'll have done the homework and hit the floor running. The drivers for growth are already in place and gaining traction. He will grasp the baton and give it the momentum it deserves. I am confident and quietly excited that April will really propel the price upwards with new CEO and solid t/u and forecast as covid effect falls away.

Once Deepak Nath gets his feet under the table in April I really think that will trigger the long awaited rerate. He's not been internally promoted and will bring a seasoned and experienced new pair of eyes to the post. His CV looks impressive and I think he'll want to stamp his mark and have an immediate effect on sentiment here. His appointment, followed by a nice little T/u mid April should have the desired effect. Once S&N has the impetus and volume to attack £13.50 ish then the sky is blue to £18 imo. Not if, just when. Patience has been stretched but the rewards here should be pretty good at +40% by end 2022.

In a word it's uncertainty which appears to be odd given the drivers for growth here. The recent analyst coverage that showed a fair £17 target here is imo fair. I'd personally put it around the £18 Mark. The covid effect is still suppressing the expected jump in price here plus the China effect of supplier pricing which appears to be hugely out of proportion to it's actual contributory value. The USA provides over 50% of t/o for S&N and the use of ASC's is soaring as is remedial sports surgery with minimum invasion.....hence CORI. The outlook is superb but potential investors will doubt until it's stuck in their face, probably at the next t/u in late April. Investors are also waiting to see else to be surgery waiting times in the UK start to fall. The Chancellor should have attacked this aggressively in the Spring statement but it lacked determination and specifics. It HAS to happen and elective surgery should be gaining increasing traction as we emerge from all Covid major problems. Make no mistake, the pent up demand is enormous and S&N is a seasoned prime player. It's bl**dy frustrating and I'm stunned that private equity in the US hasn't sniffed at this level. If looking for a long term divi payer with solid growth in a changing world look no further.

How on earth is this not leaping to new highs on the amount of business out there? S&N is as close to a 100% secure profit maker for the 2020's as you can find. Beats me, patience will pay handsomely here as the horizon clears....

The pandemic has seen a huge increase in jogging and public exercise. That, in turn will lead to a huge increase in exercise induced injuries. S&N is both a key player and huge provider in this field. Margins are excellent. ASC's are also providing an efficient avenue in the USA to relieve pressure on overburdened hospital facilities. I totally agree that S&N is on the cusp of a 'significant' increase in both revenue and EPS after a challenging pandemic. Add in the comprehensive CORI joint replacement system and.......interesting. Once investors realise that S&N has excellent 150yr provenance, an unbroken dividend history AND hugely increased profit prospects it will fly. Stop gap jump of 10-20% is very possible from here imo.