Member Info for Adastra

Finals on Tuesday.....watch positions being taken. Seatbelts on..... vertical.

Roughly 42% of the U.K.-based firm's revenue comes from orthopedic products, and another 30% is sports medicine and ENT. The remaining 28% of revenue is from the advanced wound therapy segment. Roughly half of Smith & Nephew's total revenue comes from the United States, just over 30% is from other developed markets, and emerging markets account for the remainder

50% of S&N revenue does come from US and is insurance based......

The current position in Ukraine must surely being increasing the pull through for wound and field dressings purely as a preparatory measure by NATO and its allies. Russia has been flagged as doing this already and to assume that NATO will not be mirroring that is at best illogical. No-one wants open conflict but it has to be hope for the best but prepare for the worst and S&N wound management dressings simply must be experiencing increased demand due inventory increases. Sad but inevitable given current tension.

The finals are not going to set the world alight but the outlook should. Expansion on so many fronts in scope, supply and robotics must be having a positive effect on future earnings as covid recedes. As a global leader in joint replacement, surgical procedures and wound dressings S&N will be a major beneficiary of whatever the future holds.

The market is all over the place at present but S&N should continue to grow whatever happens. With Europe on the edge of conflict on one hand and a huge global backlog in elective surgery on the other, this manufacturer of wound dressings and surgical implants has a secure future. It is being knocked down against logic.

Please read my posts. I am merely pointing out that the company is certainly in a very investable sector whatever the future holds for the markets as a whole. I am certainly not invested here on the prospects of a possible takeover, just highlighting previous interest. I repeat, if you read my posts you will clearly see my reasons for a significant investment here.

Disagree strongly re takeover. If not this year by a larger co/competitor in my mind it's odds-on that J&J will bid within the next 24 months. Johnson and Johnson is splitting into 2 units to concentrate on pharmaceuticals and medical devices. Once the deck-clearing is done regarding the split J&J indicated in 2013 that it had a long term interest in the company and its prospects. It may miss the boat if it ignores this double dip opportunity but it's currently premature for them. Knowing this may force the hand of an onlooker of which there simply must be several.

The market is myopically focussing on UK NHS whilst S&N is truly a major global company. Take your eyes off the ball and you miss the fact of just how lucrative the future could be here. I am certain that fact is not going unnoticed by those huge multinationals with previous or new interest in the sector......especially given the pressures of the coming decade in other sectors. Either way, this is a first class share at a bargain basement price. £12 is effectively 66% of the 'true' fair value here imo. It will rebalance.

Chart broke through £12.07 mid Dec. This will prove to be a double bottom and rerate albeit an unexpected DB due to a knee-jerk reaction to UK govt indecision. Totally disproportionate to both intent in UK and global footprint.

With a difference of only 8p a significant punch through the £12.58 50day MA should finally see us clear this baseline movement once and for all and start to attack the 200 day MA at £13.73. Looking good if the 50 can be breached.

Funding strategy

Totally agree Chris. S&N has positioned itself in numerous sweet spots to exploit the upswing. The huge new distribution centre in Malaysia is due to open this year providing much improved product logistics to the far East. The recent Baltic initiative to service the Nordic countries and the increased drive into ASC's in the USA give an indication of global reach outside the UK NHS. Many patients here have opted to use money saved during Covid restrictions to go private. Meanwhile Spire has been sub contracted by the govt to assist the NHS in attacking elective surgery backlogs. We'll soon get meat on the bones regarding finding strategy but whatever the outcome S&N will benefit. Great hold herem

Surely as the Covid cloud clears, Smith and Nephew will be one of this decades principal beneficiaries. Having bounced off the £12 low, the graph looks poised for a significant post Covid rerate. So much happening in the background this year that when the market focuses and evaluates the prospects here a fairly big gap jump could occur. Getting more confident by the day for a good overall gain here whichever way the main markets swing.

https://www.advancingsurgicalcare.com/advancingsurgicalcare/asc/whatisanasc

In the USA Ambulatory Surgical Care Centres are growing in number and taking up to 80% of regional workloads. Smith and Nephew have firmly targeted this growth platform and are embedded as prime movers within the Medicare system. The UK will undoubtedly escalate this successful format within the NHS to drive down backlogs, it would be foolish not to use a proven system. I await the UK government's plan to tackle the elective surgery queue but the progress in the US looks a convincing reason to hold or buy here.

If you check my posts you'll see that I keep the UK in perspective. I have reiterated time and again my vision for huge growth in the US ASC's which have both the capacity and size to really make a difference to S&N as a prime mover. The vast Malaysian distribution centre due to open this year for the far East and the new educational Baltic hub in Europe both make huge footsteps outside the UK. Admittedly the UK NHS will lead elective surgery worldwide as we are the quickest to emerge post covid but S&N is a global player opening big avenues for growth internationally.

Ditto. Been involved since 1979 and specialised in the healthcare sector from a professional viewpoint. Flotation of the Wellcome foundation in 1985 was a pivot point as I invested substantially on quality. The sector has had its swings but overall careful FTSE 350 selection plus several 'small risk' tiddlers has outperformed over time. My commitment here is simular to that on Wellcome (which was bought by GSK mid 90's).
I can never see this dipping below £12 as I have previously stated but am seasoned enough to believe that nothing is 'inevitable'. I maintain my stance that S&N is seriously undervalued and should be commanding a near 50% premium on the £12 level. Strong growth and an unbroken divi record with lots of R&D projects kicking in mean I'm very very happy to hold. I'm 100% certain that mine aren't the only eyes watching this. Bigger players are undoubtedly sat on the sidelines as the UK powers ahead with Covid receding.

Good to see a decent move up on decent 3/1 buy/sell volume here and continued momentum across the pond after LSE close. Bodes well for tomorrow and going forward as I suspected.

Certainly hope so. My average price is some 30p higher than yours but it's certainly not a worry as covid regresses for reasons already covered. The future looks encouraging from here. Sure we'll both see 'substantia' gains in the medium term.