Member Info for Adastra

Thanks Icarus, but do you not think we would have tested £10.50 mid-Covid as prospects were considerably bleaker. So many other shares followed that pattern then bounced whereas S&N has staggered sideways and dipped but failed to test the £10.50. I firmly believe that as the negative parameters fall away we are now in the recovery phase albeit delayed by Omicron. The outlook would have to be very bleak indeed for it to drop below even £12 imo. The Feb results are certainly not going to light a hidden rocket but I suspect that a confident outlook may. Patience in holding or adding should be rewarded whereas patience in waiting for that confirmation may result in missed opportunities. I do however understand your caution as when the confirmed reversal in sentiment returns it should both be strong and sustained. This is after all a very solid share to hold on many counts.

Looking at the current MA's and the fact that the share has rebounded from previous lows it seems likely that the price will move up through the low MA's and breach the 50 this week before heading north towards the 200 given proximity of news. Never assured but looking odds on at this stage. If it can pull up strongly then we should be on a long term up trend leaving Covid concerns behind.

Having chased the tech stocks and avoided the boring 'dividend' and 'staid' stocks, the corrections being seen in the former may now work in S&N's favour. Young investors may actually start to look for serious and stable rapid growth in 2022......where better than here.
Trading almost at it's 5yr low there can't be a better risk/reward stock out there. FTSE 100 and 150yr provenance with consistent unbroken dividend record. Replacement hips, knees, sports injury reconstructions and SOTA dressings is certainly a huge growth area given current elective surgery backlogs added on. A huge new manufacturing and distribution centre in Malaysia due to open Q3 and a dedicated Baltic hub just opened. Working strongly with ASC's in the States to address joint replacements using S&N robotics and cemented plus cementless joints. This really is a Golden opportunity for the under 40's to accumulate S&N progressively from here and reinvest dividends. A perfect way to build up a whopping pension fund and retire stress free imo.
For an under 40yr old investor this is a gem and a perfect entry point at this level. As NIKE repeat .. Just do it......

All the metrics going forward should see a considerable out performance from here. All the negatives are in play and S&N has lagged the market by almost 25% as a result of Covid fears. That can and should quickly change as the year progresses and Feb 22nd should give meat on the bones. It's absurd that the company is still rated so lowly given that it sits in a recession proof sector with a huge backlog of operations in a high barrier to entry field....

Yep. They're normally RNS'd - check on going ones like Aviva which is currently buying shares back.

As long as they come in within the lowered expected range that's fine, and I assume they will or an RNS would have been prompted. Omicron will certainly have curtailed out performance but that is more than built into the price at this level. My eye will be on acceleration out of the pandemic. S&N has firmly placed itself in channels of high growth whilst still addressing the backlog queue that is certainly huge and growing. A steady rate of progress, sensible management decisions and a prudent strategy going forward should be highlighted. 2022 on is the key, not looking back on 2020 and 2021 constraints.

The shift in sentiment for S&N should now start to strengthen as Covid recedes and investment managers start to horizon scan the positive prospects here. Please can we leave the obvious differences in agreement between opinions on vaccination behind. Thankfully we live in an active democracy where freedom of choice prevails. An issue such as vaccination is bound to polarise opinion but thankfully the vast majority have taken the decision to protect the few and the NHS. For whatever their reason some have decided not to be vaccinated. Whilst I can't condone it I would never condemn it so let's draw a line under it and send it to a more appropriate forum please.
S&N is a quality share in a massively growing marketplace. The growth areas have been clearly identified and targeted. Once this year end is passed the company should flourish as the backlog demand kicks in and earnings and dividends will benefit for the foreseeable.

The light at the end of the Covid19 tunnel is now clearly visible and the engagement of Spire by the govt to assist the NHS in attacking the elective surgery backlog is heartening in the UK. I have my sights firmly set on the progress being made across the pond in the ASC (ambulatory surgical centres). The company is firing on all cylinders to capture market share here as a prime mover. The last acquisition and RNS on Jan 19th was music to my ears as is today's very useful director appointment. S&N are focussing on ASC's as they are lucrative, high-margin avenues in which S&N has firmly embedded itself. If you look at the range of indicators here it is exceptional - sports injury, repair and cemented/cementless knee replacement with SOTA robotics, the company is bang on the money. Add in the huge Malaysian facility due to open this year to service the far East and the recently announced Baltic region hub and you start to see the bigger picture.

My objective from the outset was to research and identify shares that were fundamentally strong enough to come out of Covid restrictions with increasing momentum. Smith and Nephew has both the provenance and capacity to excel. It also has an unbroken dividend record going back 100+ years. I have a working and professional knowledge ofthe fields in which it works and the procurement of its products. It is one of the very few shares that seems comfortable to increase its annual dividend and be extremely highly geared to recovery in elective surgery. Sports injury and the use of S&N products in recovery is increasing exponentially and coverage in US centres outside dedicated medical facilities is growing quickly.
My objective is to protect and increase the value of my p/f and I'm very comfortable here despite the irrational oscillations in share price. I am holding for a flexible period with no set protocol as I believe S&N to be trading at around 60-70% of its true value. Sentiment will turn here, it's just a matter of when. I had expected fund managers with foresight to have boarded already. That has not been the case bit I expect a cascade when they do as Autobot trading will then seriously click in. So we could get a short term lift or a longer term escalator. I'm patient so no problem, but if it seriously went into big overbought then I'd reassess.

With most stale sellers now out of the way, Covid receding and elective surgery ramping back up we should see a marked improvement in sentiment after the recent pull back. Investment managers lured by high dividends elsewhere will start to look for companies with resilient growth prospects and share price out performance over the coming months.

As the NYE opens this should start to move strongly over the next full day there. Interesting.

Nice to see sellers being mopped up and the price responding well. Rerate long overdue and hopefully now under way.

In answer to your questions less than six months and current average price now £12.87. No sleepless nights at all with this little gem.

We'll have to agree to differ on that. This morning's RNS is a good indication of the underlying strategy here. The company is building upon it's strengths and whilst a lot of investors are looking at NHS waiting lists the real traction is in in sports and recreational injuries in the USA using it's enviable nationwide coverage. The building blocks are in place and as soon as the markets 'wakes up" to the prospects here the rebound will happen. Today's RNS may well trigger that research and attention. Patience.

None of us is figuring on an unexpected reversal in elective surgery in the past 2 months but the price is discounting any horizon scanning as covid recedes.....it really is bizarre. Far from being a basket case, Smith and Nephew could certainly confound all the critics and outperform well into this decade. Not one I'm losing any sleep over just pointing out the discrepancy between current MCap and provenance and potential here where the barrier to entry is significant. Patience.

Just how many pointers to outperformance are being totally overlooked here or simply dismissed. This has got gem of 2022 written all over it whatever the overall market does. Look at the provenance and quality and door.

Wonder why? Could there be substantial upside here????

When will the '7% divi seekers' elsewhere finally work out that a probable/potential 50% increase here is a good bet in any event - recovery or crash?

£12.40 revisited begs a huge bounce back to test previous breakout ceiling on so many fronts here. Hold tight.

At this level the market is anticipating total stasis in elective surgery yet Spire is commissioned in the background by the government to assist the NHS. It is discounting any increase in the rapidly growing sports injury market and also failing to look at the enormous Malaysian distribution centre scheduled to open this year. Myopic....