Member Info for Analysister

Agreed be surprised if Thursday this week! I’m not sure what formal reporting is required for a placing form auditors, NOMADs and banks etc but that does seem very quick.

Good rise today. Quality company with good yield, good assets and good balance sheet.

Sp fall seems harsh tbh. Growth in Asia, great product and world class delivery excellent management team, and a British company! What’s not to like?

Presumably Sir Adrian is negotiating his golden day rate and agreeing huge headhunter fees over a good lunch as I write this and that’s why the company has gone “quiet”?
Message to the Aviva Nomination Committee: ask the headhunters to do a job lot and replace the Chairman as well please!” And take a good look at yourselves and ask “are we providing our shareholders value for money?”
I thought that Boards did annual evaluations of their effectiveness???

Said a few years ago “..we are shopping Convatec and have found significant interest at attractive valuation levels.”

Bristol Myers originally piled traditional wound care and osotmy etc into their Convatec division as they had been for years low growth, commodity type businesses. Then sold out to PE st a great price.
Three final comments from me then I’ll shut up: 1. Convatec should by now be able to manufacture and sell the “commodity” type products without any surprises, 2. They do have some higher growth advanced wound care and delivery products (but same comment as 1 apply), 3. If they can actually run this properly it should be at a much higher share price and paying a decent dividend. Perhaps the J&J guy can do that. GLA.

Best of luck Mr LMAO. I’m only a “bear” if I think something is overpriced or overhyped. Or if it is clearly rudderless...unless of course you think this was a planned retirement :)

Yes quite. Long suffering holder but enjoying a nice tax free income from Aviva divi helps me buy a few groceries.....I dream of a capital gain but mustn’t be greedy!

Not half as annoyed as those Californians who missed all of these incredibly valuable oil fields that have been right under their noses since the Jurassic Age :))

How can anyone value this business sufficiently in a couple of days to price a share placing? It’s nuts. Nobody has any idea if the recorded numbers are fantasy or real. The FD has gone plus you probably wouldn’t ask him anyway and who else in the executive team can be trusted to know what’s happening? They never spotted the bank overdrafts or asked where the £28million had gone. Did they?

I would suggest that financial guarantees could have been provided by LJ to landlords, suppliers and employees while a full investigation was carried out into the viability of the business and a reconstruction of actual historical accounting records. Then an equity issue could have taken place with full and detailed disclosure to all shareholders.

In the long line of IPOs by private equity this is another sorry tale in the same recent mould as the AA, Saga and Spire.
Convatec operate in a very difficult & competitive sector with little sales price inflation and a continuous need to push unit costs lower. CEO removed sharpish and a NED rushed in sounds like an Aviva type of move!!! Plus a chair and a deputy chair who wouldn’t know a colostomy from a colonoscopy doesn’t exactly provide confidence.

Haha with free delivery for 1 year and £30 % off the first order. Who wouldn’t sign up for a gift?
However compared with what we spend with Costco, Sainsbury’s, Co-op, Aldi, Lidl, M&S, Morrisons, Waitrose etc it’s very small beer indeed.

Issued on 15 May 2018 and I quote from the CEOs report “Our business model converts profit to cash efficiently and delivers consistent and predictable cash flows.”

“....I am confident of a good second half to the year.”

Hmmm credibility of this senior team to keep running a PLC or any company tbh?

Business model is:
1. Multi-site, leased high street sites.
2. Higher raw material costs due to commodity price increases.
3. Higher labour costs due to NLW and other govt add-ons.
4. Weak consumer situation.
Not sure these are the ingredients of an appetising cake tbh.

Yes perhaps they could deliver my green tea bags by drone?
However getting back to reality, their delivery truck is late this morning :(

A price rise if Sir Adrian can make a snappy video like Wilson did extolling all the virtues of Norwich Union :(
Unlikely I feel....

Agreed. Why only 2 wells? Drill 50 and we would be in the Ftse100! Are all Californians that stupid?

get Ocado to deliver the cakes & coffee? Their highly developed AI system would be perfect here :)) I’m sure they would know before we do that we are hungry and exactly what cake we fancy :(

I suspect this sp will tank when trading starts and it will be a “take private” situation eventually as it’s a whole lot easier to sort it out when private than in the public domain. GLA holders.

Puzzling to me how the Directors can ever be confident of their accounting records as It appears this developed over a fairly long period of time and presumably creditors were either understated or unrecorded to keep the company appearing healthier than it actually was? There can’t be many (or any) debtors on the books as we all pay for our cake & coffee after we eat. There are no fixed assets to worry about as every site looks like it is leased. So it’s only really creditors and bank balance to worry about. I’m just curious how the directors can be confident enough after a couple of (busy) days of work that they believe they have got to the bottom of the major problem. Time will tell I suppose. GLA.

This could be 1848 all over again :))

Sorry everyone, I was trying to make a silly point out of a very serious situation here. Regardless of the “yield” implied by the share price, Wilson steadied a rocky ship after he started, tidied up the balance sheet and simplified the Corp structure. They have increased dividend to a good level, and then suddenly he’s thrown out without warning with no succession in place! Too many questions and very few answers from the Board except to plug a gap with a “plural” chairman who has never run anything like this complex behemoth before....? Hmmm. Shareholders deserve better.