Member Info for ApprenticeDRL

Investing is all about opinions and what is important to the person investing. I tend to pursue a HYP policy and have been watching TATE since they started dropping beginning of the year. with the yield at 4% I took my initial stake today. I personally think they will go back to about 700 by the end of the week. But that is my opinion and they met my investing criteria this morning. I cannot see anything fundamentally wrong with the business model (but again that is my opinion) and it is an opportunity to buy when the market has over reacted to them.

This is normal for a large FTSE company. The NAV for Unilever is about £1.50 and their share price is £23. You have to look at Enterprise value, and other fundamentals to get a total picture. I only really use NAV as a buying decission for smaller and AIM listed companies. ABF who are probably the closest ingredients manufacturer with a UK listing have a NAV of £6 with a price of £27. AAK which are one of the largest European ingedients manufacturers have a NAV of 98SEK and a price of 412 SEK. So NAV is about right. However when we compare PE TATE is about 11. AAK are 19 and AB 37 so IMO TATE are a bit oversold at the moment on the basis that revenue and profits will be broadly in line with last year and based I think on SPLENDA decrease of 15% rather than below 10% and no low profit growth. IMHO they are a bot over sold at the moment. We will see if they rise back to about 700 by close today.

well I have been watching for a while now and with the price drop yield is up to 4% with the share price so I have bought an initial stake to see how it goes. On the investment platform I use most brokers seem to still have TATE as a buy.

I agree with you, I think this appointment is good for RSA and with the share rise on the announcement seems to have the approval of the city

A general question as I am watching this share with a view to investing, I know the company and their products and have checked the fundies, just waiting to see if it drops a bit more on market sentiment. Looking at the size of the trades there seem to be an awful lot of small trades for couple of hundred pounds which with dealing charges must make them unprofitable. IS this normal for this share or is there something going on here?? Sorry it is just a very unnusual trading pattern so greatful if anybody invested here for a while could clarify this.

Yes I am aware that Tates business is more sweetener focused, as I said the market is a bit jittery at the moment but will hopefully lead to opportunities. I tend to invest for yield, I am not invested here at the moment but am keeping a close eye. I would like to see the yield edge towards 4% or at least clearly over 3.5% then I will dip my toe in. I find it interesting that ABF.L who own silver spoon have seen a rise in their share price (I guess they also own Primarck so a bit more diversification), ABF are also trading on a PE of 34 against 14 here so there is an interesting investment case stacking up. Need to do a bit more research on the fundamentals.

Taken from This is money website In London, sugar group Tate & Lyle was the top blue chip faller, down 24.0p to 776.5p after a group of health experts launched a campaign to reduce the amount of sugar added to food and soft drinks as part of an effort to reverse the UK's obesity and diabetes crisis. Action on Sugar aims to help the public avoid products "full of hidden sugars" and encourage manufacturers to reduce the ingredient over time. It says children are a particularly vulnerable group who are targeted by marketers of calorie-dense snacks and sugar-sweetened soft drinks. A bit spurious really but the market is quite jittery at the moment. May lead to a buy opportunity depending on your outlook.

I am now back in profit on FGP. It was worth being patient and taking up the rights issue :-)

It is good that SHFT are still picking up new work, as we seem to be in a long resource bear cycle.

the most trades we have seen here for a while with a couple of large buys last couple of days. somebody has faith

Fair enough. I did the same with Summit which has just 5 bagged for me, and doubled my money on Quindell in a week when they crashed last July. Must admit I am looking more to blue chips and long term HYP at the moment although will wait and see what the Yanks decide next week before committing any money as there should be a lot of interesting opportunities if they dont let Obama raise the debt ceiling. Ones to watch I think are GSK, BP, Unilever, Tesco and RDSA all of which are good quality blue chipe on low PEs and if the general market takes a major hit could be in serious bargin territory and paying a nice yield. Just my opinion of course!!!

Hello Kips I have had a look at Motive TV they seem to have a lot of debt and are not generatinhg cash at the moment. What is your investment case? I assume you are looking at this as a future play?. Share price seems to have fallen quite a bit over the last 12 - 18 months is this due to investor sentiment, I notice there was a 'speedbump' recently just before they issued their accounts now they are dropping again. I guess you sold out in September at the rise? I would be interested in hearing your thoughts on the investment case as I only really looked at the accounts, recievables, net debt, turnover, free cash flow the usual fundies.

Hi Kips Havent posted on this board for a while as I sold out when it rose, I think I told you. Still dipping in and out to watch though. Looking at the price over 90 I may have sold out too quickly but wanted the profit to invest in something else. Still will re-enter if the price drops to low 80s as I think you are right and there is some mileage here. Personally think it wont be realised for at least another 18 months to 2 years but what do I know :) still may give me a chance to re-enter when the price is right.

Dropped back down now so I guess this was a deadcat bounce. so much for the brief excitement

Still an interesting scenario a lot of small buys and a lot of volume when this has been quiet for ages. Obviously someone knows something I dont.

Anybody any ideas why the share price is rising? I havent seen any new RNS or announcments from SHFT

yes the outlook for SHFT is grim when put this way, the fact they are still winning contracts though implies that some of their customers have faith in them. I intend to sit it out as I am in at 70p per share and not prepared to sell at 15p. I guess we will have to wait and see what is in the financials in August. I guess it is a gamble now - they will either recover or go bust (all or nothing)

am not sure it is all doom and gloom - 34m of new contracts signed and net debt 200K (6.6m - 6.4m) OK there are a lot of issues but could be a lot worse. Not going to put any more cash into this just now but will wait for report end of August and see what the figures look like then.

The way I read this a lot of the flack is on IMR. Shaft sinkers have been cited as a seperate entity and the Eurochem emplyee had obtained permission from his superiors before promotion of the SHFT bid. My reading of this is that Eurochem dont think their case against SHFT is strong so they are going after IMR as a bribery and corruption suite, I am guessing that as shareholders in SHFT what happens to IMR is not totally relevent to us? - I may be wrong but that is how I read it which if correct would let SHFT off the hook. I hope I am correct.

I hadnt seen all of this detail before. It looks promising and makes me feel a whole lot happier as I am carrying a fairly heavy loss here at the moment but was dubious about topping up to average down in case the whole lot went T.U.