Member Info for holo

In August 2019 Avon announced its purchase of MMM,s ballistic protection business for $91m with a further $25m subject to further contracts. The business principally all DOD contracts, of which 58% was for Ceradyne helmets, 33% body armour and 9% flat armour. The helmets business fitted well, but the armour business very questionable, to such an extent that I sold my holding in Avon 2 days later!

I am sure Avon mgt would have done the right financial due diligence, but I do question how much product /R&D due diligence they did, clearly not enough. I questioned in my own mind why would MMM be selling such a business that had future potential contracts for $704 over 4 years.

Well so a big boo boo by the board, and the results are now clear to see, but not all is lost. The protection business does have a very progressive future, Ceradyne helmets is a plus, and I consider the board are right to withdraw from personal ballistic protection, has always been a difficult business, so wrong purchase but at least the courage now to get out.

I have the view that Avon is now very much "on show" and the collapse in the share price leaves in very vulnerable to take over, possibly Mine Safety Appliances USA, ILC Dover USA, to name just two. So I have bought back in with the belief that the low has been hit and it can start another slow climb up - so to those who have bought good luck, and to those holding at a substantial loss you do have something like a 1.5% divi and a future rise hopefully back to your purchase price.

My hope is any future major purchases include technical experts as well as the bunch of lawyers and corporate accountants, so often the processes and technology are taken for granted.
So finally do remember the board have done a sound job up to this first serious problem, they will have learned a number of lessons, and so now take this learning forward, making them less likely to make such a mistake again.

SGE has followed a pattern in the last 3 years, just look at the line chart. Over these 3 years the price has had 3 drops to around 550 and 3 rises to around 770. There have been many theories as to why, but most were unsubstantiated , many PI,s have put forward their own views over the years but still it follows the pattern.

So I shall be buying (probably tomorrow) when the price is 550 or lower and put them away for around a year and if normality continues will sell around 700 - I have been able to do this for the last 2 years, so will review in 6 months.

Good luck to all.

Ref y11-stx
Your entitlement to the RI may show in your a/c now at zero value, but for many brokers will show on the 12 Jan, the first date to take up your right.
You then have until 26 Jan to pay, then they start trading on 29 Jan.

Reading these posts gives me the distinct impression that most of you are traders, and many of you new to the stock market, and as such take a very short term view . To me investing is more long term, and over the 50 or so years of successful investing I have been thru many many RI,s and my strategy has always been, "do I see a future for this company despite the bump caused by the RI"
In TUI I do see a future, the market will come back, stronger because of peoples desire to get back to the sun, helped by the failure and closure of many small holiday companies, leaving TUI in prime position.

As to the price when the consolidated shares are trading at the end of November, always a tough call, I estimate around £3.25, but most importantly I see nearer £4.50 to £5.00 by mid summer.

What happens in the days up until 26th Jan (last day to take up rights) is not material to me. I will take up my full rights , and look forward to a sound recovery as this dreadful virus gets controlled ( my first jab tomorrow - Hooray.)

Talked to my internet broker , rights apply to anyone holding the shares yesterday and up to 8am today
For those whom meet this time frame your rights to 25 shares for each 29 you hold will appear in your portfolio on 12 Jan and show as nil value. You then have until 26 Jan to take up your rights, and frankly everyone will at Eu 1.07 each.
This is a massive discount to ensure they get the funds to maintain the business, along with the funding from the German Govt.

CSDI thanks,
I thought danielh had miss spelt hiho, so apologies to danielh.

I have to tell you having invested for so many years, although I make really good money from my pf, I invest for the challenge, much of my money is invested with a major financial company and I still delight in making better returns on my self managed pf than they do.

At 87 it keeps me some what involved, and having spent my life in the business world of Europe and USA at a fairly high level, this is my way keeping up with the pace. This golf and holidays keep me well busy now and quicker I get my Covid jab the better - I will be off on my travels again.

Good luck to all investors in 2021 and hope you are very successful.

Daniel I said quite clearly I have Vod in my portfolio, and my advice is before investing or commenting read the full text! Vod represents some 2% of my portfolio along with 44 other companies, although it is a small % down it is one of my very long term holdings and has rewarded me well aver the past years, and have no intention of getting out, as I believe there is some recovery to come.

I am an investor not a trader, which has served me very well over the past 40 or so years, and I only welcome good well researched advice and tips, thanks and good luck - seems like you might need it

I am a life time investor, with reasonable returns each year, using the principles of a broad spectrum of shares to include divi payers, newish industries ( I wait a little for confidence to grow) and then invest.

I have the popular portfolio of VOD, AV, MRW, PSN, RDSB, SMDS, etc and then the newer companies UKW and TRIG wind farm operators some small growth but a regular 5% divi both established to raise funds and give a 5% return. Then I have 2 overseas manufacturers of wind turbines, neither pays a divi need all the cash they can to increase production . but in a few months have made gains of 38% and 34% and both have a log way to go, they are SGRE and VWS.
I am now exploring the probability for car the latest electric car battery industry, could be enormous, with follow on for domestic in house back up batteries holding maybe 50 to 100 kwh, so that never again will any one suffer from loss of main line power.

Good luck to all investors for 2021, and remember research, prepare to take some risk, and hopefully this new year will be rewarding.

My shares cost me 54pence almost 20 years ago, the company was in a real mess, badly run despite having some real winning products, I bought on the basis that an American company specialising in personal protection would see Avon as a really cheap their way into the European market. I was wrong, but held onto the shares in hope of a takeover, now who knows, have they woken up in USA at last, so I shall continue to hold cos my PE is pretty good thanks for the moment.

agreed