Alumasc Share Discussion Threads

[battlebus2] 16/2/2012 18:13

Yes Diddyman i've been slightly blinkered with this one.

[jotoha2] 16/2/2012 18:01

Hey Shammy , best stick to reading the sun then listening to so called rumours!

[the diddymen] 16/2/2012 12:40

BB2

Part of my post from 29/01:

'It does make a point about the exposure of the current share price to sustaining the dividend. If they cannot it will be very painful. Strategically ALU need to be working out how to make the shares more liquid.'

ALU have two options:

Regain credibility by demonstrating that they can take the business forward (improved bottom line), or, if they cannot then I suspect the value of the parts may be greater than the whole.

I did note earlier that they have lttle up their sleeve and I suspect that they have been squeezing to make some of the statements they have. Their problem now is that they are highly exposed to any negatives that they cannot directly control eg bad debt.

[battlebus2] 16/2/2012 07:37

Dividend cut from 3.25 to 1p not good but steps being taken to return to profit next half. Turnover up 9% which makes this all the more worrying and then there's the cold start to this year which we can blame aswell! Will give these the doubt once more but expecting a drop this morning.

[battlebus2] 13/2/2012 22:04

Lets hope there's news with results on Thursday!

[shammytime] 13/2/2012 11:08

I'm hearing rumours of a substantial contract in second half of year. Bodes well for ALU...

[battlebus2] 07/2/2012 17:04

Still in an upward mood :-))

[bscuit] 03/2/2012 23:49

I biught 2k well inside the spread a few weeks ago.

[battlebus2] 02/2/2012 19:10

Large trade above the price looks like news on the way :-))

[battlebus2] 29/1/2012 11:57

Cut the spread for starts. Dividend payments last year were 3.5

[the diddymen] 29/1/2012 11:26

Napoleon, given the tight ownership of shares and relatively illiquid market I do not think that it was an option. It will however represent a dilemma because IHT will be based on the current price, whereas if he sold them it would radically change the value. McCall will now have to pay 40% on the holding at the current market price.

It does make a point about the exposure of the current share price to sustaining the dividend. If they cannot it will be very painful. Strategically ALU need to be working out how to make the shares more liquid.

[napoleon 14th] 29/1/2012 10:37

Condolences to you, Mr Mc Call,

& how solid of you to have kept the 200K+ shares instead of selling.

[the diddymen] 22/1/2012 20:33

BB2 agreed, but I am still not clear from the statement what has gone on. What it does tell me is that ALU have insufficient up their slieve not to have to report the variance. It will be intriguing to see how it develops.

[battlebus2] 22/1/2012 13:04

Could be that his position came under threat reference this- The full extent of the additional costs at Alumasc Precision only became clear following receipt of the results of the December month end stock count earlier this week. Immediate action has been taken to curtail the excess level of expenditure as we enter the second half of our financial year.

[the diddymen] 22/1/2012 12:09

BB2, on a couple occasions I have telephoned companies to ask, and generally I have had reasonable responses. Years ago I rang the CIU FD to try and understand the mixed messages that were being put out on underlying profit. The gist of the phone call told me to stay with my estimates and ignore the company by what was not said. This stood me in good stead.

I thought that the whole market update seemed to be a bit muddled. My reading is that they are expecting a big turn around in the second half, but they are not absolutely certain. It reminded me of the CIU RNSs.

[battlebus2] 21/1/2012 19:24

I understand what your saying but unless you work for Alumasc we will never know. Don't see it as negative there's always someone to take the reigns. Time will tell if the new major contract for precision is won.

[the diddymen] 21/1/2012 18:29

bb2, I think you need to establish what has gone on. The last two substantive RNSs are linked. The previous MD of Precision left under a cloud, the current MD turned it around albeit in a better operating environment. He is now off. Why?

[battlebus2] 21/1/2012 11:10

The diddymen i get the feeling they will maintain the dividend at all costs even if they reduce it to 5p that's still a cracking dividend. The shares may fall for a short time if this happens but will recover. Still confident of a dividend.

[the diddymen] 21/1/2012 10:32

This is a standard move for ALU with a big spread. 11k of shares traded. There has been little reaction to the RNS, but given the importance of Precision to their ability to sustain the dividend, I am surprised. Presumably there is some link to the January market update.

Shareholders should be drilling down to establish what has gone on. While I acknowledge BB's argument of staying in for the dividend, if they cut the dividend (which they need to do) the share price will go into freefall.

[pojscott] 20/1/2012 14:23

Why the big jump today???

[the diddymen] 19/1/2012 13:07

Not affected the price!

[battlebus2] 19/1/2012 07:53

Such is life.

[the diddymen] 19/1/2012 07:27

Whoops. This morning's RNS does not look good given how much they have been relying on the turn around of Precision.

[battlebus2] 14/1/2012 08:19

Heres how it works bought at 90p and over 4.7 years i've collected 40p worth of dividends which equates to a 50% rise in the share price. Not a bad performance in my book. So spreads don't matter if your a long term investor.