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Cairn Share Discussion Threads
Showing 26 to 42 of 50 messages
|LBO - thank you for your recent posts on this thread. It does seem to me that the offense committed by Cairn is very technical and that little or nothing turns on it. Do you know who their auditors are?|
|As an investor here,this is disturbing.We need clarity as to why this happened.And we need it now.|
|That prospectus reminded me of a James Joyce novel!|
|3 for every 14 shares at 1.12 euro,now does the share price go below?|
|Welcome to the big time!!|
|Methinks there may be some interest here tomorrow.|
|How come existing private investors ain't been offered shares?|
|Good to see Goldman Sachs on board|
|Opps apologies, wrong epic code in title, replacement thread corrected/created CRG!|
|Corin is clearly not in favour at the moment and the shares are currently trading at a 20% discount to NTAV and a 40% discount to NAV.
Anyone taking more than a cursory look will see that Corin's traditional markets are facing headwinds from austerity measures, along with the industry-wide decline in metal-on-metal (MoM) hip products (which now represent a relatively small percentage of Corin's revenues) and the challenge from their mature knee portfolio. However, the management are a good way through implementing a growth strategy and a rebalancing of the portfolio and there are early signs that this strategy is starting to bear fruit, with the non MoM hip portfolio seeing accelerating sales growth which offset the declines seen elsewhere, as perhaps can also be seen by still achieving some marginal top line growth despite what is arguably a challenging market and a transitional period for the company (which included the transition to direct marketing in the US).
So, yes I can see the downward trend in some of Corin's traditional markets, but I can also see what looks like a strong underlying growth trend coming through. One area that has caught my attention is the supply agreement with a US company called Mako Surgical, which Corin has already highlighted, is weighted to the second half and will contribute to the stronger sales growth that the company expects; "Sales to distributors (including MAKO) are weighted more towards the second half this year than has recently been the case." With the Mako supply agreement firmly in mind, it's worth considering that the increase in net dept from £4.2m to £6m was driven by some significant stocking orders from MAKO for the third quarter of this year, but this trend is not expected to continue in the second half of the year.
Keeping the Mako agreement in mind, a commercial release in the US by MAKO of the Corin hip implant system was currently planned for the second half of 2011, and I note that Mako announced the introduction of the MAKOplasty(R) Total Hip Arthroplasty on September 19th 2011
So we should hopefully start to see the early impact of this agreement in the FY Results. What further caught my attention was that to date Mako's success has been driven by initially targeting 'partial' knee procedures, but with 300,000 hip replacements taking place in the US annually, the hip opportunity is many times larger than knees. I also note that the agreement with Mako allows for the potential future integration of other Corin implant systems. Obviously Corin's new 'total' knee system, for which commercial launch is expected in the second half of 2012, springs to mind. However, I note that Corin has received two further FDA approvals for additional hip products 'beyond' those that were required for the initial Mako agreement (see below), neither of which has been reported yet, but may feature in the results and/or extension of the Mako agreement.
Decision date 29th June 2011 Corin Minihip Femoral Stem
Decision date 4th August 2011 - Corin Optimom Modular Head
With further rebalancing of the portfolio and product launches scheduled for 2011 and 2012, growth should become the main theme and not the underlying one, which should have a notable impact on earnings going forwards in the medium term (2012) and a significant impact on the longer term (2013 and beyond). In my opinion it should be a case of when and not if the market re-rates the shares.
Although Corin is experience some headwinds, it strikes me that it is a case of some joint replacements are wanted, but the higher percentage is needed. So given that the demographics are hardly changing in a way that would imply an underlying reduction in demand (quite the reverse), there will always be a solid if not growing market to go after and indeed in the current situation one could argue a case for a significant build in pent up demand, as what can be put off today, in most cases cannot be put off tomorrow.
With Corin Group broadening their portfolio and positioning the business for growth and with the shares trading below NAV, this arguably puts Corin in play as a potential bid target, which may act as either a floor or a catalyst. But for those with a longer term investment horizon, other solid reasons provide the main investment rationale and hopefully far higher returns compared to an opportunistic bid at these low levels.|
Hi, do you have any views on how NVR, as it now is, will be likely to move from here on?
Bid side activity today.
Anyone else's views would be welcomed.|