Cookson Share Discussion Threads

[gargoyle2] 05/5/2012 10:13

Pensions & Investment Research Consultants (Pirc) has told clients that the industrial ceramics group had been an "unmitigated disaster for shareholders" and they should oppose the re-election of its management at the annual meeting.

In a blistering report distributed to clients on Friday, and seen by the Telegraph, Pirc told investors to vote down chairman Jeff Harris, the long-standing chief executive Nick Salmon and finance director Mike Butterworth.

"Over 10 years Cookson has been an unmitigated disaster for its shareholders," the report said. "In 2000 it was a FTSE 100 company, and then made poorly judged acquisitions at the top of the market and required a rescue rights issue."

Pirc says the directors have presided over "amongst the worst examples of poor stewardship of shareholder funds in recent history", particularly the chairman, who has failed to exercise his power to "challenge the executives".

Pirc said it was "alarmed" by large pay awards and the poor performance of Cookson, which has lost 86pc of its value over five years. In particular, Pirc criticised the acquisition of rival company Foseco, which, the report claims, was "made at the top of the market, and then required a [second] rescue rights issue of £240m, deeply discounted". The report continued: "Dividends paid have been almost irrelevant in this company, as amounts paid out to shareholders have been followed by very large cash calls from shareholders. Due to the large numbers of new shares issued and the very poor performance the company had had to consolidate shares twice."

Pirc believed the remuneration committee had "used its discretion" to tweak policies so they were less impacted by poor performance. "Awards for which the performance period ended in the year include matching shares given to directors at the time of the deeply discounted rights issue in early 2009," Pirc claimed.

Cookson said: "The company disputes much of the analysis contained within the Pirc report, and their overall conclusions simply don't reflect the reality of what the current management team has achieved, or the value created during their tenure. The LTIP scheme was approved by over 90pc of shareholders in February 2009."

The company's biggest investors include BlackRock, Standard Life, Axa and Fidelity.

[robertfaulkner] 04/5/2012 17:05

I could have done a limit buy of 669p instead 689p and still it would have struck, so not so happy now.

Well done Gargoyle 664 was low of the day

I just hope the market doesn't know something about Civian selling out.

Wilkie, what a good call getting out, pity you have to wait 28 more days to buy back(for CGT exempt band) perhaps you should do a limit buy of another 20p lower and pay the tax (or forget the 30 day rule, who's going to know a one off) if it strikes.

[gargoyle2] 04/5/2012 16:30

Picked up some more at 664.something today. Like dizzylizzy, waiting for the break up, which will surely come.

[dizzylizzy2] 04/5/2012 11:24

Well, it depends on what Mr Market does over the next few weeks. I'm holding for the medium term strategy of splitting the company.

[robertfaulkner] 04/5/2012 10:15

I hope I will still be happy in a couple of weeks.

My limit Buy at 689p stuck today (I sold out at 730p in Dec but missed the 14.5p div, so like buying at 703.5p a week ago)

[robertfaulkner] 01/5/2012 18:31

I had ex div 2nd May written on my laptop but still didn't see it or Deadly's post.

If I could have bought back at today's low of 705.5p with 14.5p div I would have been well in.

So at today's close of 730p it should open at 715.5 (ex div 14.5p) so if we get a general dip in the market I could get my 689p limit buy

[deadly] 01/5/2012 10:21

nice dip for buying today - xd for 14.5p tomorrow.

[gargoyle2] 01/5/2012 03:13

RobertFaulkner 23 Apr'12 - 08:56 - 1602 of 1605 -- Hi Gar, is there any level which gives them rights to tell the Cksn board what to do? (below 50%)

RF, there's no set % at which a shareholder automatically gets board representation (other than having 50%, of course), but I'm sure that the 20% level will give Cevian the right (commercially, if not legally) to make strong representations to the board about how the business should be managed.

[robertfaulkner] 26/4/2012 08:24

Hi Kazz, no still missing out, I've moved my Limit buy up 10p to 689p but I will do a manual buy if I catch the share price around 710p ish if I happen to be watching share at that price.

I keep thinking, that after Cevian does a big buy, the share price does drift down if the gereral market is bad

[peter27] 25/4/2012 17:22

RF - after 29.99% they have to make an offer to all shareholders unless there are special circumstances.

[kazz] 25/4/2012 16:32

Have you bought back in again Bob?

[robertfaulkner] 23/4/2012 08:56

Hi Gar, is there any level which gives them rights to tell the Cksn board what to do? (below 50%)

Is there a rule that after 50% they have to buy the rest of the shares at a set price?

[gargoyle2] 23/4/2012 01:09

I think Cevian have over 20% now, so they'll certainly have some influence on the board, I would think. I'm sure they'll be hoping/lobbying for the break up of the company, as discussed in the Sunday Times a few weeks ago.

[robertfaulkner] 22/4/2012 21:02

Difficult to know which way Cksn will go next week, China talk about slowing down and in the opposite direction is the continual buying by Cevian.

Does Cevian have a history of buying out companies or just buying enough to have major influence. They must have had enough shareholding at 15% but they keep buying!!!!!!!!

[robertfaulkner] 19/4/2012 12:10

Yes I've missed big time, I've just got to hope for a retrace and get back in around 725p

[dizzylizzy2] 18/4/2012 15:53

Robert - you couldn't make your mind up but Cevian has done it on your behalf as they have just increased their holding by 798,124 shares to 19% of mkcap. Wow, they mean business so I'm holding and hope to benefit from their strategy as they must have one to be spending this amt of cash here.

[robertfaulkner] 12/4/2012 20:25

I've set my limit buy back for tomorrow(and next 30 days) at 679p, this is the 2nd lowest, low of day, over last 5 working days.

I'm probably being greedy (sold at 730p 30 days ago) but I'm in two minds whether to move all winning share sales into building society's as I'm 65 soon, and I should do what retirement funds do for pots near retirement.

Then I think, what all this QE will do to inflation over next few years

[dizzylizzy2] 12/4/2012 12:56

CKSN performing relatively well during mkt weaksness and as a matter of fact is the star performer of my porty. Pity I didn't buy a lot more sub 500p last yr.
I suspect 800p will break proviing the mkt remains stable. looking fwd to my divis on top too.

[robertfaulkner] 11/4/2012 00:05

I to want to buy back in, but can't until Fri 13th (Worrying date) because I have to wait 30 days from selling (for CGT purposes) so I hope there is no big rise until then.

Very worrying that we had a 130 odd drop on the ftse today and since 4:30 close, another 1% drop in ftse futures

EDIT Didn't need to worry Ftse up 31 points at 2:23pm(Weds) as long as Dow doesn't do anything nasty

[shoobmeister] 10/4/2012 08:49

There was a huge gap left behind on the daily chart when news broke so I sold out at 723p.

Just bought back at 684 and waiting to see what happens next. I suspect we'll continue march upwards but I may be wrong. Agree with comments on the insider trading....

[robertfaulkner] 05/4/2012 00:08

Who would have thought a Cksn 41p drop in one day and a 51p drop from high to low today

[flatoutfred] 04/4/2012 15:13

.
WTF ??

[robertfaulkner] 03/4/2012 07:56

DL, yes it did go up to nearly the peak of a week or so ago but insider dealing is supposed to be illegal and illegal insider dealing on the forward knowledge of this break up has happened.

If we get another 10 to 15% rise over next few working days then I'll withdraw the above. Let's say to just to under 800p

[dizzylizzy2] 02/4/2012 20:24

Robert - CKSN went up 6% today after the official announcement so one can hardly complain being that we'll always have to settle for the crumbs from the big boys table.
The FT article points out that we were trading at a discount of 20% in our peer group so there is plently of upside to come providing the mkt remains stable.
A demerger seems certain and that should create even more value for shareholders so many will stick around after the divi for the expected upside. Well over due if you ask me.

[robertfaulkner] 02/4/2012 15:27

Well I think this proves insider trading is alive and well.

If the news in the Sunday Times (yesterday, 1/4/12) about splitting Cksn in two didn't drive the share price up well above recent highs then the news was in the market!!!!!!

It is still well below the recent highs so market knew some time ago and the share price now already discounts the price.

And we mugs thought the recent rise was due to Cevian Capital increasing it's shareholding, and thought we could buy at any price and it would go on up.

How the big boys must have laughed