||EPS - Basic
||Market Cap (m)
Real-Time news about Cookson Grp. (London Stock Exchange): 0 recent articles
|robertfaulkner: I Cksn share will be changed to 1 Vesuvius and 1 Alent share.
If the Proposals are approved by the Court and Cookson Shareholders and the Demerger becomes effective, for every one Cookson Share they hold, Cookson Shareholders will, on completion of the Demerger, then hold:
-- one ordinary share in Vesuvius plc, a UK incorporated company, admitted to the premium listing segment of the Official List and to trading on the London Stock Exchange and which will remain classified by FTSE as General Industrials; and
-- one ordinary share in Alent plc, a UK incorporated company, admitted to the premium listing segment of the Official List and to trading on the London Stock Exchange and which is expected to be classified by FTSE as Speciality Chemicals.|
|bobsidian: Major warning.
The share price of CKSN was looking artificially elevated for some time.
Given how much historically the share price of CKSN had been moving in lockstep with the mining sector, it would not be surprising to see the share price now playing catch up with the lesser mining constituents with high exposure to China.
Prior to this announcement a P/e ratio of around 12 was looking a bit rich on negligible growth in year-on-year earnings and is now looking even richer on a potentially significant decline in EPS.
However, the stockmarket does favour certain shares and the share price is hesitating on a 61.8% retracement of the entire move up from October 2011 to April 2012. Will be interesting to see the near term outcome of technicals over fundamentals.
Perhaps of even more over-riding concern is the elevated state of the FTSE250 and its potential for a significant retracement. It is not impossible for the FTSE250 to break out into new all time highs but I do have doubts. The more forthcoming of fund managers are reporting net selling as investors scale back their exposure to equities, whilst the less forthcoming and perhaps less scrupulous are encouraging investors to go overweight equities as an asset class.|
|upsondowns: Copied from iii board.........
Solar industry decline drags down Cookson
By Rose Jacobs
Shares in Cookson, the industrial materials manufacturer, fell more than 8 per cent after the group said its division serving the solar power industry had dragged back revenues and profits.
First-half sales at Cookson, which supplies materials for everything from Apple's iPhone to steel processing plants, fell 8 per cent to £1.3bn while pre-tax profits declined by a fifth, to £93.5m, including the impact of disposals and currency fluctuations.
The company blamed a halving of revenues at its fused silica business, which makes materials for solar cells and speciality glass products. "The marked downturn in the global solar industry which started in mid-2011 ... has proved deeper and more extended than previously anticipated," it said in its interim results statement on Wednesday.
The solar energy sector is suffering from reduced state subsidies and overcapacity. But Nick Salmon, chief executive, said Cookson remained committed to providing materials for the industry, which he believes has good medium-term growth prospects.
"We might just have to tread water for a year or two," he said, and pointed out that the company is mitigating the impact by cutting costs, including closing a plant in the Czech Republic.
Interim dividend rose 3 per cent to 7.5p, paid out of earnings per share of 23p (31.6p).
Cookson is in the midst of a strategic review that could result in it demerging the ceramics division, which houses the struggling fused silica business and which delivered nearly 70 per cent of revenues last year, and the division that supplies circuit-board manufacturers.
"The two businesses have no operational overlap, and there's a feeling that if you have one business to focus on, you will do better over time," said Mr Salmon, who said he would step aside if the company were broken up.
A decision is expected by the end of the year. Several analysts reduced their full-year earnings forecasts on Wednesday on the back of a cautious outlook from the group.
● FT Comment
Cookson's shares come cheap at the moment. The company commands a 60 per cent share of some of its markets such as equipment for plants making steel rolls and boasts Apple as a customer of its electronics division. But its debt and equity trade at just over five times 2013 ebitda, a significant discount to both the industrial and electronics sector averages. The thinking goes that a demerger would focus both managers' and investors' minds. Indeed, British manufacturers tend to perform better as small specialists just witness the break-up of ICI. Peel Hunt analysts recently forecast both parts of the business would re-rate upward following a split, with the ceramics division's enterprise value rising to seven times 2013 ebitda and the electronics unit's to 7.4 times. That equates to a combined share price of 945p a tempting premium on Wednesday's close of 550p.|
|robertfaulkner: Down another 2.75% today to 562p, it was 750p in April.
I just looked at the shares in issue and it is 278 million so the new shares for executive share options is 0.75% more????
I can't see that small dilution making any difference to the share price, especially as the share option should incentivise the board to increase the share price
I have a £7k tax free lump sum from a personal pension I just took the annuity on, so I might put a limit buy in at 505p to see if I get a few more at a bargain price (I hope it would be a bargain price)
I've now done the limit buy|
|bobsidian: The best of shares tend to be the last to fall.
Notable that CKSN did not experience year on year growth in EPS.
The charting pattern now looks dangerous with a possibly decisive technical break down through the 200 day Simple Moving Average. I wonder if the share price of CKSN is now playing catch up with world events and making moves to at least revisit the £4 level.|
|wooster4: Robert - believe me a report from pirc would not result in that reaction. Put it down to market woes or whatever but I can assure the reason for the drop is not the pirc report. I used to work in this precise field and believe me pirc could have no effect upon any share price! Robert, general market did fall a lot on Friday so rethink that is far greater factor!|
|bigbigdave: Sunday Times......
Inside the City: Cookson's heart of pure steel
Cookson is an odd one. The FTSE 250 firm is a champion of high-tech British manufacturing, yet only a sliver of its operations reside on these shores.
It employs more than 15,000 people in 40 countries, and makes its crust from a few highly specialised products, like the solders used on circuit boards, and ceramics able to withstand molten steel at more than 1,600 degrees that are used in steel production. Not your typical widget maker.
A growing number of believers think the firm is misunderstood - and of course, undervalued.
Cevian Capital, the activist hedge fund chaired by Lord Myners, is one. It has built a 14% stake in the last four months to become its single largest shareholder.
Peel Hunt, the brokers, last week initiated coverage with a "Buy" recommendation and an 850p share price target. Cookson shares closed on Friday at 670p. Deutsche Bank also upgraded the stock to "Buy" last week. Why this sudden goodwill?
We will get an indication tomorrow, when analysts expect the company to reveal £258m in annual pre-tax profits - a 16% increase on last year's £222m.
They also expect Nick Salmon, the chief executive, to reassure them that the company will hit targets unveiled last year in its three-year plan, which runs until 2013. The company took some lumps in November when it issued a profit warning. Yet it did well last week to sell its loss-making precious metals business in America to Richline, a company controlled by Warren Buffett's Berkshire Hathaway.
And the fundamentals seem to be good. Cookson's business relies on volume of production rather than the price of the end product. The more steel is produced, the more ceramic the manufacturers need, regardless of price. This year global production is set to surge by 5%. Cookson, in other words, is cooking.|
Sorry for the delayed reply, had a busy weekend.
Not sure why the sharesave scheme was stopped. You couldn't lose really, as you got a discount on the share price and if after the chosen period (3 or 5 years) the share price had gone down you could choose not to have the shares, but have your money back plus some interest.
Maybe CKSN were losing out some way or another?
As for the general feelings amongst colleagues, this is very much in line with how busy we are. We keep a core workforce holding permanent positions with Temps being brought in when things are busy. In very busy times we then have agency workers come in, which can sometimes only be for a matter of weeks,
A big talking point at the moment is of pensions. Don't they make pensions nice and easy to understand, just like when comparing energy suppliers!|
|robertfaulkner: GOOGLED MELROSE amd found this, every little bit of possible news on Cksn being taken over is good for share price
Current share price
11.10.11 at 10.11 GMT
302.20p LSE GBP
Share Price Detail >making acquisitions
realising value HomeAboutBusinessesInvestorsMediaContact Melrose seeks to acquire underperforming industrial businesses whose operational performance can be improved. Melrose invests in its businesses to fully exploit their operational and strategic strengths. Once a turnaround has been completed, it aims to sell these businesses and deliver value back to shareholders.|
|bobsidian: I can think of recent rights issues followed by consolidation taking place in the following:
LAN (Land of Leather) - a desperate attempt to save a failing business
SKP (Skyepharma)- part of a major debt restructuring with the share price effectively tracking sideways pending announcement of a protracted Phase 111 outcome
COLT (Colt Telecom)- in a sector doomed under a sheer weight of debt but the share continued to rally and crash until it ultimately and only very recently resolved its debt concerns
TCG (Thomas Cook) - Formerly MyTravel and Airtours - MyTravel merged with Thomas Cook with the latter taking over the listing of MyTravel. Since its share consolidation it has market performed.
As you can see from the above listing it is not exactly a roll of honour with most having a dubious history weighed under by debt in sectors with tainted histories.
Then of course there is CKSN itself. Some may suggest that CKSN is the success story of such exercises.
Much depends on the reasons for and timing of such share consolidations. The difference with CKSN is that it has exposures to industries that are cyclical in nature. Its performance since its rights issue has been quite impressive though admittedly at current levels it is only 20% above its ex-rights price on a pre consolidation basis. Are you suggesting that CKSN would have been better off without the share consolidation ?
The reason for the CKSN share price perhaps performing better going forward may lie in it trading on a core EPS of around 5.5 times current earnings and, having undergone its rights issue, has funding in place to finance its ongoing restructuring whilst meeting its near term debt obligations. The question then lies in whether or not you believe in a worldwide economic recovery, the truth and sustainability of the economic growth of China and a recovery in worldwide car production.
And finally much will depend on the performance of the broader indices. The FTSE 250 has been a star performer during the course of April but less than stellar in May. The future share performance of CKSN is unlikely to be disconnected from the performance of that index.
Cookson share price data is direct from the London Stock Exchange