De La Rue Share Discussion Threads

[casual47] 01/10/2014 07:37

His twitter says "as of October 2014 CEO of De La Rue". So he may have started already. He's certainly already tweeting about it. Should see some news flow soon about his battle plan.

Should get interesting.

[p1nkfish] 01/10/2014 07:25

couple of observations:

1) will they buyback before new ceo is in place?

2) they are on the bottom edge of the ftse250 and can easily become ftse350. Trackers will sell down in that case.

This will take a little longer to play out imho.

[p1nkfish] 01/10/2014 07:02

clever if anyone knows where the exact bottom is.

[casual47] 30/9/2014 21:37

Selected quotes:

"it's hit the bottom now You can guess what the 1st thing I'm going to do is Hint: What did $BP do when in trouble?"


"@TheShareTips Expect a £10 high again. Will take 4 years though, so be patient."


Snaffled some on Friday. Not at the bottom but I suspect not far from it. Great asset for my long term SIPP portfolio.

[p1nkfish] 30/9/2014 07:21

ALWAYS behind the curve when a company turns down.

None ever say sell before price falls in such a catastrphic fashion even if there are signs that can/will happen.

They are STILL behind the curve.

[dealy] 29/9/2014 23:19

3 brokers who were clearly wrong until a couple of days ago.

[quepassa] 29/9/2014 22:09

Broker Recommendations.
26th. September.

Investec. Downgrade from Buy to Hold. Target Price 600p (915p)
Numis. Downgrade from Add to Hold. Target Price. 540p (845p)
JPM Caz. Downgrade from Neutral to Underweight. Target Price 600p (854p).

ALL IMO. DYOR.
QP

[dmf] 29/9/2014 21:45

Polymer palava



De La Rue to print Kenyan currency

[james smith] 29/9/2014 20:26

dealy

Just a thought. You my want to bear in mind that their customers are countries and in particular the finance ministers of those countries. There was a time when all the banknote companies were free to pay them "secret commissions" to get the business. DLR can not now do this but I would imaging that some of their competitors have no problem doing so. That will make things a lot harder.

[dealy] 29/9/2014 20:08

today-s drop was largely due to extremely negative global markets. Sanity will soon return and these will be back at 600p in a few weeks.

[contrarian2investor] 29/9/2014 18:49

In 2011 DLAR rejected an offer of 935p from Oberthur, saying it undervalued its "strong fundamentals" and "long term prospects". The shares went on to peak just shy of £11 in October 2012. Now they are priced for the princely sum of £4.75p. Talk about BOGOF!!

I bought into DLAR on Friday (wrongly), because I did not think it would fall below £5. Shows how little I know about DLAR investors willingness to sell and run for the exits at any price.

When or if sentiment changes the share price will rise. The big question is when?

GLA fellow investors, your's failed knife catcher c2i

[p1nkfish] 29/9/2014 14:32

PU - New ideas = risk.
They hate risk = hate new ideas = stagnate.
All companies of a certain size should set aside a skunk team to take controlled risks in new tech. DLAR will now!

[salpara111] 29/9/2014 08:57

I was very tempted recently when it dropped to about 710 HOWEVER I am forever reminded of my disastrous investment in PVCS that makes solar wafers. Their business was destroyed by the Chinese adding massive new amounts of production capacity, now as soon as a company talks about there being overcapacity in their core business I avoid like the plague.

[meijiman] 29/9/2014 08:49

The statement was so catastrophic in my opinion that it effectively raised a for sale sign over the company. Also saved the incoming ceo from doing a kitchen sinking full provisioning job. All very poor.Time to sell was when the previous ceo realised the whatsit was sticking to the fan and decided to jump ship.

[dealy] 29/9/2014 08:47

this is ridiculous. if it had fallen 90% on Friday it would still have fallen today. nobody is looking at valuations - just trends on profit warnings.

[tradejunkie2] 29/9/2014 08:44

QuePassa,

Good morning! :)

[p1nkfish] 29/9/2014 08:11

Suitors at 600p?
No.
DLAR has damaged itself and is a sitting duck.
M&A rumours are by those looking to trade a bounce, dead cat that is.

It will take 18 months for this to have a clear trajectory up, possibly more, until then it's just waiting time.

[thehearse] 29/9/2014 07:26

IMO DE LA Rue is no Kodak, although there are similarities in that they both have/had legacy products. However, DLAR operates in a highly regulated market which is not easy for start-ups to enter. My thinking is, if there is over a supply leading to margin erosion, then in theory there should be some form of consolidation. Regarding expected revenues, no company knows when a revenue will materialise within a quarter. However, they should know whether or not the revenue opportunity has gone away. Watch out for merger and taker-over activity in this sector.

[tweeeek] 29/9/2014 06:57

News leaking out suggests a bid of 600 is imminent.

[pugugly] 28/9/2014 14:18

James Smith:> Yes but they should have been there far earlier. Thye had in depth protection in their old paper based business but now wide open to erosion from nimbler and more dynamic companies.

A good comparable example (imo) is Kodak who while responding to digital never capitalised on their market leading position in photograpy as they appeared to be trying to protect the very large part of total revenue from films - Result they lost the whole business.

I am sure there are many more examples out there and leave it to others to highlight them.

[dealy] 28/9/2014 12:48

This is just the sort of thing Private Equity loves. Buy a beaten up company that has a great customer base and strong long term position and improve the process and management to re-float 3 years later for a much higher valuation.

In essence this is a technology company yet it is valued like a clothing retailer.