Enodis Share Discussion Threads

[tillman] 12/5/2006 12:22

must be something very good looming

it was always cheap on a cashflow basis and the activity over the last few days caught my interest...unfortunately never got any of these when I eyed them up earlier this year :(

[upside potential] 12/5/2006 08:55

takeover coming ? dont really follow this but isnt the volume impressive this early too ?

[chester] 11/5/2006 16:14

certainly looking good for more gains.

[grigor] 30/3/2006 16:11

Our H106 results will show good progress against prior year comparatives and
will be a little ahead of our expectations.

[ain2001] 17/2/2006 08:39

The Independent


The Investment Column: Oven maker Enodis puts recovery back on the menu

Early in 2003, shares in the oven maker Enodis were languishing at a little more than 30p, after a disastrous round of spending at the peak of the market left the company on the brink of collapse. Management, led by the chief executive Dave McCulloch, has done a fine job in turning the company around and its shares have risen almost fivefold since his appointment in June 2003.

Now that the turnaround is complete and the company's balance sheet is in order, management is free to concentrate on growing the business.

After a few years of difficulty for its main customer base, US fast food chains, Enodis is well positioned to cash in on its expansion. The fast food industry is feeling decidedly more bullish than it was in 2003, when criticism of its menus and practices dented global sales, and is looking east for growth. The Beijing Olympics in 2008 should lead to rapid expansion in China, and with Enodis also supplying hotel kitchens and high-end restaurants with ovens, its new Asia Pacific sales team should have a busy few years ahead.

The likes of McDonald's and Burger King want global product uniformity, so the chances of oven supply being met by cut-price local manufacturers is slim, at least for the time being. The demand for healthier fast food has resulted in increased reliance on new technology and Enodis, with its dedicated research centre in Florida, is at the forefront of developments in the commercial food industry.

Enodis stopped paying dividends a couple of years ago as part of its restructuring plan, but the dividend has been reintroduced, and although it is not much to write home about, giving the stock a net yield of 1.3 per cent, it is a step in the right direction. The small acquisition of Frau Group, a Spanish oven manufacturer, last month will enhance earnings by about 2 per cent this year but the company is actively looking for other bolt-ons.

Enodis is well known for the extreme caution in its statements, but yesterday's upbeat report could be the sign that more good news could be on the way this year.

This is a company that found itself in trouble only to claw its way out by making tough decisions. Furthermore, its management looks set to stay put and the industry it serves is back in growth.

Enodis shares have risen 17 per cent this year, and its stock added another 0.25p yesterday to close at 148.25p, pushing the company's market value towards £600m. Even at this price, however, the stock is trading on an undemanding forward price to earnings ratio of about 12.8 times - cheap compared with its peers. This is a turnaround story that should have plenty more upside left in it. Buy.

[grigor] 02/2/2006 20:00

Investec Maintains Buy On Enodis

Wednesday, February 01, 2006 5:42:55 AM ET
Dow Jones Newswires

0929 GMT [Dow Jones] Investec maintains Enodis' (ENO.LN) at buy after its Spanish ice machine maker acquisition, noting the purchase appears an attractive price of 0.5x historic revenue, and 5x historic EBITDA. Says that bolt-on acquisitions, together with resumption of dividend underscores confidence of management, with buoyant markets and cost savings setting the stage for positive earnings surprises, assuming the dollar doesn't turn negative.

[bungo] 01/2/2006 21:51

LordGnome, I think ISYS is looking good for a decent break of 21p resistance. I hold that stock big time so hopefully I'm right.

[lordgnome] 01/2/2006 20:27

See my post 33 - errr... snap!
Ah well, can't be everywhere at once.

[bungo] 01/2/2006 15:49

Probably because I predicted the breakout but didnt buy back in!

[grigor] 01/2/2006 12:04

Breakout - Any special reason?

[tillman] 23/1/2006 08:59

that was certainly quite a nice rise on Fri (through resistance), esp. as it was a down day for the mkt. in general

I am hoping it wasn't a simple case of a broker upgrade etc

have been watching for a while now and the time might be here for a purchase...will see what happens today

[lordgnome] 22/1/2006 09:58

Bungo,
I still have ENO on my watch list. If they do come down with the market tomorrow then it could be a very advantageous time to buy. The breakout looked very strong. Director buying plus AGM coming up soon. The uptrend since 2003 looks set to continue.

[bungo] 22/1/2006 06:08

Well thats the break out I predicted but with US markets down so heavily on Friday it could be V hard to hang on to. However with Mcdonalds being a customer posting good results you could well hold worse than ENO.
PS I'm not a holder at present, however wish I was holding these rather than some of my other stock on Friday! ... good luck.

[bungo] 14/1/2006 22:58

Fid now sold down to around 4% and Capital buying up to over 10% now; IMO this has helped keep the price fairly flat. Reasonable Director buy this week which I think has increased confidence. I'm expecting a break out soon and considering buying back in although cant see a huge amount of upside on valuation grounds??

[bungo] 17/12/2005 14:38

Starting to look a litle more interesting; some big buys on Friday. I'm still out of these from 130p at present as I thought there was better potential elsewhere. Wouldnt be surprised to see some modest gains in the short term though.

[gucci] 23/11/2005 11:53

bvought at 124p yesterday
good buying opportunity
divi reinstated
nice set of results

[gucci] 04/10/2005 15:40

just luck gnome
reckon it had to go one way
;-)

[lordgnome] 03/10/2005 21:40

gucci, looks like you got it right.

[bungo] 28/9/2005 14:29

I sold at 130p back on 7 Sept ... just didnt want to be greedy, target was always 120p.

[lordgnome] 27/9/2005 13:28

Good luck gucci. I'll see you again elsewhere if not here.

[gucci] 27/9/2005 08:58

I've added today Gnome

divi on the way back

[lordgnome] 27/9/2005 08:19

Trading update is a litle lacklustre to say the least. I have cut these and may look to get back in if they drop much further. doesn't look very exciting at present.

[gucci] 27/9/2005 08:06

interesting drop

[lordgnome] 26/9/2005 17:53

Bouncing all over the place at the moment and struggling to make progress, but still in its uptrend. Results in November should see a resumption of the upward movement once the RNS is out announcing the date.