Fenner Share Discussion Threads

[lauders] 05/3/2017 07:05

FENR dividend due this Thursday:

[thorpematt] 01/3/2017 21:03

Not a sell on any level at this juncture IMO. All the momentum is on the buy side.

Cannot advise as regards portfolios and strategies of others because that's an idividual choice/ set of rules but generally speaking this is a winner that you run.

Ben Graham used to sell half his holdings once they doubled...but he was a value investor purely so there was some sense in that. Cyclicals such as these really don't follow valuation methodology. Momentum is where it's at here (IMO, DYOR and all that).

[bouleversee] 24/2/2017 14:37

I'm thinking of doing the opposite.

[jitters3] 24/2/2017 14:09

Directors bought 28k shares at 296 p recently undecided whether to sell after a great run

[lauders] 27/1/2017 01:46

Think no dice has his/her finger pretty much on the pulse there. FENR lost a lot of cred and value when the miners tanked. Now that things are improving and they have been applying a lot of cost-cutting measures during the tough times things are rosier again. They also have the medical side which has been consistently strong, although a small part of the overall business. They used to pay a good dividend, but the cost-cutting literally cut that back. Perhaps improved sentiment and hopefully profits will increase the dividend again. Anyway, I wish I bought more than I did now!

[no dice] 26/1/2017 20:09

I put it down to a switch in sentiment towards the commodity sector, beginning early 2016. Just look at the charts for Anglo or Rio - they pretty much mirror what you see here.

[meijiman] 26/1/2017 13:03

And it continues to go higher. There must be huge operational gearing here so any higher volumes will kick in nicely to the bottom line. Metals prices doing well. Coal less so but belts don't last forever.

[cc2014] 18/1/2017 13:07

And Mr. Ducey buying shares now £50k worth. Not a small sum. Very interesting indeed

[meijiman] 12/1/2017 14:23

Well in my view you have improving fundamentals plus possible corporate things. The most obvious is the separation of the two businesses -who knows? Fenner is quite well understood in the USA by reason of its business(es)- also most of its debt is US private placement-think $ denominated.

[cc2014] 12/1/2017 13:53

It is all very strange and the price continues to go up on very little volume which is strange in itself.

[meijiman] 12/1/2017 08:54

Well I've got no more idea of what might happen than the next man. But have a read of the RNS from 20th Dec. That was about the appointment of Vanda Murray as Chairman and also said the company strongly opposed the appointment of Mr Ducey (think that's his name).
So the next RNS with Murray in charge says the company welcomes Mr Ducey and praises his skillset.
There are definitely a few things going on here.

[cc2014] 11/1/2017 21:58

Interesting. I hadn't spotted that. Ty. I am a little surprised that 6% gets you a non-exec appointment and the wording of the RNS seems a little strained "the board has determined..."

I was struggling a bit with whether to sell or not. Part of my reasoning was the rise on so little volume. It felt artificial. I bought at 195 and have had some dividends on the way down before selling out for 285. I am struggling to understand what is fundamentally not in the public domain which wasn't reasonably obvious over a decent time frame when the price was 100. (apart from the exchange rate)

Mind you it's the same with lots of stocks at the moment. I own Weir as well which is kind of similar. It's more than doubled in price as well and I've sold a third of my holding in that as well this week.

[meijiman] 11/1/2017 19:05

I think that move was unwise. Mr Dacey? Darcey ?of Teleios Capital goes onto the Board and today Teleios buys more shares. This new bird at the top seems to be calling the shots.

[cc2014] 11/1/2017 18:39

I sold mine today at 285.5. I think it's getting overbought for the moment. I would probably buy back in 10% lower if I get the chance

[3rd eye] 06/1/2017 12:04

Full broker notes for FENR Fenner.

NUMIS.......

Update. Company reports that results will be ‘comfortably ahead’ of previous guidance citing progress in all businesses. This is being driven primarily from the cost actions and sales efforts (e.g. into industrial and aggregates markets in the US) rather than any significant changes in end markets. ECS - US coal seeing some increase in activity note that coal production is up c40% from spring 2016 lows albeit remaining at historically low levels. Key actions taken in America, particularly on the cost front, appear to be gaining good traction. Australia is ahead of the previous year despite order levels being flat as miners focus on costs even as commodity prices improve. We note Rio recently announced their 2017 capex budget including increase Australia investment. AEP is seeing some upside at CDI as the rig count improves and Hallitte seals business benefiting from internal actions. Overall therefore the group is benefiting from internal actions and the lack of negative operational gearing / first shoots of a recovery suggesting that the positive impact of operational gearing is still to come as commodity markets improve.

Peel Hunt

AEP is seeing an improving trend in order intake and customer
enquiries in Oil & Gas, reflecting its strengthening market
position and a further rise in the US rig count. The Medical
businesses are performing well and in line with expectations.
ECS – some increase in order intake in North America, from
very low levels. Outlook – whilst market conditions remain
similar to November, the group is enjoying market share gains.
As a consequence, the Board envisages that the Group's results
for the current financial year will be comfortably above previous
expectations. Forecasts: We expect to increase our August 2017
PBT by c10% to £34m (12.8p). The group is clearly now on an
upward trajectory and we anticipate more material upgrades for
FY2018E as the key end markets continue to recover, enhanced
by further market share gains. On our indicative forecasts, the
shares are trading on an August 2017 PER of 18.5x, falling to
15x August 2018 & 1.3% yield. We are increasing our target
price to 300p and upgrade our recommendation to Buy.

[3rd eye] 06/1/2017 10:45

FENR Fenner 2 Broker UPGRADES....

Fenner PLC FENR Numis Hold 268.63 236.50 - 250.00 Upgrades
Fenner PLC FENR Peel Hunt Buy 268.63 236.50 260.00 300.00 Upgrades
Fenner PLC FENR finnCap Buy 268.63 236.50 300.00 300.00 Reiterates

[lauders] 06/1/2017 09:35

I would hold and intend to do so for a while. Looks like more upside from here. Posted this earlier on the wrong FENR thread/board. Wondered why I had filtered everyone over there ;-)

Nice reaction to the trading update ;-) Onwards and upwards over the next few weeks and months as mining sentiment improves hopefully!

[cc2014] 06/1/2017 08:56

Hurrah. Not sure what to do now. Am very tempted to sell my holding.

[lauders] 06/1/2017 08:32

Nice reaction to the trading update ;-) Onwards and upwards over the next few weeks and months as mining sentiment improves hopefully!

[3rd eye] 06/1/2017 08:28

Strong results from FENR Fenner........

Outlook

Whilst market conditions remain similar to those reflected in our November statement, we are performing well and gaining traction from market share gains and from our refocusing of the businesses. As a consequence, the Board envisages that the Group's results for the current financial year will be comfortably above previous expectations.



Business Summary

Logo Fenner plcManufactures and distributes conveyor belting and reinforced precision polymer products

Fenner Plc is a polymer technology company, which manufactures and distributes conveyor belting and reinforced precision polymer products.

It operates through the Engineered Conveyor Solutions and Advanced Engineered Products segments.

The Engineered Conveyor Solutions segment manufactures rubber ply, solid woven and steel cord conveyor belting for mining, power generation and industrial applications.

The Advanced Engineered Products segment manufactures precision polymer products including precision drives for computer peripherals, copiers and ATMs; problem solving power transmission and motion transfer components; silicone and complex hoses for heavy duty trucks, buses and off road vehicles; seals and sealing solutions for the fluid power and oil and gas industries; technical textiles for medical and industrial applications and silicone based products for medical applications; rollers for digital image processing and medical diagnostics; and fluropolymer components for fluid and gas handling.

The company was founded by Joseph Henry Fenner in 1861 and is headquartered in Hessle, the United Kingdom.

Number of employees : 4 530 persons.

Valuation 2017e 2018e

P/E ratio (Price / EPS) 70,2x 36,9x
Capitalization / Revenue 0,74x 0,72x
EV / Revenue 0,97x 0,90x
EV / EBITDA 8,74x 7,73x
Yield (DPS / Price) 1,38% 1,55%
Price to book (Price / BVPS) 1,70x 1,68x

[meijiman] 28/12/2016 12:25

Clearly there are major ongoing developments at Fenner.You need to read the various RNSs over the past month and have some understanding of how this company operates.
I wonder if the company will be independent in a year? My bet is that it might usefully be split into two companies-but maybe I'm talking to myself!
The company seems to have been run as a personal fiefdom (albeit very effectively)-maybe under the new Chairman there may be changes-who knows.

[meijiman] 16/12/2016 08:35

Inocuous looking RNS but on a re-read it might be more interesting in the longer term direction of this company. Any views? Wonder if he will get a non-exec role?

[lauders] 08/12/2016 12:00

The next leg up by the looks of things! If we can keep this momentum up it will be lovely :-)