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Real-Time news about Filtrona (London Stock Exchange): 0 recent articles
|werty5: IMS did not move the share price could be because stock has held up quite well in the recent market down turn. Could be 101 things who knows? still a cracking share imho.|
|bluebelle: Colin Day, chief executive of Filtrona, reluctantly accepts that his £1.3 billion company is a type of conglomerate. When such beasts as Hanson Trust and Williams Holdings last stalked the corporate jungle, they were indeed collections of seemingly unconnected businesses; Filtrona contains within it a maker of cigarette filters and one providing labels on drugs and healthcare products, and again, it is hard to see much connection between these.
However, making cigarette filters is a strongly defensive business, as is making cigarettes themselves, and provides excellent cashflow, from a market growing at 11 to 12 per cent a year, as Filtrona wins market share and smokers in emerging territories switch to more sophisticated brands.
The market supplying pharmaceutical products is likewise growing by 8 or 9 per cent a year, driven by the usual demographics: an ageing population and more sophisticated healthcare in those emerging markets. Regulation is increasing the amount of information consumers must be given.
Mr Day says Filtrona, spun out of Bunzl when the latter decided to devote itself purely to distribution, is in essence a maker of foam, fibre, filter and plastic products that are high volume, relatively low value, and essential.
He has placed a further bet on those pharmaceuticals markets with the £160 million purchase from private equity of Contego Healthcare, a UK company that provides print and packaging. This is the biggest deal so far for a business more inclined to small bolt-ons and is funded by means of a placing of new shares equivalent to almost 10 per cent of the issued share capital.
Filtrona had tended to fund smaller deals out of debt but had always made it clear that anything significant would be funded by fresh equity. The market had no qualms; the placing went through without a hitch at 675p, a premium to the price in the market at the time, and Filtrona shares ended 28p ahead at 690½p.
The business being acquired has lower margins than the division it is joining, there are plenty of cost savings available, and Contego products can be sold to Filtrona's existing customers and vice-versa. It looks like a textbook deal.
Filtrona has ambitious plans but is already just short of a share price target set only two years ago. The shares sell on almost 19 times this year's earnings, which looks high, but farther progress looks assured in due course. Buy on any weakness.|
|werty5: Fundamentals look good for Filtrona. Also looking at the weekly chart MACD Histogram looks like it is just entering a new trend ticking upward and EMA based on a 26 week (half year) also trending higher, so share price looks set to rise for a little while yet, with luck.|
A third quarter trading update that was merely in line with expectations was a cue for a round of profit taking in Filtrona, the international supplier of speciality plastic and fibre products.
Panmure Gordon thinks that with the shares closing last night at a 52-week high of 259p the stock is no longer worth buying, though that view was expressed before the market knocked more than 5% off the share price in the morning session.
Panmure Gordon switches its stance from "buy" to "hold" but maintains its 274p price target after the company achieved slightly better overall growth in the third quarter than the broker was expecting.
The broker notes, however, that "there are a number of issues within the mix."
These include a cautionary note on growth in the porous technologies division in the fourth quarter as a result of overstocking by its largest customers, and cigarette tax changes in Japan bringing filter orders forwards into the third quarter.
The broker's full year expectations remain unchanged though it has fiddled around with the forecast margins of the group's various divisions.
"We believe Filtrona continues to make significant progress, though as is always the case it may pay not to get too carried away too far in advance," the broker said.|
|cockneyrebel: It was undoubtedly a good day for investors in Filtrona yesterday as the group surprised the City by saying it was doing better than expected. The dividend yield alone justifies a buy recommendation and yesterday's share price jump shows that Filtrona is now on the market's radar. The case for buying shares in Filtrona is compelling and investors should fill their boots. Buy, says the Independent.|
|conan the trader: I saw a decent write-up on Filtrona in the Telegraph a few days ago, so was is the share price falling for the 6th successive month?|
Filtrona share price data is direct from the London Stock Exchange