GKN Share Discussion Threads

[davdreamer] 17/9/2014 10:35

All we need on here now posting is Monty, and we will be on a roll.

[bigbertie] 15/9/2014 09:59

Great - I'm holding a shedload of these!

[cockneyrebel] 12/9/2014 07:08

* BARCLAYS RAISES GKN TO OVERWEIGHT FROM EQUALWEIGHT - PRICE TARGET TO 440 (327) PENCE

[cockneyrebel] 12/9/2014 07:08

* BARCLAYS RAISES GKN TO OVERWEIGHT FROM EQUALWEIGHT - PRICE TARGET TO 440 (327) PENCE

[cockneyrebel] 10/9/2014 12:34

Weak £ will do GKN the world of good imo.

CR

[valedo] 03/9/2014 09:13

Shares in GKN, a business that this column has championed, have not shared in the small rally among industrials and engineering stocks over the past month, a note from Espiritu Santo points out. This seems to be the result of concerns over Russia and China, but these look overdone. Currency headwinds, the main concern of late, have moderated, as I keep pointing out. GKN trades on a 27 per cent discount to UK industrials, which looks too great, given that prospects for growth are better than most of its peers.
Tempus in todays Times.

[valedo] 30/7/2014 14:10

The halfway dividend is up by 8 per cent to 2.8p, though the rise for the year as a whole will be nearer 6 per cent. The shares added 23p to 366p. At this level they sell on 14 times this year's earnings and yield a little more than 2 per cent.

Those multiples do not look especially cheap and further immediate gains may be limited. Those currency headwinds will one day drop away, htough, and GKN is well poised to grow sales sharply. The shares remain a core long-term hold.

My advice Strong hold
Why GKN is performing well in its core markets and is set for strong growth, while currency effects will eventually drop out
Tempus in todays Times

[tiptv1] 29/7/2014 12:21

Zak Mir live Charting on TipTV offering a technical view on GKN (GKN.L) - See more at:

[broadwood] 29/7/2014 09:57

Numis Securities has lifted its recommendation for aerospace and automotive engineer GKN from 'add' to 'buy', after the company "plough[ed] through the currency headwinds" in its first half.

The broker said that GKN achieved a "solid first half in line with expectations" with adjusted pre-tax profit rising 6% to £296m. Meanwhile, organic growth of 6% was "positive for this large and diversified group".

Numis said that the Driveline division performed well, along with Powder Metallurgy and Aerospace, but Land Systems remains weak.

It says that the shares "look attractive", trading at 13.1 times 2014 estimated earnings - a discount to the wider sector multiple of 16.

"The shares have underperformed the UK Engineering sector in 2014 reflecting downgrades from currencies and Land Systems division.

"No further changes to forecasts today and with currencies now appearing to have stabilised attention can move back to underlying value and prospects."

Despite the rating upgrade, Numis kept a 435p target price for the stock, saying that positive updates on third-quarter trading will be needed "before we see much upward traction".

[philo124] 29/7/2014 08:42

Canaccord 500p reiteration.

[philo124] 29/7/2014 08:12

Up! Good oh!

[broadwood] 29/7/2014 07:43

GKN reports profit before tax (management basis) of £296m for the six months to the end of June - up 6% on last time.

GKN said £24m of adverse currency this half offset restructuring costs of £25m in the first half of 2013.

Sales increased 6% organically, but 1% lower after £247m currency translation impact and the trading margin improved 60bps to 8.9%.

Reported profit before tax was £224m (2013: £127m) and the interim dividend is up 8% to 2.8 pence per share (up 6% on a normally weighted basis).

Chief executive Nigel Stein said: "This is another good performance, particularly in GKN Driveline which delivered 11% organic sales growth. We have continued to outperform our key markets and report good underlying financial results in spite of sterling's strength and some end market weakness - we expect these trends to be maintained in the second half. GKN is continuing to make encouraging progress against its strategy."

[18bt] 29/7/2014 07:40

Good performance from Driveline - fundamentals still good there. Currencies go up and down so not too worried provided underlying still strong.

[philo124] 29/7/2014 07:22

24 mill currency impact. "offsetting" should say compared with. How can a exceptional (charge) item in one year be "offset" by an exceptional (charge) item in another year? Sloppy use of English.

[philo124] 27/7/2014 11:09

This will reverse over next 12 months.

[valedo] 27/7/2014 10:38

The strong £ is the enemy here. I continue to hold though , half year results on tuesday 29th.

Strong pound batters British blue chips -
The defence sector is also taking a big knock from sterling. BAE Systems is expected to report half-year profits down more than 10% this week, with currency movements shaving 1% to 2% off its full-year earnings, according to Investec. GKN is expected to report a similar hit.

hxxp://www.thesundaytimes.co.uk/sto/business/Economy/article1439097.ece

[philo124] 22/7/2014 10:00

Topped up this morning- SIPP.

[battyliveson] 10/7/2014 16:30

At 3.50 this seems like a reasonable risk reward as it hovers between here and 4.00. I expect $rate not helping but a sound company has good operating cash-flow. I have used a spread bet with a stop. Keeping away from more volatile stocks in short term.

[philo124] 16/5/2014 12:16

There are a few CR.

[cockneyrebel] 16/5/2014 11:00

Chart falling over imo

CR

[valedo] 03/5/2014 11:37

Times Money examines some of the sectors and the stocks that look best-placed to benefit from the market's current position in the recovery.

Automotive manufacturers

Vehicle sales are up, both in the UK and around the world, with increasing demand for luxury models in the US and Germany in particular. Another area likely to flourish is the market for low-emissions vehicles. It is difficult to gain direct exposure because there are no big quoted UK car manufacturers, but investors still have a few options.

GKN has two main businesses that are closely linked to vehicle production. Driveline makes the machinery that helps to propel vehicles, such as four-wheel-drive systems, while another division makes a range of components for the vehicle industry. Paul Kavanagh, of Killik & Co, the stockbroker, says: "The shares offer direct exposure to growing automobile production as a result of rising demand from an emerging market middle class and from customers in developed markets as economic conditions recover."

Linde supplies gases to the vehicle industry and is involved in the provision of cleaner fuels and the expansion of renewable energy. Mr Kavanagh says: "It is well placed to benefit from increasingly strict environmental legislation on emissions."

[ansmith272] 16/4/2014 21:40

cheers Valedo, interesting article.
Specifically the point about the currency affects not being as bad as they look. why does the strong sterling seem to affect GKN so much?
Is this bad management, should they have down something to offset this or it just part of normal buisness.