Laird Share Discussion Threads

[mj19] 03/12/2016 00:24

Laird(LSE: LRD) is unpopular with investors today as the global technology company has proposed a £185m rights issue and cancelled its dividend. Although trading has been in line with the update issued in October, Laird is seeking to bolster its financial firepower via a fundraising. While this could cause a degree of pain in the short run, could Laird eventually prove to be a sound buy?Underlying profit is expected to be around £50m for the full year, with the company's operational improvement programme on track. This will deliver annualised savings of at least $20m from 2018, with around $15m expected in 2017. This should help to improve Laird's financial performance and also aid its financial position.Encouragingly, the Wireless Systems division has been able to integrate Novero within the Connected Vehicle Solutions (CVS) business, which is expected to be profitable in 2017. However, the Performance Materials division still faces a difficult outlook and more work is needed in order to improve its financial performance.Limited headroomLaird expects net debt-to-EBITDA (earnings before interest, tax, depreciation and amortisation) to be within the group's covenant of 3.5 times for the full year. However, Laird's headroom is somewhat limited and so a rights issue to raise £185m seems to be a prudent option to take. This should provide Laird with a net debt-to-EBITDA ratio of between one and two over the medium term, which will allow the company to invest for future growth.In addition, the cancellation of 2016's final dividend may be disappointing in the short run. However, it should provide the company with greater financial strength through which to improve its performance. And with dividends due to return in 2017 at 33% of earnings, rising to 50% of earnings in the medium term, Laird remains a relatively appealing income play for patient investors.

[baronet] 02/12/2016 10:43

Looking more vulnerable to an opportunistic bid imho; that's assuming the assets are as good as we have been led to believe !!!! After the initial markdown.relatively large volume to the upside today.
I remain a buyer at this level.

[bakunin] 02/12/2016 09:31

Well, that will teach me to always do my homework.
At least I am in relatively close to the current price compared to the poor sods who were holding L-T in the 300-400 range.
I'm not sure I have ever seen a pre-announcement of a rights issue.
Perhaps they thought it would get leaked over the next couple of months and that the share price would just grind its way down on speculation.
Or maybe they now actually want a buyer and they are trying to flush them out?
Ditching the dividend is a way of making them a more attractive target (op profits go to paying down debt rather than distributed to current owners).
With the debt, the buyout value wasn't likely to be much more than £500m (meaning it would cost the buyer circa £800m: £500m equity + £300m or so of debt).
So, I was and still am building a position for the possibility that it gets offers in the 180 range.
As long as their markets have not deteriorated more badly than it would seem.

[sleveen] 02/12/2016 08:38

We've all done it EJ.

[stoxx67] 02/12/2016 08:21

yes indeed...

was tempted to take a position last few days as chart looked to be showing a little momentum and strength..

sure this company will bounce back later in 2017.

[salpara111] 02/12/2016 08:12

Hardly a great surprise but it is really tragic to see a quality company smashed to bits.

[bakunin] 25/11/2016 11:38

On board here really without checking out the financial situation too much, mainly because it used to be a market darling and has been courted before at much higher prices. I am told that they have substantial worldwide operating facilities.
And the pound being low is conducive to the likes of Laird getting taken out if there is nothing major wrong with a few delayed contracts due to the Samsung overheating and Apple slowdown. Pricing pressures get sorted out by industry consolidation. Can't see a couple of hundred million of debt being an issue for the bigger boys, especially when Laird was producing operating cash flow of almost a hundred million last year, there are newly-acquired assets that could be divested if not required and greater clout/integration than Laird would probably sort out the above commercial issues.

[declan2] 18/11/2016 17:08

Not a bad day at all :)

[gordo58] 18/11/2016 12:49

Up 5,7% :) Almost rocket territory for SH1984 ;)

[sh1984] 10/11/2016 16:18

Mini revival was great for the day - looks like its back to the usual downtrend

[cyberian] 10/11/2016 14:29

Appointment effective early January 2017 of Asian Non-Executive Director has helped sentiment today..he has loads of experience from many years at CITIC..LRD has 75% of its employees in Asia so bias understandable. Also another Non-Exec staying on for extra 4 months from scheduled departure to provide continuity after recent Director changes...good luck.

[thewisher] 10/11/2016 12:44

Index Rebalance Market Cap data cut-off:29 November 2016Only a short time for Lrd to jump back up before they are demoted from ftse 250 so expect another drop in share price

[sh1984] 10/11/2016 10:21

Told you Gordo 6% now

[sh1984] 10/11/2016 09:37

its happening now up 3% already, when was this last up 3%?

[gordo58] 10/11/2016 09:22

if its going to rocket, which I doubt, I wouldn't expect too much action until we get much closer to the ftse reshuffle date ;)

[sh1984] 10/11/2016 08:41

strong support at 133p

[sh1984] 10/11/2016 08:29

Big buys coming in today, market has realised shares are oversold, big re-rate coming this should rocket today

[gordo58] 09/11/2016 17:16

Well I am still hoping that 130 ish historical support will hold but looking at todays price action you could well be right :(

[blueball] 09/11/2016 15:49

Sadly I believe this could fall to 90p or lower.

[cyberian] 09/11/2016 15:44

Staying out in absence of any further comment from company...not encouraging, sadly.

[churchtower] 09/11/2016 15:04

My understanding is that a review of the constituents of FTSE 250 will take place on 7/12/2016. Price on 29/11/2016 will be the deciding factor. I would estimate that a Market Capitalisation of around 720m will be required to remain and as the present is about 356m the maths are easy and the result a foregone conclusion.

Best avoided not only for this reason but also worrying debt levels and the continuing uncertainty under the present poor management. CH.