Low & Bonar Share Discussion Threads

[exel] 25/3/2015 11:01

Thanks all - very good posts, esp. the AGM update, Ed, much appreciated. My take: Schroders are still progressively reducing here. Anyone got a view on that? Was it mentioned? This must be a major share price steadier 'till they reach 'whatever exposure level' that they might stick at? Now down to circa 13% last time I checked.... IMV - this share price will take quite a while to recover, the div is held/pegged (prob. maxed?), a PE of 10 is not excessively low, still slow pick-ups in Europe, Mid-East, and China (set-up costs?? a concern). Medium term, 3-5 years, this share price could double, but there may be some top-up opps in the meantime, at just below the current level. This is just my view, been in and out for a year or so. Would reconsider at 50p. ex

[losos] 25/3/2015 08:43

Ed123 - Another one here who appreciates your report. Everyone has there own 'plan' when it comes to investment. I will be holding for a while, only just bought and will pick up the divi and see how things are looking in July after next report. Good luck all of you.

[lateralam] 25/3/2015 08:23

Ed many thanks for the update, good work.TBH I'm not sure I can wait for the recovery. I'm still annoyed by last year's drop and the share price is now 40% less than it was this time last year. In fact at the time I was expecting we'd at least be over £1 by the end of the year. I paid 63p in Feb 2013 and should have been sensible and sold around 90p last year. 50% gain should have been enough for me... #greedygit! Unless we can clear 65 in the coming weeks, I'll be out I'm afraid. If anyone wants to try to convince me otherwise I'd love to hear a different perspective.

[ed 123] 24/3/2015 19:54

Agree that the IMS read slightly negatively. However, they say they're confident about meeting expectations for the full year. Share price up 2p today (relief response?) after falling about 5p (including 1.75p xd) in the week before the IMS. I see that N+1 Singer have reiterated their 'hold' recommendation and their target of 54p. Closed today at 57p, yielding about 4.7%.

I guess the market is waiting for clearer signs.

Last year was the first full year for L&B ownership of Texiplast, but half way through the year demand fell sharply. The directors say they are still confident that buying Texiplast was a good move. The other trading issue was the slow start up of the Saudi Arabian jv. Even today, the ims said, "sales development remains slow." Again, the directors sound confident that it's just a matter of time. Other parts of the Group are going well, so that compensates.

Metier9, Lateralam, rathkum and others. I read the annual report and trading statement ahead of the start of the meeting. Some of your concerns were already covered, so I didn't ask. For instance, 'impact of the weak Euro' was said in the ims to be balanced by strength of US dollar. Also, there's plenty written in the Annual Report on marketing strategy. Additionally, Brett Simpson stated more than once that they were moving to a more customer focussed, rather than product focussed marketing. Then, there's the question of debt. If we look back over the past five years, we see that the net gearing for the year ended 30 Nov 2014 was (just) the lowest of any the last five years. Also, in the Annual Report they again mention looking for bolt-on acquisitions - so not a sign that they want to lower debt. And, they cover net debt and re-financing in the Annual Report without stating any intention to reduce debt. To me, all the signs were that they were comfortable with their debt level and had no plans to reduce it, so I didn't ask.

It was a pleasant agm. I had already been informed there would not be a presentation. I like presenatations as they give management a chance to put their own emphasis on various aspects of the business. Caveat, though, that they could omit things which don't reflect well on them. They may do a presentation at next year's agm.

Overall, I think I'm with the market on this one. I'm holding while waiting for the next news (interims in July?) about Texiplast and the Saudi Arabian jv.

Hope that's some help.

[darlocst] 24/3/2015 08:26

Confident of meeting FY expectations (year end Nov) in March was good enough for me.

[exel] 24/3/2015 08:10

tend to agree re trading, puffin, but NED appointment positive? the story will need to improve for the capital markets event in May'15. bit concerned right now.

[puffintickler] 24/3/2015 07:46

Update out, curate's egg. Slightly negative tone overall imv.

[metier9] 23/3/2015 18:37

Thanks Ed123.

Lets just hope its the Herd getting scared before the update instead of the update being bad.

[losos] 23/3/2015 18:16

Nasty drop today, I suppose that means that something has 'leaked out' ahead of AGM tomorrow ha ha!!!

Ed123 sure would appreciate anything you care to write about the AGM when you get back to your 'puter.

[rathkum] 23/3/2015 12:21

The impact of a weak Euro is something I am concerned about.

[ed 123] 23/3/2015 11:53

Metier9 and Lateralam

Ok, will take your questions with me.

Looking at the share price slip ahead of tomorrow's trading update, I may have a question of my own. :-/

[lateralam] 20/3/2015 12:26

Ed 123. I'd like to know what markets they are seeking to expand into please. It seems there's a big market for the various products but they don't seem to be "aggressive" enough in pushing their superior technology. Be nice to know their marketing strategy for 2015/2016

[mattboxy] 19/3/2015 16:59

Thanks so not a bad day then. Hopefully tues will bring a good update and push us well into the 60's!!

[v11slr] 19/3/2015 14:35

Friday is the record day, ex-dividend is now the day before, used to be 2 days before until recently when the settlement was changed. Therefore, if you bought yesterday you get the dividend, if you buy today you don't.

[mattboxy] 19/3/2015 14:31

It was this that got me thinking it was tomorrow or do we both mean tomorrow is the first day trading ex doc as we haven't dropped much today for 1.75p div?The Directors have proposed a final dividend in respect of the financial year ended 30 November 2014 of 1.75 pence per share which will absorb an estimated £5.7m of shareholders' funds. This has not been provided for in these accounts because the dividend was proposed after the year end. If it is approved by shareholders at the Annual General Meeting of the Company on 24 March 2015, it will be paid on 16 April 2015 to Ordinary Shareholders who are on the register of members at close of business on 20 March 2015.

[v11slr] 19/3/2015 14:18

Today. Ex-div day is always Thursday now.

[mattboxy] 19/3/2015 14:09

Is ex div today or tomorrow??

[metier9] 19/3/2015 13:11

They are still growing but I would like to know what they plan to do with their debt. Finish building the factory in China then start paying down the debt?

[ed 123] 19/3/2015 11:25

Metier9

I spoke to the company. They will issue a trading update on Tuesday. There won't be a presentation at the AGM but there will be an opportunity to ask questions about the Annual Report.

Do you have any questions you'd like me to ask?

[metier9] 19/3/2015 10:28

Nope a bit far for me. Went ex-div today. I would be rather interested to hear what the new CEO has to say.

[ed 123] 19/3/2015 10:05

AGM on Tuesday.

Anyone going?

Anyone been to one before? Wondering what they're like. Would there be a presentation and chance to ask questions?

[mattboxy] 17/3/2015 23:12

Not sure what the chart says now? If it bounces could be good

[rathkum] 09/3/2015 00:23

Chart seems to indicate so.

[mattboxy] 06/3/2015 22:31

Is this a breakout we r seeing?