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Norcros Share Discussion Threads
Showing 2826 to 2850 of 2850 messages
|Thanks both of you. Interesting and informative!|
|Thank you Andrew. The quick and detailed response to your letter is consistent with my experience - whenever I ask them a question, they just answer it. In this sense, I feel I have nothing to complain about re communications, same as I feel I have nothing to complain about re remuneration. But yes there may be a problem of perception.|
|Hello Charlie. I wrote to the Chairman directly at Norcros' head office in Wilmslow on October 4th 2016 and received a detailed letter in response on October 11th 2016.
I wrote the letter out of concern that the CE's share sale was being misinterpreted by the market and pushing the share price down to a three year low. I mistakenly complained about 50% of the CE's bonus being paid in shares, suggesting that there was no point if they were just going to be sold straight away - it was a mistaken complaint because I now realise that the shares are deferred for three years (which seems to me a good way to incentivise management to act in ways that will increase the share price in the medium term). I asked the Chairman to urgently arrange for the company to issue a statement addressing the share sale before it created a greater loss of confidence in the share price. It probably didn't play any role in the trading statement that was issued a few days later, but all the same it's encouraging that management are trying to take steps to reassure the market. The Chairman seems confident that the expansion strategy will lift the share price in time and it's encouraging that sales are up, debt is falling and profits are on target.
He finished the letter by offering me a meeting with him and the CE (I also own quite a lot of shares). I don't think I'll take the offer up, but his willingness to offer it shows some confidence.
I think Norcros is well run (the year on year increase in profits and dividends, the significant cash generation, and the successful intergration of new businesses shows that), but I do wonder whether communications with the market could be improved.|
|Andrew did you write direct to the chairman or via management? If direct what address did you use for the chairman? Can you put it up here and then edit...or you can send me a personal message through the site (click on my username).
At the moment I'm probably not going to write, but I am in two minds about this.
I have always thought, and still think, the CEO remuneration is reasonable. Not exactly low, but reasonable for a job well done - and on most financial metrics - except pension funding and share price, which are largely uncontrollable in the short term - it has been a job well done. I have voted for the Remuneration Report each year, as did 99.9% of votes cast (and I have enough shares that they would definitely notice if I voted against).
BUT it bothers me considerably that there is an increasing drumbeat of criticism of "greedy" management, and perhaps people selling or refusing to invest because of this belief. I don't agree with the criticism, but the perception is a problem.|
|Cheers Andrew. I think it is a bit unfair to expect a CEO to put too many company eggs in his basket. Even directors have to use some level of risk management with their investments! But I agree it looks good to see a reasonable and somewhat increasing holding. I've seen worse.|
|Useful post thanks Andrew.|
|ok thank you for that andrew - very informative. i suppose that explains why he doesn`t actually buy any shares. however i must say that i would feel rather more encouraged to keep my holding or add to it if the directors were buying some at this point ...
|I wrote to the Chairman a couple of weeks ago about the CE's share sale and having received his response the matter is rather different to what I thought it was.
It's true that the CE sold all of the shares that he received a couple of weeks ago, but:
(i) Half of his annual bonus is paid in shares;
(ii) That part of the bonus paid in shares is deferred for three years;
(iii) The shares he sold a couple of weeks formed his 2013 bonus for performance in 2012/13; and
(iv) By deferring the shares for three years the CE has an incentive to what he can to increase the share price as if he's successful his bonus will be greater, whereas if the price falls in those three years so will the amount of his bonus.
It's not wholly correct that the CE always cashes in shares - last year he sold half, but explained that he did so in order to pay the tax that fell due on them (something which seems to be quite common).
The Chairman also reminded me that Norcros' Remuneration Committee has an objective that its directors own at least a year's salary worth of shares (the CE owns 1.3% of the company so exceeds that requirement). The new finance director has been purchasing shares this year.|
|certainly unloved atm.
looking at the directors deals it seems that the ceo always cashes in his options - also i cant see any buys from him for several years - does not exactly promote confidence in the company that he runs ....
|Bid now taken down to 1.37Keeps dripping.|
|Personally I am not worried about the share price, what I am happy to see is a YOY increase in the dividend which so far seems to be the case at Norcros.
As Edison are estimating a dividend of 7p for 2017 and 7.5p for 2018.|
|Research not out from Edison:
|That's what I thought at £2+|
|These look way over sold to me.|
|There's a further buy recommendation in the IC: www.investorschronicle.co.uk/2016/10/11/shares/news-and-analysis/news-tips-mccarthy-stone-n-brown-victrex-more-O1Z0LV9Ll24iFRTJ7d6vQK/article.html|
|For those not entrenched in cynicism this might seem a good price to buy or add.
I did anyway; I think that update will be followed by decent results and a solid dividend. Historically at 6.6p that dividend represents as yield about 4.5%.|
|Some positive analysis here: www.stockopedia.com/content/small-cap-value-report-11-oct-2016-nxr-153866/|
|Numis have reconfirmed their buy rating for Norcros and their target price remains 300p: www.webbreakingnews.com/2016/10/11/norcros-plc-nxr-stock-rating-reaffirmed-by-numis-securities-ltd.html|
|I reckon these are gonna get hit with brexit.Well the markets seem to think so.|
|Norcros mentioned in their annual report that they are aiming with there expansion to have 50% of revenues from outside the UK.|
|Good number crunching Andrew. Of course change in turnover and profit will be the same only if the the margins are the same, but it looks good for this year at least.|
|I've just checked the Pound to South African Rand exchange rate and it's currently £1 to ZAR17.20.
On May 18th 2016, when the £ peaked, it was £1 to ZAR23.18.
To put those figures into context, last year the South African business's turnover was ZAR1,496. At an exchange rate of 1 to 23.18, that would equate to £64.5 million; and at 1 to 17.20 it equates to £86.97 million.
Although the company accounts give South African turnover in ZAR, they don't give profits in ZAR. However, they do give them in £s (£4.1 million) and they give the average exchange rate for accounting period (1 to 20.5), so it is possible to work profits out as ZAR84.05.
With an exchange rate at 1 to 17.20, those profits increase to £4.88 million even without taking account of the improvements in the business so far this year (revenue was up 18.5% in the first 13 weeks), whereas with 1 to 23.18 they would have decreased to £3.6 million.
So quite apart from how any fall in the pound will increase UK exports, it looks as though it should boost South African profits.|
|Down nearly 3% today on some sells.Still firmly in downtrend.Better opps elsewhere.|
|It would take a severe recession to send the share price below a pound.
The share price will recover in early November when the interim results are announced.
Although it was foolish of the Chief Executive to sell his full share award last week, trading must at least remain in line with the announcement given at the AGM as otherwise he would be in danger of insider trading.|
|Lower lows.That's not a very good move at all.Without the divi this would be sub £1.00.Looks to be fixed firmly in downtrend and most likely sub 1.00 will happen short term.|