Renold Share Discussion Threads

[mmickyboy] 05/10/2012 08:30

TEP broke out on excellent trading statemnt.

This company is a typical example of what can happen with a recovery play once it gains momentum. I filled my boots @ 150-200p

I believe renold will turn itself around, but it will take time, you have to be patient and not listen to scaremongers.

Im sure there will be downgrades as most brokers have rno on buy lists @ 50p, but i wouldn't expect share price downgrades south of 20p.

dyor

[mmickyboy] 05/10/2012 08:16

Whilst waiting for RNO

TEP going for a breakout, take a look.

DYOR and stay lucky

[simon templar qc] 04/10/2012 15:59

Bound to be a downgrade as "profits are expected to be substantially lower"!

[drewz] 04/10/2012 15:51

Hard to believe that a company with RNO's pedigree won't recover in due course. But when to buy?

Have had this on my 'recovery play' watchlist for a month but fortuitously avoided hitting the BUY button this week.

In hock to the banks (to a degree) and underwater with their pension liabilities, yet a distinctive niche engineer with a strong market presence. Hmmmm.

Renold hammered after profit warning
Thu 04 Oct 2012

RNO - Renold

Latest Prices
Name Price %
Renold 20.25p -23.58%

LONDON (SHARECAST) - Engineering firm Renold is to take the axe to its cost base once again after issuing a profit warning.

The board has made a good start with the refinancing of is main bank facilities, which will bring in an immediate reduction in borrowing margins of 1.25 - 1.50 percentage points, with scope for further savings as gearing reduces.

However, the net impact of weaker demand has led the board to conclude that adjusted operating profit for the current financial year, ending March 31st 2013, will be "significantly below current market expectations and last year's result".

Renold says that despite lower sales, the forecast cash flow for the year is unchanged due to further improvements in working capital ratios and careful management of other cash flows.

The new banking facility is for four years, maturing in October 2016 and comprises a £41m multi-currency revolving credit facility with an additional £8m of ancillary loans. They have been provided by a banking group comprising Lloyds TSB and Svenska Handelsbanken.

The main covenants are the net debt/earnings before interest, tax, depreciation and amortisation (EBITDA) ratio, which has been set at a maximum of 2.5 times until maturity, and EBITDA/interest cover, which is required to be greater than 4 times until maturity.

Renold will announce its interim results for the half year ended September 30th 2012 on Tuesday, November 20th 2012.

Not surprisingly, broker finnCap expects to change its forecasts for the current year based on the latest trading update, but wants to talk to management before doing so.

"As previously signalled, weaker demand conditions in Europe are affecting the group's sales in this area. The Americas continue to see year-on-year growth (although we suspect the growth rate may well be slipping there also)," speculates finnCap's David Buxton.

"The group has once again illustrated how cyclical its markets are and furthermore just how operationally geared they are to changes in demand. The shares will clearly see significant weakness on the back of this announcement. The shares have recently been decent performers albeit off a low base. We
place our rating under review," Buxton said.

[mmickyboy] 04/10/2012 14:30

Simon

A paper reports because it receives revenue for the papers it sells when people buy the papers and read the news.
My question was why are you following RNO if you have no intention of buying or going short in the future? I ask myself are you looking for a pat on the back?

Im watching a lot of companies and have some good holdings doing very well SIV, SCPA, TEP, WMH to name but a few, but if i have no interest in a share i don,t post as its time consuming and have other things to do.

I rate RNO no more than a hold and they do seem to have support @ 20p ish.

Stay lucky

[mmickyboy] 04/10/2012 09:53

Renold is a global leader in the manufacture of industrial chains and also manufactures a range of torque transmission products which are sold throughout the world to a broad range of original equipment manufacturers and distributors. The Company has a well deserved reputation for quality that is recognised worldwide. Its products are used in a wide variety of industries including manufacturing, transportation, energy, steel and mining.
Further information about Renold can be found on their website at: www.renold.com

[simon templar qc] 04/10/2012 09:43

micky,

I watch many stocks this has been on my monitor for a long time. You could say why does a paper report as it does if they dont hold the stocks!

Zeus,

We seem to agree.

[zeuseq] 04/10/2012 09:41

3rd warning will see share price fall to nav minus intangibles = 10p.

[zeuseq] 04/10/2012 09:40

So there is a pension deficit of £45.2m which is similar to the mkt cap, does not bode well with a third profit warning most likely otw.

[mmickyboy] 04/10/2012 09:16

Simon

Don't be sorry, i have to agree, but i got caught on the bounce in Aug, you have to take some risks and thought they were oversold and still do, so i will be holding for now as im involved but probly won,t be averaging down this time.

Done well on TNI recently, pleased i averaged on them.

If i can just ask you a question tho Simon. Why are you posting on here de ramping so to speak if your not short and you don't hold?. I don,t understand?

Stay Lucky

[simon templar qc] 04/10/2012 09:10

"roddiemac2
4 Oct'12 - 08:51 - 1102 of 1103


Yawn
"

That is the problem investors need to be alert ALL THE TIME!

[jordon] 04/10/2012 08:53

When will the aging Board of Directors take the decision to replace the failing CEO Robert Davies. This was another delayed profit warning to some extent a downgrade on the last business update. The declining situation required action not more waffle from an incompetent management. Are the BOD all mates and happy to sit around the table and take thier remuneration for no apparent oversight of performancee?. The new Chairman should stir himself to ensure a change occurs.

[simon templar qc] 04/10/2012 08:26

No! Sorry about all this but the warning signs were clear to see. That is two profit warnings now and its possible you will see another due to weakening economic outlook.

[mmickyboy] 04/10/2012 08:18

Are you short Simon ?

[simon templar qc] 04/10/2012 08:13

"roddiemac2
14 Aug'12 - 13:14 - 1076 of 1098


"He is right about one thing and that is the borrowings and large pension deficit will hold back this company if not pull it under if they cannot reduce both."---We have all known that for the last two years. The risk is obvious. It is a risk I am prepared to take."

"if not pull it under" !

[simon templar qc] 04/10/2012 08:10

Didn't rodiemac say he thought this was a "good company"! What about the massive pension deficit little mention as to whether that has gotten worse!

This is a very bad statement. Reminds me of MRX lately they put new bank facilities in place but it didn't stop the rot!

[simon templar qc] 04/10/2012 08:01

Oh dear I did warn!!!!

"Trading Update

In its Interim Management Statement of 2 August 2012, the Company commented on weaker demand, especially in many European markets, as a result of ongoing macro economic volatility. Whilst the Americas continued to show year on year growth in the six month period to 30 September 2012, the overall weakness in demand has continued. This has resulted in first half sales down approximately 6% compared to the same period in the prior year. Adjusted operating profit in the first half of the financial year is therefore expected to be substantially below the result in the first half of the prior year. "

Profits substantialy down!

[simon templar qc] 30/8/2012 18:31

This is what the so called wise one has been saying on another thread...

roddiemac2
29 Aug'12 - 22:49 - 898 of 898


Asking ST to be measured in what he writes is futile.One moment he thinks he is Al Capone ,or one of the Kray twins - " very few people get the better of me "-, the next he is a lay preacher.

He is so far up himself , he can`t see out to type.

On the twelfth day of Christmas my truelove said to me
twelve drummers drumming
eleven pipers piping
ten lords a leaping = " leapords " ?

................

The current share price speaks volumes!



No drummers drumming here and no leapords leaping!!!!

[simon templar qc] 20/8/2012 14:09

Its doing you a fat lot of good here!

If you had have researched this dog properly you would have avoided it.



The odds are you would have had a better chance blindfolded and then sticking a pin in the FT

[roddiemac2] 18/8/2012 17:44

"Your attempts to blame bulletin board posters just shows how unscrupulous you are"
Simon, nobody, least of all me , is blaming bulletin board posters for the slide in CML`s share price . Your capacity to misunderstand everything everyone says seems to know no bounds.

You have been exposed.

[roddiemac2] 18/8/2012 17:34

Simon T , Take a breath, and read slowly. You are becoming deranged.You are deliberately drawing attention from my main point, which is this,----The reason I posted about CML was to illustrate that you had adopted the devious and dishonest practice of posting under several nicknames , on one discussion.

PEOPLE WHO POST AS DESCRIBED ABOVE SHOULD BE NEITHER TRUSTED OR LISTENED TO.
Please do not try to draw a smoke screen over this issue

The fact that you also totally misunderstood that it was just a matter of time before the company started to reap the rewards of years of research and development is a side issue , but illustrates your short sightedness.