Smiths Share Discussion Threads

[penycae] 10/2/2006 14:22

shuisky - yes I think so. This was an easy target following the sharp rise on the trading statement. It's not a "glam" stock, and can be pretty defenceless to a bear raid. When volume picks up though it tends to swing nicely. I am expecting the same pattern following the results.

[benson] 10/2/2006 12:23

Credit Suisse have given it an 'outperform' rating - hence the rise.

Big volume today - 3 million in first hour.

[shuisky] 10/2/2006 09:54

Penycae, in your opinion, is today's rise due to short covering?

[broadwood] 10/2/2006 09:05

Totally unjustified fall in my view - so I'm in.

[penycae] 09/2/2006 16:10

3.4% on loan.

[john3419] 09/2/2006 15:29

Dont think this is just profit-taking - what profit?
In a strong market this fall alarms me as it seems to be without reason.
Anyone got any insight or are headed back to where we were a year ago????

[penycae] 09/2/2006 13:42

Strange people these anal-ists.CSFB and Merril both positive last month, even before trading update. Now we have the opposite view. Suppose it all depends on how cheaply they want to get Clients in before results, or is that too cynical? I am adding on any weakness,looking to build a decent position.

[shuisky] 08/2/2006 14:02

Citigroup downgrades to hold from buy...



The Medex acquisition was questioned at the time by the City, but is now viewed as a success. The company deserves recognition for having the foresight to buy a US co when the pound was stronger. The trading statement affirmed double digit growth for the Medical division.

The 'concern' over the performance of Aerospace is classical city short termism. In other words, let's extrapolate from one period's performance. The point I'm trying to make is borne out if you look at Hampson (Aerospace), Umeci (Aerospace) and Senior (Aerospace). They have all recently had rights issues or placings in order to acquire comnpanies. Similarly, they are all sacrificing short term profitability in order to R & D fo growth markets. That's what co's in growth markets like civil aviation do. They take our money and invest it to generate a higher return then we could ourselves. That's why we give them our money instead of holding it ourselves.

Frankly, I'd be very worried if any of these companies missed out on a growth opportunity when it came their way. But of course, a lot of people in the City don't react that way. They see one set of numbers, margins trimmed at Aerospace due to development costs, and then conclude that the stock now has extra 'risk'.

If you are in industries with strong end markets you should invest in order to generate future cash flows. SMIN isn't a utility company.

As for the issue of margins. Let's go back to the finals...

Operatring profit/Sales
Aerospace 04- 100/1006 9.94% 05- 118/1158 10.19% EXPANSION
Detection 04- 56/316 17.72% 05- 67/367 18.26% EXPANSION
Medical 04- 92/488 18.85% 05- 108/563 19.18% EXPANSION
Enginering 04- 113/868 13.01% 05- 127/929 13.67% EXPANSION

So margin expansion in all divisions, and all of this despite rocketing basic material costs.

[gateside] 07/2/2006 18:46

UBS Cuts Smiths Group To Reduce From Neutral

0648 GMT [Dow Jones] UBS downgrades Smiths Group (SMIN.LN) to reduce from neutral, and cuts price target to 900p from 1070p. Says concerns over the performance of the Aerospace division, and about the strategic direction of the Medical division remain. "We believe the quality of Smiths earnings has deteriorated and with significant management change also underway we believe the risk profile of Smiths has risen considerably," says UBS.

[penycae] 07/2/2006 11:44

Bought a few more on the dip. This is being shorted from the rise on the trading statement.

[penycae] 06/2/2006 16:13

Back in at 970.

[shuisky] 06/2/2006 09:15

I suspect there was a sense of 'buy on the rumour sell on the fact' over the reading statement. Following on from that, it appears that the development costs in Aerospace were higher than had been forecast, so EPS growth will be shy of estimates. This should not be an issue for the long term profitability of the division, particularly as commercial aerospace looks set to be a good growth industry over the next few years. But of course, the City does tend to think only as long as the next set of numbers.

[uk013645] 05/2/2006 19:17

Just profit taking, look at the late trades on Friday and hopefully should have a good rise tomorrow.

[john3419] 05/2/2006 18:40

But why the hell did it fall so drastically on Friday after the rise on Thursday? Smells to me.........

[uk013645] 03/2/2006 20:38

A lot of buying at great prices after the bell

[uk013645] 03/2/2006 16:26

And on the way back up I think !

[roodboy] 03/2/2006 14:25

lol shuisky

suprised by the fall today - especially due to the following broker comments today:

Merrill says buy Rio Tinto and Smiths Group (raising the price target to 1100p from 1030p) and reiterates buy WPP (raising the price target to 710p from 690p)...

Panmure has upgraded Cadbury to buy from sell and says buy Smiths Group and Enterprise Inns. The broker says hold Bellway (1210p target) and British Airways (340p target) ...

[shuisky] 03/2/2006 08:43

Very positive trading update here...



...which was preceeded the day before, by a sharp rise in the SP, on a day when markets tanked. Interesting.

Well, I'm just glad that nobody knew something in advance.

[shuisky] 02/2/2006 09:20

Gateside, I agree with you that margins could be affected by high oil and commodity prices. Although, I would emphasise that these prices have been very high over the last year and are already in SMIN's historical figures. They would have to continue to rise to affect a like-for-lke comparison. My view is that they are likely to hit a cyclical peak at some point and will fall, and probably drop into SMIN's bottom line. Falling prices may well aid SMIN's EPS.

Furthermore, irrespective of whether Oil is at $70 or $35, these prices are historically high and supportive of Oil & Gas CapEx. This will inevitably help John Crane.

Their are a number of favourable tradewinds behind SMIN.

[gateside] 01/2/2006 22:41

Glad people like the new thread ~ I have not actually bought in, as I bought shares in Royal Dutch shell instead, but am certainly keeping a close eye on Smiths Group with a view to buying at some point this year.

This is an excellent company, the main negative I see, is that growth could possibly be affected by high commodity and oil prices.

Interim results are out on 15th march, not sure if there will be a trading statement before then.

[the_profit] 01/2/2006 12:52

trading statement was jan 28 last year. when is it this year?

[roodboy] 01/2/2006 12:43

just bringing this thread back to the top as the other one is useless

that was quite a healthy pullback and good to see a speedy recovery - i hope £10 does not become resistance level tho ...

[roodboy] 26/1/2006 08:53

shuisky

i agree with much of what you say and that is why i have not sold any of my holding - i originally bought into this when i read all about their plans for expansion in the detection sector - this sector will just grow and grow due to the world we now live in

[the_profit] 24/1/2006 23:46

anyone know when the trading statement is? i believe there was one this week last year.