Smiths Share Discussion Threads

[thamestrader] 15/1/2007 09:04

Excellent action today.

Need to decide whether to cash in now or to wait around for SMIN to "return value to shareholders" - and of course to grow the remaining business.

[a0148009] 15/1/2007 09:01

Judging by the number of posts on this BB looks as if PI's have been blinkered to the value of this company, what has surprised me is the sale of the Aerosoace Division rather than the Medical which has been rumoured a few times recently.

[e-boffin] 15/1/2007 08:43

Well done to you lot. A nice profit by the looks of it!!!

[sahara] 15/1/2007 08:10

Thats a boon!!

Well done to all my fellow holders, which from the look of the above was'nt very many.

S.

[sahara] 02/1/2007 18:43

My first hurdle reached of £10 took some profits and moved stop to lock in more profit.

S.

[sahara] 11/12/2006 13:45

Looking a bit stronger now!

S.

[misscg] 30/11/2006 11:39

Thames, That was good advice ---

[thamestrader] 29/11/2006 11:03

SMIN looking very weak - presumably down to dollar weakness?

Time to top up, or get the hell out?

[bigbertie] 09/11/2006 17:15

to answer the question, they have to start raising earnings year after year. they have struggled to do this for 6 years.

[gateside] 09/11/2006 10:22

Apologies for the old article from The Telegraph (from late Sept) but thought it well worth posting.


Smiths Group
Stock: 870p -16.5p
Questor says Buy

What has Smiths got to do to please the market? The engineering conglomerate reported non-cyclical growth in its medical division, Medex, of 31pc; saw sales in its speciality engineering division, which provides materials for the oil and gas industry, rise 16pc; and experienced a 13pc rise in sales in its aerospace division – and still its shares fell.

But then that is perhaps not surprising, given the company had to announce a write-down in the carrying value of its investment in TI Automotive from £325m to nil. The total write-down is perhaps a little too keen, but as chief executive Keith Butler-Wheelhouse outlined yesterday, it is prudent to do so given weak market conditions in the US automotive sector.

As a result, full-year profits for the year to Aug 5 fell from £271.8m last time to £24.2m this time. But in spite of this, underlying profit – at £492m – was ahead of expectations and the group unveiled £100m of contract wins at the same time as unveiling its results.

The outlook for all four of Smiths' operating divisions is strong, benefiting from demand in the aerospace, defence and medical sectors.

At last night's price, the shares are trading at 13.6 times earnings for the year to July 2007, which is a small premium to the sector but cheap for a conglomerate-style play of this quality. But the problem is the shares are unlikely to rise significantly unless something dramatic happens.

The company is unlikely to announce a large share buyback because the focus is on growth, and it is also less likely than most to be bought and broken up, simply because a four-element conglomerate is a tricky business for any potential buyer. Acquisitions, however, could give the shares a boost but – as TI Automotive shows – they remain unpredictable.

That said, Smiths, with 36 years of unbroken dividend growth, is well worth holding.

[thamestrader] 31/10/2006 12:53

Contract win seems to be pushing SMIN nicely north.

[sahara] 19/10/2006 13:21

Gotta agree broadwood.

I'm stickin with em!

S.

[broadwood] 12/10/2006 10:50

sahara - you're not alone.

What a bargain they were sub £9.

It's a quality company - and they rarely disappoint in the end.

[sahara] 10/10/2006 09:14

My!! We are quiet here, surely you all didn't sell back at 850 when you were told by those pesky brokers?

Ah well!!... I see that Paul Hill has a buy rec on them.

Looking good to me.

S.

[sahara] 27/9/2006 13:13

Good to see that some of the big brokerages are seeing the light.

Credit suisse have given an outperform recommendation along with a Buy rec from Panmure.

S.

[sahara] 27/9/2006 13:08

Probably a few of the brokers trying to manipulate the share price to get back in. tEE hEE!!

Nice buying op tho.

S.

[shuisky] 27/9/2006 11:52

This is the most baffling stock i've ever held. Revenue, pre-tax and operating margins all stronger than forecast and a positive outlook given.

It's histori P/E is 877/64.8=13.5x

And the market is selling the stock???

Granted there is increased R & D spending, which will eat into cash flow, but all divisions are reporting revenue growth in the teens

[desoo] 27/9/2006 11:51

big fall late this morning. anyone know why?

[sahara] 27/9/2006 09:27

Still looking good to me.

Maybe one or two brokers will be splutterin on their cornflakes after seeing the positive results.

S.

[spacemoggy] 26/9/2006 11:20

Lol Cam is this snooker

[sahara] 20/9/2006 11:46

Looking up Yeah??

S.

[cambium] 04/9/2006 10:13

Cue Rick............

[sahara] 04/9/2006 10:11

My spreadbet account is showing a nice profit on SMIN, Have taken a third profit and raised stops to entry. Have a free trade from here.

S.

[sahara] 15/8/2006 15:47

Since when have you taken notice of what those city phlebs have said?

S.

[bigboots] 15/8/2006 07:41

And another downgrade

MARKET TALK: UBS Cuts Smiths Group Target; Sell
0536 GMT [Dow Jones] UBS cuts Smiths Group (SMIN.LN) target to 820p from 860p, and reiterates its sell rating. Cites higher than expected interest costs at its trading statement, together with a disappointing change in the EBIT mix for the decrease. Believes Smiths may only just generate sufficient cash to pay its dividend in coming years, and warns there many not be any cash flow left to pay down debt. Shares closed at 850.5p. (KHO