||EPS - Basic
||Market Cap (m)
|Health Care Equipment & Services
Synergy Health Share Discussion Threads
Showing 526 to 548 of 550 messages
|Game over !
Official List Cancellation effective today.|
|that was from 27 may?
Chart is doing an adam & eve (peg & bowl) now|
|does the shire/abbvie debacle indicate the same for steria/synergy?|
|TREWSA.....they are too busy following quality companies like RRL :-)|
|The takeover that nobody noticed.............|
In Europe we remain long Summit, Plethora and Genfit. Synergy has been a real disappointment, but certainly its product looks approvable and it is better than the competing compound for chronic constipation. The stock looks cheap and management has made little secret of its desire to sell.|
|Synergy health is on average the best performer of the whole index in the month of JuneOn average synergy rises 10.6% in the usual dire month of June|
|bit of interest today|
|Here's hoping for good news tomorrow!|
|Made a few quid on this following traderdiary.co.uk|
|Good call ahead of fine interim results - all key metrics 15% ahead.|
|Been tipped on traderdiary.co.uk for June. Ive bought in|
|Investors Chronicle says Sell
Shares in cleaning and sterilisation specialist Synergy Health (SYR) have been notably strong performers lately, outpacing shares in similar companies by 20 per cent over the past quarter on the back of some promising deals in new markets. True, Synergy almost certainly has a solid future in its key markets, but, in the medium-term, the share rating has moved too far ahead of the group's growth prospects. Really brave punters might try 'short selling' the stock; meanwhile, shareholders might simply opt to sell.
The trigger for the big share-price move was Synergy's decisive entry into the US hospitals market. The acquisition of SRI/Surgical Express, in particular, for $25m (£17m) got the City's admiration, especially because the price paid looked good for a business generating sales of more than $100m.
However, it is not clear what effect the expansion will have on Synergy's underlying profit margins. These were more than 15 per cent in the first half of 2012-13, but there is a risk that the peculiarities of the US business could eat into them. This is because most US hospitals, unlike those in Synergy's core business with the NHS, have their own sterilising and cleansing facilities on-site. That means Synergy would be paid a fee as a service provider, rather than as a more lucrative full-facility operator.
There is no doubt that the US market is far larger than anything Synergy has entered so far and the opportunities are there. However, the question hanging over the States-side project is whether investors have taken into account the amount of investment needed over the next few years to bring the service up to Synergy's standards. That could generate big one-off costs that may not be adequately priced in.
As support services businesses go, Synergy is unusual because a lot of its capital is tied up in tangible assets. That's because often it has to fund and build hospital cleaning facilities itself for the contracts it wins. That means lots of upfront spending in order to grow sales, as each new contract can mean another round of construction.
Analysts at broker CanaccordGenuity estimate that to achieve an adequate cashflow return on its capital of around 8 per cent, the company must invest between £15m and £30m annually to generate the required income. This inhibits shareholders' returns as the lead time between winning a contract and starting operations is between 18 months to two years. CanaccordGenuity estimates that the company will clock up capital spending of £75m over the next three years. Given the lag between spending and revenue-generation, sales growth will be deferred, making Synergy much more cyclical than is generally perceived.
Synergy also has its share of immediate problems resulting from austerity in the European Union. This affects its Dutch business supplying hospital linen, in particular. Meanwhile, a spending squeeze in the NHS, while not affecting existing contracts due to the importance for patient care, could slow the pipeline of new work that Synergy could bid for.
Share tip summary
Trading on almost 17 times forecast underlying earnings, Synergy's shares are rated just above the UK average for the healthcare services sector at a time when significant parts of its operations face slowing growth in its established markets. Granted, expansion into the US seems like a good move given the size of the market, and European austerity will not last for ever. Yet the rating has moved to a level that is vulnerable to correction if the company fails to outperform the market's expectations. Given the consistently high capital spending Synergy must undertake, the possibility of disappointment is higher than average. Sell.|
|Yes, because it's one of the most resilient and steady companies around, with this year's adjusted eps likely to come in around 68p and the small divi holding steady. It also has long periods where it is undervalued and no one writes on this BB. I've learned to see the value of SYR.....|
|Is the current price justified?|
|What The Brokers Say
08 June 2012
Singer Capital Markets upgrades Synergy Health from Fair Value to Buy and raises its target price from 887p to 939p.
12 June 2012
Investec reiterates its Buy recommendation for Synergy Health with a target price of 980p.
Morgan Stanley retains its Overweight rating for Synergy Health with a target price of 1085p.
06 July 2012
Jefferies International retains its Buy rating for Synergy Health with a target price of 1150p.
Here's a couple of links about SCLP, one of the hottest stocks at the moment:
|Placing completed and 2 directors much involved. A very good sign, methinks.|
|In current climate, these results are good, but next time it would be nice to see a substantial leap forward in growth as a result of these acquisitions. Mind you SYR is as reliable as ever in beating expectations in a dire market, and eps growth is about 13% last year - so let's keep perspective.|
time to fade as investors realise aquisition-led growth has to stop one day|
|Break to downside.|
|Chief Exec has sold more than half his holding for £5.7 million to help pay his tax bill!|
|Come on SYR, time for a little run to 975p....|
|Half-year report: in line - done well to do that despite global macro-economic difficulties.|