Tate & Lyle Share Discussion Threads

[mike740] 24/9/2015 14:59

Who gives a toss as long as its making money for me.

[meijiman] 24/9/2015 14:58

if the difficulties are rooted in 'execution and strategic ambition' -how come the same management is still in situ?

[mike740] 24/9/2015 12:44

Tate & Lyle tops FTSE 100 on Liberum upgrade
Thu 24 September 2015 10:22 | A A A

(ShareCast News) - Tate & Lyle was the standout gainer on the FTSE 100 after Liberum upgraded the stock to 'buy' from 'sell' and lifted its price target to 670p from 505p.

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"While history is disappointing - four profit warnings and a collapse of around 40% in pre-tax profits since full-year 2014 - we see early signs of change and scope for significant upside," it said.

The brokerage said full-year 2016 will prove an inflection point and forecasts a 16% rebound in full-year 2017 pre-tax profit as one-off items drop out and new Speciality Food Ingredients capacity comes online.

Liberum said the key question is whether management's strategy can deliver visible, sustainable earnings growth beyond FY17.

In order to determine the potential, it benchmarked Tate's operations with US-based Ingredion, which is the group's closest peer. It said the results are reassuring.

"As we suspected, many facets of Tate's operations compare favourably to Ingredion. In our view, Tate's historical difficulties are grounded in execution and strategic ambition, areas that management is working to address."

It added that the company's commitment to a flat dividend in full-year 2016 implies a 5% yield which appears sufficient to support the shares buying time for management to turn around the business and work towards executing the group's long-term strategy.

At 1028 BST, Tate shares were up 2.6% at 566p.

[mike740] 24/9/2015 12:35

Hi Pierre, no they arent auto charts, they are static charts from across the road at MAM. Or anywhere for that matter.

I just insert trend lines, patterns, text, arrows on the chart after uploading to microsoft PAINT tool. Its my analysis as I see it which is bullish on this chart.

I agree yes thier is a powerfull investment case here.

[pierre oreilly] 24/9/2015 11:08

Mike, for those autocharts, can you type in a choice of whether you want the chart to indicate a bullish or a bearish situation?

To my mind, I think all that needs to be known is that things seem to have been poor for tate over the last couple of years, and now they seem to be improving, leading to a powerful investment case.

[mike740] 24/9/2015 09:58

TATE Tate@Lyle

Interesting , broker goes from SELL to BUY in space of 48 hours. Have I missed some big news????????????

Tate & Lyle broker views

Date Broker Recommendation Price Old target price New target price Notes
24 Sep Liberum Capital Buy 565.25 505.00 670.00 Upgrades
22 Sep Liberum Capital Sell 565.25 505.00 505.00 Reiterates

[mike740] 24/9/2015 09:13

TATE Tate @ Lyle PLC

Looks like a recovery going on here at TATE. I hear the sugar market as recovered in favour of the manufacturer. I have been long for a few days, best to time your entry according to your trading/investment style.

Broker upgrades this morning..........

24 Sep 2015 Tate & Lyle PLC TATE Liberum Capital Buy 562.75 551.50 505.00 670.00 Upgrades

SP Target 670p

[pineapple1] 24/9/2015 08:44

Yes i bought in on about the 15/9 as i noticed the small inverse H@S pattern on the chart .I suspected sugar may be bottoming out so a position here may be worth a roll of the dice. The opposite pattern played out to the downside in the April ish time frame Its got a good divi too so i don't mind waiting it out if the pattern fails.GLA....
imho

[wad collector] 24/9/2015 08:32

This has outperformed the market in the last month , though I guess that says something about the previous month's performance.

[mike740] 05/9/2015 18:05

Added a few more on friday on the pull back. Was a general market fall so no probs.
Edit, went long again on the 20th.

[meijiman] 28/8/2015 15:41

True have been bearish and out.But nothing goes down for ever and they have some quality assets. Trouble is I don't have a good handle on being able to analyse the moving parts of the business in particular price negotiations in USA and competition. But having looked at some other cyclical businesses the turnaround when it comes can be very rapid .Anand should have gone but as he's survived I hope he will now make a better fist of it.Have not pressed the plunger on buying -probably need to sell something first.

[essentialinvestor] 28/8/2015 14:49

miej - get off that fence now and say what you mean )

Been bearish here for a long time as per previous posts,
may be looking a little more interesting, back on watch list.

[meijiman] 28/8/2015 11:49

I think I will have a closer look. Used to own these but got out thankfully at the first sign of trouble some years ago. There is also a decent yield whilst you are waiting.Two brokers have turned more positive as well.

[mike740] 28/8/2015 11:36

Tate & Lyle upgraded on good start to the sale cycle
Tate & Lyle (TATE) has been upgraded and even the chairman of the company is purchasing extra shares.28/07/2015

Jefferies analyst Martin Deboo upgraded his recommendation from ‘hold’ to ‘buy’ with a target price of 605p after the company showed ‘growing signs of improvement’. The shares rose 7.2% to 538p yesterday.

‘The 2016 high-fructose corn syrup pricing round in the US has started early and robustly: a sign of confidence,’ he said. ‘Experience shows that high-fructose corn syrup is a barometer of wider speciality food ingredients and bulk economics and that when the cycle turns, it can do so quickly and dramatically. With the shares visiting 500p and yielding 5.6%, we turn positive.’

He added: ‘We’ve been quiet since the Q1. Worth remembering, then, that “body language” on the call - on sucralose, [low-calorie sugar] allulose, and life generally – was notably more positive from what had been a bruised and battered team. The chairman has just bought 10,000 shares.’

hxxp://citywire.co.uk/money/the-expert-view-tate-and-lyle-petrofac-and-pets-at-home/a834687?ref=citywire-money-latest-news-list#i=2

[pierre oreilly] 28/8/2015 11:32

Maybe, and maybe that's why the price has been hit so much. I doubt the big investors will tolerate below average performance for ever. I tend these days to go for out of favour fallen angels and hang on for yonks - they have all the systems and expertise of the much higher value company they once were, and are probably world leaders in several instances. And one thing you don't have to worry about is demand for their products - that will grow and grow. It's certainly not everyone's cup of tea, but that's fine with me.

[meijiman] 28/8/2015 11:08

Amazed you have so much faith in the management. Headless chickens who seemed constantly on the back foot buffeted by events.Endless excuses for failure. Still this company may be over the worst, and on that basis may be a decent investment story.

[pierre oreilly] 28/8/2015 10:41

Just bought a second slice at about the same price as the first a couple of weeks ago. Missed the dip unfortunately. Great divi, just hope they can maintain it next year and start increasing it after that.

This used to be one of my core holdings for several years, so quite an easy decision to buy back in. It seems to me to be in the realm of a fallen angel which seems safe to buy on a long term view. I know the numbers aren't great just now (hence why the price has come down a lot), but I'm just hoping the management are now getting to grips with things.

[mike740] 28/8/2015 09:09

28 Aug 2015 Tate & Lyle PLC TATE Canaccord Genuity Buy 536.50 502.00 - 685.00 Reiterates

SP Target 685p.

[mike740] 27/8/2015 13:55

TATE TATE @ LYLE........more from the broker Upgrade......

Tate & Lyle PLC (TATE:LSE): Last: 519.00, up 17 (+3.39%), High: 526.50, Low: 518.00, Volume: 982.90k
BE
Deboo at Jefferies turns buyer.
BE
Growing signals of improving CWM economics lead us to upgrade numbers, and view. The ’16 HFCS pricing round in the US has started early and robustly: a sign of confidence. Experience shows that HFCS is a barometer of wider SFI & Bulk economics and that when the cycle turns, it can do so quickly, and dramatically. With the shares visiting 500p and yielding 5.6%, we turn positive.

Opening shots in the pricing round signal confidence…and rising margins. Reports indicate that pricing letters on HFCS for 2016 have been published – the earliest we can remember. Millers are asking for a 15-20% hike, in a climate of flat to falling corn costs. This signals healthily tight utilisation. It may not conclude quite this well, but it doesn’t need to, to sweeten Tate’s bottom line very nicely.

BE
Benefits Bulk directly, but a positive signal on SFI, too. We obsess on HFCS, unapologetically, not just because it’s now c.40% of profits but also because it’s a visible signal of the wider health of US Corn Wet Milling (CWM), which will account for over 80% of profits following the exit from Europe. There is strong correlation between Tate’s profits in SFI and Bulk and between both and HFCS margins.

Complications: tolling, ethanol & Sucralose. 75% of Tate’s HFCS is on de-risked tolling contracts, which moderates any upside, and they are still brewing 40m gallons of (unprofitable) ethanol. Yesterday’s acquisition of Splenda by Heartland might impact tabletop Sucralose volumes. So we skip the final couple of turns of our pencil sharpener.

BE
Q1 body language positive. Chairman Buying. We’ve been quiet since the Q1. Worth remembering, then, that ‘body language’ on the call – on Sucralose, Allulose, and life generally – was notably more positive, from a what has been a bruised and battered team. The Chairman has just bought 10,000 shares.

Dividend provides strong underpin – we think it’s sustainable. Tate is yielding a juicy 5.5%. This is more or less covered by EastStarch proceeds in FY16. From FY17, it has to be funded organically and we have it 1.2x covered by cashflow. Tight but doable we think, in a climate of what should be rising profits & stable £:$ fx.

Upgrading. Underlying momentum better than it looks. We upgrade FY16 by 4% and FY17 by 8% FY17 EPS growth is impacted by Europe exit reversal and a rising tax charge. Forecast 12% LFL EBIT growth is the truer measure of momentum for us.

[mike740] 27/8/2015 09:48

TATE UPGRADE.......

27 Aug 2015 Tate & Lyle PLC TATE Jefferies International Buy 522.25 502.00 605.00 605.00 Upgrades

SP TARGET 605p

[zcaprd7] 11/8/2015 22:12

They need to get the basics right. Meant to be a consumer food company? Great British bake off starting as well... http://www.telegraph.co.uk/foodanddrink/foodanddrinknews/11796002/Tate-and-Lyle-face-backlash-over-icing-sugar-recipe-change.html

[zcaprd7] 06/8/2015 23:59

Sort off. Means no takeover for the foreseeable though...

[goodapple] 05/8/2015 09:27

A useful little bit of director buying.