Tt Electronics Share Discussion Threads

[overeager] 07/3/2024 14:52

Pretty decent set of results from TT I think - really looks like they are getting to grips with operational performance and developing what they have rather than rely on acquisitions. Encouraging in my book.

[overeager] 05/3/2024 13:16

Looks to me like the sale was part of the old Stadium acquisition. Probably a positive step but the size of the write down just goes to show how much previous management over paid for Stadium. Hopefully this is an indication that the new team are getting to grips with matters.

[florence141414] 04/3/2024 12:40

To me it’s not that important. The important part is that is on a cash free/debt free basis. So TT will receive 17.8m in cash and they are only giving up PPE that wasn’t generating a profit and/or intangible asset value that wasn’t generating a profit.

So the bottom line improves and the balance sheet improves.

Although, like you, I am willing to acknowledge that I could be misinterpreting the information.

[boadicea] 04/3/2024 11:27

Given that Gross assets of the sold companies was 85.4m and the net proceeds will be ~17.8m one might have expected a larger write-off. I can only assume the net book assets of the sale were ~49.8m i.e. 17.8+32.0 = 49.8m .... or have I misunderstood something in the announcement?

[eigthwonder] 04/3/2024 09:30

That is a stonking write off. Not sure exactly where the assets came from (the Stadium acquisition?) but it starts to make you query the holding value of the other assets in the group. Then again, with that write off the return on assets should rise in the future.

[boadicea] 04/3/2024 08:56

It is difficult to predict the market reaction to today's divestment announcement.
Long term it looks like a good decision based on the information available but the immediate effect seems be a hefty bottom line loss due to non-cash capital write-downs. The figures are difficult to follow without access to a full pro forma balance sheet. However, the amount of the loss elimination (0.7m) seems not to assume any reduction in group overheads (Note 2) which one hopes will prove to be a pessimistic assumption.

Operating cash flows and earnings from continuing businesses will be the key evaluator if the market is in a mood to take note of them.

[daisylove] 27/2/2024 13:22

Anything other than spectacular will no doubt be punished by the market in the current climate.

[boadicea] 23/2/2024 15:41

I was half expecting a trading update this week. Next week perhaps - 29th?
Final results normally 2nd week of March.
They should be in catch-up mode following their previously reported backlog due to equipment breakdown delays.

[peddlers] 08/2/2024 11:07

Yes I would agree with your sentiment.

Looks like we're going to see some decent price action

TTG looking very cheap at these levels.

P.

[daisylove] 07/2/2024 14:26

It does look cheap. Has historical large swings. Seems 150 is a resistance level.

[peddlers] 06/2/2024 13:31

Bought a few of these today.

Looking cheap with pe around 7

P

[sphere25] 22/11/2023 10:47

Had another go for a short term trade this morning. This looks an overreaction with profit at the lower end of expectations due to the (one off) longer than anticipated machinery breakdown, rather than something more fundamentally serious.

Last time in early August (see post above) it pinged down like this too and then ended up having a lovely spike to lob into. I can't sit here and confidently say that is going to happen again, but I think this should be at least flat on the day. If it can do that, then it might have a move into the 160's as the market looks to the underlying performance being priced in by the move down of late.

Someone has paid well through the offer of 153p to buy 54,831 @158.68p. Have to see if the market sees something more serious in that statement - it will be a trading loss if that happens. Can't get them all right.

Let's see if the buyers step in.

All imo
DYOR

[podgyted] 21/11/2023 20:58

We'll find out tomorrow - but looks good value.

It seems to me some of the "value" shares have better growth potential than so-called "growth" shares at the moment.

Could be right could be wrong. Was ever thus.

[chrisb1103] 13/11/2023 18:41

Added today - half year results very strong so hopefully a positive trading update 22/11 will hopefully get this back on track?

[eigthwonder] 12/10/2023 15:30

the change in CEO is an upgrade

[peddlers] 13/9/2023 09:13

Chart is looking good for a leg up.
Dividend coming too.
Looking cheap at these levels.
PE of 8.3 :-)

[peddlers] 18/8/2023 15:23

Nice drop today

[peddlers] 16/8/2023 19:40

Nice rise todday

[sphere25] 04/8/2023 12:30

Taken a few here.

The de-rating from 200p to just above that 150p mark suggested apprehension on the part of the market, perhaps expecting a worse report yesterday. That update was better than expected and we saw notable early buying yesterday to reflect that. This is the type of company that can attract very little activity much of the time, so it was a signal, and the volume eventually ballooned through the day.

There has been some follow through today with a 506k and a 250k mopped up at 155p. Clearly we have this very subdued smaller cap environment where the fund flows are making it very difficult for most of these shares and us to really make significant headway.

There are some companies which have done relatively well or held up better (e.g. MEGP,VLX,MER,CNIC) and a few tiddlers like ONDO have gone bananas higher as well so there will naturally be some folk outperforming away from the larger caps too.

The fund flows will continue to play a large overhang. Bailey is a tool, it is hard to not have overhang's when you have someone like that directing things. Nonetheless, the buying here is encouraging to help clear the sellers in size and cause a possible move back up to toward that 200p mark.

The macro is very murky so it isn't as easy to be bullish as it was when any ole garbage was going rocket ship higher, but statements like these from the CEO: "The business is clearly demonstrating the benefit of the work to re-position in the right markets, with the right customers and from the right operational footprint. More new customer wins together with the ramp-up of previously awarded contracts continue to provide multi-year revenue visibility and the new business pipeline remains strong, supported by new re-shoring opportunities." suggest the market could get its bullish boots on here too.

Technically, the price is presently challenging the 50 day moving average at 160p. A break above that and 163p would make it interesting to watch, with the key mark sat at 169p. This is the 200 day moving average and also ties in with previous resistance levels.

So some interesting exchanges here over two days as the Bulls and Bears battle it out. A move under 150p would be a place to exit personally but hopefully there are firmer Bullish spirits out there too.

Have to be careful with stops on shares like these as the price can gap from e.g. a bid-offer of 160p-161p to 155p-160p or even lower and trigger stops in a flash.

All imo
DYOR

[peddlers] 04/8/2023 11:58

There's an echo

[peddlers] 03/8/2023 12:53

Yes nice report and an increase in Divided!
I'm expecting a steady tick up.
I'm holding long term on this one.

P

[peddlers] 03/8/2023 12:52

Yes nice report and an increase in Divided!
I'm expecting a steady tick up.
I'm holding long term on this one.

P

[zipstuck] 03/8/2023 09:11

The defined benefit pension scheme position is very comforting.

[boadicea] 03/8/2023 08:49

Encouraging progress here. Plenty of upside, 50% looks possible imo, if momentum can be maintained.