Airea Share Discussion Threads

[garbetklb] 01/5/2018 13:57

Ad now dropped - suggesting that someone knows something about the bid, or lack of one.......

Just like the price rose ahead of JHD's announcement.

But will the LSE/FCA do anything?! With so few trades it wouldn't be hard to speak to the buyers / sellers.......

[tiswas] 01/5/2018 13:54

Price has just fallen!

Responding to leaks?

[trident5] 30/4/2018 15:29

Price has just jumped!

[fillipe] 29/4/2018 20:41

Masurenguy - I reckon PS is pretty much spot on with the numbers. From memory, I think I'd back-calculated the regular div on a 12mths normal year would give a share price of about 78p, for a textile company. As the reorganised business becomes consistent with the div etc, then that yield expectation may reduce a little.

A bid at 78p would leave all else after the div be counted for nothing, so yes...100p is where we should be at.

gla,

f

[masurenguy] 29/4/2018 12:59

Paul Scott's view: "It is closing a heavily loss-making carpets business, which will leave behind a beautifully profitable commercial flooring business, that’s making an operating profit of about 16% of turnover. I bought some shares in early 2017 at 33p. It’s recently paid a 6p special dividend and announced a possible bid approach from James Halstead. I think the company could be worth up to 100p. It’s currently about 55p. The complicating factor is quite a large pension scheme (relative to the market cap), although this is now said to be fully funded. I hold. It’s very illiquid. If the bid approach comes to nothing, then the shares could drop, which would be a nice buying opp in my view."

[irenekent] 28/4/2018 11:25

mesquida-totally agree.

[mesquida] 27/4/2018 19:35

Which is why we long suffering shareholders should hold out for a mínimum of 80p.

[coolen] 27/4/2018 19:11

Good point, Fillipe.

[fillipe] 27/4/2018 17:14

One thing's for sure, if Halstead's really want to have a goog carpet mfr, then they are unlikely to come across a better set-up than at Airea - so few remaining similar businesses still remaining here in the UK.

f

[spagboll] 27/4/2018 16:42

Was thinking the same. I was thinking perhaps an announcement first thing Monday. That way they can have a lot of discussions over the weekend not worrying about a leak which puts the price up. But there again if nothing announced Monday those thinking like me may then sell down, so then if they make an offer on the Tuesday or Wednesday the premium looks better - yep I have no idea!

[fillipe] 27/4/2018 14:57

AIEA - having a bit of a run-up today....ahead of the bid?

gla

f

[coolen] 26/4/2018 21:55

I wonder if the expense of a full "red-tape" take-over might be too high compared, possibly, with a nil cost trade link-up ?

[spagboll] 26/4/2018 14:22

That's the big question. Not much movement so I guess no one knows. Am happy to hold at this price, of course hoping for the bid but even if not and the price drops I still see value.

[irenekent] 26/4/2018 09:09

Will they bid? - they only have 'til 5pm on 2nd of May I believe. Just one week away and no sign so far.

[trigger blade] 19/4/2018 18:32

tiswas,

What do you mean by Halstead taking out a competitor? Halstead aren't in carpet and in fact, one concern might be that in the past, their attempts to get into carpets have not been successful and it isn't their current area of expertise.

If Burmatex are strong in export markets, there might be some distribution overlap and JHD might be able to cut some Head Office and warehousing costs. There might possibly be some savings in raw material costs too. JHD can't continue to grow the hard flooring business at previous rates, although the demise of DLW is helping. What they've done in the last 30 years is pretty amazing, so they do need to find growth in new product areas.

As a small time JHD shareholder, previous experience suggests they know what they're doing and don't make many bad decisions, let's hope this is a good one, if it happens.

[winchcombe] 18/4/2018 16:24

rhomboid
6 Apr '18 - 15:34 - 317 of 330
0 1 0
There’s no right or wrong way but fwiw as a holder for 2 yrs or more I’ve been buying more in recent days because my best guess is that Burmatex is running at c£3.5m pre tax profits which suggests a valuation in excess of £30m is the right one for the ongoing business. That is without even considering the value that James Halstead might pay over that to acquire it, in short the takeover premium is arguably zero even after recent gains, I’ve rarely seen a better risk reward balance irrespective of the 5p dividend on top.

[tiswas] 18/4/2018 16:15

Nope, back to zero. Looks like they took profits!

[tiswas] 18/4/2018 15:46

Strange buying just the one though. With commission their average cost must be nearer £10.00!

I can see that Halstead need to do something. Very pedestrian growth in recent years, high pe and peg, falling share price but excellent returns on capital, margin etc.

AIEA say Burmatex is already highly profitable so how much room for Halstead to increase margins there? Or are they just seeing th opportunity to take out a competitor now that the carpet business is going.

If Rhom's numbers are in the ballpark could we see them paying 15x 6p eps to give 90p and still earnings enhancing? Quoted 53/57 today, tempting to add a few more.

[shanklin] 18/4/2018 15:15

1 share as per

[rhomboid] 18/4/2018 15:15

I noticed that🙂 I guess that’ll ensure they can attend the forthcoming AGM

[tiswas] 18/4/2018 15:13

I see James Halstead have already built up a position in Airea! 😊

[shanklin] 17/4/2018 14:20

Rhomboid, That is kind of you :-)

[rhomboid] 17/4/2018 10:53

Incidentally Martin , are you on Twitter by any chance? Most investment related stuff is taking place there rather than on these bulletin boards, strike that I’ve found you & put in a follow request

[shanklin] 16/4/2018 16:28

Aaah, whoops, writes he... ...somewhat embarrassed.

[rhomboid] 16/4/2018 16:09

Hi Martin
It’s James Halstead not HEAD bidding, they’re on a P/E of 22