Alumasc Share Discussion Threads

[lord gnome] 04/1/2011 12:47

Hi CR. I've been trying to get a few of these - but without success. I don't like stocks where there are only two MMs, but I was prepared to make an exception to my rule for this one. As it is, I couldn't get a limit order filled this morning at 128 and now the price has moved away. If you want even a small quantity, the current offer is 134. I'll cool my heels for now and see what happens when the market is in a less effervescent mood.

[cockneyrebel] 04/1/2011 12:08

On the up as expected :-)

CR

[cockneyrebel] 28/12/2010 12:31

I don't see the gov spending review having any major effect on ALU Tillman.

They also said at the last trading update:

"Alumasc Precision, the group's largest Engineering Products business, has
continued to benefit from the strongly positive trading momentum begun early in
the second half of the last financial year. Underlying demand across the
customer base has continued to grow and, in addition, a significant new project
was won recently to supply components for a complex transmission system to
Caterpillar."

"Overall trading for the year to date has been in line with the Board's
expectations, with group revenues more than 10% ahead of prior year levels."

"The group's order book currently totals over GBP40 million, around 20% ahead of
prior year end levels and over 50% ahead of the low point in December 2009, with
the majority of the uplift at Alumasc Precision. "


All of that makes me think strong earning growth is now on the cards and the huge 8% yield is better than maintainable, it will actually grow as confirmed by recent broker forecasts imo.

Anyway, results early Feb, I expect these to have a good Jan ahead of them imo.

CR

[pojscott] 21/12/2010 13:49

S/P down today?

[tillman] 20/12/2010 21:42

Ref. the interim management statement bit below, any ideas on what sort of impact the UK government's Comprehensive Spending Review will/may potentially have on them?..how exposed are they?

First quarter revenues within the Building Products division were similar to the first quarter of the prior year and, encouragingly, have now risen for the last two quarters in succession, despite uncertainty over the potential impact of the UK government's Comprehensive Spending Review.

[cockneyrebel] 16/12/2010 11:23

ticking up.

8% divi - trading well, trading statement Jan 8th or there abouts.

CR

[cockneyrebel] 20/11/2010 11:33

By the way - broker forecasts are for sales of £97.6m this year, up £4.6m over last year. The order book has already grown by £5m since year end.

It's also engineering business that's really motoring and that has the highest operational gearing.

CR

[cockneyrebel] 20/11/2010 11:27

Me and you buying yesterday am then V11SLR.

I added because in 2008 they had a pre closing period trading statement on Dec 19th even having had the IMS in Oct. For whatever reason they never had that statement last year but in view of them doing well this year I suspect they will have one. Wanted to make sure I'm well long at that point if they do.

11.9p eps this year off of 7.9p eps last year so you're looking at earnings growth of 50% above last year and a yield of 7.7%. There's still around 10% earnings growth forecast going fwd and I think there's plenty of scope for that to increase with the engineering side doing so well and Caterpillar contract adding to that.

I just don't see how these can have 10%+ growth going fwd and a 7.7% yield. That yield has to fall which means the shareprice has to rise imo.

11p divi is forecast next year so the fwd yield is 8.4% If that yield just dropped to 5% the shareprice next year would be 220p. And while that rerates you pick up 21p in divi. 220p doesn't look anything like unrealistic when you look back to 2008 when they were trading at that level either.

On that basis I reckon over 12 months you could have an absolute return getting on for 100% of today's shareprice even if these don't beat forecast by much at all. And the comfort of knowing that the divi provides a back stop for the share price.

Anyway, all just my opinion but looking forward to a trading update at some point hopefully in Dec.

CR

[battlebus] 19/11/2010 20:25

V11SLR that,s the beauty of a near 10% divi even if the shares underperform marginally and you hold long enough you will definitely be in profit. A slow burner but the hare doesn,t win all the races.

[v11slr] 19/11/2010 20:21

I had my first lot this morning, paid 130p. Should show a good profit on that in time.

[battlebus] 19/11/2010 18:18

It's tempting C.R. but all funds into rhl at the moment.

[cockneyrebel] 19/11/2010 08:10

Well had a few more - can't stay this cheap with this growth and huge yield imo.

CR

[cockneyrebel] 09/11/2010 18:38

New recent closing high today.

158p the next chart resistance too.

CR

[battlebus] 09/11/2010 18:29

What drop pojscott. lol. £1.50 IN MY SIGHTS!

[pojscott] 08/11/2010 14:11

Why the drop?

[bigbigdave] 08/11/2010 09:57

First nibble for me this morning.

[battlebus] 05/11/2010 18:27

Looking good for a steady rise to 150p now.

[chester] 05/11/2010 16:19

Added a few more today.

[cockneyrebel] 05/11/2010 14:46

Breaking out here today.

Of course the brokers and tipsheets are not interested in 20%+ earnings growth and 8% yields until the stock has risen 50% - then they are all clevr little experts saying buy then imo.

CR

[battlebus] 03/11/2010 07:44

Banks paying at best 1/2p what a waste!

[cockneyrebel] 03/11/2010 07:30

CLIG is a large div too and the performance is stunning - profits should nearly double this year imo - putting them on a single digit PE and a near 6% yield.

CR

[battlebus] 03/11/2010 07:21

That's the reason i bought in. Mollins eng is another 9% yeild.

[cockneyrebel] 03/11/2010 06:59

By Tommy Stubbington
Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--U.K. small and mid-cap stocks are a good bet for securing a steady income during a period of economic uncertainty, according to David Taylor, co-manager of Chelverton Asset Management Ltd.'s U.K. Equity Income Fund.
Companies such as GAME Group PLC (GMG.LN), Cineworld Group PLC (CINE.LN), and McBride PLC (MCB.LN) offer attractive levels of dividend income not normally associated with the small and mid-cap sectors, Taylor said late Monday.
"In a very low interest rate environment, people need income," Taylor told Dow Jones Newswires. Traditionally, funds have looked to banks and oil majors to provide this income. But investors have become increasingly wary of over-reliance on a small number of huge companies after BP PLC (BP.LN) suspended its dividend in the wake of the Deepwater Horizon disaster, Taylor said.
Some have looked overseas for healthy dividend yields. However, a U.K. economy without prospects of spectacular growth, but looking increasingly unlikely to sink back into recession, has left a number of small and mid-cap bargains with steady or growing dividends, Taylor said.
Taylor's fund invests only in small and medium-sized U.K. companies with an annual dividend yield of over 3.8%--an approach which rules out investments in the oil and gas, banking, and pharmaceutical sectors. It has a return of 24% for the year to date, compared with 6.7% for the FTSE All Share Index, and a dividend yield of 5.5%.
Some income bargains are available amongst companies that have suffered setbacks such as profit warnings, Taylor said. With dividends less volatile than prices, such stocks offer high yields, at least temporarily. Taylor highlighted household goods manufacturer McBride and building contractor Keller Group PLC (KLR.LN) as high-yielding stocks in this category.
Other small and mid-cap stocks, including Cineworld, Diploma PLC (DPLM.LN), and Braemar Shipping Services PLC (BMS.LN), enjoy steady yields and have a long track record of dividend growth, Taylor said.
He also said there are some stocks investors have gradually fallen out of love with but that continue to pay dividends, pushing yields up. GAME Group, T. Clarke PLC (CTO.LN), and Alumasc Group PLC (ALU.LN), all fall into this group, Taylor said.
Taylor expects a step up in dividend levels at the upcoming year-end earnings season, as small companies cotton on to the appeal of income to investors in an uncertain economic climate. "Advisors are saying to companies, 'put your dividend up'," he said.

[battlebus] 29/10/2010 17:15

Very nice CR at 1.60 i will be very happy.

[cockneyrebel] 29/10/2010 10:37

Broker note out from Peel Hunt.

PE too low, yield far too high - 'growth now looks embedded in'

'Buy up to 160p' they say.

CR