Avon Protection Share Discussion Threads

[wipo1] 08/10/2007 16:49

Good call again HVS, I don't trust them either.

[wipo1] 08/10/2007 14:46

GLAD I WAS CAUTIOUS AND DID NOT CHASE!


LONDON (Thomson Financial) - Avon Rubber PLC said it has appointed advisers
to sell Avon Mixing, adding that it will close the facility if it fails to sell
the business.
The manufacturer of polymer products, including respirators for breathing
equipment and aerosol gaskets, said it has continued to incur "unacceptable
losses" in the Avon Mixing business, despite operational improvements and cost
savings.

[mikey34] 07/10/2007 12:48

Ian,


You make some excellent points.I broadly agree with you but would point out for instance that the company have said in the interims that a weak dollar had held back sales of aerosol gaskets and that there were opportunities in this area.Overall though I think the real story is the contract win.

[jeffian] 05/10/2007 19:34

Mikey34,

Ref your 86 above, strengthening of $v£ would only have a beneficial effect on the translation of the figures from $ to £ but in real terms (margin) surely the effect is neutral because both the production costs and the sales are in US. I always ignore translation losses/profits in those cases and I think most of the market does too. The real problems come for those who manufacture in one currency area and sell in another (e.g. Bentleys built in Crewe (£) and being sold in US ($)).

Anyway, minor point. Great news for AVON today. Well done all!

Regards, Ian

[mikey34] 05/10/2007 13:29

Wipo

I think you are slightly overcautious here(usually not a bad way to be).This"hype" is a very large recurring order from the pentagon.THEY are hardly likely to default or renege.This is a recession proof contract that most companies would kill for IMHO.

[grigor] 05/10/2007 13:15

Looking good following the disposal of the low margin auto business and the go ahead for the gas masks - Hope for a significant re-rating

[lewis winthorpe] 05/10/2007 11:18

Off topic:-

Check out SCO. News imminent. up 5% today. volumes high over last few days.

L.

[wipo1] 05/10/2007 10:55

I would not chase until I saw all this hype turned into profits. Don't trust the yanks!

[wjccghcc] 05/10/2007 10:51

Though it was already factored into next year's brokers forecasts. Still, shows how short-term the market can be.

[robhammers] 05/10/2007 08:36

This is a massive contract- £20 million a year.

[mikey34] 05/10/2007 08:34

This news could hardly be better.Moreover most would agree with an HSBC report which concludes that a very significant strenthening of the dollar against sterling is likely to develop.They suggest$1.76. A move anything like that would have a hugely positive effect on Avons numbers down the line.

[cwa1] 05/10/2007 07:57

Commenting on the full rate production of the M50, Terry Stead, Chief Executive of Avon Rubber p.l.c., said: 'This is a wonderful day for Avon and puts us on track to become the largest supplier of military CBRN respirators. It is the result of over seven years of dedicated effort working with the US Department of Defense and we are very proud of this achievement.'

[cwa1] 05/10/2007 07:56

Fantastic news, even if it should really have been expected. The size of the order relative to the size of the company is certainly significant. Not very often we see the word wonderful used in an RNS describing the news :-))

[18bt] 05/10/2007 07:36

Finally start of JSGPM program - should put a good floor under the price for a bit. Interesting to see whether there will be upgrades on the back of it. Not necessarily in my view.

[cwa1] 02/10/2007 10:56

Modest uptick just now. Wonder if there will be any follow though?

Year just ended on 30/9/07. Will there be a Trading Statement?

Hopefully the start of better things to come. Not before time if it is....

[hvs] 25/9/2007 19:43

iTS NOT worth it.

[mikesnr1] 25/9/2007 19:24

A large sell-off today, and as usual no news to substantiate it. I sometimes wonder about insider dealing with this one!

[18bt] 14/9/2007 07:59

At last some news. Not revolutionary, but backs up prospects for the gas masks business outside the US.

[itsallaguessanyhow] 14/9/2007 07:25

Avon Rubber signs multi million pound MoU to supply respiratory protection
systems to Turkish Armed Forces

[itsallaguessanyhow] 06/9/2007 06:22

Avon released a trading update last year, on the 8th of September 2006, so it`s
not beyond reason that another may be on it`s way soon.

Couple that fact with the recent share price rise, during a period when it has languished during rocky markets, and I`d like to think that the trading update
might have some good news for once.

We can but live in hope.

Itsallaguess

[jeffian] 05/9/2007 23:58

I don't, Mikesnr1. You don't think it could be anything to do with the wider market movements, do you?

[mikesnr1] 05/9/2007 20:17

Has anybody any idea why the share price increase over the last two days?

[mikey_b] 31/8/2007 09:22

dairy products in china was a hot topic at the AGM. I confess to being slack and have no idea if progress has been made in this area or not. China is immense, dairy products are on the rise - previously pretty niche unlike the west where milk based diets exist. My Chinese colleagues tell me Westerners smell of cheese....hmmm.....