Avon Technologies Share Discussion Threads

[mallorca 9] 13/8/2021 08:43

Salpara,

I don't actually think that Avon is overvalued - quite the opposite given the nature of it's business.

I do take on board your comments re the supply chain though (I am an ex Purchasing Manager in the Automotive Tier 1 supply base). That's one reason that I have opened a short on the DOW.

[salpara111] 13/8/2021 08:35

Well there was nothing good in this update.
As I've posted before, this is a decent company but its valuation had got out of control. The simple fact is that at the current share price the valuation metrics look too rich. I work for one of the largest car company's in the world and I can tell you that supply chain chaos is a real thing and it is putting huge pressure on both product delivery due to specific component shortages and cost inflation.

[jurgenklopp] 13/8/2021 08:08

re #244

They bought a couple of days ago so are underwater.
Hopefully topping up today.

[mallorca 9] 13/8/2021 08:08

$221m of orders taken in the last ten months ..... opening para of today's RNS !

[mallorca 9] 13/8/2021 08:05

Franklin Templeton seem to agree with me - they've just bought over 5% of the shares !

[suetballs] 13/8/2021 07:59

Well it is Friday 13th!
Suet

[mallorca 9] 13/8/2021 07:56

Sphere,

great post.

I have recently opened a short on the DOW.

A hedge but I also see a HUGE correction there soon !

[mallorca 9] 13/8/2021 07:53

Hem,

RB has been in this for years .
He declared it as his largest holding about one year ago.
If you look at his 'longs' on his web site it is still there as multiple open longs.
His stop loss though was over £30 !

[sphere25] 13/8/2021 07:46

So that's another company warning on supply chain disruptions, following the likes of ULVR, RKT, CTEC and some smaller ones like TCN, AIEA. There are so many companies saying the same thing and yet the market is barely batting an eye lid on their ratings. Then the warning's comes, the share prices take a hit and are yet to recover!

You even have the dealerships setting up possible warnings with MMH being the most recent in referring to a "high level of uncertainty" and a "possible range of outcomes" and it's the same theme with the market absolutely (overly?) comfortable on the shares.

Watching recent events and company news, is the market too comfortable?

It is pretty apparent that the market is dismissing all these issues as very very short term, but it could still pay to review what companies have said and keep a closer tabs on forthcoming company updates.

All imo
DYOR

[hem007] 13/8/2021 07:46

He bought ULE, QQ and CHG. He didn't say he bought this one.

[mallorca 9] 13/8/2021 07:46

Well into profit already.

What a buying opportunity that was.

This is a world class business. Now we all clearly know what the issues have been.

Critical business as competition is limited due to the lengthy (years) approvals process for new products / suppliers.

Bound now to be a buyout target at this ridiculously low market cap.

[mallorca 9] 13/8/2021 07:41

I'm in.

That fall is way overdone.
M/C now only circa £750m.

Revenue next year $300m .
Critical business that could not be allowed to fail.
Strong takeover target !

[mr euro] 13/8/2021 07:30

I'm out, 18% loss. Never want any part of this company again.

[fuji99] 13/8/2021 07:28

Do we then extrapolate the expected results in 2021/22 to the share price of 2016/2017 which is close to £10 ?

[mallorca 9] 13/8/2021 07:28

Does Robbie Burns still hold this? I've noticed that he hasn't mentioned his holding for a while - only that Avon could be a takeover target.

[r2oo] 13/8/2021 07:26

So this almost 30% drop will take us nearly to the March/April pandemic drop of 2020.A huge oversold reaction in my opinion and a buying opportunity for me.Short term issues and a very seemingly honest trading update.I'll see where this settles and top up

[bahiflyer] 13/8/2021 07:24

No doubt Robbie the Trader will have still secured a handsome profit or so he'll tell everybody due to him being able to guarantee a stop price..yeah right

[w1lbur01] 13/8/2021 07:11

Yes wasn't really expecting that knew it wouldn't be great but this sounds dire. Very slow recovery here as it was so highly rated

[vulgaris] 13/8/2021 07:09

Well, that's wiped out the past fortnight's 'recovery'. And some.

[ch1ck] 30/7/2021 15:01

Great article in the Share mag

[morti1] 30/7/2021 07:51

The results pointed to a much better second half. Hopefully the gradual share price rejuvenation is starting to reflect this.

[ch1ck] 30/7/2021 07:07

I bought in yesterday Great recently point

[tole] 30/7/2021 06:04

https://www.sharesmagazine.co.uk/article/big-buying-opportunity-after-avon-protections-slumpScope for considerable upside as the defence and protection firm moves past its recent problems

[ch1ck] 28/7/2021 08:09

Hi ToleThought today's price was a good entry point having sold earlier