Avon Technologies Share Discussion Threads

[bookbroker] 12/11/2021 15:20

My thoughts, was on a growth rating, this appears a significant setback in the redirection of the company to defence and protection. A little bit tragic!

[disc0dave45] 12/11/2021 15:07

Quick calcs, if their annual FY22 Rev is circa $200m (possibly worst case) going on interims pbt margin and eps that's about 50p, so still a PE of 20x for a business with lots of unknowns.Held these before and did okay so always keep an eye on them, but for me even 20x is too much of a risk. DYOR

[justiceforthemany] 12/11/2021 14:42

-66% YTD
-75% 1 year
That's some drop

[justiceforthemany] 12/11/2021 14:41

Balance sheet was solid prior to this update.
Equity ratio >2; debt to equity <1
Sure there may be adjustments now but 15% revenue and a 40% drop seems overdone.

Important contract with USA DoA
Surely a strong takeover play now.
5 year low

[justiceforthemany] 12/11/2021 14:36

6 month RSI 7
1 year 11

[conwyrebel] 12/11/2021 14:22

Wonder if the Russian sabre rattling around Belarus and Ukraine might add to this story….

[justiceforthemany] 12/11/2021 14:18

24/9/2021
Avon Protection PLC - Wiltshire, England-based company making protection equipment for military, police, industrial and fire service personnel - Chief Executive Officer Paul McDonald buys 1,932 shares at GBP20.69 each on Friday, worth total of GBP39,973. In addition, spouse Deborah McDonald buys 1,204 shares at GBP20.63 each for GBP24,839. Chair Bruce Thompson buys 5,000 shares at GBP20.90 each, worth GBP104,500.

[justiceforthemany] 12/11/2021 14:17

Director holdings anyone?
CEO seems to hold around 50,000 shares
Chairman 11,000

[conwyrebel] 12/11/2021 13:51

It’s a slam dunk takeover tgt now

[fuji99] 12/11/2021 13:30

For some reason I never made any profit with this one after several trades in the past so I ignored it for a while. I think the delay in the results coupled with many uncertainties will make it a gamble. Clarity will start in a year or so. I am afraid this may drip lower week after week until positive - and proven - update is released. I think the confidence is lost and I am not sure if they have replaced the "retiring" young CFO. I feel sorry for those who were burnt.

[bad robot] 12/11/2021 13:05

This is not capitulation volume is too low. Next one.

what a dog. No buyers, there were some large sells at 1100p. This will go sub 1000p. Just like dog BOTB, selling will continue for weeks.


BR
IN BR WE TRUST
RED MERCURY CREW

[dope007] 12/11/2021 12:18

No chance this is capitulation.

[tahmina1] 12/11/2021 12:00

capitulation?

[tim1478] 12/11/2021 11:55

Ouch! I have stop losses on almost all my shares but not this one. I think I set one but it has run out of time. Fortunately holding was very small. Fall is so great I think it best to hang on for the longer term but. I Imagine there will be no price action for a bit. Bad news is often followed my more bad news and so even after such a fall, I have my foot on the exit door. Chat is a ort of head an shoulders so chartists would not be surprised

[scepticalinvestor] 12/11/2021 11:46

what do you think happens in a strategic review? It is corporate parlance for sackings and cost cutting. Plank lol

[p1nkfish] 12/11/2021 11:46

It appears there were some gaps in Avons internal testing, or they didn't test?
Why didn't they find out themselves?

[jeffian] 12/11/2021 11:37

Surely heads must roll for this? It was only a few weeks ago on 24 September they said in a Trading Update -

"First article testing has progressed in line with the Company's expectations and formal product approval for the DLA ESAPI body armor is expected to be received during the first quarter of our 2022 financial year, with initial shipments expected during the second quarter.

Commenting, Paul McDonald, Chief Executive Officer, said:

"I am pleased with the progress the business has made since December to address the delays experienced in obtaining DLA ESAPI product approval.

This contract extension demonstrates our ongoing position as a leading supplier of body armor to the U.S. armed forces, as well as underpinning our FY22 body armor revenue expectations."

[glavey] 12/11/2021 11:01

"Condoms would have been a better rubber line..."

Maybe not if they failed in First Article Testing! :-o

[scepticalinvestor] 12/11/2021 10:28

I did have a feeling at the time that disposing of the milk business was risky. True it may not have had such a huge growth in mkt cap but it would still be more profitable, in hindsight.

[jdh1602] 12/11/2021 10:23

Condoms would have been a better rubber line... :)

[bookbroker] 12/11/2021 10:11

Best off sticking to what you know, cows still have to be milked and demand for that ever increasing. Working with respiratory and helmets a business they know well, working with very high tech armour for infantry soldiers a whole new ball game. That Wendy acquisition as an alternative to the agricultural a mistake, what you might make in margin you lose in cost over-runs, and the battlefield now very different. USA in retreat globally!

[jurgenklopp] 12/11/2021 10:07

It's now a couple of hours since I bit the bullet and dumped my entire holding at 1220p for a 7 grand hit.

With hindsight it seems like there has been a slow drip of negative news for a while now (started last year when £40+ and drip drip drip ever since).

Takeover rumours will inevitably surface but, with credibility all but gone, fair value would appear to be somewhere below £10.

I took the option that I could recover funds quicker by investing elsewhere but the best of luck to remaining holders - hopefully there will be an opportunistic bid to soften the hit somewhat.

[ianhammond] 12/11/2021 10:07

Remember reading this article a few months ago. "It could be a sign of Avon's management not being fully aware of the challenges related to recent acquisitions. At the time of the transaction, market commentators were quick to proclaim 3M sold the ballistics business too cheaply. Could this testing failure be the reason?"https://www.thetwentiestrader.com/post/unmasking-avon-rubber