Avon Technologies Share Discussion Threads

[solo4yous] 15/11/2021 08:44

Huge drop in AVON last week, bound to have had a tiny gap up!

Anyway, next up is a tiddler?!
Unloved and huge amounts of newsflow coming up!

[fuji99] 15/11/2021 08:42

51% drop for a delay in 17% in a segment of the business is over the top.

[someuwin] 15/11/2021 08:28

Buyers moving in.

[sbb1x] 15/11/2021 08:23

3 day rule ?

[someuwin] 15/11/2021 08:01

Up from here.

[gripfit] 14/11/2021 21:44

See you at £6.50

[p1nkfish] 14/11/2021 09:40

Back where it was about 4 yrs ago.

Anyone care to guess how long before it recovers to the closing price of Thurdsay 11th Nov 2021?

[p1nkfish] 14/11/2021 09:31

Needs the "real" details and cost implications to become clearer.

I don't see another 50% but no surprise if it goes sub £8 as the price churns up/down.
Who knows. Finding a bottom is a gamble.

A timely reminder that when approvals are outstanding for a new important product/area, add that to the risk basket as nothing is guaranteed, like bio-tech. That invested shareholder value likely gone up in smoke with some costs to follow.

[p1nkfish] 14/11/2021 09:23

Not sure about another 50% but the way it hit its low Friday is very weird.
Slammed down as if a dead cat in a bag and the level of distribution was amazing.
Small fry pi's together made no difference. The RNS wording was also less than transparent as it mentions cost savings but no mention of the costs there are bound to be. Do they think people are stupid?

Someone trying to be clever to reduce the shock to the market (?), epic fail.

[buywell3] 13/11/2021 22:25

On the 7th Aug 2019 AVON announced buying 3M's armor business

7 August 2019

Avon Rubber p.l.c.

("Avon Rubber", the "Company" or the "Group")

Agreement to acquire 3M's Ballistic-Protection Business


Here is a chart from that date


free stock charts from uk.advfn.com


Other orders followed in March of 2020 and the chart rise took off

25 Mar 2020 7:00 am
RNS Avon Rubber PLC (AVON) U.S. Defense Logistics Agency Body Armor Contract

2nd Mar 2020 7:00 am
RNS Avon Rubber PLC (AVON) U.S. Army Body Armor Contract Award


---------------------------------------------------


The 3rd profit warning should imo come when a revised announcement is made ---- which is expected to be in early December ---- ie in 3 weeks as of now and will it say:

AVON will exit the armor business -- or bite the bullet and carry on spending to get things sorted ?

Has the bounce gone out of AVON rubber and will heads roll if an share price rebound is not forthcoming ?

[justiceforthemany] 13/11/2021 22:08

Analysis PI's should do before buying any stock should include the consolidated income statement, EPS/PE ratios but most importantly of all the balance sheet - equity ratio and debt to equity.

BTW 40/329 = ...

[fuji99] 13/11/2021 21:54

Yes, while I am holding, keep on sucking. IMO, the sharp drop was caused by stop losses from institutions coupled with the limited number of shares issued (30 million). So the share price was very sensitive and volatile. 80% of the business is doing fine only the body armour which represents 17% of the total has approval issues. So to me the drop is overdone and gives the best opportunity to buy cheaper for the long term. In 6 to 12 months, the share price will go back to £25 - £30 if not taken over at 800 million by then.

[cokesucker] 13/11/2021 21:35

Do we have anyone still holding this share ?
Why ?
You would be better off holding my Coke and perhaps giving it a little suck.

[buywell3] 13/11/2021 21:32

As more seasoned investors know

Profit warnings come in threes

Any dead cat bounce imo will now be muted as we await number three

----------------


On an aside

The way rubber armor plates are held together so as to give flexibility to the wearer could be very difficult to achieve imo regarding the maintaining of the same protective qualities that the plates give

In other words

The joining devices themselves could imo be a weakness that would allow penetration by a projectile or sharp object of a certain size /shape/ material

Not an easy thing to design/make methinks but interesting none the less

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Some entity/entities seem to want out

[mattboxy] 13/11/2021 21:27

So is £40 but let's be honest you won't be seeing either of them. No do try to not exaggerate and keep your head!

[roger207] 13/11/2021 19:25

300p possible

[robinnicolson] 13/11/2021 14:01

A snippet from an article in The Times:

"McDonald bought the body armour business from 3M, the American industrial group, in 2019. He declined to take calls on the latest announcement and his advisers did not answer questions about whether he would take action against 3M.

Despite previous guidance, Avon will not have any income from body armour but will have all the overhead costs of a business that made up $40 million, or nearly 30 per cent, of the groups reported $140 million order book."

I couldn't raise a smile to their headline "Avon Falling".

[disc0dave45] 13/11/2021 11:57

The 447p eps was statutory for last FY, their adjusted eps (some massive adjustments there!) was 76.5p, giving a PE of 12.Historic is meaningless now anyway IMO.

[cassini] 13/11/2021 11:41

ADVFN financial data is rearward looking, not forward looking, that PE of 2 is not 'estimated', it's just what you get if you divide the current share price by last year's earnings, not earnings to come.

How did AVON get an eps of 447p (according to ADVFN) for last year anyway? - it's way above the 40-70p eps range of previous years.

I did hold these for a short time earlier this year but decided it was a bit like picking up pennies in front of a steam roller - the risk/reward ratio wasn't favourable.

[terminator101] 13/11/2021 11:27

It may be on the advfn "financials" page, but that doesn't make it true. Try some basic research into a company before you invest your hard earned.

[fuji99] 13/11/2021 11:15

Go to top of the screen and click on "Financials" and you will see the estimated PE of 2.0 appear following the blood bath.

[justiceforthemany] 13/11/2021 11:11

FY 2022E

Revenue $328.9M
EBITDA $71.5M
PBT $46.8M
EPS 122.2c

Stronger than expected cash conversion of c 80% leaves adjusted net debt at $27m (excluding lease liabilities) at end September with revenue growth in Military respiratory revenues (+10%)

14 day RSI 10
7 day RSI 3