Avon Technologies Share Discussion Threads

[fuji99] 14/12/2021 09:51

IMO the share price was adjusted to the worst case scenario, dropping it by 51%, the day they announced they will carry out the body armour review - which represents in fact only around 17%. So the reaction was overdone. Then what if they flag up a hint of a takeover bid tomorrow ? ...

[ch1ck] 14/12/2021 09:40

Interesting move up with a rise above 3 percent today. I believe there will be a statement out tomorrow with results so this may be a preemptive strike on better news and dare I say it good resultsI have doubled up today buying at 1030

[fuji99] 10/12/2021 12:40

Also adding just in case the whole business is taken over. I am sure AVON is already on the radar of many major players.

[fuji99] 10/12/2021 10:08

I am adding as I also own quiet a bit too. I will leave them to mature for a few years. Knowing how sensitive the share price reacts to the news, it won't take long before they cross £20 barrier again.

[r2oo] 09/12/2021 20:05

I own a fair few of these already but I am so tempted to really load up if this drops further.

[justiceforthemany] 09/12/2021 18:00

I expect this to fall 10-20% on announcement of the body armour exit.

What could limit this is Director buying (will be outside of closed period) and institutions adding.

[fuji99] 09/12/2021 09:41

The body armour alone represents no more than 17 - 20% of the total sales. The market over-reacted by chopping more than 50% of the share price. IMO this was due to triggered stop losses that led to a huge spike down as the number of shares issued was just over 30 million - so the price is very volatile and sensitive to any sell or buy action.

[justiceforthemany] 08/12/2021 22:54

Even the broker Edison is all but confirming this
The outcome of the review along with FY21 results should now be announced in December. In advance of further guidance from the company we have adjusted FY22 numbers to exclude body armour.
hxxps://www.edisongroup.com/company/avon-protection/

2022E Revenue $288.6M EBITDA 59.4M PBT 38.1M EPS 99.4c P/E 14

[justiceforthemany] 08/12/2021 14:57

No one here or in the market should be surprised next week if the company announce an exit from the armour business and a writedown of about $50M. You would think that was priced in with the 50% drop.

[ch1ck] 03/12/2021 11:25

Very interesting point the basic escape hood gives full protection but is quite restrictive.The simple mask market is flooded but the market for professional services is massive and more specialised You should be on the board

[danvandan] 30/11/2021 10:36

Well I was imagining that Avon is fully capable of creating 'everyday-wear' masks for your routine high-street covid situation or meeting with friends/going to events/using a train/doing surgery etc. However Jeff, you paint an interesting picture, so I'm going to order the full-fat military mask and get a Team Wendy helmet too. Do you know where I can get a light-sabre or even just a common-or-garden under-the-table blaster? (Obviously, when I say 'under-the-table', I mean for use under the table when blasting bounty hunters.)

[jeffian] 30/11/2021 10:13

I think if numbers of people started wearing Avon masks for Covid protection, the rest of us would assume either that WW3 had started or we had wandered into a Star Wars convention.

[danvandan] 30/11/2021 09:08

Has anyone noticed that this company makes masks? And has anyone told Avon Protection's management that the mask business is very popular right now? Maybe they should look into that.

[terminator101] 27/11/2021 07:45

Strong recovery huh. Same waffle on here when it dropped to 3000 and traded sideways for a bit Before dropping to 2000 and we had exactly the same waffle when it traded sideways for a bit Then it dropped to 1000 and now it exactly the same waffle. Trouble is that this is still overpriced on a P/E basis even down at 1000 and they have just ditched their growth plans and have their heads down in a "strategic review" which is corporate code for "we haven't got a scooby doo what to do next" Wait until you see the write downs and it's going to drop again IMO

[fuji99] 26/11/2021 14:40

IMO their last update on the body armour was perhaps the worst case scenario for the shares to drop 51%. I expect in their results and update next December the market will discover it's not really as bad as they assumed. I think this will be the trigger for a strong recovery.

[km18] 26/11/2021 13:59

From WealthOracle a few months ago....

Avon Protection PLC is a technology company which designs and produces life critical personal protection systems to Military and First Responder markets. The Company’s products categories include respiratory protection and ballistic protection, its range of respiratory protection includes mask systems, powered and supplied air systems, filters, spares and accessories. The Company’s ballistic protection portfolio includes ballistic helmets and body armor as well as helmet liners and retention systems. The Company is a provider of general-purpose respirators, tactical forces respirators, powered air purifying respirators (PAPR) and tactical self-container breathing apparatus (SCBA) across the United States Department of Defense (U.S. DOD). Current market cap is around £915m.

[justiceforthemany] 24/11/2021 14:15

I can confirm they are in a closed period so Directors can not buy. One would hope they would be adding en masse at this price when results are released.

[wildshot] 24/11/2021 12:08

jw330 why would management by buying cheap shares at the moment? They are in a close period with financial results due in the next few weeks. Share purchase activity should be looked for after the results are published.

[jw330] 24/11/2021 09:39

not a peep from management thus far. They only hold 5% of business so should be at least buying up some cheap shares. I would like to see some more positive catalysts before dipping in.

[fuji99] 22/11/2021 14:46

IMO the worst case scenario is for the share price to drop to the £15 - £16 level the day they gave the news on the delay in the body armour. I think there are two reasons for the share price level we have now: 1/ Analysts quickly misjudged the outcome by ignoring it was only 17% of the whole business 2/ The number of shares issued is so tiny (31 million) that any large sell will be followed by a large chunk of the share price taken out.

[justiceforthemany] 22/11/2021 14:19

Updated Edison note
Valuation: Core progress heavily discounted

The market value hit of c $315m since the announcement outweighs the likely financial impact of a full withdrawal. The FY22e P/E of 15.4x may be challenged by further cash costs but we expect a strong recovery in FY23. We suspect the progressive growth in the dividend which has been maintained as EPS recovery was in sight may be temporarily interrupted as the armour issues are sorted out.

The reaction to the latest product approval delays and the strategic review in the body armour business appears to more than discount the likely financial impact and does not reflect solid progress in the core of the group involved in respirators and helmets.

[fuji99] 22/11/2021 10:10

Shorts are low and were already there in September. IMO the share price is very sensitive as the number of issued shares is only 31 million. So any amount of buy/sell will spike the share price sharply in either direction. So assume someone buying say 5000 shares, I won't be surprised to see the share price going blue.

[ch1ck] 22/11/2021 08:58

Have you noticed how the idiots have left and the price has settled down.In my mind short attack