Avon Technologies Share Discussion Threads

[jeffian] 28/1/2022 19:18

Thank you for your feedback, Ch1ck. However, I remain of the view you first expressed about share buybacks - that they are financial 'smoke & mirrors' with little hard evidence that they actually (as opposed to theoretically via purely mathematical increases in EPS and NAV) increase the market value of shares. As you say, in my experience, quite the opposite. Whitbread "returned" £2bn to shareholders via buybacks following the Costa Coffee sale. The shares were then worth around £45 and that amount in cash would have been worth around £12.50/share. The price today? £29.75/share (having fallen as low as £20). Do WTB shareholders who held onto their shares feel they've had much of that £2bn "returned" to them? A similar situation at EiGroup (Enterprise Inns as was) which spent £1bn buying back shares up to £8/share before crashing to 25p(!) and eventually being taken over for 285p/share.

I would have taken issue with Avon management trotting out the line that "it was seen a way of returning shareholder value". It returns ALL of the value to some of the shareholders who sell....and may no longer be shareholders! The only way to return value to all shareholders fairly is to pay a Special Dividend or Return of Capital.

[ch1ck] 28/1/2022 12:36

Continued:Further investment into body armour would not generate enough returns. Focus now on existing and new products in production and development which look to be first class.I also asked about the share buy back program and it was explained after the meeting that after consulting with institutional investors it was seen a way of returning shareholder value .I was very impressed with Paul McDonald CEO and Nick Keveth CFO, both of seemed passionate about moving the company forward

[ch1ck] 28/1/2022 12:16

Just got back from the AGM and I must say I was very impressed with both the site and the board.Two questions were tabled on line and I asked for an explanation for the body armour failure and what synergies could be brought in to the business.It seems the customer asked for a design change and this was extensively independently tested in the UK and US without and failures.During the US government observed testing one plate out of 800 failed the ballistic tests.That meant that that bid was now over for the company

[p1nkfish] 28/1/2022 09:32

With this float the buyback isn't likely to push the share price but will give some a methid to exit as they need a buyer - the company.

I have come across buybacks pushng the price up - look at SYS1 and SGE.
SYS1 is extremely tightly held so any demand shifts it.

This is just another way to return some capital and get the sellers off the bus else its a death by a thousand cuts.

[ch1ck] 28/1/2022 08:52

18BTI attending the AGM and will ask the question today.Two things to note for me is why make the decision less than two weeks away from the new CFO STARTING.Also with more years in professional investing than I care to remember I cannot recall share buy back moving the share price significantly higher. All that happens is the market knows there is a signalled buyer in the market and picks up these shares cheaply.The company needs to produce solid results nd reduce debt

[18bt] 28/1/2022 08:13

Chick - I'm no defender of management, but net debt at 30/9/2021 excluding leases was clearly $26.8m and only $55.9 including property leases (IFRS16). So not an unreasonable move unless you are short.

[ch1ck] 28/1/2022 07:46

A quick call to an activist investor will sort these idiots out

[ch1ck] 28/1/2022 07:44

What the Fu.... SHARE BUY BACK WITH 193 million worth of debt.What are these clown's thinking

[pdwop] 28/1/2022 07:44

Pathetic management! Shareholder value already decimated by shockingly poor capital allocation. Best not attempt any more value destroying acquisitions so buy back shares instead... The share price has haemorrhaged because of poor stewardship!

[jeffian] 26/1/2022 11:02

Thank you. Edison reports are useful for the factual information they contain but when it comes to opinion and comment, do bear in mind -
"This report has been commissioned by Avon Protection and prepared and issued by Edison, in consideration of a fee payable by Avon Protection."

[robinnicolson] 26/1/2022 10:12

New research report published by Edison:

[st3v3m] 24/1/2022 16:54

His first real test as CEO and failed miserably, talks a good game.

[justiceforthemany] 19/1/2022 14:33

Those attending the AGM - this shameless and incompetent CEO must be booted out.

[ch1ck] 18/1/2022 07:49

The new Bean counter buys 13 shares Stop the f...in press

[st3v3m] 12/1/2022 21:11

Will watch this with interest.

[conwyrebel] 06/1/2022 09:47

Rich Rubber would have been better 😂

[ddubzy] 06/1/2022 09:21

Thats just brilliant. I wonder if he changed his name to fit the career or his actual name dictated the path!

[deanowls] 06/1/2022 07:08

If ever there were a man born to be a cfo find me a better named man me than Rich Cashin.

[justiceforthemany] 31/12/2021 18:25

Total lack of director buys still including by the shameless CEO - one can only hope they are in a closed period re: M&A

[justiceforthemany] 22/12/2021 16:30

Has McDonald CEO ran out of money??

[jeffian] 22/12/2021 11:19

It does seem to have found a floor. Fingers x-ed the worst is behind us.

[richardly] 18/12/2021 13:05

"Takeover's rarely happen when an share price is near multi year lows" or that's when they do happen with most shareholders getting wiped out / left with no chance of getting their money back, as a result.

[justiceforthemany] 18/12/2021 12:22

CFO buys £20K worth
CEO has still not added to his pathetic stake

Most PI's own more stock than them.

Takeover's rarely happen when an share price is near multi year lows

[fuji99] 17/12/2021 14:45

It is a recognition that the drop was far overdone.