@EssentialInvestor
Thanks for this comment re. cycles.
I'm glad there was nothing scary in that TU. I think I'll bide my time re. a BOY topup (and the same for other stocks). I remember last summer most stocks fell and we may see more of that due to political/Brexit shocks presenting better buy opportunities later on. |
Hi Phil, the outlook for rest of year is slightly stronger than I expected. |
Morning EI , looks ok, nothing special . Keep on the watchlist :-) |
Phil, thanks for that, will have a look tomorrow. |
TMB, apologies, just seen your question.
I meant cyclical in the context of the wider economic cycle.
So as an example, a house builder is a cyclical, their profits can vary
markedly in boom/bust years - you may be more than aware of all this already. |
Trading statement tomorrow. |
@EssentialInvestor
I'm quite new to private investing (started March 2018). Regards your comment about it's cycle (something I'm still learning)...was it not at the end/top of it's last cycle when it peaked at about 1040 last summer? That is, is it not starting a new one (cycle) now? Bare in mind that I'm just going by the price chart, and I'm still trying to learn about cycles. |
Still on my watchlist along with RTO, RB.,BNZL and JMAT :-) |
TMB, you mention BOY being lowly rated, not sure I agree with that.
It currently sells on approx 15x, for a cyclical in what may be late
cycle that rating looks fair to full. It could though easily
shoot up towards £9 again on a strong trading update. |
I listened to the FY webcast fwiw, very impressive.
Just depends whether this long expansionary cycle continues.
It's a quality company without doubt, but still cyclical. |
From looking at their financial calendar hxxps://www.bodycote.com/investors/financial-calendar/ they seem to pretty random with trading update statements. The last one at 15 November 2018 titled "Trading Update for the 4 months to 31 October 2018". They also publish half year results. The next of these could be this july since this was last years: . I like bodycote and have bought them twice. I'm just surprised that they are priced so low. They have cash, diverse products and marketplaces, and seem to have a positive direction. I'm just wondering what's holding the price down. Does anyone have access to *recent* (this year) transcripts of analyst conference calls? |
There was a trading update in late May last year from memory. |
from Citywire
Peel Hunt: Bodycote undervalued
Thermal processing firm Bodycote (BOY) has invested millions into new capacity and Peel Hunt says it is not being reflected in the share price.
Analyst Harry Philips retained his ‘buy’ recommendation and target price of 925p on the shares, which rose 2% to 865p yesterday.
The company has invested £216 million in new capacity since 2014 which will give it ‘a substantial accelerator for top-line growth’, says Philips.
‘Bodycote has proven its ability to manage its way through low-growth years, the potential returns from its expansionary growth capital expenditure engine are still not fully reflected in the share price and the specialist technologies are growing at more than 10% a year,’ he said.
‘This is simply not reflected in a current year price/earnings of 15.6 times and the stock continues to be one of our core recommendations.R17; |
SNR update may be worth a look re Boeing Max work. |
12th april Goldmans sell tp 715p
reiterates |
1st april UBS 'neutral' tp 815p cut from 840p |
What all this means for Bodycote is more difficult to say.
If the fix is acceptable and confidence can be restored in the Max,
it should hopefully have little impact. However, a longer delay and any lingering
doubts that lead to order cancellations would potentially be more problematic.
My very rudimentary take. |
Just reading reports it looks like Boeing will retrofit aircraft
with an additional safety feature, which was unbelievably an optional cost addition,
and the new software fix - if this fix is passes the various regulatory
hurdles.
That a safety feature was a cost option is stunning, and points
to some deficiencies in Boeing leadership culture. |
Boeing has issued changes to controversial control systems linked to two fatal crashes of its 737 Max planes in the last five months.
But it's still not certain when the planes, that were grounded worldwide this month, will be allowed to fly.
Investigators have not yet determined the cause of the accidents. |
The first big cancellation of the Max with Indonesian airlines statement last week. |
Berenberg downgrades 'buy' to 'hold' .........tp 940p up from 900p |
updated:
15th march Deutsche hold tp 810p
14th march RBC outperform tp 1000p
12th march Liberum hold -
11th march HSBC buy tp 1040p
11th march JP Morgan neutral tp 840p
8th march Peel Hunt buy tp 925p
8th march Liberum hold tp 740p
8th march ++++ Final Results ++++ |
RBC reiterates 'outperform' ... tp 1000p up from 950p |
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