Bodycote Share Discussion Threads

[shiny1000] 09/12/2007 20:08

Well I'll keep talikg to meself, these are now damn cheap and recent purchases by directors just exemplifies the point.

[shiny1000] 08/12/2007 16:16

This is the buy of the century now.

[shiny1000] 07/12/2007 16:33

Jules, agree with you however some real manipulation going on here. watch this space as I say.

[jules64] 07/12/2007 16:15

Buy-out on the way!

[jules64] 07/12/2007 14:03

Investors chronicle are very bullish and don't rule out a bid, worth tucking away.

[bubface] 07/12/2007 08:45

investors chronicle buy am told haven't had a chance to read yet

[shiny1000] 07/12/2007 08:09

Thanks mate!!!

[mikey34] 07/12/2007 07:55

Watching like a hawk, shiny.

[shiny1000] 07/12/2007 07:50

Am I talking to myself here....nobody interested?

[shiny1000] 07/12/2007 07:41

Credit Suisse Asset Management's co-head of UK equities Graham Ashby has bought attractively-valued mid and small-cap stocks during the recent sell-off, but remains wary of the troubled banking sector.

Ashby said he had bought into engineering group Bodycote International (BOY.L: Quote, Profile, Research), which has fallen from more than 300 pence last month, at around 220 pence per share recently. Earlier this year Bodycote rejected a 1.1 billion-pound takeover proposal from Swiss peer Sulzer AG (SUN.S: Quote, Profile, Research), which last month said it did not rule out a renewed bid.

[shiny1000] 06/12/2007 13:34

Interest rate cut should help sentiment, expect a big bounce shortly, this is just taking the mick!!!

[shiny1000] 04/12/2007 10:44

BODYCOTE INTERNATIONAL PLC



TRADING UPDATE - 24 OCTOBER 2007



Bodycote International plc, the specialist thermal processing and testing
services company, is today hosting an investor day and strategy update. The
Group is pleased to report good performance through the third quarter of 2007.



HIGHLIGHTS



• Revenues (at constant exchange rates) increased by 19%
• Organic revenue growth (in local currency) in Testing Strategic
Business Unit (SBU) of 10%
• Organic revenue growth (in local currency) in Thermal Processing SBU
of 6.5%



GROUP



At the time of the interim results announcement, we reported that sales in the
first half of 2007, for continuing operations were 14% higher than 2006 at
£317.6m (19% at constant exchange rates) and headline operating profit 1 was
£48.2m compared to £40.6m in 2006, an increase of 19%.



Sales growth for the nine months to the end of September (at constant exchange
rates) was 18.7%, of which 7.3% was organic and 11.4% was from acquisitions.



As a result of the impact of exchange rates (primarily the weakness of the US
dollar) on currency translation YTD, sales in sterling terms have to date been
reduced by 3.6% compared with the same period last year. If exchange rates
remain at the current level, the impact will moderate as the year progresses,
with the annual impact on sales and operating profit expected to be c. 3%.



1 excluding impairment of goodwill and equity investments, amortisation of
acquired intangibles, major facility closure costs and interest and tax on
associates.



STRATEGIC BUSINESS UNIT (SBU) OVERVIEW



Heat Treatment sales in local currency are cumulatively running 15.2% ahead of
the same period last year, of which 5.5% is organic. Aerospace, power
generation and oil & gas demand remains robust in all territories, and
automotive sales have strengthened in Continental Europe although North America
is soft. Turnover has increased in all geographies except North America, where
growth has been temporarily affected by the previously announced closure of two
facilities and soft economic conditions in the mid west region.



Hot Isostatic Pressing is maintaining its excellent performance, with organic
sales growth of 16% (in local currency) compared to 2006 as a result of
continued strong demand for aerospace, industrial gas turbine and oil & gas
components.



Sales in the Testing SBU are 29% higher than for the same period last year in
local currency with organic sales growth of 10%. Oil & Gas, Aerospace, Defence
and Construction markets continue to be strong with our Materials & Engineering
Technology businesses benefiting. There was some slow down in North American
markets, particularly in the automotive sector, which has been exacerbated by
the weakness of the US dollar reducing the competitiveness of our larger
Canadian business. As a result we have decided to rationalise the number of
laboratories focused on this sector.



In Health Science and Environmental division, margins were under pressure and
the Canadian business had some seasonal issues. Whilst the Canadian business
has not caught up the lower quarter two sales, operational efficiencies are now
driving improvement in food testing margins.



The development of the Testing SBU continues to gain momentum with eleven
greenfield start ups in the process of commissioning which will drive organic
growth coupled with several acquisitions nearing completion.



OUTLOOK



The Board expects all markets in which the Group operates to remain buoyant,
except for automotive where, whilst Europe is improving, North America continues
to be muted. Acquisitions completed in 2007 to date are expected to contribute
approximately £9m of sales in 2008. A further 9 acquisitions are at various
stages of evaluation and negotiation, and, as set out in our preliminary
results, we expect 2007 acquisition spend to be in the range of £50 - 60m with a
significant ongoing pipeline.



INVESTOR DAY



Bodycote is hosting an investor day in North West England today and the
presentations will be available on the company website from noon pm today.



A pre year end update will be announced week commencing 17 December 2007.



For further information, please contact:


Bodycote International plc Tel No: [phone]
John D. Hubbard, Chief Executive
David Landless, Group Finance Director

Financial Dynamics Tel No: [phone]
Jon Simmons
James Ottignon

[shiny1000] 04/12/2007 09:58

This is being manipulated before the big push!!!!

[shiny1000] 04/12/2007 09:30

nibble, nibble, nibble...cheap as chips and trading statement on Dec 17th, which should be good!

[shiny1000] 03/12/2007 16:20

Mmmm, someone getting stock on the cheap.....This is being manipulated, todays a pullback..watch this fly in the coming days / weeks.

[shiny1000] 03/12/2007 16:09

And keep buying at these low levels!!!!

[shiny1000] 03/12/2007 15:50

Yes but that's for making a few pence......remember buffet didn't make his billions by trading...he did it by accumulating unloved companies!!!

[eastbourne1982] 03/12/2007 15:49

I told you not to get too excited, just trade the ups and downs, only way to trade in these markets

[shiny1000] 03/12/2007 15:33

So Deutsche bank selling, I wonder to whom....great value here now!

[shiny1000] 02/12/2007 19:23

Sulzer continues to be interested and also that it is going to have to pay a proper price - ie at least 350p in our view - if it is serious," Evolution Securities analyst Harry Philips said.

"Sulzer, whose activities range from pumps for the oil and gas sector to surface coating, has benefited from strong investment in the energy industry amid high oil prices.

Bodycote is the world's largest supplier of thermal processing and testing processes, which are used in the aerospace, power generation, automotive, railway and general engineering industries, according to its website.

Sulzer, which recently missed out on buying selected pump lines from Britain's Weir Group Plc after the groups failed to agree terms, has said it has a war chest of 1 billion Swiss francs (412,980 pounds) to spend on acquisitions.

In March, the firm said it had suspended a share-buyback programme and intended to issue authorised capital to help fund the proposed acquisition of Bodycote.

[shiny1000] 01/12/2007 13:41

Something is stirring at Bodycote International, the engineering group that rejected a £1.1bn takeover bid from Swiss conglomerate Sulzer in April. Traders have not discounted some secret stake building by Sulzer, which could revive its original 344½p bid when the Takeover Panel's 'hands off' restrictions elapsed. Bodycote ended up 12p to 248p.

[shiny1000] 01/12/2007 12:25

Plenty of takeover activity at the moment should result in someone coming in for BOY.

[shiny1000] 30/11/2007 17:48

Solid December Trading Statement Expected
Following the recent pull-back Bodycote is offering very good value, in our view,
trading only 10% above its trough EV/Sales despite its significantly improved
business profile and the fact a global industrial recession of the same severity as
2001/2 is unlikely. We note that key end markets such as Power Generation,
Aerospace and O&G, all of which turned down sharply in 2001/2, are forecast to
continue delivering robust growth for the medium term (based on order backlogs
at customers).
We expect December trading to have continued to show strength, as the
industrial environment, especially in Europe, has remained strong.
More Acquisitions To Be Accretive And Create Value
We anticipate another £45m of acquisitions between now and the first week of
December (as outlined in the recent Q3 strategy update), and expect these in
sum to be c. 5% eps accretive. We believe this will remind the market that the
roll-up strategy that Bodycote is executing on is value-creative.
Because of the extremely fragmented nature of Bodycote's competitive marketplace
the company has been able to acquire smaller peers very cheaply (at 6-8x forward
EBIT, with the low end of range for Heat-Treatment facilities and the higher end for
Material-Testers). The strategy would then be to integrate these companies into the
group, reducing shared head office costs, sharing best practice and to also use
acquired technologies around the group (taking advantage of Bodycote's global
footprint and customer relationships). In our view even excluding the potential for
synergies, being able to acquire these businesses at 6-8x forward EBIT (and c. 1x
sales – as Bodycote seeks a 15% ROCE on any acquisitions), in itself is valueneutral
when your pre-tax WACC is c. 12.5%. If there is any growth in the topline or
margins then there is value creation.
We have assigned a value of 20p per share to this acquisition story, based on the
DCF below. We have assumed Bodycote completes on its current c. £150m
pipeline (by sales, and we have already assumed £45m completes in 2007 in our
current forecasts) at a rate of c. £50m pa, and that there is 7% growth for the next
couple of years with around 3% long term growth (higher than industrial
production given the trend toward outsourcing). We note the pipeline is for targets
where due diligence has begun and management are in talks.

[shiny1000] 30/11/2007 16:25

que sera sera....I know but read the ML note and these are a steal!!!!

Alot of trades today than normal????

[eastbourne1982] 30/11/2007 16:14

chill out,

what will be will be