Bodycote Share Discussion Threads

[shiny1000] 08/1/2008 18:18

Bid will come soon and then will see who the muppet is!!!

[w.bramley] 08/1/2008 11:03

pmitchell

Thank you for the information re: market makers, do I take it that their buy orders are to fill an order, and when you see a list of these market makers on either the buy or sell list, what or who is the trading for?

[masurenguy] 08/1/2008 10:09

Apart from the general market malaise, the share price is being punished more severely because of the net debt levels. Anyone have the latest y/e pretax profit projections ?

[john hampton] 08/1/2008 08:37

Strong support from a few years ago around 130p area, downside risks reducing IMHO Can see this one being taken out at a cheaper price than last years offer, a sitting duck here.

[pmitchell] 07/1/2008 21:40

MCSB-EVO-WINS-KBC are market-makers, not institutions, don't get confused by that. Also, when you see RNS statements from brokers like Deutsche Bank AG, they are not buying them for their own account but, most likely, buying stock that is then lent out to hedge funds to short the stock. That is why you see Deutsche Bank disclosing when they breach the 3%, which is a declarable stake. They must also disclose when they fall below 3%.

PS

Shiny, you are still a muppet!!!

[moob] 07/1/2008 20:14

130p and ill nab a few

[shiny1000] 07/1/2008 19:17

pmitchell, look at the endth game and then call me a muppet...THESE ARE AN ABSOLUTE STEAL!!!!

[w.bramley] 07/1/2008 15:24

Looking at Bodycote on Level.2 I am surprised that there are no buy orders from such as MCSB-EVO-WINS-KBC and other large institutions, yet at this price it MUST be a target for such as Sulsar. Am waiting to add, but would like to see a few buying orders for the big investment institutions.

[pmitchell] 07/1/2008 12:48

Shiny, you're certainly not right as you've been saying this is a steal all the way down from 300p.... You really are a muppet!!!

[chris1604] 07/1/2008 12:15

Shiny

Hope you are right about Sulzer returning to the fray, but I see no reason why any offer will exceed 250p which is almost a 50% premium on todays price. The Boards view on any bid may become irrelevant, many investors will vote with their feet.

What is your view of the company`s worth stripping out any takeover premium, my view of a fair valuation remains circa 250p.

[john hampton] 07/1/2008 10:41

Starting to look very appealing at these levels. Its one my watchlist. What was the bid last year 300P+ can't be long before renewed bid speculation surfaces again.?

[millionairefools] 06/1/2008 20:52

its obvious the swiss company are getting this shorted big time, board will look like real idiots if they now sell for a cheaper price...

[moob] 05/1/2008 12:26

130p and ill nab a few

[shiny1000] 05/1/2008 08:49

In summary, I believe many stocks have fallen too far, presenting excellent long-term buying opportunities, although in one or two cases I moved in too early.

Let us look at some anomalies comparing what I term "real" worth and current market prices. Take Bodycote, where the Sulzer board was seemingly prepared to pay 346p for a recommended bid in May. "Too little" said Bodycote. Its share price is now 190p. So who got it wrong - the boards or the investors?

[shiny1000] 05/1/2008 08:49

FT REPORT - WEEKEND MONEY: Time to snap up the bargains
By John Lee, Financial Times
Published: Jan 05, 2008


To say that 2007 was an interesting investment year would be an understatement. I concluded the previous year's year-end article as follows: "At some stage there will be a stock market correction or worse but I have prospered over the years by being fairly fully invested, not overpaying, and above all being patient."

By mid-year, I wrote: "I am adopting a rather cautious, steady-as-you-go approach, maintaining rather higher cash reserves than normal." The cooler sub-prime winds were already beginning to be felt on this side of the Atlantic!

The second half of 2007 was mixed - while financial and property shares were well down, and companies producing bearish trading results or statements were severely punished, a number of stocks such as palm oil producer MP Evans, soap/toiletries PZ Cussons, and Irish/UK drugs distributor United Drug hit all-time "highs". Sadly these bright spots were heavily outweighed by the negatives - my disproportionately large holding in property developer Pochins being the prime culprit - falling from 375p 12 months ago to 240p, though we did have a good dividend boost during the year.

Other heavy falls were experienced in hospitality industries services Christie Group, software specialist Delcam and window ventilator manufacturer Titon. So, overall, it was a poor year on paper with my portfolios down 14 per cent - the first deficit for many years.

Looking back, I recognised that property values were becoming dangerously overheated and took defensive action. I sold some Pochins just short of £4 having disposed of 25 per cent of my Town Centre Securities holding at 595p the previous year - current price 330p.

But, as usual, my dilemma was: take profits and trigger CGT or take the longer view?

Thankfully, housebuilder Ben Bailey was a Pep holding and thus tax-free when it was taken over just before the sector took a dive! As I have said repeatedly, the stock market always overdoes things but sadly no bell rings either at the bottom or the top. As Bernard Baruch, the US financier, said: "Don't try to buy at the bottom and sell at the top. This can't be done except by liars!"

Over the year I have prospered by buying at what I judged to be attractive levels. In a bearish market, of course, prices could fall even further but at some stage one has to back one's judgment and take the plunge. As British financier Sir John Templeton put it: "To buy when others are desperately selling, and to sell when others are greedily buying requires the greatest fortitude and pays the greatest reward."

What we have seen in recent months, particularly among small caps, is steady "drip" selling with virtually no buying - most investors are maintaining liquidity while watching and sitting on their hands. No doubt there has also been some hedge fund "short selling". I am still endeavouring to discover just what this is, although it does seem to have made a few individuals exceedingly wealthy!

In summary, I believe many stocks have fallen too far, presenting excellent long-term buying opportunities, although in one or two cases I moved in too early.

Let us look at some anomalies comparing what I term "real" worth and current market prices. Take Bodycote, where the Sulzer board was seemingly prepared to pay 346p for a recommended bid in May. "Too little" said Bodycote. Its share price is now 190p. So who got it wrong - the boards or the investors?

Or take property company Daejan with published conservative net assets per share of £52. Last December, its shares were pushed up to £65 - I bought in June at £41 and have just bought more at £29. As its chairman said in his last annual report: "Since March 31 the shares have suffered from the downward pressure which has afflicted the property sector as a whole. Both the upward and the downward movements have been quite detached from the reality of your company's steady long-term growth."

John Lee is an active private investor writing about his own investments. He may have a financial interest in any of the companies, securities and trading strategies mentioned.

www.ft.com/myportfolio

[shiny1000] 04/1/2008 17:58

Chris....erm think again..Sulzer will be pursing their lips and could easily comeback with the offer and this time around bodycote wont be able to bat it away....reminds me of the way morrisons bought out safeways.....first time safeways waved away the approach, 2nd time no choice but to take it!!!!

[chris1604] 04/1/2008 16:37

Shiny

Your last note is profoundly depressing as I can`t see Sulzer coming back with any offer in excess of 250p, slightly more than my purchase price. The Board of Bodycote must be shifting uneasily in their seats at present.

In fairness,Bodycote is a well run company whose prospects have been overwhelmed by present market sentiment. They do appear to have a warchest for acquisitions, but perhaps this would be better used for further buybacks given the present shareprice.

We maybe in for the long haul with this share, I have just managed to dig myself out of a hole with NIS, perhaps I maybe lucky again

[shiny1000] 04/1/2008 16:16

Suitor ponders Bodycote move
Chris Barry
5/ 3/2007

THE INDEPENDENT future of another north west corporate heavyweight is in focus today as Bodycote International awaits the next move from Swiss suitor Sulzer AG.

On Friday the Macclesfield-based industrial giant rejected a £1.05bn bid from the industral pumps maker.

Some City analysts believe the Swiss company may go hostile with its 325p offer, but it is thought that a more likely situation will see a fresh bid tabled in a bid to persuade the bodycote board to recommend the deal to shareholders.

A source close to Bodycote told the MEN: "There has been no indication that they want to go hostile, but the ball's in their court for them to come back with a better offer."

In the last two years, landmark listed companies such as glass maker Pilkington, Manchester United, and most recently holiday group MyTravel have been bought by foreign investors.

Sulzer, which has already spoken with some of Bodycote's biggest investors, and is considering its options. The approach for Bodycote, which won the MEN Business of the Year £50m+ category for public companuies last year, may also help deflect any bid for Sulzer itself following reports of interest from private-equity firms, say some brokers.

Shares of Bodycote, a provider of heat treatments that strengthen metal for aerospace, power-generation, rail, automotive and engineering clients, surged up to 25 per cent on Friday, as much as 66.75 pence to 324.75p.

Armin Rechberger, an analyst at Zuercher Kantonalbank in Zurich, said he sees a ``very high likelihood'' that Sulzer will make a hostile offer for Bodycote, which is led by American chief executive John Hubbard.

Bodycote shares have risen 32 per cent in the past six months, amid bid rumours.

Bodycote spurned talks after Sulzer twice raised the value of its offer, which began at 305p, Sulzer said.

In its statement Bodycote said that its senior executives met with their Sulzer counterparts on February. 12 and later received a letter detailing the takeover approach. The proposal is ``unwelcome'' and ``significantly undervalues the group and its prospects,'' the statement said.

Bodycote's treatment processes put metal under intense weight and heat to remove air bubbles and improve durability, making a harder- wearing material suitable for use in high-stress applications such as jet engines and Formula One racing cars.

The company is also expanding a division that tests the endurance of metals, cement and glass, making 12 purchases at the unit last year and planning new factories in Brazil, Turkey, Saudi Arabia, Croatia and Kazakhstan, where manufacturers have moved production to cut costs.

NOW IS THE TIME TO TOP-UP!!!!

[bornagaintrader] 04/1/2008 09:15

got stopped out at 180. kept a tight stop loss as 180 seemed to be the bottom . will wait and see were it goes from here before jumping in again

[shiny1000] 03/1/2008 19:08

Very undrvalued and call me what you like but these will be devoured by a predator very shortly.....I think the board will be regretting Sulzers offer of £3.46 last April but who says Sulzer et al will not renew their bid!!!

[w.bramley] 03/1/2008 16:34

Having watched BOY for a while, it does appear to be very undervalued like many at the moment. Looking at some back issues, 3 weeks ago, I see that the I.C. has it as a buy at a higher price(244) in their opinion it still is a take-over target, so I am in at 176p. Have never been known to buy right at the bottom, but as Warren Buffet says, that can only be done by liars. However at this price I am optimistic of a 25% gain.

[aeros] 03/1/2008 11:41

Retroz3

"trying not to jump in too quickly" ........ quite! Wouldn't risk it .... having said that I do ..... probably stupidly. A traders market where if you can get in tune with the cycles then you can make money quickly .... or lose it as quickly. Tight stop loses help but they can shoot through these awfully quickly at the moment. Trying to do the sensible thing means I've lost out on a few lately .... like AL. on the New Years eve morning .... almost; just almost pressed buy .... and didn't. BOY? .... for me the fundementals are OK; future growth more doubtful ......... and guess what .... I've just bought sub £1:80 ..... and it relies on the US bouncing in the next three sessions .... call that two sessions. Pure gambling .... with just a gamblers hunch. Please ......do not do what I do. Good Luck .... you'll need it in 2008.

[retroz3] 03/1/2008 11:11

Aeros

Thanks for your very helpful response. I have been watching BOY for sometime and waiting for a drop in the share price to get in. I suspect they may drop another 20 points or so before stabilising but all depends on the market. I am sitting on cash as I doubled my capital (all in PEPs) buying and selling BIffa. Now I am looking for a ho,me for it and trying not to jump in too quickly.

[aeros] 03/1/2008 11:07

I would suggest reflecting US exposure/state of that economy and its impact on other BOY lead markets. Others with like exposure are being similarly hit this morning ..... things remain overall quite volatile and personally I've resorted to quick and very chosey dealing of late .... and cash seems king for the present (for me). Despite the tightness of money I hold some hope of a take out from the Asian area ..... which seems awash with cash and the desire to control those industries fundemental to their growth. All a very personal take and I could be miles out.DYOR