Bodycote Share Discussion Threads

[sleveen] 31/10/2008 08:27

Without checking your arithmatic essentially yes

[amitkoth] 31/10/2008 08:10

Just to confirm something.

Their recent sale, which they've received in cash, is basically their market cap (with debt stripped out)??

So I'm essentially buying cash at the moment?

With the profitable business thrown in for free?

[chris1604] 21/10/2008 17:41

the recent director buys have pushed the price down because it means the Swiss have made no move

[wipo1] 21/10/2008 13:44

Looks like people were selling into the rally after disposal news, seems strange given the price BOY got in these markets, I guess the market does not like this sector at all no matter what it does!

[hdb] 20/10/2008 16:09

What this means is that Goldmans want to buy up stock on the cheap as they make more money doing this than making recommendations that people are prepared to pay for.

The scotman put a recommendation out on Friday with a target price of 140 when they had already closed above the target !

I would treat these recommendations with a pinch of salt

H

[bubface] 20/10/2008 14:08

goldmans downgrades!!! amusing snippit from their note is they only moved to a buy on 14th oct !! now that is short term considering deal has gone through,perhaps these analysts are moving recommendation on a weekly basis to drum up some business!!

"What happened
Bodycote confirmed the sale of its testing business (October 17). With a
key catalyst now behind us and given that in our view, Bodycote has a
higher than sector average risk to earnings, we remove it from the Buy List
and downgrade to Neutral. Since we added Bodycote to the Buy List on
October 14, 2008 the stock is down 5.6% versus the FTSE World Europe
Index down 11.2%. Over the past 12 months, Bodycote shares are down
52.1% versus the FTSE World Europe Index down 40.2%. We maintain our
12-month price target at 165p."

[chris1604] 20/10/2008 10:36

Returned from holiday to find my buy order filled at 139p. This is an absolute steal now we know the disposal is complete.

I am not sure that the return to shareholders should be 80p per share, I will probably just waste the money on more non performing bank shares via the deluge of rights issues.

I do think the swiss will be back and I think we can trust the Board to drive a hard bargain, but I do not rule out the possibility of B`cote making acquisitions themselves. They certainly like to plough their own furrow.

[bubface] 18/10/2008 16:54

bought more on friday mid 130's the rump of the business has effectively more than halved in price in the past couple of months..great opportunity will probably add more monday on cold reflection.volvo am sure you are correct re sulzer,the deal still makes great sense...maybe more so following disposal.

worth looking at htg on similar basis,contracted to sell large division for over £600m market cap £540 [does have £140m debt} leaving nice stable rump business with positive cash flow and a huge war chest to pick up distressed assets in oil services.not ramping but similar wierd sit for value investors assumming deal goes through [buyer big private equity spv headed by lord browne..yes that one!],they have put £49m deposit down already and deal should complete early nov.dyor.

[volvo] 18/10/2008 16:36

Agree plenty of bargains now but not all of them have 417m in the bank and still keep the 80pc of money making bits valued at 24m.The bits left over are on a pe of less than 1 and a dividend of 80p.

[wad collector] 18/10/2008 09:55

I think I need an Aqua-Sulzer after this last month.

I take your point this is a bargain price now , but the same is also true for half the stock market.Sadly most of us are now cash poor I suspect.

[volvo] 18/10/2008 09:52

For any investors looking for a quality return should load up with Bodycote below 1.60p.

The word from the company following this sale is that Sulzer have already been in contact.They did not want the testing bits in the first place!.

You get 80p back and the rest of the business will be now well financed.

At 60p after this dividend Sulzer will literally start frothing to buy this side for 1.70p minimum.So first price target for the share is 2.50 before the dividend.

Sulzer are a coming.

[drectly] 18/10/2008 07:48

Bodycote agrees testing group sale
By Amanda Vermeulen
Published: October 18 2008 03:00 | Last updated: October 18 2008 03:00
Bodycote has finalised the sale of a quarter of its business to US private equity firm Clayton, Dubilier & Rice for £417m in cash, only £24m shy of the UK group's total value on the London Stock Exchange yesterday.

The metal technologies specialist put its Bodycote Testing Group up for auction at the end of April, hoping to secure a price of around half its market capitalisation of about £787m at that time.

But troubled credit markets, which have all but dried up private equity deals, led to speculation that the deal would fall through.

Bodycote shares were hit hard, with the price falling to its lowest point in the past year of 127.5p this week from a year high of 244.5p in May.

The testing division brought in 27 per cent of group revenues in the 2007 financial year, nearly £180m out of £640.5m.

Shares in Bodycote closed just over 5 per cent higher, adding 6¾p to end at 137¼p.

Amanda Vermeulen FT

[volvo] 17/10/2008 21:08

Sleveen have no worrys.The value here is 2.00 before even a seconds thought.Watch and see.

[sleveen] 17/10/2008 16:51

ageed t1lal. very good deal for shareholders the management are to be congratulated.

I bought last week @ 144p if I'd waited a week perhaps I could've bought a about 10p lower but its difficult to call the absolute bottom.....assuming we're at (rock) bottom.

I'll be looking forward to my 80p/share cheque

[t1lal] 17/10/2008 16:17

I think the completion of the disposal in this financial climate was a bit of good business by the company. Even better when you consider that there was no reduction in the agreed price.

Having gone through the accounts i feel the disposal was at a good price considering the testing business contributed 11+ million to profits which was approximately 25% of profits.

Having said all that I have purchased a 5k's worth, maybe a little premature but over the long term, and with the return of capital to shareholders maybe a good investment.

As always DYOR.

[sleveen] 17/10/2008 14:43

COMPLETION OF DISPOSAL OF TESTING BUSINESS

Bodycote plc, the specialist thermal processing company, is very pleased to
announce that it has completed the disposal of the group's Testing Strategic
Business Unit to Clayton Dubilier & Rice for a cash consideration of £417
million.

A circular dealing with the prospective return of capital is expected to be
sent to shareholders for their consideration in November.

Alan Thomson, Chairman of Bodycote plc, said:

"We are very pleased to have completed this value crystallising transaction,
especially given the current financial market conditions. It is an
excellent result for our shareholders. The Group will now be focussed on
developing the wide ranging opportunities for the Thermal Processing business"

Cheers Volvo.....whoever you are!

[drectly] 17/10/2008 05:06

from the FT Oct 16th
Bodycote rallied 2.4 per cent to 130½p after broker Arbuthnot said the engineer was undervalued whether or not the £417m disposal of its testing business went ahead.

"The current share price seems to be discounting a 40 per cent, or more, decline in underlying profits, which is considerably worse than we or any other observer is expecting," said analyst Michael Blogg.

[sleveen] 16/10/2008 17:52

spotted your edit Volvo

[volvo] 16/10/2008 12:07

I understand that various employees were told that the deal was on and completion was Friday.Whether that is tomorrow or a week tomorrow time will tell.

[sleveen] 16/10/2008 10:54

sp recovering from this morning's lows so that info may be correct Volvo.

I would have thought that if the deal was off because of the current financial woes shareholders would have been informed by now. In other words no news is good news.

GL

[volvo] 16/10/2008 09:52

probably no truth in it but heard the deal could complete tommorrow.

[llwyd] 15/10/2008 19:09

Like everything in the markets at the moment, nothing really makes sense. Have to hang in there along with my other 14 stocks and hold onto any remaining cash.

[sleveen] 15/10/2008 19:03

IMHO there may be more BOY plant closures relating US auto sector than the market was originally prediciting in the financial forecasts.

Certainly agree that common sense and the market are uncomfortable bedfellows

[hdb] 15/10/2008 18:15

Even If Claytons don't have the cash the business still generates good cash and the yield looks good so unless combined proffit has fallen off a cliff must be a bargain at 120 now

would like to know what the penalty is if claytons do walk could be 10% of transaction so not all downside on the other hand if they do complete two thirds of business for 40p must be a bargain when it was a takeover target at over 300p

It is like all common sense has gone out of the market