Chemring Share Discussion Threads

[dunluce] 26/6/2012 17:58

Salpara111 - looks like a good decision to wait - I managed to buy in just under £3 but feel fairly relaxed with these especially with a @5% dividend. I would agree re 'an outbreak of peace' - unfortunately I only see further turbulent times ahead in terms of conflict.

[salpara111] 26/6/2012 10:56

Well, I am glad I waited, the down trend does not seem to be broken.
Various articles on the newswires and papers in the last week about pressure on military budgets. Personally I dont think there is suddenly going to be an outbreak of peace love and understanding so long term still a hold.
I will monitor for a few more weeks and then make a decision.

[dunluce] 20/6/2012 08:44

Decided to take a small position here - quality company and should see positive noises during the second half.

''Significantly, our order book grew by 14% to a new record of GBP1 billion, and remains the best leading indicator of our future growth. The order book at 30 April provides 94% cover for full year revenue.
The second half has started well, with trading in May up over 50% year-on-year. The Board is confident that the Group will deliver a strong second half trading performance, with increased operating margins that will enable us to meet our full year expectations."

[bigbertie] 19/6/2012 11:17

Profits down as expected due to order delays. But award of big US contract, 50% year on year rise in sales in May and record order book make me think the board are right that 2H will be much stronger and company will meet expectations for
the year. At under 300p the shares trade on forward p/e (underlying) of about 6 and forward yield of probably over 6 - a great bargain! But fear stalks the markets these days so I think we will have wait for better news before a rerating. All just my opinion of course - no advice intended. Good luck all.

[salpara111] 19/6/2012 10:29

Thought that the results were not bad, ok big drop in the first half but they have proved that with the contract win they should be able to make it up in the second half.
Clearly the market was not impressed so I will hang back for a few days and see where it settles.

[jaws6] 07/6/2012 10:25

bsharman
Tks ,good info in that link .
19/6 is result

[bsharman3] 07/6/2012 09:49

I think that was Neil Woodford...

[sge47] 12/5/2012 20:47

BUy BUY BUY

[bravo1] 10/5/2012 13:42

a set of trades went through at 10 15.am two lots of 1.4 million BUYS and 2 million Buy so somebody is either trying to rack them up and dump - or somebody can see that this is oversold . IMHO

[bravo1] 10/5/2012 13:39

well somebody bought 2 million shares at 330 this morning !!

[salpara111] 10/5/2012 10:35

I guess the fundamental issue here is whether the company is being re-rated away from a growth story to a yield story.
If that is the case then current valuation is not unreasonable.
If they can announce a couple of decent sized incremental contracts in the near future then they could see a sizeable bounce.

[sat69] 10/5/2012 00:05

With a dividend yield of 5%, I'm quite happy to sit this out for as long as it takes. I believe the share price should be comfortably north of £4. Perhaps a broker upgrade will get us there.

[bravo1] 09/5/2012 20:45

the company has sound fundamentals nothing changed in that it has secured the five key contracts for 2012, the only thing that has changed is the sentiment in the market- I have been buying in tranches since last friday -and the price keeps falling, I suspect it will fall further again tomorrow ....if it does I will probably buy some more, 500 a day to average out, or maybe 1k a day if the price gets really silly.
Remember this is a company who,s share price is usually reflected in the sentiment of the US market - its just that the sentiment over the euro zone has temporarily clouded the fundamentals which remain robust.
With the order book 6% up on last year, sounds safe enough for me to park my money here :)

[canteatvalue] 09/5/2012 17:20

The share price this month so far makes me laugh.

Start of month: "Oh god, the world is going to pot, there's all these macro worries & they may have lost their contracts, SELL SELL SELL!!!" -> Price tanks

Company: "We're doing fine, we've won the contracts and things are on track." -> Price shoots back up

Few days later: "AHHHH, GREECE!! SELL SELL SELL!!!" -> Back down again.

I topped up today given the statement from the company re-assured me that things aren't falling apart here like the price implies, I think a forecast P/E of 6 leaves a fairly wide margin of safety.

[bravo1] 09/5/2012 16:42

pure market sentiment driving share prices - when the tide goes out ....all boats go lower !

[salpara111] 09/5/2012 13:36

Well that didnt last long!
The issue as I alluded to before is that they have put all the good news on the table and the market has just shrugged it off.
I will watch and if it dips below 300 I may take a modest sized nibble.

[bravo1] 07/5/2012 13:45

will be watching carefully for tonights closing prices for direction indicator for FTSE tomorrow - may get the chance to buy these REALLY cheap 1st thing-
As for a 295 retrace ???..... I dont think thats out of the window either :)

I think I will probably steer clear of banks tomorrow, though if any it will be BARC, also possible PIC if they fall heavily.
So much news to digest TODAY, with many consequences attached for Tomorrow, its like swotting for an exam.
I was going to stay out of the market until something like this happened, possibly a bit hasty on friday buying in a bit too early, but I reckon at least SOME of this news was factored in to fridays prices along with the NFP figures.
All IMHO

[jon827] 05/5/2012 11:42

well the contract win news gap has been filled now and lots of volume in the last 2 weeks also 295 would be a 61.8 fib retrace of ATL-ATH's, is this the bottom?

want a chart?

[sat69] 05/5/2012 11:40

Bravo - I bought in two 5k tranches before and managed to get out at around 375p, so happy to buy back my first tranche at 338p. I agree this is a safer stock than most. I will also add further on any retrace.

[bravo1] 05/5/2012 10:00

Sat I was buying them in tranches 1000 at a time, as the price kept falling - I bought more, ended up with 4k.
There was so much negative news about yesterday, and the eurozone looks like a shaky old greenhouse financially, theres a good chance prices could fall further,in the next few weeks, really have to keep your finger on the pulse if you are trading at the moment.

CHG is a less risky share to hold anyway IMHO, the contracts are all in -order book 6% up on last year .
Chemring Group has confirmed that all five orders identified as key to 2012 have been received and the board's full year expectations remain unchanged.

Interim results for the six months to the end of April are expected to be announced on 19th June 2012.
with fundamentals all in place, I think its not a bad place to park your money during these turbulent times.
Have a great / hopefully dry weekend everyone

[sat69] 04/5/2012 22:48

Back in today at 338p, though I only managed to pick up 2k.

[bravo1] 03/5/2012 15:59

salpara, same here looking to top up my holding, but niot sure whether there may be some more dire eurozone news that could temporarily drive share price down for a while- sitting watching, and pondering myself :)

[salpara111] 03/5/2012 15:01

Well, at least some of the froth from a few days ago has now come out again.

I am interested in taking a stake but I am not entirely clear whether we now have the catlyst to drive this back over 400 again or if new incremental orders will be required.
The business of war will never go away so I am pretty comfortable with the idea of holding CHG but may wait a few weeks to see that the share price has stabilised/started to climb again.

[aleks_atanasov] 02/5/2012 08:39

"£357M HUSKY DEAL BOOSTS CHEMRING SHARES "

[aleks_atanasov] 01/5/2012 11:34

deadly - 1. awful jobs report on friday. 2. Political drama out of france after sunday. 3. sell in may and come back on saint leger day.. 4. Spain...

I hope none of those will happen cause I am long too.. But longs are very sensitive to these kinds of developments.. Specialy cause this is a ftse 250 share.