Chemring Share Discussion Threads

[philanderer] 21/10/2013 11:56

Citigroup this morning on the sector...

"... We expect defence budgets in the US and Europe to stay roughly flat over the coming years. The recent US debt ceiling deal has removed some immediate risks overhanging US defence, although these are likely to re- appear early next year. Given tough budgetary conditions in the US and Europe, large export contracts are likely to become important catalysts for Defence share price performance, in our view."

[dewtrader] 21/10/2013 09:29

moving up nicely

Lets get ready to rumble!

[dewtrader] 20/10/2013 17:34

A new order and this will be over 300p in a jiffy

[hvs] 20/10/2013 15:34

Yup we just needs a flare or teo and it hallowen soon.

lol !!!!

[yorgi] 20/10/2013 15:16

The drop looks way overdone to looking at all that CHG have going for them, a new order or two would see a sharp correction.

[dewtrader] 20/10/2013 09:08

Thanks phil

Shares in Chemring rallied sharply in late trade on Wednesday, a move dealers today attributed to vague bid chatter."

The chatter may get louder tomorrow!! These will be over £3 by the year end imho

[jonntara] 18/10/2013 23:59

You're only saying that because you've sold yours. :-)

[philanderer] 18/10/2013 20:45

Trouble is, maybe cheaper soon :-S

Good weekend all.

[dewtrader] 18/10/2013 16:22

roll up roll up, shares going cheap

[philanderer] 18/10/2013 16:18

dew, Daily Telegraph market report for wednesday....


"...Defence equipment group Chemring, shaken by a profit alert last week, slipped 4.3 to 210.7p after Citigroup analyst Hugo Mills cut his target price to 230p from 280p. Mr Mills, who has a "neutral" rating on Chemring, said he was "surprised" that the company was continuing to experience quality and production problems at its Kilgore countermeasures business. Shares in Chemring rallied sharply in late trade on Wednesday, a move dealers today attributed to vague bid chatter."

[dewtrader] 18/10/2013 16:09

Come on you dirty dog


Get a bid and back to 350p

[philanderer] 18/10/2013 15:57

And trading update set for november 25th - just up on their website

[philanderer] 18/10/2013 15:54

Well , Investec have increased by 5.5 million - now 5%+ holding

[dewtrader] 18/10/2013 15:51

How about a repeat of this *from last year


How about a repeat of this *from last year




Carlyle approach boosts Chemring
By Stanley Pignal
Shares in Chemring, the embattled maker of ammunition and decoy flares, jumped on Friday after it announced a takeover approach from Carlyle, the US private equity group.
The London-listed company issued a one-line statement in which it said it had received a "highly preliminary expression of interest" in relation to a possible buyout offer, without specifying either a price or whether the approach was made on friendly or hostile terms.



Carlyle approach boosts Chemring
By Stanley Pignal
Shares in Chemring, the embattled maker of ammunition and decoy flares, jumped on Friday after it announced a takeover approach from Carlyle, the US private equity group.
The London-listed company issued a one-line statement in which it said it had received a "highly preliminary expression of interest" in relation to a possible buyout offer, without specifying either a price or whether the approach was made on friendly or hostile terms.
More

[dewtrader] 18/10/2013 15:45

am buying for the bid




from last year

How about a repeat of this *from last year???




Carlyle approach boosts Chemring
By Stanley Pignal
Shares in Chemring, the embattled maker of ammunition and decoy flares, jumped on Friday after it announced a takeover approach from Carlyle, the US private equity group.
The London-listed company issued a one-line statement in which it said it had received a "highly preliminary expression of interest" in relation to a possible buyout offer, without specifying either a price or whether the approach was made on friendly or hostile terms.
The news propelled Chemring shares up 71.6p to £3.85, reversing months of steady decline, but still well below their £7.22 in February 2011.

[dewtrader] 18/10/2013 15:45

am buying for the bid

[kiwihope] 18/10/2013 13:57

...but maybe it's stopped falling?

[philanderer] 18/10/2013 13:34

But all the way back down again.... can`t hold any sort of gain at present.

[philanderer] 18/10/2013 09:02

Well it`s one of the better starts over the last week

[hazelton] 17/10/2013 14:03

Many thanks kiwihope. The figures looked tolerable to me from the ADVFN financials but your understanding is much more profound than mine. I have learned something.

[philanderer] 17/10/2013 11:31

Today`s drop...

Chemring Group:

"Citigroup cuts target price from 280p to 230p, while reiterating its neutral rating"

Sharecast.

[kiwihope] 17/10/2013 10:22

At 30 April 2013:

Net debt to equity was 62%. I agree this is higher than ideal but it is not critical yet.

Current liabilities were £219M, covered by current assets of £362M. In fact current borrowings and trade creditors are covered by trade debtors and cash, without needing to call on inventories. So again, provided the customers pay what's owing, there are no immediate cash concerns.

The most important issue is the revolving credit covenant. I'm assuming they're OK with the end-Oct test (3.25x), otherwise I'm sure they would have had to say something in the last trading statement. The next test is end-Jan-14 (3.25x) and then end-Apr-14 and end-Jul-14 (both 3.00x).

At 30 April 2013 the ratio was 2.79x. Since then they have said profits are going to be lower. So it is a concern but I expect the FD is watching this like a hawk. And they have explained some reasons why the net debt increased, so hopefully some of these can be reversed (eg. buying bulk stock at lower cost).

In summary, the balance sheet is not good, being no better than mediocre. But I think management have things they can do to get through this difficult period. I wouldn't rule out a suspension of the dividend, which could save them £10-20M.

[bookbroker] 17/10/2013 09:09

Hazelton - covenants, debt to equity ratio, and short term debt.