Chemring Share Discussion Threads

[ards] 24/1/2013 18:30

frreddie

pe around 7-8 at todays price

Last Close Price Day Range Mkt Cap 52-Wk Range Yield %
282.50p 274.90 - 301.30 546.053 213.70 - 448.50 4.13
ISIN Volume P/E P/S P/CF
GB00B45C9X44 5,035,839 6.43 0.75 7.27

[freddie ferret] 24/1/2013 15:56

If profits are not going to start recovering until 2014 then a PE of 37 seems fully valued to me. Have not gone into the accounts in detail so maybe I am making a fool of myself?

[broadwood] 24/1/2013 11:37

Broker snap: Chemring's on the road to recovery, says Investec
Thu 24 Jan 2013

CHG - Chemring Group
chart
Latest Prices
Name Price %
Chemring Group 296.70p +5.03%

FTSE 250 12,995 +0.47%
FTSE 350 3,326 +0.34%
FTSE All-Share 3,260 +0.33%
Aerospace and Defence 4,084 -0.47%

Broker snap: Chemring's on the road to recovery, says Investec

Investec has lifted its price target for defence technology group Chemring from 280p to 335p and reiterated its 'buy' rating for the stock, saying that the business is on the 'road to recovery'.

The broker said that Chemring's full-year results are in line with expectations, however this "counts as a positive given the recent history".

Revenues rose 2.0% to £740m, down 2.0% on an organic basis, while operating profits dropped 35% to £88.3m.

Investec highlighted that the company's five-point 24-month recovery plan is now underway, which includes: simplified management structure; integration of operations; operational improvement; business development; prioritise cash.

The broker said: "We make only minor positive adjustments to our forecasts, consistent with the board's guidance, given the uncertainty and early stages of the turnaround plan.

"However, the results provide reassurance that group profitability can start to be recovered despite challenging end markets."

Shares were up 5.84% at 299p by 10:31 on Thursday.

[broadwood] 24/1/2013 08:27

Market seems to like the absence of further bad news - and maybe private equity will aswell.

Grab them when they are at their weakest is always their theme.

[graham2405] 24/1/2013 07:48

"No surprises - pretty much as expected. At least no more skeletons."

Agreed, but............

No good news, and something has to justify the recent recovery from under 220p to 280p, and I don't see anything.

.....and the dividend has been cut.

[broadwood] 24/1/2013 07:22

No surprises - pretty much as expected. At least no more skeletons.

[freddie ferret] 14/1/2013 16:43

I still think you are brave.

[cockneyrebel] 14/1/2013 14:39

Through that little bit of chart resistance

[cockneyrebel] 10/1/2013 08:51

0733 GMT [Dow Jones] UBS raises Chemring (CHG.LN) to buy from neutral and target to 360p from 300p. Says it has the potential to be one of the most interesting turnaround stories in the FTSE 250 in 2013 as a new management team begins to restructure the company after a decade of strong revenue and profit growth on the one hand and a series of profit warnings in recent years on the other. UBS adds consensus estimates for FY'14 are too pessimistic and do not reflect any expectation for a successful restructuring. Shares closed Wednesday at 266p.

[gswredland] 10/1/2013 08:09

thanks broadwood!

[broadwood] 10/1/2013 07:14

This should help.


UBS Chemring Group PLC 10/01/2013 Upgrades Neutral Buy 2 300.00 360.00 266.40 60 2

[tday] 09/1/2013 17:00

Galvan! I have had dealings with them in the past and wouldn't touch them with the proverbial barge pole.

[nrholland] 09/1/2013 13:16

Tipped by Galvan Research in their "Shares of the Year" report, which can be downloaded at , although you have to register (for free) to access it

[fangorn2] 08/1/2013 15:06

Invesco trims its stake to 27.54%, a sale of circa 2.8m shares or so.

[hillbrown] 04/1/2013 08:49

Buy recommendation in Daily Telegraph this morning.

[freddie ferret] 03/1/2013 17:26

CR.
Re post 877, that's a hell of a brave call if I might say so.

[ards] 03/1/2013 16:32

Investec has reiterated its 'buy' rating and 280p target price for defence contractor Chemring following Thursday's appointment of a new Finance Director in Steve Bowers.

"We regard Steve highly and the market should welcome a further strengthening of the executive team charged with steering the group after a difficult year," the broker said.

[cockneyrebel] 03/1/2013 15:52

Double bottom and break out imo.

CR

[broadwood] 03/1/2013 08:13

Market seems to like today's shake up.

And I agree with BB's comment - defence cuts priced in now.

[fangorn2] 03/1/2013 07:50

Couple of appointments, group financial officer being the interesting one.Ex Umeco Finance officer.

[bigbertie] 30/12/2012 11:28

fiscal cliff compromise at the last minute looks possible, but I don't expect that to do much for Chemring in the short term. Obama apparently looking for 12% cut in defence spending - about $62 billion. However I suspect most of the gloom is priced in now so I'm holding in the hope of clawing back some of my losses. I hope the Sunday Times is right!

[bigbigdave] 30/12/2012 09:16

One of the Sunday Times' pick for 2013

The group, which makes battlefield flares and missile decoys, has had a very tough 2012. A shock profit warning was enough to force Carlyle, the American buyout group, to rethink its takeover attempt and head for the hills.

Defence cuts at home and in America, coupled with operational weakness, left Chemring's shares down 38% in 2012. The stock, at 227.5p, is trading at about half the 52-week high. The good news is that Chemring has brought in a new chief executive to turn round the business. Mark Papworth, who joined from John Wood Group, will outline his strategy when he reveals full-year results on January 24.

Chemring's markets are likely to remain challenging but much of the bad news has already been priced in, so Papworth might not have to produce a miracle to make a difference to the share price.

The company has good technology and is a big player operating in a niche area of the military equipment market, which some City bankers believe is ripe for consolidation.

It also has a large shareholder - Invesco, with a stake of almost 30% - that is a willing seller. Carlyle, or some other predator, may fancy another crack at Chemring.

[ards] 18/12/2012 08:11

sapara
agree with points but debt coming down and very cash generative. still dominant in important sectors. question is what is already factored in price.