Chemring Share Discussion Threads

[professor john koestler] 28/9/2021 15:30

I was just looking at this and read one of the recent acquisition announcements. The first paragraph reads this:


ACQUISITION OF CUBICA GROUP

Chemring is pleased to announce the acquisition of Cubica Technology Limited ("Cubica") and Q6 Holdings Limited ("Q6") (collectively the "Cubica Group") (the "Acquisition"). The consideration will be satisfied by a payment in cash on completion, funded from Chemring's existing bank facilities, and a deferred consideration payable in Chemring 1p ordinary shares in two tranches on the second and third anniversary of completion. The Acquisition creates further opportunities for Chemring to enhance and further accelerate growth in its Roke business.




No statement of cost to Chemring nor mention of the dilution of equity we are to expect on the second and third anniversary of completion. In fact the rest of the RNS doesn't provide anymore detail whatsoever with respect to these important points investors or potential investors should know.

Appalling.

[rimau1] 03/8/2021 22:02

Thanks Oilplays and here it is: “Jefferies stated the appealing growth story at Chemring was driven by its Roke units exposure to the cyber-security and AI/Machine Learning market that will improve the overall quality of earnings and positions the group at the leading edge of modern-day security and defence.
The analysts, which also hit the stock with a 370.0p target price, pointed out that Chemring had undergone "a significant restructuring", which had taken the best part of a decade to complete.
However, Jefferies stated the resultant portfolio of countermeasures, sensors, and cyber technology exposed the group to select growth and niche markets, which, in its view, greatly improved its quality of earnings.
Jefferies said: "Based on JEFe (which sit above consensus), the shares trade on an ann. FY22F PER of 16.0x and EV/EBITA of 13.1x, which look cheap vs. UK & overseas peers. We value the group on a SOTP basis (using ann. FY22F forecasts), which is in line with our approach across the sector, with a discrete valuation for Roke (39% of our EV)”

[oilplays] 03/8/2021 18:48

Jefferies initiated coverage on 2nd July with a buy and 370p target. Worth reading.

[rimau1] 02/8/2021 21:09

There’s only Chemring, QQ and Cohort left, all 3 are susceptible but Chemring is the most likely to be swallowed IMO because it has the least UK defence business i think so UK govt intervention unlikely. I hold and have been accumulating on the dips.

[dartboard1] 02/8/2021 19:31

Now Meggitt... where's the chemring bid???

[dartboard1] 23/7/2021 08:39

Surprised Chemring isn't up more today with the ULE takeover...

[tomps2] 02/7/2021 13:00

Stuart Widdowson mentions CHG at 36:48 in the latest PIWORLD interview

Watch the video here:

Or listen to the podcast here:

[dartboard1] 03/6/2021 09:34

Rock solid results... love this company ...!!!

[p1nkfish] 03/6/2021 07:31

Results & acquisitions. Both positive.

[davidspringbank] 23/4/2021 06:17

I sold a bunch of speculative stuff yesterday and bought these instead. Andy Brough at Schroders likes them. I like Roke (it should be worth a few bob if they ever sell it or get taken over) and I like the look of the long-term chart.

[p1nkfish] 05/3/2021 18:41

Its the entire market rolling over for a while. Either average in or wait for trend to change. I cant see quick bounce back happening.

[dogwalker] 05/3/2021 17:50

Well, so much for £3 !
Value down here because the AGM satement yesterday pointed out that a higher pound will affect profit?
Maybe - but by what? As much as £2m, or maybe more :£3m? Not so large whatever, & maybe the currency trend will stop or go back even.

[johnrxx99] 16/1/2021 07:05

There you go.

[dogwalker] 15/1/2021 09:59

Let's see if we can stay over £3 for more than 10 minutes today...

[johnrxx99] 12/1/2021 15:13

It's been around for decades and the best opportunties for a t/o have been missed. It's a support company to the defence industry, name a big player who would want to dilute it's focus.

Just my opinion. Throwing out a comment about t/o's is the usual ploy of a ramper, also in my opinion.

[gargoyle2] 12/1/2021 13:25

I've always thought that CHG would be a tempting morsel for a larger defence player too. johnrxx99, what makes you think that being specialised and very good at what they do makes it unlikely? Thanks in advance!

[dogwalker] 12/1/2021 10:42

Doesn't like staying above £3 for very long , does it?

[johnrxx99] 12/1/2021 06:11

Nice thought but unlikely imo. They are specialised and very good at what they do.

[stevenlondon3] 11/1/2021 12:53

Suspect CHG will be taken out....a meaningful bite for someone.

[johnrxx99] 15/12/2020 08:16

IMO average results, confused by new accounting rules. At least there was no bad news.

[cravencottage] 10/12/2020 17:36

Would be a good fit for QinetiQ.

[essentialinvestor] 10/12/2020 14:58

Tuesday results.

[essentialinvestor] 07/12/2020 11:00

Results next week.

Move back to £2.70 + on results?.

[pvee] 04/12/2020 19:48

Counting on a big rise from the 15th.

Went up quite a lot after the last positive update only for the market to walk it back down again since

Less debt and good contracts in the pipeline should now hopefully break upwards this range we've been stuck in for more than 5 years

[gonjon] 04/12/2020 18:12

Nice article from Forbes today "I think CHG is a particularly great buy ahead of FY"https://www.forbes.com/sites/roystonwild/2020/12/04/3-cheap-uk-shares-id-buy-in-december-and-hold-forever/