Cobham Share Discussion Threads

[tsmith2] 24/10/2016 11:47

Have the rights been issued?

[hybrasil] 24/10/2016 09:55

Now at a ten year low.

Will it fall further? I think its good value in 95p/£1 area. I think its dear at £1.30.

It must be beginning to be attractive though as a takeover proposition?

[sr2day] 24/10/2016 09:47

overdone.£255m profit forecast still not bad.should recover as day progresses..

[dealer1972] 24/10/2016 09:09

From a chart perspective it's at an historically low rsi of just 14 so heavily oversold. Could be due a bounce short term from this level!

[blueball] 24/10/2016 09:03

I will buy @80p and not before.

[lord gnome] 24/10/2016 09:02

I was interested in these as a high yield stock with opportunity for recovery, but I reckon today's debt / EBITDA news might just have binned the dividends. I don't think that those who stumped up half a billion in the rights issue are going to be very happy. Watch and wait for now.

[salpara111] 24/10/2016 08:49

Well, it was inevitable that the new CEO was going to want to "kitchen sink" every piece of bad news he could get his hands on.
The big question is.....is this the bottom.
I had been waiting for this update but needless to say I wont be buying at present but any further significant weakness would have me interested.

[jotoha2] 24/10/2016 08:13

90 p initial target , looks nailed on!

[packman8] 12/9/2016 11:02

American private equity bid, or merger with Meggitt in a Sunday Times report yesterday?

[chickenrun1] 07/6/2016 15:57

An EU break up will mean more more NATO spending.

Holding and expecting good performance going into next year.

[erdingtonian] 07/6/2016 14:46

Gone for the tail swallow option. Not going to let this tie up any more cash. Just received a generous divi and they want the cash back - how does that work?

Another company falling foul of covenants, why do they sign up to them? Faddish business schools teach their MBAs to aim for an optimum leverage, its ruinous in a downturn.

[jeffian] 06/6/2016 23:48

I've done well with Rights before, but always companies that were borrowing for positive reasons (acquisitions, investment etc) rather than just trying to fill a hole in the balance sheet! As I said earlier, I think it depends on whether the recent losses reported are a one-off or a symptom of a deeper malaise.

[adamb1978] 06/6/2016 21:40

Jeffian

Tail swallowing for me. I'd buy the lot if I had the cash. This is a very solid company which will be taken out before too long if the price remains where it is

Adam

[jeffian] 06/6/2016 20:10

Anyone tempted to take up their Rights? Or would that be throwing good money after bad?

[mrthomas] 03/6/2016 10:53

thks Lord G interesting take I would buy at below 100p fort reasons one would be possible take over and the other long term gain and also possible dividend

[lord gnome] 02/6/2016 18:23

AdamB1978 - Greetings - I would certainly expect / hope that the rebased dividend is secure and on that basis the shares look to be a reasonable buy for dividend in anticipation of longer term share price recovery.
As regards the short term share price, unless the market now sees the refinanced Cobham as a screaming buy, which I doubt, the share price will suffer some short to medium term volatility whist the rights issue is absorbed.
Previous experience with other companies has seen shares sold down to much closer to the rights issue price. If an institution is going to get 1000 shares in the rights issue that it doesn't really want and can't afford, why not sell their shares for 138p ex-rights and buy them back in the rights issue at 89p?
If this doesn't happen, I will take it as a sign of institutional investor confidence in Cobham.
Just my take on things.

[erdingtonian] 02/6/2016 15:44

You can now add the nil paid rights to your portfolio view using the code COBN.L at the rate of 1 for every 2 COB.L shares held.

[adamb1978] 02/6/2016 12:25

Lord Gnome - why do you say 'The share price must however, surely suffer from the rights issue price of 89p'...its dropped today to a level roughly around the TERP so it has 'suffered'. From here it should move based on normal factors, rather than factors related to the RI. Do you mean some short term volatility whilst some holders decide that COB is no longer for them?

Regarding the comments on the dividend, agree that the yield looks generous at a shade over 5% however it would be surprising if a credible company like COB announced that they were re-basing it (as they have done) and then realised that they couldnt pay for it!

[jeffian] 01/6/2016 20:02

I suppose that depends entirely on whether the problems are 'one-offs' and exceptionals or there is a deeper underlying problem. The trading update tried to suggest the former, but it didn't sound too sure!

[mrthomas] 01/6/2016 18:47

I wonder how long the dividend is going to be safe as the new rights issue was say £500m but the annual dividend is about 130m a year. Given the capital exp required etc i not so sure they be able to carry on funding this generous div. You just have to look at Roll Royce

This will be an interesting share to watch as did make some money out of this last month

[witheco] 01/6/2016 15:45

Tend to agree - worth avoiding, but one to keep an eye on. Need to understand fully where control has been lost. Management or finance - understand it's difficult to secure funding on longer term projects - but more research required....

[lord gnome] 01/6/2016 09:20

The market has obviously done its calculations, but I am surprised to see these rising this morning. 7,4p divi on an ex-rights price of say, 140p gives a decent yield of 5.2%. The share price must however, surely suffer from the rights issue price of 89p, so this is one to buy on a dull day.

[salpara111] 01/6/2016 09:05

89p is one hell of a discount!
I am keeping them on my watch list but clearly it will be a few months before the share price settles again post rights.

[mobyrich] 27/5/2016 08:30

Anyone received a divi yet?