Bought today at £1.49 - prepared to sit and wait.Ageing society - a good long term buy. Unfortunatately this company was "fleeced" prior to and ramped at IPO by PE owners. Hopefully as their influence dwindles ConvaTec can get on with running its business with more attention to detail. |
directors bought before the drop paying 220p ish a share |
Director Buys - Finance Director yesterday and Senior Non Exec today - they are certainly very confident |
210p, 183p, 165p all greater than the current 155p at least |
Downgraded by JP Morgan Caz to 'neutral' ... tp 183p cut from 303p
Downgraded by Goldmans to 'neutral' ... tp 165p cut from 255p |
RBC retains 'outperform' ... target 210p cut from 240p |
from Citywire
Buying opportunity at Convatec, says Numis
Medical technology company Convatec (CTEC) has delivered a poor third statement but the heavy share price fall could present a buying opportunity.
The shares tumbled 34% to 148.2p yesterday after the company issued a profit warning and announced the departure of chief executive Paulk Moraviec.
Analyst Paul Cuddon retained his ‘hold’ recommendation and target price of 220p on the shares.
‘Ultimately the statement reads poorly, but on our first take, the earnings per share downgrade is just 5% and should the shares fall materially we could see an interesting buying opportunity with the performance of the chronic care business showing continued steady growth,’ he said. |
7% Free Cash Flow Yield.
Bang on.
Shorts can keep trying! |
Lex Column:
'ConvaTec: scar issue'
Medical products group needs more time to heal itself after investors were bloodied |
'ConvaTec shares plunge after profit warning and chief’s exit'
Second profit warning in 12 months for medical equipment maker
Analysts naming Medtronic as C'tecs biggest customer which has "changed it's ordering pattern of its infusion devices business"
article: |
Back on the watchlist .
Numis... 'hold' tp 220p
Peel Hunt ... 'hold' |
From sharemagazine
JP Morgan Cazenove analyst David Adlington is surprised by yet another profit warning following ‘positive commentary’ over the summer from management.
He believes the new guidance implies a decline by 5% to 10% in earnings per share, but argues the valuation is still ‘attractive217; with ‘limited further downside’. |
Despite the warning and its cautious stance on the stock, RBC said the share price reset has gone too far and highlighted the fact that Convatec is still a cash generative business with attractive qualities.
"We would remind investors that Convatec is still a highly cash generative business, and at the current share price is generating a free cash flow yield of over 7%, with a dividend yield of 3%," it said.
"With the performance wanting we would hope all options are now on the table to maximise shareholder value." |
NICE - Fast reactions, even a bean counter is parting with their money at 150p/share.
Game on dudes.
Shorts may close, well come of them.
Some DIRECTORS wait days, these boys are doing it like MICROFOCUS...so quickly. |
Director Buying |
I've substantially increased my long position today, so watch it fall further ;o-) |
Agreed.
Massive fall on minor adjustments.
CEO exit killed it IMO.
I'm in. |
Very poor reaction to today's news and a tad over-kill in current conditions. Trading update was disappointing, CEO retiring and dividend payout day has seen a perfect storm to bash the share price.
Hindsight is always 20/20 and more bad news might be in the pipeline. But fundamentals are good, expertise in the market with consumable products and long-term customer base. Taken the opportunity to top-up from here. |
Disappointing indeed.
However the new CEO has experience at JOHNSON AND JOHNSON and long term this has got to be a good bet I would have thought.
Just the wrong time for the trading update.
Errors are being treated harshly in the current climate. |
Trading update for the three months ended 30 September 2018 and change in FY 2018 guidance
15 October, 2018 (LSE: CTEC)
The revised guidance is driven primarily by a change in inventory policy by the biggest customer in our Infusion Devices franchise, which is expected to have a
material negative impact on revenue in the fourth quarter of between $18 - $23 million,
and to a lesser extent challenging market dynamics in specific markets in Advanced Wound Care. |
pleased to see CTEC bouncing back... |
nice intra-day reversal |
I do think this is a good little share....this one..... and has more chance of weathering any difficult times in the market. |
very buoyant this am |
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