Devro Share Discussion Threads

[essentialinvestor] 10/11/2016 10:10

bench, that was my concern as mentioned at the time.
That CAPEX programme required excellent execution, particularly in the context
of increasing debt levels to pay for this.

If sales then fell short of expectations it left the Company very exposed, all just IMV.

[bench2] 10/11/2016 10:07

The travails of brave capex ..... no one has the patience to ride through the inevitable interim trough whilst volumes build up . Having done all the hard work the company at this price is a SITTING DUCK for a predator . The risk of being quoted .. you can now see why being private or why private equity can be so much more advantageous .

[essentialinvestor] 10/11/2016 09:45

Unfortunately now panning out as I feared it might.

[hybrasil] 10/11/2016 09:43

Had a look. This could easily fall back to the price John Magnier got when he sold out in 2007.
I have been following this for a long while.
I still feel overvalued at these levels. I'll buy if it falls to £1.20 levels.

[essentialinvestor] 13/10/2016 10:43

When you allow for debt and the pension deficit, DVO
not as cheap as it first looks IMV.


Having increased hearingt to fund the CAPEX programme it will be interesting
to see if there is a pay back on that investment.

[essentialinvestor] 03/10/2016 23:50

As mentioned previously this significant CAPEX spend comes with risks,
and rising debt levels.

[thewheeliedealer] 03/10/2016 23:39

Hi Everyone,

I bought a small position in DVO to get me into the Stock (again) - I intend to build a stake over time and reckon this could be a nice play for recovery. Anyway, I scribbled a fairly detailed Blog about it that I suspect might be a bit helpful.

Cheers, WD

[woodcutter] 03/8/2016 14:58

well after reading the results i figure i dodged as bullet here today. Increase in net debt and longer timescale to come to full production/sales with clients. I'd expect the share price to drift a little this year through H2.

Poor returns on yields have impacted the pension liabilities further and the retained earnings on the balance sheet have halved when taking this and the dividends payments in to account.

This is going to be a recurring theme across many businesses and there's no sign of any improvement as central bank interest rate policy continues to see further drops in rates. More profits going to shore up pension liabilities.

The upside is strong cash flow which will support the pension and debt repayments but we may see the Divi impacted in the future.

Interestingly at some point when interest rates reverse and yields return to something normal we are going to witness very strong pension positions in many businesses possibly even surpluses. In the meantime i will watch with interest.

good business but not sure on the current share price so not a buyer on this drop i'm afraid

woody

[woodcutter] 12/7/2016 13:49

sold my entire holding this morning in several chunks. Taken profits as there's too much uncertainty in markets at present. The fast rise and blip above resistance at 280p was too much to ignore.

solid business so happy to accumulate again on any weakness in the share price

woody

[phillis] 28/6/2016 11:28

Cannot understand why DVO should be particularly affected by Brexit

Fantastic overseas opportunities backed by focussed capital investment
More for me please

[cwa1] 31/5/2016 08:17

Morning all

Just had a modest punt here at 252p to join your merry band this morning. Hoping it will look decent medium term value IF all goes well. No doubt could have got it cheaper if I had waited it out but wanted to take an initial stake. Good fortune to all holders.

[essentialinvestor] 28/5/2016 14:52

Brave imv, sometimes that pays off.

[woodcutter] 20/5/2016 13:18

added again today around 247p

woody

[ivancampo] 28/4/2016 15:57

Chairman adding at last, expecting some others to follow suit.

[ivancampo] 27/4/2016 19:13

At last a bit of dissension, been too easy for too long.

[woodcutter] 19/4/2016 14:35

DVO coming back from the days low.
last results pbt £15m
cash generated from ops over £34m after depreciating older equipment
30% market share from recollection. looks a very boring but profitable business. One for the long haul at this price.
Next few years could be very interesting.

apologies not intending to ramp, but the valuation at this level is worth considering

woody

[woodcutter] 19/4/2016 11:51

i sold all my holding above 300p but this drop is too tempting so i've begun to accumulate again. The new China and USA plants will drive efficiencies and the cash flow is great which will impact finance costs and add to the bottom line. One for the long haul if you're patient.

woody

[gopher] 18/4/2016 18:50

Seem to be de-rating as that investment in plant does not seem to be coming through in the financial forecasts.

In fact it looks ex growth and debt has increased over the past 5 years

[ivancampo] 08/4/2016 17:26

Give him a load of shares instead. Why buy em? Old fashioned view I know.

[greatwhitefunkmaster] 07/4/2016 12:16

Next move to £3.50 surely?

[ivancampo] 06/4/2016 08:08

Usual range bound price action resumed. Expect new FD to get his hand in his pocket soon.

[ivancampo] 26/1/2016 11:58

At least 2 broker upgrades with increased pt's last week, cruising in a difficult market. Expecting to break out of its trading range very soon.