Dowlais Share Discussion Threads

[louis brandeis] 14/8/2024 11:03

So we don't know what true book value is and neither should we care that much. This is a stock that is valued, or should be, on earnings and cash-flows and at the moment it isn't looking pretty.

[pj84] 14/8/2024 09:45

We will only know how accurate the current book value is when they sell it and yes it could still be overvalued but equally after writing it down by just over 33% it might now be conservatively valued and could be too low.

[davius] 14/8/2024 09:31

Jefferies cuts Dowlais price target to 90 (110) pence - 'buy'

[louis brandeis] 14/8/2024 08:43

If they can write down £449 million because 'previous management got it wrong', who is to say the current management have book value correct? It could still be too high.

[pj84] 14/8/2024 07:43

The CEO and CFO see value at the current price, buying £250k and £50k of shares respectively.

[essentialinvestor] 14/8/2024 07:40

Some of the value investors may see an attraction, though arguably speculative.

I hold MRO and very grateful DWL was disposed.

[pj84] 14/8/2024 07:39

From the above article: -

"When Dowlais was spun out of Melrose, a sale of powder metallurgy was still on the agenda. However, a review of the business culminated in a £449 million accounting writedown in the value of the business to £884 million because of the “overly ambitious growth projections” of previous management.

That £884 million book value of powder metallurgy is larger on its own than the market value of Dowlais, which stands at about £814 million. That suggests investors believe the rest of Dowlais is worth less than nothing, or that the accounting valuation of powder metallurgy remains too high."

If they can achieve a sale for near or above the £884m of book value, it would be a catalyst to the rest of the business rerating.

[danmart2] 14/8/2024 07:33

Can’t justify buying at this price, expect it will fall lower.

[queenbreguet] 14/8/2024 06:17

Um CFO buy shares. Maybe time to top up.

[mirabeau] 14/8/2024 06:17

CEO buys 415k @ 59.7723p

[mirabeau] 14/8/2024 04:18

'Dowlais is looking at selling its £1bn powder metallurgy business as the car parts supplier counts the cost of the slowdown in demand for electric cars.' The Times

[davius] 13/8/2024 20:53

"The auto market needs to step-up soon or this is going to need a fire-sale of Powder Metallurgy or a capital raise."

Since they just stated (today) that all options are being considered, including a possible sale of the Powder Metallurgy division, and given that it's one of the successful and expanding parts of the organisation, a fire sale doesn't seem like a sensible suggestion.

[liam1om] 13/8/2024 17:29

What's the odds on this going back to the days low over the next few sessions.

[davius] 13/8/2024 17:21

What nonsense, it was 51p just after the open. What was the closing price again?

[blackhorse23] 13/8/2024 16:04

Price didn't hold despite buy back and dividend

[davius] 13/8/2024 13:12

What a day to go out with my mates on a 30 mile cycle ride, would have been a blinder for a day trade. C'est la vie.

[roguetraderuk] 13/8/2024 11:46

reaction always more imp then news but no near term catalyst here

[mikeelkin] 13/8/2024 11:33

An imaginative and amusing, if somewhat flawed, metaphor.

[ggrantsu] 13/8/2024 10:52

Quite amusing the negativity of people on here. Business is outperforming the market across 75% of business - it’s BEVs that are the issue in a very very difficult market.

Dowlais has its problems but absolutely more than reflected in current price.

Very glad I bought in at 54 on that ridiculous drop this morning.

[louis brandeis] 13/8/2024 10:22

They should, but do they ever.

[blackhorse23] 13/8/2024 10:18

Company in increasing debt, negative cash flows, revenues down ... should pay those 1st before dividends, that's why price is not holding even buy back