Dowlais Share Discussion Threads

[louis brandeis] 23/7/2024 10:51

So you admit that if someone is offloading 1.2m shares someone must be buying - which makes your post rather moot doesn't it.

To add: if the company is partaking in a 50m share buyback its agents will be placing buy orders at a requested price LOWER than the currently quoted Exchange Market Size (EMS) because volumes will generally be greater than the EMS. In other words: they are generally not going to buy at volume at a greater price than lower volumes absent of any significant news. This all tends to drive the share price LOWER assuming everything else remains around the status quo.

CRIKEY

[scepticalinvestor] 23/7/2024 10:15

Ye its called the market maker, dimwit. They are obliged to buy and sell.Crikey

[louis brandeis] 23/7/2024 09:33

And he/she offloaded them to a buyer(s) who bought 1.2m shares this AM.

[scepticalinvestor] 23/7/2024 08:21

Ouch this is being butcheredOne punter just offloaded 1.2m shares so far this am

[tabhair] 22/7/2024 21:48

I bought a small position in this today at 68p. I am probably early and will buy more if it keeps going down.

This company has a good long-term secular trend behind it. Demand for cars will increase, only a few large players are capable of competing in this market, Dowlais are certainly one of the market leaders. Management are credible, they have already managed to cut out costs, increase margins, address the debt and pension. They have been buying and taking their cash bonuses in shares (although I wish they were buying more). There is a buy back, there is a dividend, so shareholders are getting something back as well. No idea what will happen next year, but fairly confident that 5 years from now this will be a bigger business than it is today.

Think now could be a good time to buy as well. Looking at the shareholder register, a lot of the automatic selling from those who inherited this after the spin-out should be over.

[philanderer] 19/7/2024 23:29

The Telegraph

Trump vows to axe Biden’s electric car mandate on ‘day one’

[essentialinvestor] 19/7/2024 16:16

Is their technology as relevant as it once was?.

They appear to face considerable competition.

[masurenguy] 19/7/2024 15:41

Dowlais (DWL) – The global automotive industry has faced challenges as it transitions at a slower than expected pace to battery electric vehicles and faces increased competition from Chinese suppliers. So automotive industry supplier Dowlais may seem a curious pick – even more so, perhaps, given its challenging technical backdrop. Dowlais was spun out of Melrose (MRO) and, as is often the case with spin-outs, went through a period of shareholder register dislocation as Melrose shareholders sold. Dowlais needed to find new buyers of its shares. While end markets are challenging, Dowlais is going through a big programme of ‘self help’ – for example, closing a number of manufacturing sites. It likely needs a better end market for the benefits of this to become evident. But it has a very low starting valuation and, as with M&S and Rolls, a high starting market share in what it produces.

[royalalbert] 17/7/2024 21:29

M204 his handle gives the game away.

[mark204] 17/7/2024 17:40

Based on what exactly?

[scepticalinvestor] 16/7/2024 13:39

I wld say the 50s are on the cards until the next update

[danmart2] 08/7/2024 11:25

The automotive technology is now out of date and they have improving rivals from China who appear to get state aid.

60’s incoming

[road99] 07/7/2024 08:51

The negative catalyst watch announcement is very alarming. As per my earlier comment on this thread, I thought Melrose was supposed to make businesses they acquire be more lean, profitable etc, however in the case of GKN Driveline/Automotive (now Dowlais), we appear to have been sold a very badly run operation. Where is C.K. Chow when you need him?

[davius] 05/7/2024 12:32

It's been an interesting few days holding Dowlais.

After the update on Monday,

JPMorgan cuts Dowlais price target to 90 (100) pence - 'neutral'
JPMorgan places Dowlais on 'negative catalyst watch'

the share price took a caning, on that negative catalyst watch view, despite their target being some 25% higher than the share price at the time. Recovery has at least been swift.

Investors in multiple sectors seem to like the big Labour win. Looking at their manifesto there's little to worry them, at least in the short term.

[southwinds] 26/6/2024 08:35

A recommendation by the Questor column heralds opposite action required. They have a terrible record and doubtless will continue the same path of destruction of portfolios

[swinsco] 25/6/2024 09:36

Good write up in the Telegragh. Questor says buy.

[gargoyle2] 25/6/2024 09:21

A leveraged short position when the directors are buying. Seems like a high risk position to me.

[scepticalinvestor] 19/6/2024 14:29

Actually increased my short at 73.44This is doomed imo

[scepticalinvestor] 19/6/2024 14:25

Reckon the 60s are coming again - not looking good hereOver indebted, technology outdated, whats not to like?

[swinsco] 18/6/2024 09:29

You really are a gem.

[scepticalinvestor] 18/6/2024 08:54

Look, I understand you are probably down substantially on your investment here which leads to resentment. Human nature etc.But dont forget that when the fat lady sings she is also thirsty.

[scepticalinvestor] 18/6/2024 08:01

Dibs on closing below 70p today?