Dyson Share Discussion Threads

[clangor2] 04/7/2008 08:15

Quick, everybody overboard then while we can !

[churchtower] 04/7/2008 07:44

Investors Chronicle BUY recommendation this morning.

[clangor2] 03/7/2008 08:36

Being grateful for small mercies, at least the current lowly share price appeared to save us from yesterday's overall blood-letting. That said, the next 18-24 months could well see many more similar performances ..... &{:-(}

[garth] 27/6/2008 18:55

Just in. Not surprising really to have a small pull-back after the strength of recent rises and on a day faollowing a 300+ points fall on the Dow. Looking forward to see what the mags make of the strategic review next week - and keen to see a broker note if anyone has one emailable....

G.

[clangor2] 27/6/2008 12:20

Brave or foolhardy, it's a fine line. I've decided to ..... wait !

[varies] 27/6/2008 10:47

Garth
Thanks for all this useful info; I am glad to learn that DYS derived something of value from MMi.
Today's sharp fall may provide a chance to buy a few shares below 100p but the market as a whole is very discouraging with red ink almost everywhere except in oils. This is the sort of day on which one should be brave !

[sleveen] 27/6/2008 07:43

Good post garth

[garth] 27/6/2008 07:35

I intended to pull these out of the results yesterday. Looking at some of the growth and sectors involved I believe they could help to drive significant growth:

* In addition to increased sales, multiple new products have been developed and launched, which will offer exciting future sales opportunities after 2010.

* The Group has also been successfully awarded multiple projects to supply
Ecoflex® products to a major USA exhaust system supplier, worth £11.8 million revenue per annum, starting in 2009.

* Advanced zirconia nozzles for applications in the Steel Industry, have demonstrated a steady sales increase of 30% year upon year. We expect to increase our overall market share in the nozzle business for the Steel Industry.

* Sales of tin oxide have increased by 100% following a partnership created with the world leader in LCD glass production, a demonstration of the Group moving into added value products with a clear market focus.

* The re-emergence of the Dytech business as a manufacturer of advanced catalyst support is also on track, forming a global partnership with a leading multi-billion dollar petrochemical company. The Group will focus on delivery of this promising opportunity over the coming year.

* In the USA, significant improvements within our emergent nuclear ceramics business have been made, which has developed additional sales and products for supply to the Nuclear Industry in 2008.

* In addition, we have successfully developed a novel photovoltaic silica crucible manufacturing process which will be commercialised in 2009, leading the Dyson Group into the Power Generation sector.

[garth] 26/6/2008 18:04

Meanwhile shares in Dyson Group gained 14-1/2 pence at 109, recouping some of its recent losses, after its full year results and strategic review reassured investors.

The materials technology group reported a slightly higher full-year underlying pretax profit, but said it slipped to a pretax loss due to exceptional charges of 20.4 million pounds, mainly relating to the closure of its Carolite business activities.

In reaction, Brewin Dolphin repeated its 'buy' stance on Dyson.

[garth] 26/6/2008 12:35

Worth noting perhaps that where the results point to operations within the nuclear industry they are describing part of the Millenium Materials business. Sam Weaver had a number of projects in the Millenium Materials stable. When they bought MMi Dyson acquired rights to their powdered ceramic. This broadened their expertise and technology range (Saffil is a ceramic fibre). Whilst the development focus has been mainly on Carolite disks, there will have been expertise gained along the way that can be leveraged through the newly established Technology centre. Dyson's expertise is based in ceramics (cf Porvair) and the MMi adventure - while dissapointing - won't have been entirely wasted.

"Neutron Absorber Pellets Millennium Materials Inc (MMI) manufactures neutron absorbers according to our customer's specifications. "


G.

[varies] 26/6/2008 10:52

Congratulations to those brave souls who scooped up the few shares available at about 70p.
It is very re-assuring to see that no more money will go on Carolite. What a wonderful deal the inventor made when he persuaded Dyson to take this on !
The balance sheet is still a little hairy and the surplus properties may be hard to sell.
On the whole this now looks a much more attractive company and, of course, it is a relief that the share price is no longer falling 2p a day as it has been until recently.

[sleveen] 26/6/2008 10:28

IMHO people were scared to buy at 60-70p level in case share price fell further hence previous bb comments that small trades have sent the share price down for the last few months.

If the above is true then (relatively)large trades of 7k or more should send the share price back to perhaps 150p.

whoosh. :-)

[pugugly] 26/6/2008 10:21

powwow: - Price not sure but there was very little volume at 60p - Best I could do was 7K at 72p.

[powwow] 26/6/2008 09:54

Hi guys where do we see these going, though at the mo it seems 60p to 1.20 seems a good enough rise in the short term

[garth] 26/6/2008 09:48

Relieved and intrigued, I think..... And so they should be. 2010 could be very interesting. Please shout if anyone catches any broker comment...

G.

[sharw] 26/6/2008 08:15

Yes, the market seems relieved.

As I have said before, Carolite and Saffil/Ecoflex are classed as 'performance materials' so the losses on the former have always been lumped with the profits on the latter. Despite the fact that Carolite is to be discontinued this remains the case. Thus when Carolite is gone we should see a leap in the sector profits.

[garth] 26/6/2008 08:08

Sharw, Clangor2,

Obviously disappointed that Carolite has proved a white elephant. But clearly pleased that they have now got a SHE-man to champion the cause. This should maintain the tradition of the white elephant at least as the term white elephant derives from the sacred white elephants kept by traditional Southeast Asian monarchs in Burma, Thailand, Laos and Cambodia. To possess a white elephant was regarded (and is still regarded in Thailand and Burma) as a sign that the monarch was ruling with justice and the kingdom was blessed with peace and prosperity.

So if the new focus can bring peace and posterity within a just rule than Dyson will continue to have its place in my socially responsible portfolio and may, I expect, attract the attention of one or two other SR and New-energy/environmental investors.

Where the price goes now in the short term, who can guess. Carolite failure and a large non-cash loss are bound to carry the headlines but I expect brokers and the institutions to look though that. From them I expect Carolite-relief and for the share price to continue towards a reasonable valuation north of 140p. I'll gladly pocket my dividend and entertain warm thoughts of a balance sheet that looks far healthier with a revalued property portfolio. Cash position too looks like it will be more stable.

Worth noting I think the contribution made this year by Performance Materials. It would be easy to cover Brown, O'Brien and Parker in white elephant doo-doo and leave it at that. But the reality is that they have successfully re-positioned the core business. While overall revenue has not increased, the mix has dramatically changed and credit needs to go to them for last year's performance. They have left the company very well positioned for the next phase of change, development and growth. So if they by chance nose in here - my thanks as a small private investor for a good job done and best wishes for the future.

G.

[pugugly] 26/6/2008 08:04

Initial respone seems to be relief. The market likes clarity and for the last year plus it has always been on the cards that Caroilte was going nowhere.

Now atleast managment can concentrate on the business they know.

[sleveen] 26/6/2008 08:03

Releived I hope, the uncertainty re Carolite is now removed.

[clangor2] 26/6/2008 07:44

So it's 'bye, bye' Carolite which, bearing in mind the weakness of the share price over the past six months, must have been known by some 'in the know' personnel for quite a long time. Time to amend the header now Garth !

Otherwise, much as anticipated and not a great deal more than gleaned via the IMS. Will the market be disappointed or relieved ?

[sharw] 26/6/2008 07:42

Hmmm. R.I.P. Carolite. Much of the write-down is non-cash (mainly capitalised R&D costs). The rest of the review sounds sensible but will take time to deliver.

Hanging on to crumbs of comfort. the dividend is maintained and tangible NAV is 89p/share.

Let's see what the market makes of this mixed picture.

[garth] 25/6/2008 16:22

Just 787 shares for sale on the order book - 250 @ 95.75p, 250 @ 96p, 250 @ 96.5p and then just 37 @ 101p. Then? Who knows.....

Should make it interesting in the morning if there is even a whiff of a Carolite contract on the table.

G.

[garth] 25/6/2008 10:32

Whoosh :0)

[royaloak] 25/6/2008 10:27

In auction at 99, looking to buy but like hens teeth.