Dyson Share Discussion Threads

[durk diggler] 30/1/2009 17:41

At the very least, you could say they are being honest. Getting out all the dirty laundry with the last trading statement. There will be no more surprises, and should the company be able survive the recession, there should be a good share price recovery. In the meantime, I think this is going to drift back to around 7p, to the where it was pre-buyout rumours.

imho, dd

[jotoha2] 30/1/2009 16:31

No positive guidance on sales / profitability, this will be marked down until the picture improves , and it will but when ...18 months min!

[sleveen] 30/1/2009 11:40

Gordon

I don't think that breaching banking covenents means automatic administration. More like the DYS will need to renegotiate loan terms and pay a large fee to the banks for the privelige.

Happy to be corrected.

Edit Including the spelling :-)

[gordonbrown] 30/1/2009 10:57

"Dyson expects to report a loss for the year to 31 March 2009"

like I suggested last week Dyson will report a loss, the question and worry (hence the sp) is the possibility of breaking banking covenants which will lead to administration.

the upside is that with reduce working hours, property sales and other cost cutting they 'might' survive and then we would see a strong move north. The other possibility is a part sale of the company.

my personal trading strategy...if/when DYS drop below 10p then the upside outweighs the risks, the upside being a competitor takeover.

[sleveen] 30/1/2009 07:41

Given the low share price I think the market already expected this....we shall see

[garth] 30/1/2009 07:21

Or then again.......

[garth] 28/1/2009 06:57

Gordon,

Its been a while since I've been called a ramper to my face - you are too kind :0)

"Twaddle" seems a little ill-founded though.

Dyson were profitable in the first half - as you will see from their interim statement.

I must appologise for my pe figure though - forecasts have been pulled back in the last month from 6.1p to 4.1p for the year. So they are actually on an astonishingly heady 4x forecast earnings - not 2.5 times as previously stated.

The point is that this is a business which has been able to provide double-digit eps and pay 4.3p of divi. Dyson have been anticipating further growth via US legislation coming into force in 2010. Barack Obama has appeared to clear the way for that legislative pull to begin to take force somewhat earlier by handing further discretion to individual states.

The question has been over the recession period in the middle and whether trading in that period might be severe enough for Dyson to trigger a breach of banking covenants.

Lord Mandelson has announced the underwriting of debt for automotive suppliers in just that situation - normally profitable, with good prospects and contributing technology towards building a greener industry. CAT shields, diesel particulate filters and metal-matrix composites all help to improve air quality and improve efficiency. Saffil in fuel cells offers another green credential. Add in neutron absorbers and crucibles for the manufacture of solar cells on the energy side.

So whether from the perspective of your own trading position you happen to like it or not (and clearly it is 'not')events in the US and the UK over the last two days have reduced the risk profile and improved the prospects for these shares - FACT.

On that basis there seems to be good reason to assume that when players in the market begin to process that we should see an accompanying rise in the share price.

Dyson may or may not prove to be profitable for the year - that is largely out of their hands. What has become clearer though is a level of support available to ensure that they are still trading when the good times return. At that point there is every reason to expect that they can produce 10-16p eps and return to a divi which would be an equivalent to 25% yield at the current price.

Gordon - kindly take the time to to make a clearly evidenced response should you decide to post - don't want any twaddle now. ;0)

Kind regards,

G.

[gordonbrown] 27/1/2009 19:43

are DYS profitable? plz ref. their last statement, currently I have no position however I can't accept rampers talking twaddle.

[garth] 27/1/2009 15:30

Sounds like underwriting of debt for the auto industry and supply chain where businesses are profitable and helping to create a greener industry. No question that DYS fits that bill. Wait for the scramble for stock as peeps catch on that all that is wrong here is concern over the debt and that now looks pretty sure of being underwritten? Forward pe of 2.5

G.

[churchtower] 27/1/2009 12:02

Long-awaited plans to boost the ailing car industry are to be unveiled by Lord Mandelson this afternoon.

[garth] 27/1/2009 10:47

The only real risk with DYS is, IMO, the debt - they have the capacity to repay this is given time. They have taken steps to release value from the property portfolio and this process has already begun - initially adding to working capital.

The debt is not due for repayment until 2012. Banking covenant breach is the issue - but brokers have stated that things would have to get a lot worse for that to happen.

Government action to underwrite banking loans to SMEs surely reduces risk here? Barack Obama's speech yesterday allowed US States to tighten their auto emissions regulations. This can only be good news for Dyson.....

DYOR.

G.

[finess] 21/1/2009 17:48

GB
There was no bid talk, someone looked at this thread and saw the post that "the parts are worth more than the whole" and realised that it had some merit.

[gordonbrown] 20/1/2009 13:46

ouch, this is head below 10p

[gordonbrown] 14/1/2009 11:33

share price seems to reflect the bid talk as fake, might buy back in at 10p

[garth] 13/1/2009 21:13

These are very lowly rated against forecast earnings. There may or may not be truth in the rumour. Either way - they look cheap, especially if taxpayers are going to start to underwrite lending - which does, afterall, represent the only real risk here, IMO.