Electrocomponents Share Discussion Threads

[alared] 15/8/2003 11:28

Are we at last going to see "breakout" from the 360p mark?
If so,are we looking at 425p

[huwrayhenry] 27/7/2003 23:00

come on ECM break the 360p barrier this week!!
HH.

[alared] 08/7/2003 17:41

NASDAQ up 57points yesterday on reports that companies ready to re-equip.

[jmichell] 08/7/2003 13:33

up 7.4% today Anyone know why?

[mick p] 22/6/2003 22:32

lol.

good luck.

[gotnorolex] 22/6/2003 22:28

LOL....may have one soon!

[mick p] 22/6/2003 22:03

Gotnorolex,

Just watch!

[gotnorolex] 22/6/2003 16:31

If there is a Tech recovery ahead ?!
Then ECM, a pre-cyclical will move significantly !!

[roco] 15/6/2003 22:09

Going to use the Ex dividend trick on Tuesday and sell Wednesday morning (Or short)!
Dividend 11.75p

Other Wednesday dividends
Ex Dividend: 3i Group (8.6), Bank of Ireland (EUR0.238), Boots (20.2), Brown (N) Group (4.1), Character Group (1), Dawson
Holdings (2.6), Fuller, Smith & Turner (11.37), Helphire (1.5), Liontrust Asset Management (3), Liontrust Asset
Management Special Dividend (8.25), London Merchant Securities (4.3), London Scottish Bank (1.65), Moss Bros (0.75), Severn Trent (28.56),
Uniq (3.8)

[mick p] 15/6/2003 21:57

Still think this company is due a fall although I have had to play the odd long / short to allay losses. It is not a golden cross. The 200ma is flat, it needs to be rising on the cross with the 50ma.

ECM markets seem very vunerable to a squeeze on margins.

360 did give a negative reaction (all week) and the price traded as low as 340 ish. The price rise appears to have been on the back of Barclays purchases. Normally this is a death knell for any share...lol

[alared] 14/6/2003 17:41

This share is hovering just below it`s 360p breakout level,I think you are right about a 425p target.It pays a div. of 17p a year which is some going these days!

[cootuk] 14/6/2003 14:45

Or look at it this way...despite many companies being hammered by the economic slowdown, they have maintained their profit level and dividend. They appear to be picking up enough new business to cover what they are losing in the slowdown, and even increasing their margin levels.
Over the last year they have double dipped to 200p, and the 200 day average has now turned positive...do the short and long term averages almost form a golden cross?..if so then the target is about 425p.....

[alared] 06/6/2003 17:16

INVESTECH
Weak positive candidate (5 Jun 2003) [Auto] Help
Has fallen 41% since the peak on 7 Jan 2002 at 576. Is within a rising trend. Continued positive development within the trend channel is indicated. The stock is approaching the resistance at p 360, which may give a negative reaction.

[mick p] 03/6/2003 20:29

Went short today, risky but in normal trading it closed below 320 support (although auction carried it slightly above)

This has had its bounce,



green 20 bands
red 50ma (to be revisited)
brown 200ma.

Broken out of uptrend and failed retest, target 300 initially.
RSI (21) bearish with a false up move.

This could go further south.

DYOR etc

[huwrayhenry] 23/5/2003 15:00

Well it can't be long now.

[huwrayhenry] 02/4/2003 13:46

This stock is ready to plop.

DYOR
HH.

[alared] 26/3/2003 17:58

Telegragh 26-3-2003
Ride the storm with Electrocomponents

Electrocomponents has been running the same, simple business model since the 1930s. It seems to work: the electrical components distributor has never cut its dividend.

Yesterday it appeared to signal that the trend was set to continue as it updated the market on trading. There were still no signs of an upturn in its markets but margins and cashflow are holding up well.

It all comes down to the low volume orders it takes that provide it with big fat margins and have seen the company through the bad times. If the maintenance man in your office needs to an order an illuminated exit sign, a bunch of new fuses for plugs and an adaptor, it can order from the company and get them delivered by the next day. For a small fee, of course.

That is not to say that the company is immune to the economic storms. About 70pc of profits come from the UK where it has been hit by the contraction in the manufacturing base, particularly in high tech areas.

As a result, management has pushed for an increased focus on new market segments to arrest the decline. It is getting more heavily involved in supplying hospitals and other public sector offices.

Elsewhere, it is taking its "50pc gross margin and high sales growth" ethos deeper into Europe and Asia. It is also less exposed than its rival Premier Farnell to the US market.

The shares slipped 4 to 258.75p yesterday, putting them on a prospective earnings multiple of 16, based on forecast earnings of 16.1p a share. That may look expensive but this company has always traded on a premium to the market.

The forecast dividend of 17.5p is not covered by earnings, but should easily be covered by cash generation. It also gives a yield of almost 7pc. Hold on for the recovery.

[alared] 25/3/2003 16:51

Pre-tax profits of a £100 million is hardly a profits warning!

[trader2] 25/3/2003 09:09

Holding up well (so far) given the profits warning/trading statement. Guess that there remains good prospects for a big div. Why haven't they cracked - or is it just a matter of time?

[orange1] 11/11/2002 21:13

yes but the telegraph are having some problems with their sums. With consensus earnings for the year at 16p the PE is nearer 18 than 6.

[captain swing] 10/11/2002 12:03

Hmmm, 6 months on... I thought it was OK at 450 (posting #1 under Pat O Hat soubriquet)... got to be good at 290

[alared] 10/11/2002 00:15

Daily Telegraph 9-11-02

Components made for buying
Electrocomponents, which sells (you guessed it) electronic components, this week disappointed its knockers by upping its half-year dividend a chunky 7pc.

Scaremongering and market whispers of a second profits warning in two months were killed as the company distributed a 5.25p-per-share payout to investors.

While the increase was lower than the 15pc rise which the company has supplied each year since its 1967 float, it was nevertheless at the top end of expectations, especially in current difficult markets.

The group was kicked out of the FTSE 100 in June, but the shares continued their bounce back this week, as the company, led by chief executive Ian Mason, showed it was tackling the tough market by keeping a tight control on costs.

Trading as RS, or Radio Spares, the company supplies 300,000 different widgets - from cables to calculators - worldwide. Internet sales surged 55pc in the six months to September and while the average order is only £80, the group has 1.5m customers.

US sales contribute just 15pc of sales, making Electrocomponents less exposed than its rival Premier Farnell to that particularly tricky market. The UK, which makes up half of the sales, is holding up reasonably well, given the battered manufacturing sector.

Turnover was down just 4pc and while pre-tax profits fell 7pc to £40.5m, the group offers the potential for long-term growth as it pushes deeper into Europe and Asia.

At 302p this week, the stock is trading on just six times forecast earnings, and yielding an impressive 6pc. At that price, the shares are worth buying, both for income and, if the economy recovers, the strong possibility of some capital gains. Buy.

[dazzleer] 07/11/2002 09:58

Thought it might drop a little today ! Maybe depends on BOE. Is it a dead cert the BOE will drop interest rates ?

[forwood] 07/11/2002 00:58

Just had a look at those Dow/ftse charts - the ftse/dow 10 day comparator is much closer then the dow /ftse comaparator (there's a day's difference in it). On all longer timescales the ftse is lagging the Dow. As I've said before I can only explain this by reference to the value of the dollar, which has fallen against the pound. (for Ruth's benefit that makes the dollar value of the dow cheaper, therefore their index can be higher but still be the same in £s :-)

here it is:

[smileypete] 07/11/2002 00:49

ANL ticking up nicely, DYOR etc etc...