Electrocomponents Share Discussion Threads

[botman begins] 13/10/2006 10:44

if it gets through 280 today, might not take much for it to reach 300

[b0tman] 12/10/2006 11:31

how long is that 185k sell going to be on L2 for? buyers are building up

[b0tman] 11/10/2006 08:19

So almost 2% of ECM shares traded yesterday. Perhaps rally once this supply is cleared, PFL still web bid at 190

[b0tman] 10/10/2006 16:23

Too early I hope. Interims in four weeks.

[bot_man] 10/10/2006 16:09

another 1m at 273.46. looks like an institution is using the current rally to get out of what has been a poor investment.... but have they sold too early?

[bot_man] 10/10/2006 16:00

profit takers moving in 3.3m at 272, total today 6.5m or about 1.5% of capital.

[b0tman] 10/10/2006 12:42

PFL up nicely again while ECM still drifting back. Are the hedgies waiting to pounce?

[b0tman] 09/10/2006 10:26

PFL up again today... perhaps ECM will catch up this afternoon

[b0tman] 06/10/2006 11:31

PFL up 3.9% now. so why is ECM not keeping up?

[b0tman] 06/10/2006 11:08

PFL up 3.5%. why is ECM lagging?

[b0tman] 06/10/2006 10:28

and note PFL up 3.4%

[b0tman] 06/10/2006 10:27

looking much better this morning, is this the start of the push to 300?

[botwoman] 05/10/2006 12:47

If the dividend is unchanged but the yield on Electrocomponents shares moves from 7.3 per cent to Premier's 5 per cent, Electrocomponents' share price will rise from 263½p yesterday to 380p. That is a jump of 44 per cent.

[botwoman] 05/10/2006 12:46

Talking about the PFL comparison, do not forget last weeks Times...




Electrocomponents could distribute handsome rewards

SHARES in Electrocomponents, the distributor, have performed in abysmal fashion over the past five years, yet a trading update yesterday suggests that the fortunes of the company are changing for the better. If prospects continue to improve, shareholders could be handsomely rewarded.
The shares enjoyed a decidedly buoyant day yesterday. The price jumped 5.7 per cent, outdoing every other FTSE 350 company. As with most companies, shares can be expected to move up in response to improved profitability. Shares in Electrocomponents could progress at an exaggerated pace, however, because of the dividend position.



At current levels, the shares yield of 7.3 per cent, more than twice the average for the market. Admittedly, the yield is high because the market fears that Electrocomponents may be forced to cut its dividend. That threat has not disappeared and if Electrocomponents does reduce the income it pays to shareholders plenty more value will leach away.

However, if Electrocomponents proves itself capable of maintaining or even raising its dividend, the share price could double. It will if the market regains complete faith in the company's ability to pursue a dividend policy that is as progressive as the market average. For if the share price doubles, the yield will halve, and fall in line with the market average. Even if Electrocomponents succeeds only in winning itself a reputation equivalent to that of Premier Farnell, its London-quoted rival, shareholders will be decent winners. If the dividend is unchanged but the yield on Electrocomponents shares moves from 7.3 per cent to Premier's 5 per cent, Electrocomponents' share price will rise from 263½p yesterday to 380p. That is a jump of 44 per cent.

But will Electrocomponents manage to hold the dividend? The fact that the payment is uncovered by earnings suggests that it will struggle. The company has pledged to hold it at current levels this year and next. Meanwhile, Electrocomponents has no borrowing and reckons that it has only modest capital investment requirements. It needs a new warehouse in the United States, but elsewhere it has infrastructure that can accommodate extra volumes. Economies of scale will widen profit margins if volumes continue to grow at current rates and a new IT system is helping the company to operate more efficiently. Buy.

[botman2] 05/10/2006 12:04

PFL are up today

[b0tman] 05/10/2006 11:27

profit taking around 280 is hardly surprising. but ECM customers are surely benefiting from falling commodity prices, not reflected in recent trading statement. and the dividend yield is still 6.6%!

[b0tman] 04/10/2006 14:32

a bit of stock around at 280, given the big move you wouldnt think it would take that long to clear. just an opinion

[bot_man] 03/10/2006 17:48

8.027m, thats about 1.84% of 435.28m shares in issue

[bot_man] 03/10/2006 16:38

7.08m now, about 1.6%, finishing near days high

[bot_man] 03/10/2006 14:22

5.56m now, about 1.3%

[bot_man] 03/10/2006 12:54

thats about 1.15% of shares. big pick up in vols in last few days, previously were often less than 1m a day

[bot_man] 03/10/2006 12:46

5m already traded today

[b0tman] 03/10/2006 10:36

Dividend yield analysis has its merits. Dividends reflect managements optimism and studies have shown buying higher yielders has been a winning strategy. United Utilities is a highly geared regulated business while ECM has little debt and has been growing revenues at 9%.

[scotch broth] 03/10/2006 10:18

In my experience the market largely ignores dividends and has regard to growth -consider Lloyds, United Utilities etc.On this basis the share looks fully valued .However the market likes ECM and I can see them going above £3.

[b0tman] 03/10/2006 09:08

...and continuing higher this morning in a falling market. clearly lots of demand out there