Would love that to be the case toffeeman! |
Another bid coming? |
graph beginning to look v. tasty IMO....DYOR |
position taken here for me |
toffeeman, be careful you will upset luckyman ? |
I'd be happy with £3 |
v quiet board!
wonder if this will see M&A being revisited, last conditional offer was c.£1.60, rejected out of hand before, but with decent trading and debt reduction in place, ahead of economic recoveries, could we see a £2 bid? DYOR |
Strong seminar from the company yesterday on innovation. A replay is available on their website I believe ….worth taking a look at……supports the comments from R&M |
 R&M Recovery Fund - 31/10/21:
We continue to build a position in Elementis, a specialty chemicals producer focused on the coatings, personal care and talc markets. Its potential to deliver improved profit margins is supported by leading positions in niche markets which have recovery potential following covid-19 disruption. Hard to replicate asset bases (chromium, hectorite and talc mines) and, above all, IP (intellectual property) in formulations underpin the quality of its business franchises. Elementis products are typically only a small part of customers’ overall cost (3-5%) but play a critical role and are therefore follow value-based (rather than commodity) pricing structures, another way of saying it has strong pricing power. There are sustainability tailwinds for its products, such as hectorite clay replacing synthetics, which we believe are genuinely incremental and overall, the faster growth in value-add products is shifting margin potential upwards. Share price weakness, which we associated with general investor concerns around the macro outlook rather than anything stock specific, has given us the opportunity to buy at ~12x normalised free cash flow. We see this as an attractive discount to fair value whether you look at the group as a whole or broken up into the sum of its parts. |
Maintaining guidance in a tough environment - seems positive to me. |
Input cost possibly impacting margins would guess is what the market may
be focussing on. High operational gearing as well as a result of net debt.
See what they have to say shortly on the update. |
Why the sell off? Profit taking? |
bang, Schroders run multiple funds so that may be correct.
As posted, just picked up on the wording used by the interviewer,
which I assume refers to funds where Iain is manager or lead manager.
Schroders may be happy to clarify if you contact them. |
Iain works at Schroder and according to stockopedia, the holding in Elementis is 22.5 million. |
Q3 TU due end of month, 20% fall the past 3 wks, insiders dumping or mkt shake out, China property mkt imploding/contagion, stagflation rearing its head? |
It seems the mkt is very worried, is this the start of another rout. Not just here but the entire mkt. |
Owning your own mines to supply raw materials in a major bonus here, no need to be dependant on others sticking up prices.
The energy side must be flying, rig counts just keep going up. |
Good question. Do you know when he sold out?
Soros Fund Management still invested here, I believe. |
Iain does not hold ELM now and the question to have asked is,
why did he decide to sell?. |
Iain Staples mentions Elementis (ELM) at 11m54s in the latest PIWORLD interview
Watch the video here:
Or listen to the podcast here: |
I think one of them will come back with a realistic offer. |
As a further thought, Innospec could make another bid next month after six-months will have elapsed from them ceasing takeover activity in April. |
That's true, a bid could be made that hasn't been discussed with the board. Thankfully the 130p and 160p offers from Mineral Technologies and Innospec respectively were rejected, and any bid now would need to be at least 25-30% higher than the current price, say in the range 194-202p to have a fighting chance of success. Of course, the next results could surprise on the upside and put us most of the way toward that range in short order - fingers-crossed! |
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