Elementis Share Discussion Threads

[qs99] 18/1/2022 11:14

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

[wardy007] 18/11/2021 08:46

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

[simon gordon] 14/11/2021 09:47

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.

[epistrophy] 28/10/2021 11:40

Maintaining guidance in a tough environment - seems positive to me.

[essentialinvestor] 11/10/2021 13:10

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.

[ifthecapfits] 11/10/2021 13:02

Why the sell off? Profit taking?

[essentialinvestor] 09/10/2021 15:26

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.

[banger] 08/10/2021 04:47

Iain works at Schroder and according to stockopedia, the holding in Elementis is 22.5 million.

[dave894] 06/10/2021 11:41

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?

[celeritas] 06/10/2021 09:42

It seems the mkt is very worried, is this the start of another rout. Not just here but the entire mkt.

[celeritas] 04/10/2021 15:51

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.

[epistrophy] 30/9/2021 14:39

Good question. Do you know when he sold out?

Soros Fund Management still invested here, I believe.

[essentialinvestor] 30/9/2021 14:13

Iain does not hold ELM now and the question to have asked is,
why did he decide to sell?.

[tomps2] 30/9/2021 07:53

Iain Staples mentions Elementis (ELM) at 11m54s in the latest PIWORLD interview

Watch the video here:

Or listen to the podcast here:

[celeritas] 08/9/2021 10:15

I think one of them will come back with a realistic offer.

[strollingmolby] 07/9/2021 12:24

As a further thought, Innospec could make another bid next month after six-months will have elapsed from them ceasing takeover activity in April.

[strollingmolby] 07/9/2021 12:17

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!

[celeritas] 07/9/2021 11:45

It doesn't mean a bid isn't coming.

[strollingmolby] 07/9/2021 08:01

Confident statement by the Chairman to buy £100k. Also means that there is no inside information currently, so no bids and due diligence bubbling along, but that can wait, and the business can grow a little more first. The price is ticking along nicely in the right direction.

[luckypot] 12/8/2021 20:03

on what basis C77? Edited: I see by your previous posts that you are just one of those unsubstantiated rampers. i.e. Looser

[commander77] 12/8/2021 07:13

Take over getting closer. £2.80.

[toffeeman] 10/8/2021 08:58

Not even worth laughing at the IC - just best to ignore completely

[solarno lopez] 10/8/2021 06:25

Should we laugh at the IC Epistrophy ?

[epistrophy] 09/8/2021 16:25

IC was a sell recc at 71p last year...

[solarno lopez] 09/8/2021 11:50

A sell recommendation by the IC