Flowtech Fluidpower Share Discussion Threads

[boonkoh] 26/4/2019 15:31

Seems like lots of shares available around 135p, wonder if it will break through to 140p by end of day!

[fillspectre] 25/4/2019 23:31

Edmundshaw - it is possible to take different Brexit positions for different investments! I came to realise long ago that no-one can accurately predict the future of the economy, individual shares and financial instruments and likewise I don't think anyone really knows what effect the various Brexit options could have - long term or short term. Except to say that the ongoing uncertaintly is very wearing and in my opinion detrimental to ongoing investments. Given this background I'd rather debate the merits of something more specific and known. Me - personally I wouldn't bat an eyelid if they tossed for Brexit - heads - cancel article 50 - tails - exit no deal :-). Boonkoh - ST is a predictable cheerleader for Flowtech Fluidpower - his previous write-ups on the subject have failed to generate much interest. Me I'd prefer to see another RNS from Odyssean signalling they are intent on building a massive stake. Nothing like a big and determined buyer to raise the share price. Fils

[boonkoh] 25/4/2019 22:42

Doesn't the IC emails hit inboxes Friday, and the physical copies in letterboxes too? Wonder if this will fly from more buys on Friday and Monday!

[edmundshaw] 25/4/2019 08:15

fills, how can we have an irrelevant raging argument about Brexit if you won't reveal your position? :-)

Agree FLO is a good value dividend paying opportunity at this price. As you say, plenty of more speculative stuff out there on higher ratings and not delivering cash...

[fillspectre] 24/4/2019 21:28

Good grief - I was expecting plenty of chat today after the rise and volume yesterday. I feel like I have put everyone off. 149K traded and 64 trades much better than average - a load of new PIs - I hope so - 4p dividend on offer early June followed by the interim dividend in September - not necessarily to be looked upon as a value trap methinks. Very reasonable if you rule out an ex-growth phase. Plenty of AIM Companies delivering promises but no dividend - cash burn but no profits and these companies in receipt of speculative investments based on whet they might do (believe me I'm invested in one or two). The softer brexit scenario must also play out well for Flowtech Fluidpower (my personal Brexit position not revealed). Fils

[fillspectre] 23/4/2019 23:18

Need to add - for me this is some big players in the market deciding they like the cut of the new CEO's jib. It is all about the trust in the Management - can they take this agglomeration of acquired companies the ex-CEO bequeathed them with and really do something with them. I think the new CEO and new CFO have recently impressed upon people that they can and they are being believed. It is great that another manager within an acquired company is also stepping to the fore - this tells me that us shareholders may benefit from somebody's personal ambition to advance themselves in a larger group - I like it when shareholder's and manager's interests are aligned.
It is about spotting and backing the good management just like over at SDI. Fils
PS I recently noted that the GAMA Aviation share price has dropped and that ST wrote a piece about losing faith with the management and deciding to sell - so he is fallible because he had been backing it until recently after already one set of bad news.

[fillspectre] 23/4/2019 23:08

Could be more Odyssean Investment Trust PLC buying. Wouldn't be surprised if we get another RNS shortly. For me this could easily rise into the 160p to 180p range although I doubt it will reach the previous heights of 195p until further organic growth is demonstrated and some debt is paid down. Agree with what ST says - it is currently priced for no growth. I was tempted to suggest on Maunday Thursday that ST may tip it again on Tuesday - should have put money on it. Agree with podgyted and thorpematt - today's rise isn't just down to ST - there are greater forces at play. Fils

[brucie5] 23/4/2019 21:17

Thanks Sharw for that correction, and Thorpematt for your chart. Yes, that's what I see too.

[thorpematt] 23/4/2019 21:07

No it is not just ST. Simon's tip is a positive development of course becaues he has a strong track record of picking winnners. But that aside my chart shows some key data:-


free stock charts from uk.advfn.com
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Firstly we can see the rather obvious and telling breakout from the recent sideways action.

Secondly (as is required to confirm a significant breakout) the volume is significant.


I suspect that we have a combination of short-covering and stock building. I am fortunate in that I have built a strong position prior to breakout, but if I hadn't I'd be closing any shorts and going long very sharpish - looking for a closing of the gap to 160p in fairly short time.


As detailed previously I have a much higher target price on this and it is in no way just a "trade" based upon the chart.

[sharw] 23/4/2019 21:02

Brucie5 - I think you mean stockopedia. The 'bold earnings revision screen' is an odd one because it ignores downgrades. FLO is stated to have 3 brokers and in the last month one upgrade and one downgrade. The latter must have been greater in change because the Y2 EPS consensus is shown as having gone DOWN from 17.83 to 17.2

[podgyted] 23/4/2019 18:35

Over 4% of shares traded today - that's not ST.

[brucie5] 23/4/2019 16:45

It does look cheap on fundamentals, with the gap on for 1.60-1.80 range. I bought a few speculatively at 1.30 this afternoon. Late to the party, perhaps, but I think it may go on a bit.
Also comes up on 'bold earnings revision screen' on (edit) Stocko, on which its well ranked for 'quality'. FWIW.

[edmundshaw] 23/4/2019 15:35

ST keeps picking up on my shares... I am not complaining at the price rises, but still I would like my fee!! :-)

[shaker44] 23/4/2019 13:50

Very long very positive write up by ST. He clearly feels it is seriously undervalued

[mammyoko] 23/4/2019 13:41

ok, thanks for that

[alter ego] 23/4/2019 13:17

tipped by Simon Thompson in the IC today

[mammyoko] 23/4/2019 13:16

Got a way to go as it looks like 3m were shorted on 2 October 2018 (although only declared 350k to the FCA). Could see this go a bit higher as the administrators of City Financial have shown themselves to be completely clueless buying and selling at any price to close positions

[mammyoko] 23/4/2019 13:11

looks like City Financial administrator is covering his short today!

[fillspectre] 17/4/2019 21:35

Early evening RNS letting us know that Odyssean Investment Trust PLC has acquired approx. another 584K of shares or nearly 1% of Flowtech Fluidpower stock to lift their total position to 7.21%. I'm guessing another institution has correspondingly decreased its position but still good news. My personal take on Flotech - the previous CEO took us on a long run of acquisitions but he might have left us in a better shape to "harvest the synergies" before he went. I do wonder about how well he drove a bargain over purchase prices - especially in the latter acquisitions. The new CEO and CFO are busy addressing this shortfall. I hope they retain or increase this modest organic growth rate, just keep new acquisition targets warmed up for now (I mirror the CEO's own words)and look at all times for ways they can increase profits by either identifying and exploiting cost savings, increased cross selling or developing in-house with own resources new opportunities. As soon as the general market feels like they are on the right track the dividend yield should reduce to around 3.5% because of a share price rise. Fils.

[edmundshaw] 17/4/2019 14:53

Thanks Ted. Even if the tax rate pushes 25% as I perhaps rather pessimistically predicted that PBT would give EPS underlying of around 15p, so these guys are more bullish than I was; perhaps they have better information. I was impressed by the video link, so probably I am being too cautious here - in which case this is a pretty strong buy.

[podgyted] 17/4/2019 11:50

To me they gave the impression that acquisitions are off the cards until at the least late 2019 - which seems sensible.

After re-reading everything I've added and will add more if it stays down here.

[podgyted] 17/4/2019 10:03

Edmundshaw - Zeus have adjusted PBT of 12.1m and adjusted PAT of 9.7m to give an EPS of 15.8p. So they are assuming a tax rate of @ 20% - that's probably about right as their adjusted PBT figure has already had amortisation etc added back.

I note FinCap have an adjusted EPS for 2019 of 16.5 - therefore consensus is about 16.2.

[psync] 17/4/2019 07:58

Very informative posts here, thanks for sharing.

[creditcrunchies] 16/4/2019 22:55

The acquisitions have calmed down a bit in the past year so hopefully it's a consolidation phase now. This just how aggressive it has been in the past 4 to 5 years:
Strategic acquisitions to date:
Primary Fluid Power (2014)
Albroco (2015)
Nelson Hydraulics (2015)
Indequip (2016)
Hydravalve (2016)
Triplesix (2016)
HTL (2017)
Hi-Power Limited (2017)
Orange County Ltd (2017)
Hydroflex Hydraulics (2017)
Group HES (2017)
Balu Limited - Beaumanor & Derek Lane (2018)

[edmundshaw] 16/4/2019 22:20

Thorpe, good comments. In the video interview the debt rise was explained very clearly. rise of £5.1 was used to meet £2m of increased working capital (due to organic growth of 6%), and £3.5m of deferred consideration payments (or was it t'other way round? no matter...). That satisfies me on the debt front.

The current performance of Balu seems to support the price paid, though yes there was a rather high intangible element, and that is reflected in the high tax rate which I am ascribing mostly to the large amortisation (in which case the tax rate will remain pretty high for the foreseeable), and is also why I am cautious about broker estimates for 2019 (I worry they might have overlooked this).

Nevertheless I do feel that synergies are not just wishful thinking - management is very strongly saying they are going to extract some serious ones, so 220p seems very fair to me - at least in a couple of years time.