Flowtech Fluidpower Share Discussion Threads

[engineer66] 11/5/2008 18:51

Yeaph, on cash flow per share basis a price of 140-150p isn't a bad buy either.
You have to say Mentor are smart guys, already having picked up so many shares for a song.

[source] 11/5/2008 12:43

Well there we go - a "normal", but ungenerous rating, of 15 times 2009 would give a fair offer of between 140p & 150p...Just what many of us have been alluding to here for a while.

Fingers crossed the "management" can make the bidders see sense and a fairer valuation of 140p to 150p then! :)

Regards
SOURCE.

[psolomons] 11/5/2008 09:58

Cant remember the last time I looked forward to a monday so much !

[cockneyrebel] 11/5/2008 09:21

:-) cheers

CR

[jojaken] 11/5/2008 08:42

From UK-Analyst.com

Simulation software specialist Flomerics (FLO) said that it has rejected a 104p per shares cash offer from Mentor Graphics on grounds that it undervalues the company. The group said it intends to analyse other alternatives available, including potential interest expressed by a number of other parties. "The offer was considered by the board of Flomerics, in conjunction with its independent advisers, and it was unanimously concluded that this offer, which is unsolicited, does not reflect the true value of Flomerics shares," said chairman David Mann. A bid at 104p would value the firm at 10.4 times prospective 2009 earnings. In any case, some analysts believe the bid will be countered by Japanese company Kozo Keikaku which already owns a 5% stake. Flomerics shares rallied 16.5p to 105.5p on the news.

[battlebus] 10/5/2008 21:09

Hope your all enjoying a glass or two of claret i think i've indulged a little to much but hey it's been a good week. Let it FLO!

[cockneyrebel] 10/5/2008 11:26

Worth holding on - take the Mentor price if nothing else levers the bid up - but goood chance there's more to come imo.

CR

[engineer66] 09/5/2008 22:36

You're right FLOs days of independence ought to be numbered. I wonder if FLO would not be better exploring a tie up with someone else. Aveva or another computer aid engineering company. FLO is well positioned to expand, I'd have thought that end user demand in the oil and nuclear industries is set to grow strongly, and with the Russian group the competitive positioning of company is probably improved. Mentor's offer at below the share price last March is hardly serious. It undervalues a company with great expertise that could do really well with the right partner. Hope the Board seek proper advice.

[psolomons] 09/5/2008 18:59

You are right Source. In fact I would suggest the Flo board tell Mentor what price they want. That way Mentor would know where they stand and a compromise can be negotiated. The FLO board must realise their days of independence are probably numbered so they might as well start meaningful discussions.
Mentor will need much of flos existing expertise so why not sell out, take the money and still work for the company albeit under different ownership and senior
management.

[source] 09/5/2008 18:06

Agreed selling at these prices would seem silly given that FLO hit 112p on its own (without any bid) last April...

I'd say the managements promise to boost shareholder returns this year makes a take-out price of 140p to 150p reasonable (that is if managment play their cards right - which they haven't done properly in the past).

Regards

[psolomons] 09/5/2008 17:39

Don't forget in the last 2 years FLO has been over 110p twice so I doubt Mentor think 104p will be accepted. They might say their offer is 100% better than the price a month ago but thats not the point. Its all about true potential and a realistic valuation in a normal market. This has not been a normal market for a while.

[battlebus] 09/5/2008 16:27

WELL 1.03-1.08 SURE MEANS THE MARKET THINKS MENTORS BID HAS UNDERVALUED FLO.

[battlebus] 09/5/2008 16:17

YES DEFINITLY A BUY AND MENTORS NEXT BID-120 HERE WE GO!

[tsmith2] 09/5/2008 16:13

100k trade looks like a BUY, accumulation..

[battlebus] 09/5/2008 16:08

Remember buying these at well over £1 a while back and saying AT £1.70-1.80 i'll take profit why would Flo now sell for £1.04 it's simply ridiculous, clear your head and just think about it!

[techmark] 09/5/2008 16:04

Yes I agree. It would be great if somebody else came in with a 120p offer. That would really get the ball rolling.

Regards

[battlebus] 09/5/2008 15:36

picked up a few more ,120 on the cards.

[firth] 09/5/2008 13:38

forgot to put in 'thorium power' if he get that right it will be some 'yankee'.

for the innocent a 'Yankee' is 4 selections. [6 doubles,4 trebles and 1 fourtimer]

[firth] 09/5/2008 13:31

Mudbath is on holiday so he is missing the fun. I have known him 45 years and he gets it right 'bigtime' far more than the other way. He has been 'bullish' on Flo for over 15 months,even when the market was knocking them down. He feels that 'Mentor would do a lot better in the long run by leaving them to run the business. The other thing for 'Mudbath' was a takeover bid meant that 'Gordon Brown' was coming to knock on the door with his 'begging bowl'. He has had a hell of a punt on this. He has also got another winner with Artilium, plus Redhall at 37p. Some tipping!!!!!

[cockneyrebel] 09/5/2008 12:07

Agree - could be a lot more yet - the point is if you're holding, wherewas the downside today? You might need to wait a month or two to get you 104p ifMentor win - still, that's about 4% from today's bid - no hardship in two months or so. On the other hand a white knight turns up and you get a load more. Win/win.

CR

[source] 09/5/2008 11:39

Apparently a Japanese outfit has shown interest in Flomerics too (previously).

Also they have some very powerful customers & partners around the globe (i.e. the biggest & bluest chips out there)...

I think 104p would be a giveaway & a complete bargain for Mentor...

140p to 150p seems more reflective of the turnaround the management seem to be promising this year.

Regards,
SOURCE.

[cockneyrebel] 09/5/2008 11:35

I think FLO are toughing it out for more. Dunno if they have genuinely interested other parties or if they can fend off a 30% holder but either way they must be a hold for more here imo. you're gonna get 104p minimum if they win, chances are you get more. A no risk hold with just upside potential.

Poor Gravey - what a bitter winker of a troll.

CR

[psolomons] 09/5/2008 11:27

I guess mentor will definitely raise their offer. They will not walk away at this stage withouth another attempt. They want FLO , they hold 29% of the shares and to run at the first rejection, which they must have predicted, would be unthinkable.
If someone else makes an offer there could be serious upside.