GKN Share Discussion Threads

[libertine] 17/10/2012 08:45

Engineering group GKN was the largest faller in the FTSE 100 yesterday, after it warned of weakening demand in the European car market. Questor in The Telegraph writes that its shares had already been underperforming prior to the statement, as had the whole sector. Recent news flow appears to indicate that the European industrial market is sliding back into trouble. Questor last said buy on August 4th when the shares were at 210.6p. They are now 3% below this. For now, trading on a 2012 earning multiple of 8.1, falling to 7.1 and yielding 5%, Questor says hold.

[libertine] 16/10/2012 18:40

Following these results, we would expect to see earnings downgrades of about 5 per cent, which would put GKN on 7.5 times 2013 earnings – a 12 per cent discount to its global auto part peers," said analysts at Killik & Co.

"Given its market-leading positions in many segments of the auto components markets, as well as the diversification benefits arising from exposure to both commercial vehicle components and aerospace components, we don't believe this discount is justified."

[haywards26] 16/10/2012 15:58

Some broker comments;

Investec has trimmed its target price for engineering group GKN after its Driveline division suffered from a worse-than-expected weakening in automotive demand and associated operational issues.

Investec has maintained its 'hold' rating for GKN and reduced its target price from 240p to 224p.

Panmure Gordon downgrades GKN from buy to hold, target price cut from 260p to 225p.

[haywards26] 16/10/2012 15:53

FT - covering the IMS. GKN has been on my radar for a while and I may have a nibble if they fall below £2.

[thorpematt] 10/10/2012 11:39

FibMeister




I've observed before that the market cannot seem to "separate" GKN from the wider indicies.

It's like owning a FTSE tracker (with dividend)

[value viper] 10/10/2012 11:05

cookson pw i believe , t statement 16/10/12 - hoping will be robust

[fibmeister] 08/10/2012 16:45

any reason for this fall ?

[philo124] 05/10/2012 14:32

Going well now.

[cockneyrebel] 02/10/2012 13:10

Chrysler sales up 12%, was only expected to be up 6%.

Rally for GKN here? Came off on bad car numbers.

CR

[philo124] 25/9/2012 08:37

Topped up with 2500.

[libertine] 24/9/2012 16:01

Investec downgrades GKN from buy to neutral, target price cut from 245p to 240p

[cockneyrebel] 24/9/2012 16:00

Good for a bounce here on the trendline and the 50 day ave imo.

CR

[elmfield] 24/9/2012 13:24

Not great news today re car production

[thorpematt] 21/9/2012 13:39

.wrong thread sorry

[flagon] 21/9/2012 09:34

JP Morgan has increased their target price here from 255 to 275 this morning.

Link ->http://sharedealing.nandp.co.uk/broker-views/GKN/GKN-news

[philo124] 14/9/2012 16:58

Agreed; £3 my target; wish i had doubled up around 210/215p

[flagon] 14/9/2012 13:39

Volvo Aero was such a sweet deal. The day before the takeover GKN closed at 186.6p
Next day they announce a placing at 200p in part to pay for VA. Investors loved it.

I'd wager that with the proposed tie up between EADS & BAe VA would cost more today.

I'm hoping we get some sort of re-rating in time instead of the single digit PE
we have now. A PE of just 10 would equate to circa £3.00 perhaps in 12 months time. I can wait.


Flagon

[cockneyrebel] 14/9/2012 12:56

Interim Man Statement Oct 19th. In a mkt like this where manufacturing has been coming in stronger than expected then these ar elikely to be very firm up to then imo.

Reckon these will get a few buy notes soon too imo.

CR

[cockneyrebel] 14/9/2012 12:53

yep, Touched that July high today - a break through that would be rathere balistic imo.

CR

[thorpematt] 14/9/2012 10:55

Mmm QE.

So it becomes Quite Easy to pick winners.

I sense that a large penant was forming - with low highs but higher lows (since mid 2011). This looks like it's going to be replaced by something more akin to a sideways trading range with resistance as posted in the 1731 chart. Once that's out the way I can't see resistance till about 310p - 315p.

200 day MA is turning up too which historically is significant...

[philo124] 14/9/2012 08:27

Yep great!

[cockneyrebel] 14/9/2012 08:16

What a breakout :-)

CR

[thorpematt] 12/9/2012 22:04

Only Mears can out-do GKN for a bizarre volatile but sideways movement which totally fails to correlate with growth within EPS, divs etc. (and believe me it out-does)




Both stocks have fab futures if one has the patience. Yields will suffice meanwhile but I suspect that once their relative break-outs are breached they will fly short-term...we shall see.