Hampson Ind. Share Discussion Threads

[tullynessle] 05/7/2012 07:19

GKN buying Volve Aero.....



RNS Number : 9794G
GKN PLC
05 July 2012
NEWS RELEASE 5 July 2012


GKN acquires Volvo Aero for £633 million

GKN plc ("GKN") or ("Group") today announces its agreement to acquire Volvo Aero (the aero engine division of AB Volvo).

RNS continues....

[tullynessle] 04/7/2012 21:19

BOEING - RANDY'S JOURNAL


Extract:

"Our 2012 CMO projects a $4.5 trillion market for 34,000 new commercial airplanes over the next 20 years. The single-aisle market, served by our Next-Generation 737 and the future 737 MAX, is forecasted to continue its robust growth. Widebodies, such as the 747-8, 777 and 787 Dreamliner, account for almost $2.5 trillion dollars worth of new airplane deliveries in the forecast.

The market for new airplanes is set to become more geographically balanced in the next two decades. Asia-Pacific, including China, will continue to lead the way in total airplane deliveries."

[cisk] 04/7/2012 12:37

This is a sad situation but one which is not uncommon, especially on AIM stocks. Reminds me of when I once had shares in XN Checkout (doing epos software), they did ok, then bought by Torex Retail. The board issued new contract wins IMS - several weeks later the shares were suspended and the company was eventually bought out.

Some directors have already gone to prison. Trial pending for others.

I'm not suggesting there is fraud here. But at a minimum the management stinks. How can a company operating in a booming industry be doing so poorly? It's especially bad for the folks on the shop floor - who will ultimately lose out.

I lost a bit on these but thankfully bailed out some time ago. I suspect that the shares will be suspended, the businesses sold off for a song and they will be turned around under better management. Possibly the existing management will be able to feather their own nests and come out of this smelling of roses.

It's never good to see the share price of a company you like in an industry you're keen on go to the wall.

If you want exposure to commercial or civil aviation, it might be better to buy shares like GKN or Senior, or if smaller caps are more your thing stocks like Tricorn or Avingtrans.

I initially bought Hampson because of their exposure to composites. I've tried to find similar companies in that area who are doing well - but could only find Avingtrans (who are tiny and do a lot more besides).

If anyone knows of any stocks in this area then please post...

[joeblogg2] 04/7/2012 11:00

Tully. no idea who has what but I cannot think pi's have that many. I just hope the BOD have some decency and get a decent deal done instead of looking after themselves!!

[tullynessle] 04/7/2012 09:57

Joe - Re Post 2489

There are 279.3m shares in Issue.

The information at TDW indicates declared "Holdings in excess of 1%" of around forty five (45) million shares held by institutions and individuals. Probably another ten/fifteen million or so could be added to that figure if "Holding" RNS releases were scrutinized - taking the total to around sixty million.

That leaves a total of some 220 million shares outstanding.

Is it surprising if no other "Holdings in excess of 1%" exist, noting the high volume of shares traded in June?

[tullynessle] 04/7/2012 09:43

The information provided at the "Major Shareholders" page at the Hampson website.
is incomplete.

At July 4, 2012 the page provides "Director Shareholdings Information" only.

Updating the page with accurate and complete data does appear to be a problem - I sent an email to Hampson nine days ago, (June 25) indicating that the page contained, at that date, erroneous information..

[joeblogg2] 04/7/2012 09:10

These are the majors holders left according to TDW:
Shareholder Type Amount % Holding
Fidelity Investments Ltd - 12,751,572 4.57
Standard Life Invs Ltd - 11,226,535 4.02
Morgan Stanley - 9,130,884 3.27
M&G Investment Management Limited 996,877 3.22
Neil Pullen - 8,689,730 3.11

So where does Neil Pullen and that holding of Graham Cooley fit in the scheme of things? I am hoping Boeing will put me and other pi's out of our misery with at least 1p offer and then Airbus show some interest as they would need some decent staff and skills for their new operations in USA.

[tomboyb] 04/7/2012 08:09

July 3, 2012 6:15 pm
Boeing raises forecast for aircraft demand

[minsky] 03/7/2012 20:59

This is my take, correct me where I'm wrong...
It's all down to Odyssey.
The 'biggest tooling order' of $50m was for tools to make the composite sections 47 and 48 in the Boeing 787 Dreamliner aft fuselage. The tools were to be used
in a Charleston South Carolina facility run by Global Aeronautica. This was jointly owned by Vought and Alenia Aeronautica of Italy. Boeing were unhappy about outsourcing this sub-assembly, so bought out the Vought share. Various delays have meant that only a small number of aircraft have been completed by Boeing in Seattle. There is a vast backlog (60-ish) of partially completed and tested aircraft. The delays have slowed the flow of cash back to Hampson (as well as other suppliers). Then in February, tests found delamination in sections 47 and 48. Which presumably has meant re-working to fix the problems, further tests and delays. This has further impacted on cash-flow.
Although there are good contracts e.g. for Predator components, in other Hampson divisions, they are not making up for the drain of cash out of Odyssey. Presumably Boeing is one potential purchaser of Odyssey to maintain continuity of production - but they may well be looking at other suppliers in case Hampson completely folds.

[jeff1161] 03/7/2012 16:48

The management are idiots,... village idiots!!

[tomboyb] 03/7/2012 16:27

Loverat - PMK was a truly disgusting scenario where the BOD left with 30% total cash although they held 0.57% of total equity - Cash was really for when the market cap of the company was £90mill+ - Not £1mill. So effectively they were rewarded for failure and they won.

How many of these scenarios actually go on AIM? I don't know but i can probably guess - Some of these failures are paid higher than bluechips!

[loverat] 03/7/2012 16:22

tomboy

I don't know anything about this management but most do not bother working for shareholders any more. It is mainly about self preservation and taking as much as they can. My bet is they will sell the company for a song (probably for a token sum of £1) claiming it is in the interests of shareholders when they mean themselves. If you check out the stories at Colliers and Plus Market you will see what I mean. In the latter company the shareholders managed to fight to get the management removed. However, that did not stop the management walking off with most of the remaining cash which was left after their disastrous reign. Colliers was a pre-pack and that is a possibility here I guess. With no one to regulate these companies shareholders are at their mercy - unless of course they fight.

[joeblogg2] 03/7/2012 16:21

The BOD have destroyed the value with the last few rns so lets see if anyone wants World class business which they can run a lot better then the previous BOD haev done other then line their own pockets:
"As noted in the announcement dated 27 June 2012, the Board of Hampson continues to review and assess the strategic options available to the Group and the formal sale process continues. The Group's results for the year ended 31 March 2012 are expected to be announced on 31 July 2012."

[billy no mates] 03/7/2012 16:08

Intangible assets are the backbone of the balance sheet. If trading is on a downward spiral, then substantial write-down of intangibles is inevitable; especially as the external auditors will now be getting increasingly nervous about the situation, and their reputation. It beggars belief how rapidly this company had fallen from grace. As usual in these situations, the management that really started the rot (by excessive payments for acquisitions and related debt)are long gone.

[tomboyb] 03/7/2012 15:54

there could potentially be a lowball offer for the company - However that would be up to management to get it high as possible - The alternative being zilch. Frankly i've seen worse balance sheets but haven't read the entire outfit.

The last statement the management have been unclear as to any value - however they have not said the is no value attributable to the equity. If there was no value attributed to the equity, considering the approaches i thought they would of said so by now.

[vijay130] 03/7/2012 15:50

I think the management has some sort of amnesia. Just repeating what they said over and over again. like a broken record. I think if the bank owes the most of the debt they should take over and run it in the best interest of the shareholders.

There are lost of companies in the market which has little or no turnover and consistently makes losses and negative shareholders funds and they continue to do well than this company.

Since the departure of Stephen Henwood, a non-executive director the rest of the management has lost their marbles.

Probably should sack whole of the directors at the next meeting when the announce the annual accounts.

[diku] 03/7/2012 15:46

Yes its so sad as HAMP is not one of those minnows Oily slippery or a Mining company....

[tomboyb] 03/7/2012 15:35

Looking at the balance sheet - trying to work out whether there is any equity value left -

[billy no mates] 03/7/2012 15:32

It seems like they are rapidly loosing credibility in the sector and hence potential forward orders. It's going to be very difficult to stop the ball rolling now, and reverse sentiment; especially given the wave of negative RNS's over the past few months. Competitors must be loving it!

Just over 12 months ago I was quite optimistic that the new management team could turn things around. That optimism looks like it's going to be very costly.

It is so frustrating to see this happening to Hampson when it appears to be in a sector set for growth. Demoralised employees will not be helping the cause either.

It's all so sad.

[diku] 03/7/2012 15:28

Its advantageous for the insiders to drag it for as long as possible.....in the mean time they can collect their wongas!!....

[tempramental] 03/7/2012 15:23

you'd think they would make it just a little less obvious, transparent and predictable

[tomboyb] 03/7/2012 15:23

Well normally when there is no value attributed to equity they would warn and restate it - In this case there is material risk which means there could be some value for investors although more risky since last time -

Any bidder would be paying for debt + negligible equity value which at the current levels certainly is negligible.

[diku] 03/7/2012 15:20

Maybe they have given up!....

[tullynessle] 03/7/2012 15:19

Almost like a script...............