Low & Bonar Share Discussion Threads

[rathkum] 16/8/2016 20:59

Sterling weakness a positive going forward

Won't be long before we surpass 70p+. Charts looking good as well

[ed 123] 16/8/2016 12:18

Somewhat forgotten share, LWB. Only 5% of its sales are in the UK, so profit translation back into Sterling should give maybe 10% uplift (following Brexit vote).

Sale of Yarns division and recycling the cash into higher margin divisions will benefit eps.

Broker average expectation is 6.15p eps for the current year. With the currency translation I think LWB will comfortably exceed that. At 64.5p to buy, it's about on a p/e ratio of 10 with dividend of 4.6%.

Waiting for the market to catch up ...

[ed 123] 20/7/2016 15:12

Thanks again. You're tuned in.

They're recycling the funds from the sale of the Leisure and Sports Division into higher margin areas.

Good news for shareholders.

Short term (ie. before the new production comes on stream), return on capital will worsen slightly as funds are invested in new facilities. Medium to long term, return on capital will go up.

I am happy with Brett Simpson and his team.

[rathkum] 20/7/2016 14:59

Yet another expansion

[ed 123] 20/7/2016 12:16

Ta, Rathkum.

Looking good.

Also, I'd expect an announcement about Bonar Natpet some time over the summer.

[rathkum] 20/7/2016 09:57

Seems like the move to China is paying off

www.tevonews.com/industrial-fabrics-news/407-low-bonar-expands-china-textile-manufacturing-site

[rathkum] 06/7/2016 17:00

From The Motley Fool

Good time to buy?

Also reporting today was Low & Bonar (LSE: LWB), with the international performance materials group recording a rise in sales of 2.4% at constant currency in the first half of the year. This has translated to an increase in pre-tax profit (before amortisation) of 1% at constant currency and, encouragingly for Low & Bonar’s investors, it continues to successfully execute its strategy.

For example, it’s rebalancing the business and was able to negotiate the sale of its cyclical grass yarns segment during the period. Furthermore, it’s progressing towards the resolution of the Bonar Natpet joint venture, while also starting production in China.

Looking ahead, Low & Bonar is forecast to increase its bottom line by 9% in each of the next two years. It could gain a further boost from favourable currency movements and this could help to push its dividend higher at a brisk pace. It already yields 4.7% and due to interest rates being likely to fall, it could become a relatively appealing income play. Therefore, now seems to be a sound moment to buy Low & Bonar for the long term.

[lateralam] 06/7/2016 07:36

One thing I really like about this company is they don't drag their heels when it comes to identifying issues and making the decision to resolve them. A sign of strong management, confident in their products and people.

[ed 123] 04/7/2016 20:00

If they also find a solution to the Bonar Natpet situation they may attract some attention. I'd prefer to stay with this one longer term, though. There is growth to come from the China factory and recovery to come from the EU exposure. After going sideways for 5 years, LWB may be on its way back to >100p?

[rathkum] 04/7/2016 13:42

If it means anything.


Low Bonar PLC (LON:LWB) “Buy” Rating Reconfirmed at Peel Hunt; With GBX 85.00 Target
July 4, 2016

[exel] 04/7/2016 10:36

thanks all, ex

[ed 123] 04/7/2016 08:17

Sale of the Sports and Leisure Division, announced today, has been well received by the market. Share price up 3.3p or 5% at 63p.

Brett Simpson has settled in and is moving the Group in the right direction.

Interim results to be released on Wednesday. I'm hoping for news on the Bonar Natpet facility.

[exel] 18/6/2016 11:35

very fair point, rathkum.

[rathkum] 18/6/2016 10:34

Regardless of the pending interim results next month, the recent slide in the share price to 56p was overdone, so no surprise in the up tick.

[exel] 17/6/2016 20:56

speaking purely personally, only that the interims are due out soon (on 6/7/16), and there has been no update (that I have seen?) since the AGM on 31/3/16 - which I attended and updated on, above. to this stage, it may just be a case of 'no further news is (potentially) good news'? - e.g. thinking of the (slow-running) Saudi JV and the recently operational China manuf/base. ex

[lateralam] 17/6/2016 19:39

OK does someone out there know something?!

[hvs] 03/4/2016 19:14

Yes

Thank you exel

[johnsoho] 03/4/2016 18:37

Many thanks for your update, exel.

[hvs] 31/3/2016 15:03

Yup,

The slide in the oil price will be be doing wonders for their raw material inputs.

70p soon no doubt.

[rathkum] 31/3/2016 14:28

This will run to 70p in quick time.

[exel] 31/3/2016 14:21

attended today's AGM in London. very impressed on most fronts. there are clearly big issues surrounding the saudi jv, and 'where next?' on that, so they are not without tricky issues to confront. however, the team looks very good - on paper and (from today) in person. their confidence level is highly realistic, well-based (on their expanding product set) and very carefully stated. no one is under any illusions about the wider market difficulties 'out there' right now, but they are firm believers in 'self-help' - which is one of the (many) key messages I took away from today. was a happy holder before today. am now a very happy holder, but still not expecting quick returns. won't be selling a single share and may top up idc. ex

[hvs] 31/3/2016 12:38

Very SOLID start to year.

What more does one want