Low & Bonar Share Discussion Threads

[cc2014] 28/2/2018 13:52

It's slow going isn't it. The buys keep coming at 61 or 62 ish but whoever is selling at 60 just won't give up for now.

Patience required

[rathkum] 27/2/2018 21:06

The monster yielder

Those seeking big dividend yields may not be tempted in by Senior. They may want to have a look at Low & Bonar (LSE: LWB).

Like the engineer, I am tipping the performance materials play to keep thriving in difficult markets, a sentiment shared by the Square Mile’s army of number crunchers — earnings advances of 7% and 8% are forecast for the years to November 2018 and 2019 respectively.

And these bright projections are also set to keep dividends marching skywards. Thus a payment of 3.05p per share last year is expected to rise to 3.2p this year, and again to 3.4p in fiscal 2019. Yields stand at 5.3% and 5.7% for this and next year.

Today Low & Bonar can be picked up a prospective P/E ratio of 8.7 times. This is far too cheap in my opinion given that sales are rocketing (up 11% last year to £446.5m) and cost-cutting is clicking through the gears.
Fancy retiring with £1m or more? Read on

Low & Bonar's massive 5%+ yields provides brilliant reason for share pickers to take a close look today.

[edmundshaw] 23/2/2018 15:02

Interesting, thanks rathkum

[justiceforthemany] 22/2/2018 18:38

P/E around 10 - tick.
Trading around the book price - tick.
Nice dividend (>5%) with good cover (2x) - tick.
Growth - tick
Chance of a takeover - tick.
Scope for improvement (engineering) and a new CEO with hopefully fresh ideas and plans.

[justiceforthemany] 22/2/2018 18:35

Small trades shift the share price so much. Almost tempted to buy small amounts every day to keep the share price up! Don't know who would be selling here. We need some big buys to really get the share price moving.

[cc2014] 22/2/2018 10:33

Well, the massive spread is closing by the bid rising to 60.

Now, I'm not sure whey it would do this on a lousy day on the indices but maybe something to do with the data being too good in USA again which would indicate businesses overall should be doing well? or maybe this is just the vagueries of how the market works.

I note there was another 600k trade at 60 yesterday whatever that means and another 500k has just gone through

I guess it doesn't really matter. It's just good to see it stabilising to the upside

[justiceforthemany] 20/2/2018 17:41

What it does show is hopefully once buys come in the share price should surge. 2p dividend in March. What are the activists Sterling truly up to I wonder? Surely pushing for a takeover at 90p+. EPS 6.4p P/E 9.4
This should be trading at least 12x earnings = 77p+
Sort out/return engineering section to profitability = 90p+
New CEO to boot.

[cc2014] 20/2/2018 14:00

Frustrating isn't it, although to be fair if you are selling you can get 60.01 anytime you want.

If you are prepared to sit here all day occasionally the offer drops to 61 or even a bit lower but it won't be there fore more than 10 minutes or so before someone takes that price.

If you think that's frustrating it's taken me around 6 fills over 2 days to collect the grand total of 590 shares at 58.2 on direct access. It's costing me more in minimum transaction charge than I'm going to make at this rate.

[edmundshaw] 13/2/2018 14:42

Ah, you have some data that suggests Strategic is loading up. Gotcha.

To be frank, the only time I miss L2 is when I come to buy or sell. Most of the time it is just noise to me...

[cc2014] 13/2/2018 10:26

Hi Edmund,

I've got L2 access so can see the order book. Sometimes in closing auction buyers and sellers declare their position in a way they don't do during the day. So, for example there is currently 5k on the bid at 59.2 and 8k on the offer at 63.0

So, if someone puts 150k on the bid at 60.0 in the closing auction which is very large volume for the auction and at a price it hasn't been at all day, it means someone is collecting stock in the background. I think it's our largest shareholder Strategic, who are an activist investor and have as recently as a month ago now got a place on the Board

[edmundshaw] 12/2/2018 18:36

Much better (although you lost me with the last paragraph!) :-)

[cc2014] 08/2/2018 13:14

I'll try something more subtle then.

I love this share because only 5% of it's business is in the UK and that works for me to diversify my portfolio.

I have access to far greater GDP growth than the UK at what seems to be a really bashed up share price where the dividend stream of 5% should put a floor under it. Downside is limited- say 7p. Upside is I don't know 90p+

PCA with Chair buys 50k at 62p so that gives me assurance too.

All product manufactured in the region it's sold, all loans in currency where it's sold.

What's not to like? Oh and 150k unfilled in closing auction last night at 60 which I assume is Sterling still collecting. It's good news that they continue to collect stock now they have a NED on the Board.

[edmundshaw] 07/2/2018 16:08

Definitely ramping

[cc2014] 07/2/2018 10:58

Well..

It looks like 60 held. Buyers have taken out all the volume available on the book at 62


Is the train about to leave the station? Am I allowed to say that or would that be considered ramping?

[ed 123] 05/2/2018 14:49

PCA is person closely associated.

[cc2014] 05/2/2018 14:27

Wonderful. Always a good sign. Excuse my ignorance but what does PCA stand for?

[ed 123] 05/2/2018 14:15

Possibly helped by the Chairman's associate, with some Friday buying?

Shows confidence.

[cc2014] 05/2/2018 10:55

On a truly horrible day on the FTSE I see we are blue. Very pleasing

[ed 123] 02/2/2018 15:32

Ta, CC2014 and Rathkum.

Reassuring. Good to see a bit of blue here on a mostly red day for the wider market.

Yes, the plan does look promising. De Klerk seems have got an understanding of Low and Bonar. The global growth backdrop will help too.

Nothing much for me to do. I'll sit back, take the dividend, and probably attend the agm in April.

[rathkum] 02/2/2018 15:23

STERLING STRATEGIC VALUE ups its holding to 14% from 13,3%

[thecynical1] 02/2/2018 08:50

kiss of death!!!! ; )

[rathkum] 01/2/2018 19:48

IC has a buy recommendation,