Low & Bonar Share Discussion Threads

[sirrux] 13/4/2018 09:14

Deserve some heat at AGM, if everything's so steady why down almost 50% in just over 6 months? The only answer can be really bad management, wonder how the management will put it there's always room for a different perspective. Nothing worse than people failing to see what's staring them in the face, although to be honest I have been guilty of that myself from time to time when I look in the fridge, lol. In business though, you are paid to have a trained eye and to know how to achieve results or find the cheese.

[hvs] 13/4/2018 09:05

So, it sounds to me like the management are doing the right things they has been doing it so far it's just a little painful lol !!! where in the pocket ?. Meeting market expectations means dividend remains secure although I can't see it rising by anything other than inflation.

Be very very careful.

DEBT is soaring.

[time_traveller] 13/4/2018 08:58

Which fundamentals in particular, pugugly?

Do agree, this update is hopelessly vague - whoever wrote it deserves a rocket. Maybe something more useful will come out of the agm.

[cc2014] 13/4/2018 08:58

Ok, so the way I read it, it says a number of things.

1. We can meet market expectations but there's little chance we are going to beat them, so I guess the range of possible outcomes have moved to the downside.

2. Finally an admission that the inventory level has got out of control. Sales up but pulling production back equals debt reduction, but consequently average cost per unit up until they've worked this through, which may take some time as semi-fixed staff costs can't be switched off immediately.

3. Net debt is going to rise at the half year in the way it always does but I suspect the market had been hoping for it to remain flat. Goes to show just how much excess inventory they have and that it won't unwind until the second half.


So, it sounds to me like the management are doing the right things it's just a little painful. Meeting market expectations means dividend remains secure although I can't see it rising by anything other than inflation.


All in all not unexpected. You can't turn round a company in 3 months.

[hvs] 13/4/2018 08:49

In light of the above factors, whilst the Board's expectations for the full year remain unchanged, it expects the Group's financial results to have a much greater weighting to the second half than in the prior year. The Board is confident that it is taking the right actions to improve performance and create a strong long term growth platform for the Group.

A BUNCH OF IDIOTS in charge here.

[pugugly] 13/4/2018 08:46

MM's taking the mick and widening spread - Fundamantals do not (imo) look very good.

[justiceforthemany] 13/4/2018 08:30

Who's going to the AGM today? Need to drive through a sale at 90p+/share

[justiceforthemany] 13/4/2018 08:15

We just got one! The activists will drive a sale of the company before long like Fenners. harvester - P/E closer to 8 now actually. DYOR

[sirrux] 13/4/2018 08:10

Sounds like old school management - reviews rather than continually adapting real time info. Worked that way last century. Time for a new CEO.

[pugugly] 13/4/2018 07:30

Smells like a concealed profit warning (imo)


"In light of the above factors, whilst the Board's expectations for the full year remain unchanged, it expects the Group's financial results to have a much greater weighting to the second half than in the prior year"

[harvester] 13/4/2018 07:30

justice: where do you get a PE of 9 figure from?

[justiceforthemany] 12/4/2018 18:17

What are the activists up to though? They have been buying heavily and one would think would be pushing for a sale of the company but the share price is moving in the opposite direction.

[cc2014] 12/4/2018 11:32

I have the comfort of being able to watch the market most of the day and see what happening on L2.

For the last week there is one seller out there trying to shift quite a few shares. As of last night he appeared to have at least 150k left to shift. He seems to want a price of 56.8 and won't go below that, although that the 36.5k trade today at 55.6 makes me wonder if he;s getting less precious about the price as we approach the AGM.

I have seen this pattern on a number of stocks this week. It's like someone sold a whole raft of stuff last week (mostly industrials/manufacturing possibly related to Trump trade wars) and the MM's are still trying to shift it all. What seems to happen is as soon as the volume is shifted it's like a coiled price and the share price immediately moves up as there is no other seller.


Anyways none of this will matter by tomorrow as the update will almost certainly move the share price. I am assuming the financials are going to look pretty flat. I think there will be an small improvement in the underlying position but this is going to get chewed up by the movement in exchange rate.

I'm not too worried. Even in the worst case there's enough EBITDA to reduce the debt pile. It's just a matter of how fast.

[time_traveller] 12/4/2018 10:21

Not the most auspicious of dates for the AGM!

I would ideally like to be going, as this is nominally my worst investment by quite a margin, and I'd like to get some impression of whether it really is as cheap as it looks.

[justiceforthemany] 09/4/2018 15:58

Peel Hunt 09/04
Reiterates
Buy
Buy
90p

[time_traveller] 05/4/2018 17:35

Being played, if you ask me. Time will tell.

[justiceforthemany] 05/4/2018 17:23

Massive underperformance again today. Flat in a surging market. What skeletons have been leaked ahead of the update? Hope I'm wrong. P/E of 9 is not low enough for this market it seems.

[bend1pa] 04/4/2018 19:49

A lot of PIs sell when the share goes xd. They are just happy to collect the div and run. I can never see the point of that, but it often happens that the share price falls much further than the expected xd price.

Also nearly all high-yielders have taken an absolute pounding over the past year, some without any real reason for it. I'm just hoping LWB is one of them.

[cc2014] 04/4/2018 17:37

Nothing to report on L2. Falling on very low volume. You can see for yourself from the trades someone sold 50k ish in one go at 55 and that was it. Didn't even try to drip them into the market and get a better price.

The market is dead this week. Volumes are low and no-one around with Easter holidays who is going to commit any decent money either way.

I note last day of tax year is tomorrow. Not sure there are that many out there who have to worry about taking tax losses before the deadline but I do imagine there may be some PI's waiting to buy within the new ISA wrapper. I'm one for example but I have enough LWB and have my eyes elsewhere.

[justiceforthemany] 04/4/2018 17:10

Down 5% again today. What are you seeing on Level 2?

[justiceforthemany] 03/4/2018 18:38

No but nothing surprises me in this dirty market. Way undervalued IMO

[cc2014] 03/4/2018 08:48

Do you know the market has heard Q1 results are poor or are you guessing based on the close on Thursday.

It looked to me like someone dumped alot of volume across a number of stocks on Thursday in the last 15 minutes.

I assume it was just quarter end tidying up.

[justiceforthemany] 29/3/2018 16:38

Very poor finish. Market has heard Q1 results will not be good - clearly a leak again.

[justiceforthemany] 29/3/2018 15:07

A lot of activity today - down to 55p at one point.

[justiceforthemany] 29/3/2018 12:18

The activists/Luxembourg gang hold about 25% here now I believe after heavy buying in the past few months. share price down to 56p though? Q1 and AGM 2 weeks away.
To be exact Sterling Strategic Fund hold 15.05% as of 9/3
Luxunion/Luxempart hold 8.08% as of 9/3
Would be very bizarre if they have suddenly started selling.