Low & Bonar Share Discussion Threads

[cc2014] 29/6/2018 16:40

Seems to be something to do with month end and position clearing? FTSE absolutely whacked in last 5 minutes and even more in closing auctions.

[justiceforthemany] 29/6/2018 16:32

There was the 50K buy earlier today. I have added also sub 50p.P/E of 8 is far too low.

[cc2014] 29/6/2018 16:23

L2 isn't tell me anything. Or rather it's telling me what you can see from the trade flow which is drip drip selling in tiny volume but no-one is buying.

[justiceforthemany] 29/6/2018 16:20

rathkum surely they would suspend the dividend first? Logical first step.

[justiceforthemany] 29/6/2018 16:19

cc what are you seeing on Level 2?

[rathkum] 29/6/2018 16:15

If I were to speculate on the recent share price weakness, it leads me to believe that a rights issue announcement on 11th July is a real possibility.

[justiceforthemany] 29/6/2018 15:21

More buys than sells today yet share price down 5%

[justiceforthemany] 29/6/2018 15:15

Also the activists have built up a near 30% stake here. Final dump before offer?

[justiceforthemany] 29/6/2018 15:14

Sub-50p but low volume and earlier had a 50K buy. P/E below 8 now and paying a dividend twice covered by earnings.

[hvs] 27/6/2018 22:11

Seems like wrong people in charge here.

[ed 123] 27/6/2018 22:08

Why do you say that, Eastbourne1982? What figures are you using?

The interest rates on LWB's debt are low. They have a 165 million Euro facility at only 1.0 to 2.0% above Libor (probably paying less than 2.5%pa atm) and 60 million Euro senior notes at a fixed 2.57% pa. Their net financing cost last year was only £4.8 million. They are also comfortably within their covenants.

Last year they reported £36.6 million inflow from operations. Take off interest paid, tax paid, pension contributions and equity dividends, still left a cash flow surplus of £6.5 million. They are not in financial distress.

There are operational difficulties in Coated Technical Textiles, which look resolvable. The Civil Engineering Division may need the knife taken to it. These are known and are reflected in the share price, in my opinion.

The new Chief Executive has a plan to reduce borrowings, but there may be a rise with these interims (due in 2 weeks). That is likely to reduce again for the full year. This has been guided and the Group's lenders appear to be ok with it.

I'm not saying things can't go worse but using information currently in the public domain, I'd say Low and Bonar are not in difficulty and are moving forward with their plans to improve business performance in a sensible and controlled manner.

[eastbourne1982] 27/6/2018 20:19

Debt is far too big, needs a rights issue asap.

[ed 123] 25/6/2018 08:40

Interims are about 2 weeks away.

Appears to be someone reducing ahead of that event? Trading at 52/52.8p in the market atm.

Shareholders have been told there'll be am outcome reported on the future of the Civil Engineering Division. I wouldn't be surprised to see that as a separate announcement ahead of the interims.

I am expecting write downs, an increase in working capital and increased debt.

This may be the nadir ......... assuming the recovery plan produces some positives in the second half.

If the interims read worse than market expectations, then Sterling Strategic have a decision to make?

[justiceforthemany] 22/6/2018 22:56

PAF another small cap I am holding recently routinely loses 10% in the closing auction.

As for LWB no secret that the activists have been loading up here for months but strangely share price and performance has not responded yet.

[cc2014] 22/6/2018 18:32

Closing auctions all over the place on lots of stocks. Some up, some down.

Someone has screwed up imho as in some auctions such as LWB there was no way the market was going to absorb the stock put through the auction.

[justiceforthemany] 22/6/2018 18:10

Unclear why UT was so much less than the previous bid having been up all day. Volume is low I would say.

Suspect market already knows 11/7 update will not be good but P/E is now just 8.
No sign yet of the activists selling out either.

[time_traveller] 22/6/2018 16:57

You were saying CC2014?!!

Lowest close since 2015 (and on a very strong day). It would be nice to think the price is being played for a bid, but I think that's wishful thinking.

[justiceforthemany] 22/6/2018 16:56

Another where the share price ALWAYS closes massively down at the close wiping out any gains during the day. Being played.

[cc2014] 20/6/2018 12:58

OMG. 55 on the bid and holding with no-one ripping off the volume.

It might be a little early to get enthusiastic but have we finally beaten off the large seller

[cc2014] 18/6/2018 17:28

Yes continues to creep up with buyers having to pay a little more every day.

Feeling good about this trade right now

[time_traveller] 12/6/2018 17:24

Yes, creeping up. Expected some nervousness about the already downplayed first half results, but I guess that is well priced in.

[cc2014] 01/6/2018 13:09

Are we getting there. 54 on the bid for 3 hours now and very little selling. GLA

[cc2014] 30/5/2018 12:07

Another couple of half million trades gone through.

It's impossible to work out how long this churn is going to continue. Clearly someone has quite a few to shift here.

[time_traveller] 30/5/2018 11:07

I can't muster much enthusiasm for the share price, with the underperformance to the general market and world economy becoming really quite marked, and disappointing. But hopefully, this small fish's lossmaker will be (or has already been) spotted as a big fish's bargain.

[cc2014] 30/5/2018 10:10

The share price stood up well yesterday given how much the markets were smashed to pieces.

If a stock doesn't fall on a bad day, that's usually a good sign that their are buyers out there happy to buy into any weakness.