Low & Bonar Share Discussion Threads

[justiceforthemany] 11/7/2018 09:12

Sterling Strategic >15%
Luxempart 8.1%
Wellcome Trust 3%

[hvs] 11/7/2018 09:12

Its going below 40p for sure.

[baner] 11/7/2018 09:10

Justice

The activists originally bought huge volumes at 70p+ and obviously did not know what they were doing. As simple as that. We all make mistakes and clearly that goes for you as well. And i am no exception, although this one i have avoided.

[edmundshaw] 11/7/2018 09:06

Adding at these prices? When??

[justiceforthemany] 11/7/2018 08:56

& again why were the activists buying in bulk at 60p+ just a few months ago unless they were confident of a turnaround or a sale at a good premium to 60p?

They hold almost a 30% stake here and will likely be adding at these prices.

[justiceforthemany] 11/7/2018 08:54

CE also showing 'improved profitability' in recent months.
The underlying profit figures are actually misleadingly low also due to exceptional items.

I&T £7.7M profit
B&I £3M profit
CTT £2.1M profit
CE £0.9M loss

Profit H1 = £11.8M

[eastbourne1982] 11/7/2018 08:52

CC2014,

How can you honestly say the balance sheet looks good ??

Unbelievable !

[cc2014] 11/7/2018 08:36

Justice - it's you and me.

I'm staying in. The balance sheet looks good. Measures to sort the business out have led to a poor profitability. Particularly over the inventory management.

I found the balance sheet and working capital much better than I expected. To hold the net debt at nearly the same value as year end was well done. And they change the language over the £15m reduction in net debt to give far more confidence in this.

What's difficult to establish is how much of the P&L deterioration is due to stock management and how much to inflationary pressures they haven't or can't pass through

Fall looks overdone to me this morning but not enough to persuade me to buy any more (partly because there are lots of cheap stocks out there)

[justiceforthemany] 11/7/2018 08:03

Low & Bonar PLC LWB Peel Hunt Buy 0.00 47.90 80.00 - Reiterates

[hvs] 11/7/2018 07:58

Its a total MESS

Like they say JAM tomorrow and lessons being learnt while they collect their fat pay cheques.

No way they will ever be able to pay down debt.

[justiceforthemany] 11/7/2018 07:53

Dividend Yield of 7%

[eastbourne1982] 11/7/2018 07:26

No placing today is just delaying the inevitable, you cannot continue operating with that debt relative to profits.

Gutless from the board of directors.

[justiceforthemany] 11/7/2018 07:21

To repeat no placing and interim dividend next month 1,05p

[justiceforthemany] 11/7/2018 07:20

No placing
Dividend maintained
CE to be sold
Debt unchanged

[baner] 10/7/2018 10:42

justice

i am neither a shorter or a holder - just a follower. used to be long but exited last winter. i am expecting really bad results from Civils - covenenats may well be breached further on. they could easily avoid a placing by selling one of their profitable - and excellent - businesses, but that would leave a less attractive L& B for the future. a bit of a dilemma for the BOD.........however, if i am proven too cautious re Civils, the shares should no doubt bounce back to the 60p level quickly. reasonable risk/reward . downside maybe 20% - upside at least 35% in the short run and much more in the longer term perspective. we will know more very soon.

[cc2014] 09/7/2018 19:08

There is no placing. Their long term financing was agreed only 6 weeks ago to run for five years. So we've got 4 years and 10 months to go.



The temporary covenant arrangement runs to May 2019. If you run the numbers the 3x will not be breached at half year but it's tight. By May 2019 is easy due to the stock unwind.

There is a seller in the market for whatever reason. They want to shift a specific amount. I know this as they revealed their hand in the closing auction a couple of weeks ago. I haven't been counting but I would doubt they have more than 200k left to shift (and if might be zero)

[justiceforthemany] 09/7/2018 18:51

No speculative reports or even rumours of a placing either. Where have you heard this and why 35p?

[justiceforthemany] 09/7/2018 15:55

200K buy at 1315.
Activists Sterling & Co are the key here.

[justiceforthemany] 09/7/2018 11:29

baner are you a shorter here or a holder? You write as the former.

[baner] 09/7/2018 09:58

Cc2014

You should ask L&B´s lenders that question - this is not necessarily for the company to decide upon!