Norman Hay Share Discussion Threads

[rickster] 26/9/2001 16:07

airrage

As you say these buys are seriously big in terms of % which is good news as it would imply that someone is stock building. I have details at home about who owns the stock so I'll bring that in tomorrow and see if it looks like anyone is approaching the 29.99% level.
A spike at the end of the day would be nice - hopefully not followed by the drop like today - having said that I could be tempted to buy a few more if the price falls after rising?

later
Rickster

[airrage] 26/9/2001 15:59

Another trade(buy)of 60,000 shares at 30P. These are serious volumes for this tiddler %-wise. This is going quickly, much faster than I expected. I wonder if the price will jump up end of day like yesterday?

[airrage] 26/9/2001 14:26

The delayed trade(buy)of 200,000(at 27P)represents 1.38% of the total shares in issue or 2.3% of the free floating shares. Now we know why the share price spiked 40% the other day. It does show a serious faith in the company, another buy of similar proportions and we will be near an official announcement. I wonder which shrewd investor it is this time?

Hold tight, don't give em any!

[sunshine daydream] 26/9/2001 08:27

I would suppose 1p would be most common spread? Big spread must have reflected mm uncertainty? Wish to keep lid on things a bit?
Good luck with your buy. One of my family got a few months ago thanks to airrage

[rickster] 26/9/2001 08:13

Let's hope so. It would be nice to see a little blue on my screens for a change! As you say this one is actually worth holding regardless of the bid situation as the divi is very good. There were no significant buys to my knowledge yesterday but I haven't looked this morning to see how we have started.

Sunshine Daydream - a 1p spread at end of play!! And I bought in when the spread was 27-23!!

later
Rickster

[airrage] 25/9/2001 20:38

I posted on iii before closing price that I expected the price to shoot up after close(it was still down at the time.......Eh Voila1! If the price continues to rise like this surely management will have to release a statement soon, although AIM rules differ slightly from LSE. But each daily price rise puts pressure on the bidder to surface.

I originally bought these due the extreme low valuation and gave reasons why I expected not only a great annual 10%div(twice covered)but also a capital gain as well(EPS for 2002 of 6.3 times an undemanding PE of about 6 made a share price of 38P). Not to mention the P:S, P:B, etc. I was happy to hold longterm if necessary as it is a share of the radar of most analysts due it's small size.

I accepted the large spread which I anticipated to be partially compensated by my first div payment, it was. Even if a bid doesn't surface longterm you can't lose holding HNN. I have not found a single listed company that was as low in valuation as HNN which is why I bought.

Looking forward to the price surge to 40P when the bid is announced, otherwise I'll happily collect my 5% div 6Nov. The buying suggests something afoot.

[sunshine daydream] 25/9/2001 17:19

rickster thanks for yr answer. yesterday they finished day on 1p spread.

[rickster] 25/9/2001 17:01

I see the shares finished the day well. I was confused as to why they were down 1.5 with all buys? They then shoot up at the end of the day? Tomorrow will be interesting I hope!

later
Rickster

[rickster] 25/9/2001 16:56

airrage

I have now bought (about 3.30pm) into this company, albeit in a small way! I hope the fact the divi has been put back till 6 nov is a good indicator that the company may need a little more time to finalise any MBO. Your comments make a lot of sense, but hopefully not just because I want to hear them! Even if they are not taken out a 10% divi is worth having.

The spread on these at 4p is criminal. The LSE should bring in a rule stating that spread should not be allowed to exceed say 10% max! At present it is nearer 20% which is shocking. The yanks spreads are far smaller and they still make money.

I have set myself a 40p target price which I hope will come within 4 weeks. This would represent a 40% return after dealing costs. I will be keeping my ear to the ground and if I hear anything else may add a few more if i don't miss any MBO boat!

later
Rickster

[airrage] 25/9/2001 14:23

One final thought, if a MBO is on the cards wouldn't it be smart for them to take it out before the dividend payment is due. Considering how much the profit is eaten by the div payment, I think I'd want to buy it before then and save myself a bundle.

I had wondered why the div payment had been pushed back until the 6Nov when HNN usually pay it in just a couple of weeks after the results. Maybe reading too much into this.....Views?

[airrage] 25/9/2001 13:53

I hope those who first read my posts in June enjoyed the ride yesterday. If HNN get taken out at 40P+ that will make me 3 for 3(BDH,DYS,HNN)it's been a great year for me so far. I look for firms well below book value, very low Price:Sales, restructuring completed and if poss a covered div(not asking much am I). Eventually they have to come good.

I did hear an interview(downloaded from the internet)of the CEO, he sounded very disillusioned at having HNN as a listed firm(I did hint at this in a previous post, maybe on iii). He reckoned it wasn't worth the effort for the little benefit(the cost of the listing takes a good chunk of the profits plus all the hassle), hardly good for fund raising now. This reasoning was what prompted the move to AIM and now poss MBO. I thought a MBO might be on the cards then given the extremely low valuations, if not a sell-off of some of the companies businesses, or finally a hostile takeover. It couldn't stay that low for long.

Price / Sales Ratio 0.20
Price / Book Ratio 0.44
Div about 10%+ and still twice covered by recent downgraded EPS of over 5P.

If a MBO isn't on the cards, I reckon they've had an approach for just one of their businesses, probably for a sum equal or greater than mkt cap, leaving the cash from the sale plus the other businesses for nothing.

[rickster] 25/9/2001 09:14

I think the real reason may be that there is rumour of an MBO which was documented in one of the Stockmarket publications I subscribe to. I will not mention any specific names due to copywrite laws, but basically the price is touted to rise to 40-43p on news of the MBO which if rumours are true is expected soon.

For fear of being accused of ramping, I would state that I do not currently own any of this stock, had not even heard of them until yesterday and to date have done no research of my own, so don't take this as a tip! DYOR, but be quick about it!

later
Rickster

[airrage] 25/9/2001 00:28

Looks like all things come to those who wait.

I haven't had time to scour over the recent results, but obviously from todays buying activity others have and they like what they see. A low value high div share, must be good in todays enviroment. Looking forward to my near 5% int.div coming up, 14% yearly.

Interesting above avg. level of buying today however, can't help but wonder if there is more smoke to this than just people buying after recent results. anyone have any ideas, rumours?

[sunshine daydream] 24/9/2001 22:51

well i can se what you mean but its a funny way to operate i expect you lose your money pretty quick if you jump aboard evry rising share! We know its an apparent bargain thats what the 'main' thread was about...someone suggested bid which I guess is plausible also I have the idea they do something to do with jetengines maybe its an armaments thing. Or maybe as you say its nothing at all really! No I reckon there must be a rumour, after all its less good value now than it appeared to be before although that was predictable
another interesting one today was acambis up a few pence, some talk they were supplying smallpox and praps other vaccines viz bio war scaremongering, I was in these till recently not sure how to take it, price holding up well though not far off years high, check out new ACM thread

[ravey-davey-gravy] 24/9/2001 21:42

After having a brief look at their fundamentals the only
thing I could think of is their assets which are more than
twice the mar-cap but this hardly warrents a buying spree
like today.
Some people search the risers board and jump aboard a moving
share hoping for a quick buck and with a NMS of just 2000 they
will be very volatile and it still could be why they were popular
today.

Again just guessing.

Gravy

[sunshine daydream] 24/9/2001 21:34

yeah well the quantities weren't huge but they kept the spread at 5p at least duri g the morning I thought that funny too
there has to be more to it, why would the retail punter go on buying in those circumstances with those poor results

[ravey-davey-gravy] 24/9/2001 20:51

Maybe just a momentum thing.
They never have this much demand usually and
it dosent take much to move them normally
and with a small mm buy early doors and persistant
small buying the share rocketed.

Remember they used to hold a big chunk of land near
Heathrow but from memory they sold it years ago.

Just hazarding a guess SD.

Gravy

[sunshine daydream] 24/9/2001 20:44

If you can tell us ignorant souls posting on the other proper thread please let on!

[sunshine daydream] 24/9/2001 20:30

ps well picked airage

[sunshine daydream] 24/9/2001 20:27

I haven't found out yet, Iwas hoping you guys had. My friend got these after this thread drew attentionto it. But I can't remember what I found out. However I did notice that the previous thread for this stock mentioned jet engines in the title maybe that is a clue?

[godot] 24/9/2001 19:15

The interim profits were lower, and the outlook said to be not good at all. That's why the shares were at first marked down to 19.5. The rise must be on bid rumours, I think. Or has there just been some tip that no-one's mentioned?

[sunshine daydream] 24/9/2001 11:12

GO NORMAN GO
Whats going on? I see HNN in the days top risers I am off for a shufti. I was impressed with this threads original post though I did not get in.

[airrage] 14/7/2001 14:18

gearing is around 49%(59% last year)after recently paying off some debts over the year, to bring costs down. Div 3times covered with earnings. Cash flow positive/year to the tune of 0.6mill, cash 0.2mill.

Sorry for late reply.

[airrage] 14/6/2001 20:35

answer to Rainmaker

from results Apr.
"Cash flow remained positive at £603,000 (1999: (£621,000)) and borrowings were
reduced accordingly."
"Net cash inflow from operating 1.852 mill"

gearing I think is 49%.