Oxford Instruments Share Discussion Threads

[simon gordon] 12/10/2007 12:05

Hi Wad,

I thought I had missed the boat when the share climbed a year ago.

I expected the new business plan to take two years to show results. The market anticipated this earlier than I had expected.

I now think this could be an interlude in which to pick up shares.

If OXIG make '08 which they stated they are confident of doing, then the '09 P/E is 11.3x, with a yield of 3.9%.

Hopefully the Pound will fall, as interest rates are cut in '08, and this will bump earnings up.

I find it difficult to judge the market that OXIG operates in and how it will grow. In such a niche driven company what the Board says is more important than reading macro trends. They are our guides. Wad, what do you think of their recent utterances?

[wad collector] 26/9/2007 17:54

Back in ,comfortably up.I see the BB is ablaze.Strange considering it is a tech stock.Yesterdays trading statement is encouraging about turnover but worryingly makes no mention of profit.

[wad collector] 15/6/2007 08:38

Thanks for that .I'm going to take some solid profits , as OI seems quite volatile, but expect to buy back before too long.If it sails away while I'm out ...good luck.

[simon gordon] 14/6/2007 11:58

From the Telegraph:

Oxford Instruments
Shares: 288¼p -5p
Questor says Buy

Oxford Instruments is changing its image. Previously a company of boffins with little commercial nous, this spin-off from Oxford University makes tools for emerging industries such as nano technology and developing technology used in the making of Spider-Man 3.

OI has struggled since its 1999 float, as it focused on fabulous science with little interest in commercial application. But all that began to change with the arrival of new chief executive Jonathan Flint in 2005. He devised a plan to double sales in five years and improve sales margins from 3pc to 13pc. And things now seem to be moving in the right direction.

Sales in the year to March, the first of Flint's five-year plan, rose 21pc to £162m, as the company discarded unsellable products in favour of more readily commercial opportunities. The introduction of the Restriction of Hazardous Substances legislation in Europe helped stimulate demand, particularly in the analytical business. Growing environmental concerns should continue to drive sales of products such as its high-tech detectors.

OI managed to swing back into the black, recording a pre-tax profit of £1.3m, compared with losses of £900,000 last time. It achieved these results despite a £4m hit from currency movements and the high price of copper, a key material in some of its products.

The shares look expensive on pretty much any measure - trading on almost 30 times next year's earnings - as the company's potential is already largely priced in. OI's shares are starting to garner interest and if Flint achieves his ambitious aims the valuation will start to make sense.

[wad collector] 14/6/2007 11:49

88% profits rise as headline sounds good but hides the fact that still made a £1.5M loss ,surprisingly positive market reaction as breaks £3 today.

[wad collector] 25/4/2007 18:23

It seems to be advancing again, bit more volume.No idea why.

[wad collector] 09/2/2007 13:44

Glad I didn't.Something funny going on today - up almost 5% , biggest single day volume since November, and Yet, the spread has widened.
Seems too late to be a reaction to yesterdays results (Or perhaps just brokers being slow?) Anyone know?
Since writing this the spread has narrowed from 9 to 3p.

[wad collector] 11/1/2007 11:00

Above the 2 yr high now , am tempted to make a quick buck but the direction of the chart is so encouraging ...

[wad collector] 12/12/2006 14:20

Seems be plateauing again , curiously around last winters price.The latest share issue dilutes the holding by 1% . If it keeps the workers involved , it is not such a bad thing.

[wad collector] 06/12/2006 18:09

Continues steep climb...something sparking here.

[wad collector] 23/11/2006 19:36

Somebody agrees!

[wad collector] 23/11/2006 09:19

Interesting to see that one non -exec director has just bought £24,000 worth - his total holding, despite mediiocre results. (Less significant is the chairman adding a little to his stake).Maybe it only represents a small fraction of his wealth, but if not , is a significant buy.

[simon gordon] 17/10/2006 19:07

The one factor that is putting me off buying is the chunky pension deficit.

Good fortune!

[wad collector] 17/10/2006 18:33

I like the long term stability of OI - I'm back in again after the recent positive trading statement.Siddalls were tipping this a few months ago too.I realise it is not a soaring tech stokc but nice to see one that pays a dividend.

[mgpp] 04/4/2006 18:32

I have been following the fortunes of this company for some years as I have been a shareholder from time to time.

Their interim results were disappointing - the revenue from sales for the half year rose from £66.8m to £75.3m but the Profit/(Loss) from operations went into reverse falling from a profit of £2.5m to a loss of £200k. This suggests that margins are under pressure and that the higher order book will not necessarily be translated into higher profits.

Around £10m cash has leaked away since March 2005 as a result of higher inventories and paying off creditors; this is partially offset by lower receivables.

The market capitalisation is now down to £96m which is supported by shareholder funds of £59m. This suggests that the shares are still at the high end of their potential value based on current performance.

The chairman concludes his review of the half year by stating that the outcome for the full year should be in line with expectations, but he does not state what these may be. My own review of brokers forecasts suggests a profit of around £3.5m for the year is expected and this is considerably lower than the forecasts three and six months ago.

A recent announcement indicates that there is a significant reorganisation in progress which will cost the company £5 million this year, but could yield savings of up to £3 million a year in the future. A case of pain today and jam tomorrow!

The company may have good technology and be at the cutting edge in development, but unless they can convert this into profitable sales they will not be able to inspire the stock market.

Only one broker makes any recommendation on this share and that is to hold. If you do not hold already then the message has to be wait until the management demonstrate they are able to operate profitably!

[trader2] 03/6/2005 08:20

£30m in net pension liability. Wow - what a ball and chain - never mind 2 lean years whilst they get the next new strategy in gear. For real long termers only. Any positive viwes?

[charlie100] 13/11/2003 09:37

Suddenly, looking more interesting, certainly good value and 5% yield, results the other day not brillant, but got rid of joint venture with siemens, which was seen as drag.

No great chart but worth further attention. I think.

[smarkmmm] 24/6/2003 18:53

Quietly moving - downwards

Market finally appreciating problems OXIG are facing?

[smarkmmm] 03/6/2003 10:02

In my view the share price of this company should have crashed through the floor this morning, at least to the level reached when it issued its latest profits warning in March.

The company has had difficulty making a decent level of profits from its asset base for several years now. Today however we learn that its 49% stake in OMT, a joint venture with Siemens which generated 5.2m operating profits in 2002 and 1.6m this year, is effectively worthless when the agreement expires next year. These profits are significant compared with those from the continuing businesses of 6.7m this year and last.

Eps this last year before goodwill and exceptionals was 9.5p. Take the OMT share out and this becomes about 7p. At 172.5p the shares are on an historic PE of 18 with OMT and 25 without. The market is obviously hoping for growth this next year, but with the economic environment as it is, and with OXIGs track record, this looks far from certain.

Other factors worth mentioning: the pension deficit has increased to 23m from 8m (OXIG cap'd at 81m); net cash has increased to 3.3m and the balance sheet has 89m of shareholder funds. Sales of 186m gives a favourable price sales ratio of 0.42.

The technical expertise of this company is without doubt but IMO someone new needs to come into OXIG and make its assets sweat. Otherwise I just can't see the attraction of this company at the current share price - closer to 100p would seem in order for the current and expected level of profitability.

[gausie] 22/5/2003 15:19

hmmm ...

Anyone caught a whiff of a rumour?

[gausie] 10/5/2003 21:32

Shadowside

[shadowside] 06/5/2003 09:48

10% price move this morning and only 2000 shares bought?? Somethings happening??
104 was good entry point!!

[shadowside] 26/3/2003 09:39

Very nearly bought at 140!! At 104 its good value.