Renishaw Share Discussion Threads

[apad] 28/1/2011 08:30

redart...
One of the 2 ageing men arguments is that if their holdings come onto the market then RSW will not remain independent for long. Also, the (younger members of the) board are very competent.
The yield is rocketing, maybe 2% by the finals (at this price).
This is not to challenge your view, I too wondered about top slicing but decided against.
My deciding argument (as I have posted before) was the number of technical job vacancies at RSW.
Also, I was more concerned about reducing my holding at the valuation before the results, so why punish success - I'm not a trader as you can see.
Time for this board to go back to sleep now :-)
apad

[redartbmud] 28/1/2011 08:27

Yesterday's newspaper, today's recycling.
How many sells do they give in relation to buys.
Read with caution

[nellie1973] 28/1/2011 08:04

Tipped in the Times

Renishaw, a Gloucester based company who make specialised measuring equipment, have come back from the recession with strength. Coming under fire for cutting a fifth of the work force as the economy slumped, Renishaw have since benefited from China's plan to build a high-tech manufacturing sector. Renishaw's sales from the Far East now represent 42% of total revenues and have more than doubled year on year. India and Brazil are the next potential growth areas. The halfway profit announcement has sent shares high but it's still a worthwhile investment. Buy.

[redartbmud] 27/1/2011 14:42

In my opinion the share price has now run too far ahead of itself.
A word of caution - what is the revised PE? What is the dividend yield?
Losses in healthcare.
True, cash in the bank but how much cash was generated in the period?
53% owned by 2 men, both now ageing, although extremely good at what they do.
What goes up may come down.
I have top sliced a long term holding as a precaution - a bird in the hand.....

[broadwood] 27/1/2011 11:59

Medical device firm Renishaw's profits soar
By Ruth Sunderland
27 January 2011, 11:19am
Two septuagenarian engineers saw the firm they run from the little Cotswolds market town of Wotton-under-Edge become the fastest riser in the FTSE All-Share index yesterday after it achieved a five-fold increase in profits.




Shares in Renishaw, founded in 1973 by chairman and chief executive Sir David McMurtry and deputy chairman John Deer, rose by 263p to 1598p.
The staggering rise of nearly 20% took the Gloucestershire company's market value through the £1bn barrier, putting a £616m price tag on the founding duo's 53% combined stake.

Renishaw makes sophisticated machine tools and sensors along with cutting edge healthcare devices, including robots costing up to £1m for brain surgery.

It is a leader in a high-tech microscope method known as Raman spectroscopy, used to help infertile couples by assessing the health of sperm cells.

The technique works by immobilising live wriggling sperm with a laser beam then checking its quality by measuring tiny molecular vibrations. The most robust sperm can then be selected for IVF treatment, giving the best chance of a baby.

Profits for the six months to the end of last year rose to a record £35.5m from £7.1m in the same period of 2009, and dividends more than doubled to 10.3p a share.

Losses in the healthcare division doubled to £4.2m due to start-up costs and investment in research. The group is looking to hire 160 staff in the UK.

Renishaw's stellar performance is a boost for manufacturing and confirms a big turnaround for the company, which in 2009 cut 400 jobs worldwide as its shares hit a low of just over 250p. It exports 95% of production but carries out most of its manufacturing in the UK.

[pip_uk] 27/1/2011 11:05

Still has legs !!!!

[broadwood] 26/1/2011 16:44

Elec - well done.

For us -and other holders - that can go down as one extremely satisfying day.

[electronica] 26/1/2011 15:15

broadwood

You have a lot more discipline & patience than I. Came in for £6k yesterday afternoon & was happy to depart with an £1,100 net profit at lunchtime.

[broadwood] 26/1/2011 13:53

There's bound to be a bit of profit taking later. Thought about jumping when we were up over £3 but still here.

[pip_uk] 26/1/2011 12:44

What a great British company, we can take on the best in the world.
Why have I been dabbling in the latest gold mining sensation with a quality company like this on the doorstep.
Anyway I`m in for the future, which with their bulging order book and job vacancies the outlook is really positive.

[cockneyrebel] 26/1/2011 12:43

Altium have upgraded this year by 10.4% and next year by 11.5%

Based on their current forecasts that's 83p eps this year and 96p for the coming year.

I suspect there' some caution there too.

So over £1 next year looks easily possible imo.

CR

[apad] 26/1/2011 09:12

Agreed the 70p forecast now looks light. See that they sold their neuro kit and liked the look of the dentistry tie up with the US. CHINA is spelled large:-)
Their quoted job vacancies are very high.
Pug, rest easy it is!
apad

[cockneyrebel] 26/1/2011 08:27

I loined you too at the open Electronica.

80p eps looks nailed on imo, bet they might do 85p or more perhaps - possibly do 100p eps next year or more on that basis imo.

CR

[pugugly] 26/1/2011 08:27

No change from my previous post - Apart from change t/s to results. I do love these companies with very quiet threads -


PUGUGLY - 14 Oct'10 - 11:16 - 165 of 169 edit

Excellent trading statement - A long term core hold. Now to rest easy until the next news.

[broadwood] 26/1/2011 08:20

Elec - joined you first thing.

Managed to beat the M.M's and got in before it dawned.

[electronica] 26/1/2011 07:42

APAD

Excellent set of Interims. If some City Slickers were predicting FY2011 eps of 70p then they were way off!

Looks liker RSW will deliver 82-85p eps for FY2011 & a share price of 1500p+ by end-July.

[apad] 04/12/2010 17:04

RSW
55 job vacancies in the UK - good, no excellent.
PER 37 - worrying.
EPS on 27 January, say 60, - well satisfied.
Some city slickers predicting 70!
This baby better deliver!

Anyone got any information?

[pugugly] 14/10/2010 11:16

Excellent trading statement - A long term core hold. Now to rest easy until the next news.

[quickmind] 12/9/2010 15:09

Broker snap: Some scope for appreciation at Renishaw
Fri 10 September 2010 13:08

A meeting with the company's management team has prompted FinnCap to substantially increase its earnings forecast for Renishaw after the company's upbeat trading update on Thursday.

Management indicated that it was comfortable with a £240m annual revenue run rate for the year and a gross margin of close to 50%, which FinnCap calculates should deliver pre-tax profits of £55.9m, compared to FinnCap's previous forecast of £41.5m. The earnings per share estimate has been bumped up by 34% to 61.1p from 45.3p.

The broker had expected a positive share price reaction to the trading statement but was a little taken aback by the strength of the price rise. It has cranked up its own target price to 1100p, which is based on a fair value of 18 times projected current year earnings.

Thursday's strong price rise means that, even with the price target upgrade, the shares qualify as no more than a "hold", with "some further scope for appreciation."

[electronica] 09/9/2010 16:03

pugugly

No takeover without Sir David on board - so it will be a "friendly" one to send him nicely into retirement.

He won't sell for less than 1250p in my view.

[pugugly] 09/9/2010 15:34

APAD:- If they can apply the same level of technical expertise as in their other sectors then could do well. Tis is very much an instant reaction as I have not crunched the numbers with maket sizes but not too concerned at the moment as up over 100% and always possible takeover to put a bottom under the share price +++ cash on the balance sheet.

[apad] 09/9/2010 15:26

Pug,
What do you think of the move into dentistry and brain surgery? Costs of about £5 million is my memory serves

[apad] 09/9/2010 15:26

Pug,
What do you think of the move into dentistry and brain surgery? Costs of about £5 million is my memory serves

[pugugly] 09/9/2010 14:22

Excellent trading update and massive (for RSW)jump to 5 year high. On double checking now at an all time high.

I just love these quiet threads - Very often give the best growth. (imo & dyor)