Renishaw Share Discussion Threads

[staverly] 29/7/2011 12:18

Apad - sent you a pm several days ago, out of curiosity, did it arrive? Would appreciate a ping response just so I can see how things work from receivers end, Thanks.

My prediction for Equator, is replicated from specialist trade publications following indepth reviews they published after E's offical launch last March. You have to bear in mind that this sub-industry is heavily fragmented and aside RSW, few if any listed metrology pure plays exist.

I hope your nerves withstood the ridiculous reaction to what can only be viewed as brilliant(though expected)results accompanied by a confident outlook from measured management who do not play the institutional game.
The headline EPS metrics that the sell-side analysts and financial press fixate on have handsomely provided their fun and games in this instance. A good thing, as the SM would be extraordinarily dull without these deadbeats.

[apad] 29/7/2011 09:17

Stav..
Still interested in the source of your prediction figure for Equator.
apad

[apad] 27/7/2011 16:49

deadly
Known this company since the 80s. Always been worth buying on the dips and this is a minor dip. Last seen at this price in, let me think, Feb.
Mind you 250p in '09 was seriously scary.
It'll bounce back by the end of the week to prices last seen in, let me think, March.
Seriously, exporters from a weak currency country must continue to do well unless.......
See
apad

[deadly] 27/7/2011 15:16

APAD - 27 Jul'11 - 07:29 - 244 of 253

PER about 20 and yield about 2% with £35m in the bank.
Looks quite cheap now!


Quite cheap? - If they're cheap what do you call expensive? There are so many good companies taht are a lot cheaper.

[zho] 27/7/2011 15:04

Engineer Renishaw triples profits, but shares slump 7%


Bosses at precision engineer Renishaw must be wondering what they have to do to please the market.

The company has reported a tripling of full year pretax profits - up from £27m to £82m - along with a doubling of the dividend, helped by strong growth in its largest market, China. And despite warning of many challenges to be met, the company said it was confident of the outlook, due to increased opportunities and the underlying strength of its markets.

And the reaction? Its shares have slumped 129p to £17.57, a 7% decline which makes it the biggest faller in the FTSE 250. It appears the market is concerned about the outlook for China - which is trying to take the heat out of its booming economy - as well as the company's margins. Fairfax analysts said:

Though the bottom line was in line with our forecasts, margins were lower than we had anticipated however, given the rapid expansion of the group and a very successful year, this is understandable.

Jo Reedman at Singer Capital Markets correctly predicted the market reaction, saying:

Renishaw had a huge year in 2011, reporting and record profits. Management remain confident about the group's prospects and expect current progress to continue. However market expectations were even higher, and the combination of an earnings miss of around 4% with Renishaw's premium valuation seems likely to result in share price weakness.

[pip_uk] 27/7/2011 14:21

A big drop, WHY after such good results, what are share holders looking for.

[staverly] 27/7/2011 09:32

Am waiting for link to be emailed by ADVFN, will revert shortly

[apad] 27/7/2011 09:08

Ah!
Delighted to be pmed.
apad

[staverly] 27/7/2011 08:59

ADVFN have apparently recently launched a personal messaging service (never tried it before) but thought we could give it a go

[apad] 27/7/2011 08:57

Sorry stav..
Don't understand "pm".
apad

[staverly] 27/7/2011 08:51

Apad - happy to pm you

[apad] 27/7/2011 08:17

Elec...
Yes, and all based on the same expertise born in RR so very long ago.
Profit is the byproduct of a decent technical company.
apad

[electronica] 27/7/2011 07:50

APAD

Not sure about the $2/3bn for Equator either - but it certainly does very significantly expand RSW's TAM (Total Available Market).

The same applies to the 3D printing stuff.

These 2 lines could easily fill up that Bosch plant within a couple of years.

Brilliant set of results - that are even a little ahead of the more optomistic of broker forecasts. Let's see what the market makes of them.

[apad] 27/7/2011 07:29

stav
"potential market is apparently $2/3 bn per annum"
Where does this come from?

Results:
PER about 20 and yield about 2% with £35m in the bank.
Looks quite cheap now!
apad

[staverly] 26/7/2011 20:18

Apad - Equator represents their first foray into a mass market and so if it really is a game changer (potential market is apparently $2/3 bn per annum) then shareholders really will be off to the races but we are imho at least 12m from ascertaining impact of their marketing ... initial enthusiasm is one thing, mass adoption somewhat harder. Equator aside, this is a blue sky situation as their other portfolio of metrology products (especially encoders) are finally and deservedly achieving broader appeal, especially in China. I won't wish you good luck for tomorrow as I do not suspect you will need it!

[apad] 26/7/2011 19:25

stav...
As I see it healthcare is simply a new market for metrology expertise. I also expect healthcare to continue losing money - it is the market take-up that is interesting to me. The S Wales decision was shocking (to me at least) - it suggests a long view that I don't understand.
Your semi-private observation supports my confidence in the management - run by techies for techies (BTW I'm a techie therefore biased).
I would be interested in more background on your Equator comment.
RSW is now approaching 10% of my portfolio, but I am not at all sure I can punish it for performing!
The devaluation of the pound made this a racing certainty a couple of years ago (after its survival) and I don't think the argument has lost steam.
However - a world slowdown will affect their main market.
Does anyone plan to go to the AGM?
apad

[staverly] 26/7/2011 17:37

Rampmeister: Thanks for your reply. I wouldn't be holding my breath re: healthcare performance as I expect the division to continue to lose money for a while yet. This is not important as it is a mere side show to their rampaging metrology business. I think h/c will need a considerable gestation period before a material contribution is evidenced (Sell side analysts seem overly fixated with the short term numbers) Likewise, imho, i think Equator will need 18-24 months to make its mark. In respect of valaution,
this a company that is run on a semi private basis thereby historically their allocation of capital has been inefficient; perhaps the commitment to S Wales site heralds a new confidence from management which will enforce a greater institutional imperative thereby a premium valuation, let's hope.

[apad] 26/7/2011 13:38

At the risk of being boring...
still plenty of technical jobs available at RSW.
It's their best indicator - always has been.
I'm most interested in the medical developments - the financial figures are of little import.
BTW - their Technical Director is very impressive.
apad

[rampmeister] 26/7/2011 13:13

Bought in here a few months back in anticipation of final results.
Most of the following probably already covered in this bb already but here goes:-

Interims profit first half 35m. up from 7m. (comparative)
Full year expected 75m. with + 14% approx target pencilled in for 2011/12.
Whilst recent explosive growth level percentages can not be maintained feel this still has considerable momentum left otherwise why would they be buying up Bosch manufacturing 193 acre facility in South Wales?
RSW immune from GB woes with 95% of sales overseas including particularly strong growth in far east.
My hope is that tomorrow's news will start to make + 14% look very conservative.
Judging by today's share price movement re-rating already under way with chart approaching all time high .

RM

[staverly] 25/7/2011 18:38

Rampmeister - nothing unsual in expectation of record final results from most entities but more importantly why do you feel RSW is due significant re-rating as it trades in line with peers? I am not in disagreement with you, just interested in your reasons.

[rampmeister] 25/7/2011 13:25

Record final results ahead of market expectations due Wednesday - significant re -rating on the cards.

RM

[cockneyrebel] 07/7/2011 13:31

Breaking out to new all time blue sky highs!

CR

[cockneyrebel] 05/7/2011 12:20

Setting up for a big break out ahead of the results?

CR

[apad] 22/5/2011 09:45

W......

Fully agree.

And..... the important issue in rating RSW is the potential for medical applications. Currently costing money (and rising), particularly staff costs.
Not convinced about the market for neurology kit, but the dentistry kit might be a good business.
Any views folks - particularly dentists.
apad

[wjccghcc] 21/5/2011 21:25

Remember that the high growth rate is because sales fell off a cliff in 2008/9 and they,re still bouncing back. The rate will moderate to a more normal 10/20% once that effect falls out of the comparables.