Renishaw Share Discussion Threads

[redartbmud] 02/2/2014 17:37

APAD

I musy be going something wrong if the IC agrees with me!

Like you I have a large holding, purchased at very modest cost. I try to add a few now and then on the dips. This latest episode caught me on the back foot, particularly as I could not read the market at the time. I sat on my hands and did nothing.

Your analysis of the founders and their holdings is spot on. I see that as the probable end game. In the meantime the non-execs need to keep a better watch on the business strategy.

Dull can be no bad thing.

red

[apad] 31/1/2014 16:59

Looks like the IC takes much the same viewpoint as you red.
I take a longer view as my holding yields 6.1% on my buy price and I expect it to be taken over when the founders' shareholdings hit the market; but I do not like the divvy not rising as it suggests some management wariness.
EPS dropping I guess.
I think I pretty much agree with the two sets of comments in the IC too - it's going to be a dull 2014 for RSW.
apad

[apad] 31/1/2014 14:57

From today's IC:
Domino Printing Sciences (DNO) and, after an 87 per cent gain on our long-standing buy tip, convinced us to downgrade Spectris (SXS). Two months later the share price crashed. And highly-rated Renishaw (RSW) tested our patience once too often. Costs have soared at the precision tools company, and tough comparators make earnings growth a pipe dream. However, awake to the obvious sector re-rating, we backed Halma (HLMA) again after a 12-month break and our faith has, up to now, been rewarded.
apad

[apad] 31/1/2014 14:57

From today's IC:
Domino Printing Sciences (DNO) and, after an 87 per cent gain on our long-standing buy tip, convinced us to downgrade Spectris (SXS). Two months later the share price crashed. And highly-rated Renishaw (RSW) tested our patience once too often. Costs have soared at the precision tools company, and tough comparators make earnings growth a pipe dream. However, awake to the obvious sector re-rating, we backed Halma (HLMA) again after a 12-month break and our faith has, up to now, been rewarded.
apad

[redartbmud] 30/1/2014 09:42

Yes look at the share price movement today - it just shows the irrationality of markets.

[meijiman] 30/1/2014 09:31

Nonsense-take a look at the share price.
Tough comparatives are being worked through and the outlook is positive.

[apad] 30/1/2014 08:40

50% increase in Investing Cash Flow = No Increase in Dividend.
Despite forthcoming cash from Delcam = Disappointment.
apad

[strollingmolby] 14/1/2014 22:38

What a home! Except he chooses not to live there...

[cambium] 14/1/2014 15:42

Anyone watch Sherlock at the weekend. The boss of renishaw owns appledore! Do we get to have a bit as shareholders

[apad] 16/12/2013 08:10

www.playitback.org/details.aspx?v=336

[apad] 15/11/2013 15:09

Naaa!
We used to store white metal bodies in plastic bags on Castle Bromwich aerodrome and then put a labourer to work with some emery paper to remove the rust before painting them.
Didn't need any research to know that wasn't a good idea.

I wonder if all this additive hype is driving the share price over the last few days?

apad

[mw] 15/11/2013 08:48

The unfortunate thing about bmc, bl etc, was that they let the customers do the R&D

[apad] 14/11/2013 18:06

FT fixated on additive manufacturing. From medicine to jet engines.

red
I remember when BMC told us they weren't in the business of making cars, they were in the business of making money (about the same time as they sold off the Rover test track and I bought a house on it).

Since then I have taken the view that money is a by-product of being the best at making: cars, aero engines, metrology instruments....

apad

[mw] 14/11/2013 15:31

R&D investment is a long term process. It also needs consistent support, through good times and bad. But I suppose as a former engineer, I would say that. Dr.Tubbs of Moneyweek is a big fan.
Price Up 4.2% as I write.
Metrology accounts for 82% of the R&D this last year, so their report says.

[redartbmud] 14/11/2013 12:09

APAD

Time will tell, but it will be a slow burner. In the meantime it will chew up a few millions a year on R&D.

SP performing today!

red

[apad] 13/11/2013 07:43

red
Not so sure. The BEGO link is interesting and whilst dental prosthetics are something of a craft industry at the moment there might be a business for the future here. The BEGO website is informative.

I can't see the neuro applications as having potential.

I see some PR value in the speculative applications as well as the possibility of unanticipated consequences. So, I guess I am less critical of the R&D spend.

mw
I thought order visibility to be about a month?
I think that RSW are brilliant at using university research centres, funded by the taxpayer.

36 jobs on offer (30 last time I looked).

I think there might be a special divvy with the CAD profits.
No concern about loss of influence with the new owners.

Possibly a little upside on the current price (2.4% yield, price to cash flow 14 cf PER 19) before the 5% rise on the week.

Content to hold.

apad

[redartbmud] 12/11/2013 20:35

mw

This is where the Non-Execs are not doing their job.

red

[redartbmud] 12/11/2013 20:34

APAD

Yes. I formed an opinion at the previous AGM, which hasn't changed. It will never be big enough to recover costs already spent. The market will not buy, or if they do it will be minimal. No chance with NHS dentists.

mw
Is a lot of current new R&D a toy for DMcM?

red

[apad] 12/11/2013 17:14

red
did you form an opinion of the dental stuff from the AGM?
apad

[mw] 12/11/2013 16:22

The other side of the R & D coin is the IP which is generated. I think industrial R & D is generally more focussed unlike academia. Without it you'd become a bit moribund. So generally a good thing. How else do you diversify your product range, other than by acquisition. From previous comments elsewhere, I thought current order visibility (for metrology) was no greater than 3 months - perhaps it's improved recently.

[m.t.glass] 07/11/2013 08:04

- and now their Delcam stake is cashed

Cash sum equates to about 2.6% of Renishaw's market capitalisation - so not a major sum - but how does this deal skew Renishaw's working partnership with Delcam under Delcam's new ownership?

[redartbmud] 06/11/2013 08:55

APAD

I don't disagree with your comments, especially with regard to Delcam.
My negativity stems from an inadequate board of directors and the loss of the SID, Bill Whiteley.
In the current climate R&D is allowed free reign in areas that are unlikely to generate significant commercial return. It needs to be addressed - now.

red

[apad] 06/11/2013 08:27

I'm more sceptical on additive manufacturing. It is a slow process and the mechanical properties of the product are poor.
I don't think I can accept a generic argument for the process - the argument needs to be couched in terms of a specific product class (or perhaps prototyping process). One can argue that it is appropriate for a tooling process, in that a shape can be made to act as a pattern for, say, casting. This is the area I would choose as a possibility (the involvement of Delcam gives some confidence in this area).
There has been an awful lot of development and research funding in these processes for some 30 years now - all based on generic rather than specific potential.
Having said all that I have enormous confidence of Renishaw and Delcam management, having met both over a number of years (disclaimer: I'm no longer involved with the technology).
RSWW is my largest holding and I regret not holding Delcam (other then by proxy:-)
apad

[cellars] 28/10/2013 14:51

Red,

Many thanks.

Cellars

[redartbmud] 21/10/2013 08:18

cellars

In answer to your question:
Additive manufacturing could be commercially huge. To be commercial it needs;-
1. Process control.
2. Automation of how to handle the parts.
Renishaw are working on the solutions.
No suggestion of a timeframe.


red