Renishaw Share Discussion Threads

[tongosti] 26/10/2015 11:41

ApadVery important point you make whether the company will manage to sustain their competitive advantage in this new area going forward. This also makes me scratch my head and that is why I do value the company a bit more conservatively as a way of dealing with such an uncertainty and my ignorance on the matter. I have cut my sales growth forecasts in half (relative to last 10 years) for the next 5 years and what I do get is an annual expected earnings yield of about 10%. Trailing PE I work out to amount to about 34 (I use average margins over a 10 year cycle as opposed to most recent numbers for earnings) which is rather high and it is one reason why I would expect the share price to drift south for a tad longer.

[apad] 26/10/2015 11:04

I increased when it challenged £15 last year. It'd be nice to have the opportunity again. With the current sentiment to all engineering stocks it might well happen again. An rns on large orders would upset the applecart. A backwards PER of 11 and a forwards PER of 18 is driving the trend, but a 2.5% yield should make it a slow drift

Large companies are experimenting with additive manufacturing for loaded components (rather than experimental prototype that do not have to last long) and are patenting applications, but it will be a long haul.

I still don't know whether RSW have an edge with their machines based on a synergy between metrology and control software, but there is no doubt that a high level of control will be needed for producing microstructures capable of providing service performance in loaded components.

apad

[tongosti] 26/10/2015 10:46

Negative relative strength for more than 12 months now. If history is any guide, there should be another 25-30% slide from current levels on the back of current negative sentiment. If so, I wouldn't be too unhappy as it will provide a much better opportunity to top up my stake in what is a sterling quality business.

[deadly] 15/10/2015 20:09

Crazy swings in this!

[redartbmud] 14/10/2015 16:44

Seems to have lost them again!

[tongosti] 09/10/2015 09:16

Seems to have found its legs today after all ...

[tongosti] 07/10/2015 15:31

ROR through the roof today and I agree with you re oil and gas repricing effect there. Puzzled about RSW though. Worth paying a very close look to volumes over the next few days. GLA

[meijiman] 07/10/2015 15:21

Yes Ive noticed that and was wondering same. Other stuff such as Rotork has been much more buoyant -probably because more oil and gas related- which is now in a recovery phase.

[tongosti] 07/10/2015 14:53

Negative relative (to the market) strength for a while. Very interesting indeed

[linhur] 06/10/2015 16:31

I notice Renishaw had a very good write up in Sunday Times on 6 Oct under Diary of a Private Investor. Sorry cannot do link as it was behind a firewall.

linhur

[tongosti] 25/9/2015 12:01

New on this board but RSW seem to be a very high quality business. Got in early this morning with the view to build up a decent stake over time (if the price is right of course).

[deadly] 15/9/2015 15:45

Fallen back to lows. XD for 34p tomorrow night.

[mr. t] 13/8/2015 08:49

Thanks for the links APAD.

[apad] 13/8/2015 08:33

www.engineering.com/3DPrinting/3DPrintingArticles/ArticleID/10527/The-Renishaw-AM250-Additive-Manufacturing-System.aspx

[apad] 05/8/2015 08:50

hxxp://www.qualitymag.com/articles/92763-embracing-technology

apad

[apad] 29/7/2015 14:03

Renishaw plc (LON:RSW) was upgraded by stock analysts at Numis Securities Ltd to a “buy” rating in a report issued on Wednesday, Market Beat Ratings reports. The firm currently has a GBX 2,820 ($43.77) price target on the stock. Numis Securities Ltd’s price target indicates a potential upside of 33.14% from the stock’s previous close.

[apad] 29/7/2015 12:44

Presentation on the Website.
apad

[apad] 29/7/2015 09:36

I'd assumed the reduced margins were as a result of the large orders, but I haven't checked back. It could be because of a full year's worth of increased staffing costs I suppose.
My view is that these results will produce a floor under the share price as the probability is of improvement and that a backwards PER of 12 is cheap for a quality company that is not dependent on O&G.
apad

[glaws2] 29/7/2015 08:30

To be fair the broker forecasts for 2016 were already reduced to PBT £97m (Sharescope) so this is 'in line'.

[campbed] 29/7/2015 08:17

The forecasted drop in operating margins next year 2015/16 is a bit of a shocker --I'm out. Around 5% less sales but around 50% less PBT from £144m to £95m (mid-point of 85-105)

[apad] 29/7/2015 08:02

In our Interim results announced in January 2015, we indicated an anticipated full year revenue in the range of GBP480m to GBP510m and profit before tax in the range of GBP130m to GBP150m. Our current view is that these ranges are still appropriate.

Revenue of GBP494.7m
Profit before tax of GBP144.2m
Whilst it is hard to predict to what extent there will be significant large orders in this coming year, with the development of new products and applications and continued growth in our underlying business, your directors remain confident in the long-term prospects for the Group. At this early stage in the current financial year, we anticipate that revenue for this year will be in the range of GBP460m to GBP485m and profit before tax will be in the range of GBP85m to GBP105m.

[apad] 28/7/2015 16:13

Took the risk and increased. Gulp.
Trades are all AT.
apad

[hydrus] 28/7/2015 15:59

Sorry I did mean the forward view. Brutal downturn in the last half hour.

[darlocst] 28/7/2015 15:48

The results will be good, its the outlook for coming year that is crucial.