Renishaw Share Discussion Threads

[lord gnome] 11/3/2009 08:47

So there we have it. The second profit warning and another precipitous dive in the share price The trading update is really nasty as well - honest, but nasty. I am leaving these well alone for now - off the radar. Good luck to any who continue to hold, but judging from the lack of action on this BB I doubt that there are many around.

[dennis russell] 09/2/2009 21:14

settling litigation is usually good news! The first few months of a downturn produce the sharpest cutbacks in capital orders - after that the price advantage of lower sterling might kick in

[lord gnome] 02/2/2009 16:49

I agree 9degrees - but the share price is still going to go below 300. Nasty tail off at close of play today. Still no reason to buy.

[9degrees] 02/2/2009 16:22

Good letter in times today praising directors for giving up rights to their dividends £3m.One of Uks best engineering cos

[sleveen] 29/1/2009 14:23

bigboyo: I seem to remember that RSW has ststed that it has about 3 months visibility on orders.

According to yesterday's news the global recession could be the worst since WW2 with the UK suffering the most. Capex will be culled which is bound to affect RSW (excluding medical sales). Perhaps I was overly pessimistic with the 200p forecast but i still beleive RSW has further to fall.

GL

[bigboyo] 28/1/2009 11:19

for VERY long term investors --- profit warnings aften come one after the other and the results give little guidance on CURRENT order intakes and full year outcome

with so little visibility there can be no premium irrespective of past glories

[lord gnome] 28/1/2009 08:26

After you.....

[chase] 28/1/2009 07:45

based on results, nice buying opportunity for long-term investors

[lord gnome] 24/1/2009 17:09

Sounds fair to me sleveen. The pbt was distorted by currency considerations. Level currency figures show the true extent of the downturn.
For the future of the sp, a lot depends on the market's revised view of the company. It has always enjoyed a premium rating. In the current market situation however, past good deeds count for nought and the market could slaughter a fallen favourite.
Profit warnings always seem to come in threes, so I certainly wouldn't rush back in. These are off the radar until the next update, but 200 might just tempt me.
Incidentally, these were also one of Investors' Chronicle's tips of the year for 2009. Priced then at 531. Their tips really are the kiss of death.

[sleveen] 24/1/2009 09:23

DR: IMS reads

Profit before tax amounted to
GBP14.0m, compared with GBP15.1m. Profit after tax was GBP11.2m (2007 GBP12.1m), giving earnings per share of 15.4p (2007 16.6p).

IMHO if we reasonably assume that the second half is going to be worse than the first half(the first quarter results were excellent see AGM statement)and lets also reasonably assume that eps for 2nd half are say 10p this give FY total of 25p resulting in forecast PE of 14 @350p. For a company that has gone ex growth even though it has world class products a PE of 14 is way overvalued and IMHO the share price is likely to fall monday and continue to fall until say 200p giving a PE of 8.

Interesting recovery in the last half hour yesterday : dead cat bounce IMV.

L G: I bought back in at 475p I tried to trade these with a view to riding an upswing in anticipation of decent result next week. As I posted earlier this week, I noticed a change in trend and sold at 450p tuesday for a small loss. Phew.Shows the importance of having a stop loss.
LG what's your view of my analysis?

As always DYOR and the above is my opinion only

GL all RSW holders

[lord gnome] 23/1/2009 18:10

Funny how it happens sleveen. You watch the price drip away while those in the know bail out, and then 'bang' you get an RNS like this that explains everything and the floor collapses under the share price. I've seen it many times before, but it is difficult to spot in advance.
At least I've avoided another expensive mistake - I've had my fair share of those this last year.
BearBull in today's Investors Chronicle was not so lucky. He has just bought £20,000 worth for the income portfolio. Kiss of death?

[dennis russell] 23/1/2009 17:06

good buying opportunity - tuck in and lock away till the dust settles. Interesting how much difference the exchange rate has made to the result. Other companies with a lot of dollar / yen business? I can think of CEL, AHT, WOS. Any more, please?

[sleveen] 23/1/2009 15:49

LG:Profit warning on the way by any chance?

Good call

Edit: Which makes me think that if such good companies like RSW hit the buffers, I wonder if other companies with markets in hi-tech instrumentation eg OXIG will be affected in the same way?

[lord gnome] 22/1/2009 16:11

You're not wrong sleveen. Drip, drip, drip. Profit warning on the way by any chance? Hopefully just market weakness, but you can never be sure. I have these on my watchlist. No position at present, but looking for an excuse to buy. Can't see one at present.

[sleveen] 20/1/2009 17:23

By the look of the chart this is going to fall further IMHO.

[sleveen] 14/1/2009 13:59

interims due 28.1.2009 might give a steer for the rest of the FY.

[stevenlondon3] 14/1/2009 10:24

My attention was drawn to this company by the investor chronic- it looks interesting.

However looking at digital look forecasts
2008A 45.9p
2009E 47.6p
2010E 46.3p
It is not an inspiring trend and in these markets makes the stock look expensive.

[sleveen] 07/1/2009 21:09

£ recovering against the $ and Euro recently may have influenced the share price slide

[9degrees] 07/1/2009 20:58

Partly with the market and partly results due later this month- a mixed bag no doubt of good news and not such good news?

[philo124] 07/1/2009 16:58

Bit of a mystery why this fell 10% today.

[9degrees] 07/1/2009 10:18

Why all these small trades both yesterday and today?
Are these employees share schemes or something and they have inside knowledge of pending results?

[chrisgail] 19/12/2008 21:14

For a company that gets most of its sales by exporting to Yen & Dollar trading countries, the falling share price looks strange. Yes, I'm sure sales are down, but margins will not be. A sound company (with heaps and heaps of cash) at a very attractive price.

[sleveen] 30/10/2008 10:05

Looks like the market disagrees with my view now that a tentative recovery is underway.

I think you need to look at the AR to guestimate an answer to your question. Nerosurgery/dental would seem resilient but I'm not so sure about the other busineses that are focused on manufacturing/capital goods.

As ever IMHO and DYOR

[mr. t] 30/10/2008 08:36

Hi sleveen,

Thanks for you thoughts and the figures. Do you know much about Renishaw's business model and their markets? How resilient is their turnover and margins to any downturn?

Cheers,

T

[sleveen] 28/10/2008 17:08

current year broker forecast put the forward PE at about 10, IMHO share price could drop to a PE of 7 implying a share price of 350p.

I think this time will be far worse than 2001-03.

As ever DYOR and GL