Renold Share Discussion Threads

[sagem] 29/12/2010 19:55

Its because Gartmore has reduced their stake but all shares were taken up

[tom111] 29/12/2010 17:23

Huntie2 end of year profit taking imho

[tom111] 29/12/2010 16:27

Are u saying i influence the share price,very flattering but i dont think so.Come to think of it neither do u

[sagem] 29/12/2010 16:12

tom111 -..Just look at what you have done to the share price today by not being positive.??.....Do you have any positive news new or old or are you just a doom and gloom merchant and no good for these bulletin boards...sorry

[huntie2] 29/12/2010 16:09

down more than 8%! Anybody got any ideas why?!

[tom111] 29/12/2010 15:06

curious take a look at FTO more useless info. need i say any more.cred

[curious] 29/12/2010 06:39

ramping is information as well. But it is not useful information.

[sagem] 28/12/2010 20:57

curious -/////really, does that matter, everything is interesting its information

[curious] 28/12/2010 17:45

Sagem,
I complimented you a few weeks ago.
But your recent post, which is just rehashing old material dated 15 October, just damages your credibility.

[sagem] 28/12/2010 14:49

WOW THIS COMPANY IS SO UNDERVALED

Broker snap: Strong order intake at RenoldFri 15 October 2010 13:23
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Thursday's trading update from Renold pointed to first half profits ahead of expectations and prompted FinnCap to whack its full year earnings forecast for the supplier of industrial chains and torque transmission products up by 30%.The broker now forecasts adjusted profit before tax of £5.5m for the year to end-March 2011, a significant upgrade to its previous estimate of £4m. The earnings per share (EPS) figure has been bumped up to 1.7p from 1.3p.The improvement is seen filtering through to fiscal 2012, also, with the broker upgrading its profit before tax figure for this year to £12.5m from £10.9m previously and its EPS estimate to 4.0p from 3.5p."We believe that the momentum of order intake could provide further upside to profits in the current year. As the majority of cost savings achieved over the last year have been retained, despite the increase in sales, we look for a strong improvement in operating margins to 3.8% and then to 6.7% in 2012," analyst David Buxton said.Net debt at the company has increased from £18m back at the end of March to £22m at the end of September but FinnCap thinks the increase in the debtor book is understandable given the increase in sales. "We understand nearly all the increase in debt is associated with the increase in working capital," the broker said.Based on the broker's earnings forecast for 2012 the shares trade on an earnings multiple of 8, which FinnCap thinks is "excellent value". Its price target of 55p, up from 50p previously, is based on a fair value earnings multiple of 13.8.

[sagem] 22/12/2010 16:05

for some reason the market makers are holding back the share price, perhaps they know news is coming......totally undervalued
Marker closed and the MM put the share price down a little although their are more buys than sells...this almost proves to me that a RNS is imenant for a contract win.....WE WILL SEE.
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Founded in 1864, Renold is an international engineering group offering a range of superior quality engineered precision products, employing 2500 people in more than 23 countries. It produces a wide range of products, including transmission and attachment chains, smartlink, gears, couplings and spindles, which are used in vehicles, theme park attractions and escalators. Currently, it employs 2500 people in more than 23 countries worldwide.

In 2007 Renold acquired Hangzou Shanshui Chain Company in China to establish a manufacturing base in a low cost economy. It had made good progress in preceding years and the share price reached a high of 143p in March 2007. The good times ended when recession set in and clients began to destock.

In the year ending 31/3/10 Renold produced a pre-tax loss of £13.6m on turnover of £156.1m, down from £194.7m previously. In the second half, however, there were signs of improvement as a result considerable cost reduction. During the year the £26.9m was raised through a placing of 145m shares at 20p. The company, therefore, currently looks well set for recovery.

Most of the growth is expected to come from the chain side, which accounts for perhaps 70% of sales, and has a strong position in Europe, US, China and India. Torque products are used in a number of different markets - mining, oil, maintenance and repair. Sales are well diversified both geographically and in terms of customers.

The first half trading statement indicated that sales in the six months to 31/9/10 have been rising and that order intake in both divisions has increased substantially. It was also confirmed that the cost savings have been maintained. The market consensus is that pre-tax profits in 2011 could emerge at around £5m, implying that the shares could be trading on a prospective per of 20, which looks on the high side. However, we regard the year to 31/3/12 as pivotal in the company' recovery and anticipate pre-tax profits of perhaps £12m, implying that the shares could be trading on a forward PER of 5, which looks undemanding.
Consider as a Buy.

Price 39p Bid 38p Offer 40p; Sector: Industrial Engineering; Market Cap: £85.6m; EPIC RNO
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Thursday's trading update from Renold pointed to first half profits ahead of expectations and prompted FinnCap to whack its full year earnings forecast for the supplier of industrial chains and torque transmission products up by 30%.The broker now forecasts adjusted profit before tax of £5.5m for the year to end-March 2011, a significant upgrade to its previous estimate of £4m. The earnings per share (EPS) figure has been bumped up to 1.7p from 1.3p.The improvement is seen filtering through to fiscal 2012, also, with the broker upgrading its profit before tax figure for this year to £12.5m from £10.9m previously and its EPS estimate to 4.0p from 3.5p."We believe that the momentum of order intake could provide further upside to profits in the current year. As the majority of cost savings achieved over the last year have been retained, despite the increase in sales, we look for a strong improvement in operating margins to 3.8% and then to 6.7% in 2012," analyst David Buxton said.Net debt at the company has increased from £18m back at the end of March to £22m at the end of September but FinnCap thinks the increase in the debtor book is understandable given the increase in sales. "We understand nearly all the increase in debt is associated with the increase in working capital," the broker said.Based on the broker's earnings forecast for 2012 the shares trade on an earnings multiple of 8, which FinnCap thinks is "excellent value". Its price target of 55p, up from 50p previously, is based on a fair value earnings multiple of 13.8.

[raymund] 21/12/2010 19:58

Too tasty too resist, came on board this morning. Who knows, this could be on one of the paper's New Year tips?

[huntie2] 20/12/2010 14:34

thinking of topping up....

[saltaire111] 20/12/2010 10:46

What on earth is going on? How can a can a company like RNO be priced like this?

Salty

[ny boy] 20/12/2010 10:31

LOL! Down 9% on hardly any volume. Adding time during this thin holiday trading I reckon!

[thecroots] 12/12/2010 12:30

After being disappointed to see these rise after I sold and bought in RNWH, I am pleased to say that RNWH also touched 45p last week!

Phew!

Hamp, if you are including me in one of your TOMS, then you have the wrong end of the stick mate. Not once have I come on here de-ramping. Check the posts.

I sold out purely because of the pension stuff and nothing else. The story other than that is still good.

[rivaldo] 08/12/2010 19:23

Yep, inclusion in the All-Share index confirmed tonight:

[mesquida] 08/12/2010 08:27

Today´s F.T. has picked up on the index story - looks as though selection is now assured.

[hamp] 07/12/2010 22:23

I agree sagem rno has huge potential iam glad itook the plunge dare i say at 22p,its a pity some toms x 3 try to spoil the party because they have missed the boat or sold too early!enjoy the ride everyone who are in.

[sagem] 07/12/2010 19:00

The secret is out Elektron EKT is another growth story and its only just started to happen, directors have been buying and they realise that their company is totally undervalued just like Renolds RNO and Specialist Energy SEGR
Elektron tipped by Investors Chronicle and Specialist Energy tipped in this weeks Money week......although I think Renolds has yet to double in price to put the company where it should be and possibly the other companies mentioned.
2011 is the year of the small companies offering huge potential in an economy now beginning to bounce

[bottomfisher] 07/12/2010 17:08

Curious, I would not play down the chances of an equity issue. RNO shares have more than doubled since its November 2009 rights issue (raising £27m)so big investors may not be averse to putting in more money, especially since the renaissance of the UK manufacturing industry is one of the more popular investment themes at the moment.

Meanwhile, the company badly needs further equity if its recovery is not to be snuffed out. The recent interim results underlined what a capital intensive business it is. RNO continues to suffer from an increased cash outflow, primarily to finance higher working capital needs. Net debt since the year end has risen by £5.7m, or nearly a third, to £23.6m whilst net assets are down by a fifth to £35.4m. The pension fund deficit (the less said the better) is up from £73.0m to £85.6m.

The good news is that RNO is targeting a more than three fold improvement in return on sales, to 10%, by 2012/13. Fingers crossed that RNO's long overdue recovery is finally on track. But the latest balance sheet indicates the group's continuing need for capital.

[battlebus] 07/12/2010 16:31

Heading to 50p my target.

[curious] 07/12/2010 15:41

sorry for the double transmission

[curious] 07/12/2010 15:41

thecroots.

thanks for your quick response.

Your numbers suggest a £10-12 million annual pension shortfall.

I notice that the consensus pre-tax profit forecast for the year ending March 2011 is £4.9 million. It rises to £11.9 million in 2012 and £19.5 in 2012.

We all know that forecasts can be nothing more than an exercise in hope over experience. On the other hand, we also know that Renold is near the beginning of a powerful turnaround and there is considerable scope for significantly improved profits.

I think the jury is still way out on the issue of fund raising in the future. If they have a rising profit trend, banks would be happy to step in.

We shall all have to wait and see. But for the present, I think the threat of a fund raising is a very minor threat that will have little effect on the share price. Admittedly, this could change in 6-12 months.