Renold Share Discussion Threads

[limit up] 01/6/2011 09:07

looks as if brokers are still looking for 4.2 eps for this year and tgt price of 55p which is unchanged from previous forecasts..
regds

[simon gordon] 01/6/2011 06:46

Indie - 1/6/11:

Renold

Our view: Buy

Share price: 36.75p (-3.25p)

Renold's full-year figures were slightly below the estimates pencilled in by FinnCap analysts at the time of the Manchester-based engineer's last update, which could have been part of the reason why the stock fell last night.

However, we think a more plausible trigger is the rally since the slump seen in early March. Indeed, even after the pullback, Renold remains well above the levels seen just two months ago.

Moreover, the figures were hardly horrific. Underlying revenues were up 19 per cent in the year to the end of March, while the company's underlying order intake was up by 23 per cent. The order book was up 13 per cent over the year.

Renold, which supplies chains, gears and couplings to various sectors, also managed to reduce its pension deficit, and generated cash over the second half of the year. The share price fall, then, is likely to be the result of little more than short-term profit-taking. And the fact that the stock trades on under 10 times forward earnings points to the promise of further gains once the effects of the pullback have worn off.

[london calling] 31/5/2011 12:22

not a big volume of sells, my guess is that traders that bought in prior to results have sold, depressing the price. in a day or two could recover.

[cr4zyness] 31/5/2011 11:04

Limit thought the consensus eps was forecast 1.69p?

[puffin tickler] 31/5/2011 10:35

limit up

I agree, no reason for the 10% price fall as results are in line with expectations. Still plenty of uncertainty with the pensions and prospects but very derisked compared to a year or two ago. I expect a steady rise from here with the possibility of a substantial rerating.

[limit up] 31/5/2011 09:25

cr,i think they were in line,with the forecasts.

[cr4zyness] 31/5/2011 09:10

Limit did they not beat forecasts? ;)

[limit up] 31/5/2011 08:58

puffin tickler.
some would have bought for the figs,as the share price did move up last week.i am not selling for the short term gain,as i see the co slowly turning itself around..
regds

[puffin tickler] 31/5/2011 08:48

Looks like some are abandoning in the short term though...

[limit up] 31/5/2011 08:44

figs in line with forecasts,and a good statement for going fwd,looks like long term hold..
regds

[ravenna23] 31/5/2011 08:38

Forward p/e (2012/13) of 4?

[ydderf] 31/5/2011 08:24

p/e of 20?

[kirkthrust] 30/5/2011 17:11

agree mesquida...think we go through 40p tomorrow..and rightly so..would like to think outlook to be good too

[chadders] 26/5/2011 09:02

Hoping to see a bit of a push in the run up to the results next Tuesday.

[limit up] 19/5/2011 17:54

mesquida..
it looks good for a recovery,especially as the mkts they are in are doing well also,i bought more stock 3 weeks ago to add to my holding now 238000 shares..
regds

[mesquida] 19/5/2011 10:01

Some large institutional buyers indicated today - with BRAMMER´s statement earlier this week proving that the market for RENOLD´s products remains very buoyant and a statement due in two weeks then I shall be surprised if we do not have a price starting with a 4 anytime soon.

[chadders] 17/5/2011 14:21

yep, steady climb now methinks. A positive outlook statement will see these kicking on IMO.

[envirovision] 17/5/2011 13:22

Run up to results, profit ahead of the Board's expectations more to learn on 31st May.

[robow] 11/5/2011 11:07

and a 1m trade from yesterday. I would guess they are buys though

[ravenna23] 11/5/2011 10:44

2m sell gone through time for a reversal?

[tom111] 20/4/2011 13:26

Got back in today looks good value,nice rise today

[simon gordon] 18/4/2011 10:25

Indie - 18/4/11:

Small Talk: Renold rides high to overcome manufacturing woes

By Nikhil Kumar

The most recent Markit/Cips barometer of activity in Britain's manufacturing sector was far from inspiring. It showed that, after displaying strength at the start of the year, the sector suffered a slowdown last month.

Although still expanding (the reading for March remained comfortably above the 50-point mark dividing expansion from contraction) both growth and new orders came under pressure.

It was against this disheartening backdrop that Renold, the Manchester-based engineering firm, issued its pre-close trading update last week, and lifted the mood of investors and analysts alike with news of better-than-expected profits. Although small – Renold is worth about £80m – the company represents the kind of manufacturing success story that is often forgotten in the haze of headlines bemoaning the loss of the UK's industrial strength.

The business supplies high-performance chains, gears, couplings and the like to a whole host of sectors. The applications are varied, with Renold's components featuring in everything from rollercoasters at Alton Towers to escalators across the London Underground.

Last week's update showed that Renold's sales maintained their momentum in the second half of its financial year, with annual sales finishing a healthy 19 per cent higher than a year ago in constant-currency terms. Order intake climbed by more than 20 per cent, with underlying order books closing 13 per cent higher for the year.

Divisionally, the chains business put in a strong performance, with full-year sales rising by 26 per cent, following a 31 per cent jump in the first half of the year. The news on the balance sheet was also positive, with Renold saying that net debt had declined by nearly 20 per cent since September as it returned to generating cash.

Unsurprisingly, analysts were quite pleased, with FinnCap saying that, even though its forecasts were already at the top end of the market range, it was upgrading its profits estimate to reflect the strength evidenced by the release.

The broker also highlighted the investment opportunity, as Renold's share price has proved out of step with the company's performance. Why? FinnCap pins the weakness on nervousness before the trading update, along with some profit- taking and the impact of technical issues. This suggests that investors may now begin to see some upside gains.

"Both customers and competitors have continued to illustrate the strength of Renold's markets and decent pace of recovery, so the share price weakness was at odds with their underlying market trends," the broker said. It added that the pull-back had "opened up an opportunity to buy in at compelling values".

[cr4zyness] 14/4/2011 20:02

mmmm thanks ;)

[simon gordon] 14/4/2011 19:59

Singer - 14/4/11:

03/12
T/O - 205.4m
PBT - 12.7m
EPS - 4.1p
DPS - 0p
Net Debt - 15.8m

Renold has issued a positive year end trading update, guiding that FY profit and net debt will be ahead of expectations. We have increased our EPS estimates by just 2% for FY 2011 and 3% for FY 2012, despite more material upgrades to EBIT, to better reflect management's presentation of accounts - which quotes PBT after goodwill amortisation costs. Our valuation rises to 58p based on 2012 peer group multiples.

=====

Damp squib, comes to mind.....