Renold Share Discussion Threads

[pj84] 27/2/2024 23:25

Just under 3 minutes so a very easy listen from 16.55 to 19.45

[hopeful holder] 27/2/2024 18:52

Discussed on vox markets today where they still view this as under priced.

[this_is_me] 19/2/2024 13:28

I'm happy with my 50% profit so far. The P/E is still far too low.

[texaspete2] 15/2/2024 16:12

An even greater sign is a rise today off the back of high volume, so looking good for now, gl

[hopeful holder] 15/2/2024 15:56

Just tried a Dummy sell and offered higher than the bottom of the spread. That's always a quick pointer to demand as I haven't got L2. This does seem to be getting stronger and tempted to buy again.

[hopeful holder] 26/1/2024 16:40

I did wonder if this would hold above 40 pence and it seems to be doing so quite nicely. Other than a positive pension growth I am wondering what specific events need to happen to step this up and over 50penceAcquisition?Significant contract win?Investment fund buy in ?

[pj84] 20/1/2024 03:04

Felix 99 I am a shareholder in Wincanton and posted this about the pension fund on 26 Sep 23.

"hTTps://www.thetimes.co.uk/article/pensions-boost-proves-that-every-cloud-has-a-silver-lining-jdb8b6vf0

some excerpts from the article: -

"It was the stock market surprise of the week: Wincanton, the trucking company, delighted investors on Wednesday by announcing that its staff pension scheme had dramatically swung back into surplus for the first time in decades.

The company would not now have to make previously promised contributions to the scheme of about £25 million a year for the next four years. And it was immediately released from restrictions on how much it could pay shareholders in dividends."

.....

"Like many UK companies with long histories, Wincanton had been the prisoner of defined benefit pension promises going back decades. It has a market value of about £400 million but until recently its pension fund was three times bigger with about £1.2 billion of outstanding promises to 12,800 current and former lorry drivers and warehouse workers."

As it happens they jumped 50% today on an agreed bid for the company.

[tiswas] 18/1/2024 16:03

So the employee trust has bought a stack more shares and now has 10.6%.

Is the employee trust forcing up the share price?

So the good thing is that buying in the market presumably means shares will not be issued to satisy options so no dilution. But who provides the money to the trust to buy the shares? If it is plc how is that expensed through the P&L?

Anyone know about these matters?

[hopeful holder] 18/1/2024 09:07

The Group's IAS 19 deficit decreased from GBP61.3m at 30 September 2022 to GBP52.7m at 30 September 2023. (This is from their own report).So it's a big gap but being managed and coming down. It's declared and under control.I see this as already priced into the current price and probably overdone.40p would be a great barrier to break and I did not think it would be this quickly. Any fund buying into this know they are getting a great opportunity now that they have a strong management leading this company. Best of luck to all shareholders.

[wigwammer] 18/1/2024 09:00

I've heard people say that all the way up from 8 pence, Felix. I suspect if it wasn't for the pension liability, the current market cap would be considerably north of £200m, as opposed to the £90m now... ie it's already in the price (and then some)

[felix99] 18/1/2024 08:39

cant see anyone bidding with pension scheme there as a poison pill ?

[pj84] 17/1/2024 22:38

Agree and if, as it looks like, it is a single purchaser, then 15.75m shares is about 7% so a very sizeable addition to an existing shareholder or a significant new investor, either way would expect to see an RNS soon.

[thirty fifty twenty] 17/1/2024 16:50

mickeyb - i think this could be very interesting. with the consistent high volume in recent weeks and now this disclosure it is obvious that a stake has been being built in the background for weeks. possibly this is the pre-cursor to a bid [exciting], but even if it is just a new insitutional holder coming on board at 38p i think it will be seen as very positive by the market. suspect we wil know more by the end of the week.

all imho, dyor and bol
RNO is in my top 5 hldgs

[mickeyb] 17/1/2024 16:31

15,750,000 shares just traded at 38.20, with no significant move in bid / offer prices . seems strange.

[tightfist] 11/1/2024 15:50

PJ, Many thanks for the brr video link, most informative - Liberally sprinkled with PI buzz words, but what's not to like?

[pj84] 03/1/2024 18:23

The following was from my my post 1683 following the capital markets day back in May last year: -

"Renold PLC - Capital Markets Day (With Q&A) (brrmedia.co.uk)


It is a long watch, just under 2 hours and whilst it is the company selling themselves, it is nevertheless very informative, and they seem to be very focussed on both inorganic growth and further acquisitions and to be very focussed on a very disciplined approach to capital expenditure for both investment and acquisitions. It also explains that even though Renold is not regarded as a tech company, it is benefitting from the new economy through businesses in all sectors increasing automation and demand for its products which is continuing to grow and in my view even following the recent increase in share price the PE of Renold is far too low."

The company were keen to point out that whilst their chains business appears to be very old economy, that it is a key component of the increasing automation being undertaken companies in all sectors and they are very much a part of the new economy.

[eddystone] 03/1/2024 13:00

Yesterday I tested the market for £100,000 worth on the offer, and the bid.

Market was showing 36.8-38.2 and the inside offer was 37.9

No online market for the bid, but interestingly, I could have bought that size on the offer so no problem for retail size.

[hopeful holder] 03/1/2024 09:41

You may be right about 40p Eddy but....It's got momentum and its appearance on some investing webpages makes me think it will get through quite quickly.Whatever our opinions on that, we both are of the view that this is a great share and has much opportunity to move higher this next 12 months.

[wigwammer] 03/1/2024 09:36

Seems to me somebody wants large amounts of stock, and is struggling to get it..

[eddystone] 02/1/2024 19:23

Renold is my biggest holding - have been accumulating since 19p and placed another bid today.Revenue and EPS are growing well, but it's slow. The pension liability has reduced because of rising rates, and will increase again, when rates fall. Although I'm overall positive, Renold is still fragile because any exceptionals can wipe out cash flow. I would like management and their financial PR to communicate its strengths much better such as its exposure (if any) to high growth industries like robotics, materials handling, battery manufacturing. I forecast its share price rise from 30p to mid to high 30s and it feels like it will consolidate here after today's sudden jump. Breaking 40p will be hard unless there is news we don't know.

[hopeful holder] 02/1/2024 16:38

We have gone past a 5 year high, always good news. I'm not sure of the full history but if you go back further in history these were so much higher.I am still researching but my reading earlier today compelled me to buy more.

[wigwammer] 02/1/2024 14:15

Yes. Been a great ride. The key thing for me was the resilience during Covid - makes you realise how vital these products are across many different industries. They also appear to have acquired sensibly (so far) - enabling them to cover fixed costs such as the pension payments using a materially bigger sales/asset base. Great company IMO and much better placed to continue to drive down the liabilities.

[thorpematt] 02/1/2024 14:01

On Stocko rankings it is a 100 which is rare.

I think it was also covered in Share mag if I recall.

[texaspete2] 02/1/2024 11:26

Excellent volume supporting the rise today. There has been good coverage of Renold on Stockopedia over the Xmas period. Value being recognised here.