Renold Share Discussion Threads

[sleveen] 17/12/2011 08:33

sg
unfortunately so

[simon gordon] 16/12/2011 19:58

Got a thing for triangles:




20p looks probable.

[contrarian2investor] 06/12/2011 21:40

envirovision, I bought back into RNO today. I am hopeful that 25p will remain as support and that we can break above immediate resistance at 30p soon.

[curious] 03/12/2011 19:40

Worldwide investments.

The company may not be as undervalued as you think.

It has a pension deficit of £40 million and net debt of £29 million. That adds to £69 million.

But the market cap is around £60 million. That's a pretty grim relationship.

In my opinion, the reason the share price is even able to remain at current levels is because the City is betting that future profits will be much higher. Fair enough. I share their view that profits will be higher.

But we all should keep in mind that RNO must deliver on these future expectations merely for it to hold at current prices. It must exceed expectations (which are already pretty high) for the price to rise

Barring these two positive possibilities, I worry that the shares are more likely to fall, not rise.

.

[world wide investments] 02/12/2011 14:16

This company is so undervalued!!! It has millions of institutional money
in its shares. It is only being held back by the doom and gloom of the
market in general.

I get the feeling that we are all waiting expectantly for a nice upturn
which is going to be sooner than one would expect. I think a nice
christmas earner is on the cards.

[rivaldo] 29/11/2011 11:59

Nice:



"FLASH: Westhouse Securities initiates buy on Renold, target price 50p
29 November 2011 | 11:49am "

[goliard] 23/11/2011 09:09

You would certainly hope so. They should also get new financial advisers ASAP and cut the previous ties completely.

[limit up] 18/11/2011 14:32

out with the old in with the new,i see this as positive as clearly a drag on the share price for some time..

[goliard] 18/11/2011 07:40

Completely agree. He has to move on. Corporate governance here was poor IMO and the company's NEDs need to stand up for themselves.

[limit up] 17/11/2011 16:41

very large volume gone through this afternoon..

[roddiemac2] 16/11/2011 12:46

rivaldo,---as you say, provided we get some stabilisation and recovery in the markets the pension fund deficit would no longer be a problem .

[rivaldo] 16/11/2011 07:23

GCI say undervalued - 4.1p EPS to look forward to, and with any stabilisation and recovery in the markets the pension fund deficit would no longer be a problem:



"Profits double at Renold
15/11/2011
Miles Nolan

Chains-to-torque transmissions group Renold (RNO) has reported a doubling of profits, driven by solid demand and the useful effect of operational gearing.

Interim results to September reveal that operating profits surged to £6.3 million (2010: £3.1 million) as the pre-tax line soared eight-fold to £3.7 million, on sales up 14 per cent to £105.5 million. Net debt increased to £29 million (2010: £20 million) due to higher working capital as well as the reintroduction of bonus payments.

Perhaps the most encouraging sign for Renold is that its order intake continues to outstrip revenue growth. It is the world number two in the £1 billion industrial steel chains market, so is a useful barometer of industry - particularly given its distribution into 105 countries. This accounts for three-quarters of total sales, and is doing well with all major regions witnessing double digit sales growth.

Renold is winning market share, moreover it is seeing good growth in end user markets. It has benefited from past restructuring and cost savings efforts, and having successfully implemented a SAP IT platform in the US the intention is to roll this out in Europe over the next year or so. This will tie in with a restructuring of its back office.

The torque transmission arm enjoyed higher margins, but the mass transit sector suffered due to the timing of large projects in the US. With its emphasis on products which are bespoke, with high barriers to entry the outlook is good as it focuses on growth markets such as energy, metals and mining.

In an interview with Growth Company Investor, chief executive Robert Davies said 'we expect our positive sales momentum to continue into our second half - which is typically our strongest trading period.'

Broker Singer Capital Markets forecasts 2012 pre-tax profits of £11.7 million and EPS of 4.1p. We last rated Renold as a long-term buy in June at 35.75p, just ahead of the meltdown in world markets over the summer. With strong market positions, current trading good and good growth from emerging economies - the shares remain undervalued."

[roddiemac2] 15/11/2011 22:19

Auldmart, ---pension fund deficits are becoming a problem. Look at FSJ ---today`s IMS---" recent performance in equity markets and low interest rates mean there may be some negative effect on the reported balance sheet figure for pension deficits at the year end .

Dozey3 may well be right.

[auldmart] 15/11/2011 20:01

A great set of results but no positive market reaction. Is it the unfunded pension obligation that's holding this share back ?

[dozey3] 15/11/2011 16:49

Very good, might just about pay off the pension deficit in the next 20 years with a following wind. Nothing here for shareholders that I can see, and Mr Market agrees.

[fatman4] 15/11/2011 09:31

good half yr results and even better-still got a strong order book despite all the gloom

[world wide investments] 15/11/2011 07:41

Well done Renold.
A good return in the face of a difficult market and economy.
Thankyou and here's an early christmas drink to 2012.

[rivaldo] 28/10/2011 12:29

Hmm....about to break out upwards?

[goliard] 26/10/2011 15:34

Rivaldo, thanks. I had missed that the Hanover sale was the 27th.

[rivaldo] 26/10/2011 14:11

Ticking up again...