Romag Holdings Share Discussion Threads

[cbgb] 06/3/2009 09:21

Some of the 60 temporary redundancies being reemployed:

[cbgb] 14/2/2009 05:24

Some explaining here:

[masurenguy] 13/2/2009 11:29

The bad news "Despite this action trading margins in the first half will be lower than last year."

Trading margins in H1 last year showed a decline of 37% from 13.7% in H1/06 so the downward trend continues ! At the time this was represented as largely due to a one-off expense arising out of additional costs associated with an increase in their production capacity. So why are margins not now improving this year ?

The good news "The impact of lower margins in the first half has been mitigated by significant gains made on the disposal of the group's currency hedging contracts. Taken together, the directors anticipate that profits before taxation for the first half will be ahead of last year."

That's fine but this will be a one-off benefit that will bolster this years results but what about next year ? We really need to see gross margins moving back above 30% and so far the directors have not provided any explanation why this is not happening !

[masurenguy] 13/2/2009 07:34

RNS Number : 2390N
Romag Holdings PLC
12 February 2009

AGM Statement

At today's annual general meeting, John Kennair, Romag's chairman, will make the following statement:

In my chairman's statement in the 2008 report and accounts, I referred to the
volatility in markets generally and in the solar market in particular, which
accounted for over 70% of group sales in the year to 30 September 2008. This
uncertainty in the solar market has resulted in a number of projects being
delayed. The group has taken action to reduce costs in the short term until
market stability returns. Despite this action trading margins in the first half will be lower than last year. The impact of lower margins in the first half has been mitigated by significant gains made on the disposal of the group's currency hedging contracts, which are no longer considered to be as strategic to the group due to recent currency movements and changes in expected sales mix going forward. Taken together, the directors anticipate that profits before taxation for the first half will be ahead of last year.

Continued economic difficulties in most countries of the world and unprecedented volatility in markets make it impossible to predict the short term future with confidence. Romag's markets are no exception to this; however, we remain confident of substantial growth in the solar industry in the medium term. Romag's building integrated product range is well positioned to take advantage of this growth, particularly in the Middle East and Europe. The group's products have been accepted into the testing programme for the Masdar City project in Abu Dhabi and are also being given approved vendor status for projects in several countries throughout the Middle East.

[garth] 22/1/2009 19:26

CBGB,

Had to be done ;0)

I think 10x current earnings looks fair value medium term. There has to be a solid future for Romag. The trouble is that I'm not a buyer yet because there are now so many other stocks on far lower multiples.... and we're talking 4x or 5x or lower. I will on this occasion refrain from spelling out what that sort of rating would mean here! :0) The valuations are crazy - and for those sitting on a stack of cash and a medium term view the salivating must be almost embarrasing. The trouble is that after a multi-week relief rally we have now seen the bears back and what is cheap today is cheaper tomorrow. Dow rallying this evening though... Will it last?

It would be interesting to know how others feel about the security of forecasts for ROM given the anticipated prolonged downturn. And I wonder how the security glass side of the business is doing? Is that pretty defensive? (no pun intended)

30-35p and I think I'd find it hard to resist freeing up some funds. But that may be a tad greedy.

No advice intended.

G.

[cbgb] 22/1/2009 18:32

LOL, fair comment garth, where next for ROM do you think?! I'll buy when you do.....!

[cbgb] 22/1/2009 09:57

A bit about the Atkins designed 'Lighthouse' tower

[cbgb] 22/1/2009 09:06

Bit more from the UAE



neilrr Powerglaz is a brilliant product which is already rocketing: Group sales increased by 93% from '07 to '08, Powerglaz 70% of sales. Exports were 81% of total sales so with our weak pound which will more than likely get weaker still and with the commissioning of the 3rd and 4th production lines completed profitability will increase substantially.

Forward PEG of 0.1 ....

This weeks forecasts:

Revenue (£m) Pre-tax (£m) EPS P/E PEG EPS Grth. Div Yield

30-Sep-09 33.85 3.75 5.29p 9.9 2.6 +4% 1.19p 1.9%
30-Sep-10 40.20 5.70 8.14p 6.4 0.1 +54% 2.00p 3.3%

[neilrr] 21/1/2009 13:08

Has anybody on this thread actually used PV glass in their home or business?

Curious as to: Does it work OK? Save you money? Worth the money? Durable?

Is it a brilliant product which will rocket & just temprorarily depressed by the present economic climate or green hype?

All opinions welcome.

[cbgb] 21/1/2009 10:24

A bit here about GITG it's ideas, also a bit about the Masdar initiative so maybe there'll be some much needed PR about this from Romag.



There was mention of the possibility of an acquisition after the results so perhaps connected in some way, sounded more US oriented but who knows?

How much lower can we go?! I never believed we'd get this low so hats off to Garth and co

[neilrr] 20/1/2009 20:53

Yikes!!! 10% in one day.

Maybe 50p will come & go quickly.

[neilrr] 14/1/2009 17:31

With every facet of the housing & construction business dead this will fall further IMHO.

[masurenguy] 07/1/2009 17:34

Good point FF but an historic PER of 13 is not cheap in this market !

[future financier] 06/1/2009 17:07

Looked at ROm many years ago before they listed - class act and John Kennair is a great bloke. Looks like they should be poised to start really coining it as "The growth in sales of PowerGlaz primarily into mainland Europe has led to exports becoming more than 80% of the group's total sales.". Thanks to G Brown's incompetence the massive devaluation in sterling should be fantastic for ROM.

[lukead] 28/11/2008 18:59

Hey 'sparky', still falling, i see, i told you so in October, never mind your ramping 250p, i dislike rampers

[neilrr] 19/11/2008 10:01

The graph says garth is correct. Seems to me some posters have become emotionally attached to ROM rather than having a dispassionate, analytical approach.

With the building / housing sector in the toilet awaiting further flushing & doom & gloom everywhere I'm pretty sure garth will get his 50p opportunity.

[asparks] 30/10/2008 14:27

good ramp.

MSS are up 100% this week so you should have bought them rather than DYS

[garth] 30/10/2008 14:25

asparks,

I seem to recall disagreeing with you as to whether ROM were good value at over 2 quid. The market has always given a generously high valuation on ROM and its stable-fellows. So you may just be OK.

Interesting - CBGB considers my view worthless and you reckon I'm a pratt. ROM are up 3% so you must both be right.

Meanwhile I was buying DYS at 30p this week instead of ROM at 104p. DYS are up 30% today. And I still reckon they are the better valued play on the clean energy/air economy. ROM are interesting and should have a great future. The issue is that at present you are paying a considerable premium for it. The New Energy sector has tanked along with the rest of the market. If new energy and builders have both tanked then what will keep ROM up? Cogent arguments appreciated more than URL links.

Kind regards,

G.

[asparks] 30/10/2008 11:47

garth dont be a prat

[garth] 30/10/2008 10:46

"CBGB - 30 Oct'08 - 09:34 - 669 of 669


50p would be considerably less than the NAV g, IMHO you have no idea how to value this company and your opinion is worthless. "

CBGB,

You are free to value my opinion in any way that you like - worthless is fine too.

In reality the current market is doing something similar with many stocks. When I can buy a company like CAR on 6x earnings or DYS on 3x earnings (and a 13.5% yield) or WLF or CSR on 10x earnings with a stack of cash, why would I want to pay 20x earnings for ROM?

I think that it may be that you are being a little over-optimistic at present. ROM NAV is listed at 59.8p - I would not say that 50p is "considerably less" than 59.8p DYS NAV is over 115p - share price is 30p....... Now I would say that 30p is "considerably less" than 115p!

Best of luck with your investment. The market has given a high rating to ROM for several years and may continue to do so.

Kind regards,

G.