Scapa Share Discussion Threads

[robow] 07/6/2018 15:40

there is a full page write up of SCPA in this weeks Shares magazine
-we believe this could be an exciting new growth avenue for a quality stock-

[woodhawk] 30/5/2018 19:14

"Scapa Group (LON:SCPA) had its price target hoisted by Berenberg Bank from GBX 500 ($6.71) to GBX 520 ($6.98) in a research report released on Wednesday, May 23rd. Berenberg Bank currently has a buy rating on the stock.

Separately, Numis Securities raised shares of Scapa Group to a buy rating and raised their price objective for the stock from GBX 485 ($6.51) to GBX 535 ($7.18) in a report on Thursday, April 12th."

[mshafiq] 23/5/2018 16:57

So what happened there then? Went up 10% yesterday and then down again today.

[mfhmfh] 22/5/2018 12:18

Numis upgrades to buy today with target price of 535p.

[meijiman] 22/5/2018 11:37

Just been looking at the chart -seems to find resistance at the 500p level as you say.
Maybe profit upgrades will help it through that level.

[18bt] 22/5/2018 11:03

Major resistance around 500p, but not reason why this won't ultimately breakout and beyond. Forecast PER of around 24x at that level

[meijiman] 22/5/2018 08:55

All very positive here ..outlook as well. Seems like they have released almost the report and accounts as there is plenty to read. Many opportunities in health and industrial. Back to 500p

[woodhawk] 16/5/2018 15:14

Nice to know that the Buffetology Fund has recently increased their holding here by 8.16%, purchasing 200K shares.

[meijiman] 18/4/2018 11:19

The other point is that they may be able to do better than forecasts so the P/E is lower than implied.Would suggest quality of earnings here is much higher than say 3 yrs ago.

[sludgesurfer] 18/4/2018 10:48

True. But growth stocks with double digit year on year revenue growth rarely do.

[typo56] 18/4/2018 08:29

Even without the accident, I don't think they look particularly cheap.

[mammyoko] 17/4/2018 10:39

Market-makers walking this down on low volume

[sludgesurfer] 17/4/2018 09:51

We're talking around £150m knocked off the company's value. Still a buyer here.

[lammylover] 16/4/2018 18:55

HSE fines are now very heavy for serious accidents and fatalities. Check it out for yourselves. Typically £05m to £1.5m even for medium sized companies. This is regardless of whether a company has a good safety record or not. I have been involved in manufacturing for 30 years and had some dealings with the HSE; who I have always found fair and reasonable.

However guarding of machinery is an absolute requirement under H&S legislation PUWER 1998. On top of the potential fine and associated costs, it is probable that the machine will be off line for a period for investigation, guarding upgrade, safe isolation procedures checked, retraining etc.

Lets not forget aa well the impact on work force and morale etc.

Thoughts with family and friends - a tragedy for all involved. Rich

[typo56] 16/4/2018 16:53

Interesting, Numis make no mention of the accident. Chosing to ignore or consider insignificant? They are, of course, the house broker!

"Scapa Group's share price has fallen 18% since the company's trading statement last week and Numis says this makes the stock attractive and raises its recommendation to buy from add. The brokerage considers this an excellent entry point into a company that, since 2013, has delivered Ebita compound annual growth rate of 20%. Numis says further margin gains can be expected in the Industrials unit, as there is an increasingly favorable global GDP growth and construction outlook. The brokerage adds that the Healthcare division is well-positioned at a time of increased outsourcing, in a market that is reportedly growing at a rate of 9%. Shares are down 3.8% at 406 pence."

[sludgesurfer] 16/4/2018 16:52

I agree. I think the market has this wrong. I'll place a limit order at 402 or there abouts. Whilst the trading update was good, it could be argued that it had to be to justify the high multiple. I personally would be surprised to see this company trading independently in a year or so.

[3offthet] 16/4/2018 16:12

mammyoko - agreed. I think this has been oversold, possibly due to stop-losses kicking in. The man was pulled into a machine, which implies poor guarding on that machine maybe or maybe not associated with a poor system of work. There could well be a fine, but I would not expect equipment upgrade costs to be significant. Certainly I can't see enough of a hit to justify a reduction of approx £100m in market cap. I have topped up today.

[richj5000] 16/4/2018 16:09

Certainly overreaction if still producing at Dunstable plant.Terrible thing to happen though.

[mammyoko] 16/4/2018 15:45

Over-reaction. Largest HSW fine last year was £3.8m. Trading statement confirms trading is strong - "Overall Group results are in line with the improved expectations outlined in the Group's October trading update". Sad as it is, the share price will recover from this.

[meijiman] 16/4/2018 15:04

Yes its very serious indeed and no mistake.

[typo56] 16/4/2018 13:40

And other sites could be investigated too.

[sludgesurfer] 16/4/2018 12:55

Market appears to be factoring in a significant HSE fine and/or significant equipment upgrade costs from the recent incident. Or the possibility of an improvement/prohibition notice.
A big blow to Scapa reputationally as well. Good HSE performance is a feather in the cap of any manufacturer, let alone one in the medical space.

[robow] 16/4/2018 12:16

what's going on here?