Scapa Share Discussion Threads

[woodhawk] 10/6/2019 11:42

Looks like my excellent luck trading this share is paying off yet again! Marvellous stuff.

[marmar80] 10/6/2019 10:26

Yeap looks like the pressure is on. This makes me feel that 225 short term target will be achieved with no doubts.

[superstardj] 10/6/2019 08:47

A lot of institutional pressure behind the scenes in support of Heejae staying has paid off.

[marmar80] 10/6/2019 08:28

This is certainly a good morning here. The boss is postponing his departure until the Convatec case is clered or a new revenue contract is secured. Back to 200+ in a few days imo.

[18bt] 10/6/2019 07:39

Heejae’s back and we have some firmer numbers.

[marmar80] 06/6/2019 09:49

I think it will end in blue anyway. Buyers will wake up soon.

[bulltradept] 06/6/2019 09:33

£1.50?

[marmar80] 06/6/2019 09:26

Entry price is very attractive again

[stopstopgo] 05/6/2019 08:46

sludge

"I'm not sure how a judgement could be made without the evidence being presented"

Come on now, this is America, don't all citizens have a duty to follow presidential example?

[sludgesurfer] 04/6/2019 17:55

I agree - further clarity required all round. I'm not sure how a judgement could be made without the evidence being presented? Are you saying that the judgement does not require the evidence to be submitted to SCAPA?

[bookbroker] 04/6/2019 16:13

That makes no sense unless there is a clause in MSA, but SCPA needs to request an explanation, however the declaratory judgement does not obligate CTEC to proffer a reason.

[sludgesurfer] 04/6/2019 15:44

The IC article says that the ConvaTec notification was related to the acquisition by SCAPA of Systagenix last year which gave ConvaTec grounds to want out.

The RNS also states the following:

"The MSA provides for a binding contractual commitment for a minimum circa. US$30m of revenue per annum"

Key word is minimum.

[woodhawk] 04/6/2019 11:04

SP has fallen from 400p to 150p - that's an awful lot of pessimism and panic in the current price!! As with so many other companies, the draconian punishment meted out by the market is likely well overdone, imo.

[alotto] 04/6/2019 10:41

Watch Scapa is a manufacturing company. Manufacturing companies are operationally geared meaning that a loss on revenue can have a strong impact on margins.
I don't know to what extent a 10% loss of revenue will be reflected on the margins. That is something that I would appreciate if it is the company to advise.
Interesting also the reason for ConvaTec to cancel the contract.
Was Scapa fulfilling the contract from their end with materials up to specs, delivery on time in full etc?
Is this scenario likely to be repeated with other clients of them?
These considerations may have caused the share price fall.

[woodhawk] 04/6/2019 10:23

"it remains to be seen whether ConvaTec will be able to cancel its contract, which has three years outstanding."

- obviously there would be a penalty clause, or equivalent, in SCPA's favour, otherwise the contract would be nigh on worthless. And even in the unlikely event ConvaTec could withdraw without penalty, the fall in SCPA's value looks ridiculously overdone.

[robow] 04/6/2019 10:00

from Citywire

Scapa plunges on contract loss

Berenberg is expecting significant earnings downgrades at Scapa (SCPA) after one of its largest customers cancelled its contract with the specialist chemicals group, sending the shares plunging.

The stock fell 47% to 157p yesterday after Scapa announced that ConvaTec has served notice on its contract, which analyst Benjamin May said could result ‘in a loss of revenue in the region of $30 million’.

‘Assuming typical gross margins, we believe this contract loss could see earnings downgrades of 20%,’ he said.

However, it remains to be seen whether ConvaTec will be able to cancel its contract, which has three years outstanding.

May said the full-year results from Scapa showed ‘strong progress, particularly in growing its latest healthcare supply agreement with Systagenix’ but it was clouded by the resignation of the chief executive who was ‘instrumental in the company’s success over the past decade’.

[marmar80] 04/6/2019 09:45

Convatec will be in trouble when Scapa finds a clause in the contract that requires them to reimbuse any losses the early termination caused. Business is business and no cry. Scapa should look now for a substitute and make Convatec pay a fine. Onwards and upwards lads.

[bookbroker] 04/6/2019 09:31

Until CTEC explains why it terminated the agreement SCPA somewhat in the dark, but wound care a growing market and this is where the company is focusing much of its resources. Probably has fallen too far, CEO still there despite advising on his departure, market spooked a little following that announcement, but there ten years and a new broom likely necessary at some point. The CTEC news blindsided SCPA, so a bit of sense required, a hit to profits but it can most likely be replaced in time by growing its market, either that or it is a sitting duck for being taken over itself!

[marmar80] 04/6/2019 08:41

I did re-read the news and recent performance report and think even more now that the share price tanked too much yesterday. Loss of £23m revenue per annum caused a drop of over £200m in mcap. In addition Scapa should get some money from Convatec for the early termination. Company is expanding and making money so no rational reason to sell at this level.

[marmar80] 03/6/2019 23:20

Weird rns. Did Investec buy small 2k today?

[bookbroker] 03/6/2019 22:19

That means it is a buy!

[sludgesurfer] 03/6/2019 22:13

From a buy to a sell in the space of under 2 weeks...https://www.investorschronicle.co.uk/shares/2019/06/03/scapa-prepares-legal-action-against-convatec/

[woodhawk] 03/6/2019 15:44

Sold some at 175p, back in at 157p.

[big brother8] 03/6/2019 15:40

Moving from one disaster to next.

LOON.





tsmith23 Jun '19 - 13:52 - 1141 of 1155
0 0 0
if it moves to £1.8 does it gap up to £2? just had a nibble at 173



tsmith2 - 17 May 2019 - 10:18:06 - 1971 of 2675 Staffline Recruitment - STAF
FY EPS will be 71p - 550-600p would be reasonable