Scapa Share Discussion Threads

[value viper] 23/6/2020 16:07

Institutions backed it in an oversubscribed placing at 105p recently- shares reached 130p level shortly after. Investors have a right to be disappointed short term with this update which was wishy washy - fact. I don’t agree with your 11x book value - I have 97p book value per share for 2021 so we are at book value now (on a forward basis) depending on what info one wishes to focus on.
I agree investors require patience.

[farrugia] 23/6/2020 14:46

what i like about this share is that directors interests are aligned - they bought shares in 2019 in substantial amounts at much higher levels (180's) and have also bought in good numbers in the rights issue. Not sure what the market expected - if they thought this was a big impact just wait until the other companies release their earnings! Scapa's future prospects with the additional funds from the rights issue are much better now.

[bulltradept] 23/6/2020 14:25

Buyers stepping in now.

[mallorca 9] 23/6/2020 14:24

I quite like the look of this one as a recovery play.
There was strong Institutional support for the placing including new institutions.

I'm going to buy a few and tuck them away.

[pugugly] 23/6/2020 14:17

VV - I suspect they were on the most possible bright side - Heavy for ahead and no fog lights - Any brighter and the reflection off the fog might have dazzled the market and made them liable to have their collars felt by PC Plod if they then involved in a crash !!! To use an analogy - (Not however a Wirecard situation)

[cyberian] 23/6/2020 12:24

I like the CV of the new Chairman, and see a lot of the write-downs as clearing the decks...product range is fine so should recover positive sentiment in due course. They have also been quite prudent in cutting some costs and overall I think they are in reasonable shape for a general market improvement...we shall see.

[discodave4] 23/6/2020 11:12

'Also, looking forward, they are highly unlikely to be profitable now or in the coming few months, given the drop in turnover. So H1 is not going to be particularly pretty.'They already stated that Q1 and Q2 will be impacted back in May so priced in.

[nw99] 23/6/2020 11:10

Long term great products will all be fine

[cjohn] 23/6/2020 10:53

NW99 "However, profitable, plus debt a lot lower due to fund raise post yr-end."




From the results: "Adjusted earnings per share3 decreased 34.4% to 12.4p (2019: 18.9p) ; basic loss per share 31.9p (2019: earnings of 5.3p)"

So if you exclude all the negative developments that made them record a thumping great loss, then they were profitable.

Also, looking forward, they are highly unlikely to be profitable now or in the coming few months, given the drop in turnover. So H1 is not going to be particularly pretty.

[discodave4] 23/6/2020 09:31

Revenue up 5% more than what they expected in their Feb update and trading profit as forecast. Adjusted eps puts this on a PE of 8.5, still good value IMO, as posted by others their outlook lacks clarity!.

[smithless] 23/6/2020 09:04

For what its worth Berenberg raises Scapa price target from 140p to 150p with a buy rating

[ayl30] 23/6/2020 09:02

There's vague and vague. They chose the wrong one In their wording! To sat things are going better than expected and couple with a statement it's slower is downright confusing and probably responsible for the mkt reaction. Let's see what the analysts say

[value viper] 23/6/2020 09:02

Seems fair Wood

[woodhawk] 23/6/2020 08:56

I suspect they're being 'vague' because they have as little idea of what the immediate future holds as the rest of us.

[value viper] 23/6/2020 08:50

Maybe they being vague perhaps to increase the company's vulnerability ahead of a bid ? I do wonder if they are in sitting duck territory but no NRI

[value viper] 23/6/2020 08:46

Agreed - the recovery potential remains but there is little to get upbeat about in the words today hence the drop. The only comment about current trading was a mixed message - better than predicted but not ? Additional director buys would now assist.

[mallorca 9] 23/6/2020 08:45

Record revenue and Directors and senior team taking up shares at placing.

Interesting.

[sphere25] 23/6/2020 08:38

Nice trading share this but when a company puts out a statement like that it does make you sit there scratching your head.

It's akin to the government's advice on going out and going to work a short while back. You can but you can't but you can - all very Little Britain "No but yeah but no but yeah".

Basically, it looks like they are doing better than expected, except they might not be :-D

[sphere25] 23/6/2020 08:25

"Year-to-date trading better than initially forecast under Scapa's COVID-19 scenario, but recovery is at a slower pace"

Erm...

[woodhawk] 23/6/2020 08:21

No position at the moment. Guessing on a drop near term, but essentially waiting for the dust to settle, Fizzy. Hoping to extend gains in another old favourite, HGM, at the moment.

[fizzypop] 23/6/2020 08:08

What do you reckon Woody?

[john09] 23/6/2020 08:04

Meh. Can’t see anything to make me re-buy