Ask is below indicted share price again ! |
Good. We agree then that takeovers are not uncommon in declining sectors.
Unfortunately, you've failed to understand the rationale for takeovers: economic actors calculate the value of their target and pay accordingly, if there's an edge. Given that SNWS is trading at around a PE of 5 and a very low PFCF, there is manifest motivation and margin for a takeover. Moreover, anyone with any capacity for company analysis can understand that SNWS is highly likely to sustain high cash flow for several years at least.
In absolute terms, no company has a high probability of being taken over, so for me, personally, it's not a consideration.
The fact that the then very different SNWS was in trouble a few years ago is irrelevant to their current position. That's a really weak suggestion. It's known as restructuring. It does happen you know. |
Consolidation with another similar declining Company is likely however the valuation of SNWS would not be at the current share price price , much lower .
Unless , SNWS is buying or taking over some other Co. to boost Revenue .
SNWS has tried it before in the past and failed miserably and SNWS almost went under .
The CEO won’t even dare to talk or think going this route again 😃 |
You are wrong. Consolidation in declining sectors is common. |
Are you lot day dreaming for a takeover , nothing better to do !!! 😃
No one in the right mind would takeover a declining revenue Company . |
As the FD will be leaving in a few months this could be perfect timing for a bid to emerge and I would take 6x EBITDA whilst there is a Summer sale on stocks |
Any decent size logistics company is a potential suitor - remember that InPost acquired Menzies Distribution last year for 7-8 x EBITDA:https://www.parcelandpostaltechnologyinternational.com/news/e-commerce/inpost-acquires-100-stake-in-menzies-distribution-limited.htmlSNWS currently valued at less than 3x EBITDA |
AISHAH - thank you for your post. Unfortunately the link doesn’t seem to work if you are not a subscriber. Who (and why) would buy Smiths please? |
Tomorrow should be interesting ! |
Wrong smiths thread meant for Smith industries |
Which SNWS products do you think have import duties ?They are just a distributor. As far as I am aware, all the products they distribute are printed or sourced in the UK. No tariffs !! However, there is a possibility that some of the football cards are sourced from Europe. Remote possibility. But.... That is also zero tariff !!Not sure why you even mentioned import duties. Do you know something ? |
Many of their products will be bought regardless of import duties, no? |
 Hello CJohnalt,
They are cheap prices so long as Trump doesn't cause a deep recession or some form of systemic meltdown (in which case the FED will have to step in). The markets are having their oversold technical bounce, but it would be a brave person to call a bottom here.
I'm not that brave! Too uncertain, especially with China coming out with the gloves on. China vs US is going to be an interesting battle.
Anywho, your point on the yield is why I picked some up yesterday under 48p. I'm having that yield. I picked up a few FRP this morning. Wanted to buy PGH at 220p - directors beat me to it.
Mentioned RFX yesterday and they came out with a beat today so that's one for the buy list on weakness. I was looking for an oversold bounce trade in VLX and they came out with a beat the day after posting there too! So missed em both! Ha
So it's all swings and roundabouts out there.
Whipsaw City! This sort of market can give everyone the run around, regardless of experience.
But yeah, this defensive yield approach could be the way to ride out the volatility until they calm down over there in the US.
Prices will keep lurching about, but I think some of these defensive high yield plays are hammered enough right now so I'm nibbling away at them on weakness.
Let's see.
All imo
DYOR |
IC - '30 Stocks which could become Takeover Targets', SNWS amongst them. |
Hi sphere 25,
Interesting long post of yours from a trading perspective.
Note that the high yield -that you mention - reflects high free cash generstion.
Yesterday they were at almost an 11% yield. And PE of less than 5. These are crazy prices. |
Very dark outlook for shareholders. |
'I've been happy to make value purchases in sectors in long-term decline and in companies therein with declining revenues. I strongly disagree with the prevailing mindset amongst many naive private investors that growth is the be-all and end-all.'
Quite - something that is lost on those who think they know far more than they do. |
1knocker - Full set of orders book - why share price still falling !!!! So you are lying 🤥 pal |
40p would be very nice |
.
First holding for me here today
will buy more later on if falls further in market panic |
supertrader, spare us another round of growth investing!Don't you remember how well [not] that turned out last time?
A full future order book, profits, careful cost management and debt reduction while paying a substantial dividend will do me just fine. |
I've picked up a lot more of these in the last couple of trading sessions. I bought originally in the high twenties some time ago and happy now to add in the tariff panic. As This-is-me says this has no exposure to the US.
Growth would be an EXTRA. And there is certainly growth in the extension of SNWS's early morning distribution network to other commodities apart from newspapers and magazines. Whether that growth outweighs the decline of the core distribution business - time will tell.
However, over the years, I've been happy to make value purchases in sectors in long-term decline and in companies therein with declining revenues. I strongly disagree with the prevailing mindset amongst many naive private investors that growth is the be-all and end-all. |
Customisable watchlists with full streaming quotes from leading exchanges, such as LSE, NASDAQ, NYSE, AMEX, Bovespa, BIT and more.
Hot Features
Premium
