Synthomer Share Discussion Threads

[robow] 12/9/2019 08:23

full page write up in Shares Magazine today on 'Best ideas' page
The outlook is brighter for Synthomer
The company should benefit from capacity expansion and a deal to boost its position in UK and Europe

[philanderer] 10/9/2019 11:48

Fingers crossed ;-)

[mallorca 9] 10/9/2019 08:00

Yes, I'm in this one too.
Naked Trader felt this could add £1 by winter.
I also see 2020 being strong.

[philanderer] 09/9/2019 12:38

Good to see continued interest :-)

[philanderer] 05/9/2019 21:49

Creeping up lately. Fingers crossed ;-)

[catsneck2] 26/8/2019 22:12

Fill yer boots computercoders, cheap as chips, I just got some for £3, will buy more if it stays around these levels. Would have been nice to get in at the recent lows but hey ho, hopefully onward and upwards, thres a hell of a lot of shares out there looking historically cheap

[computercoders] 25/8/2019 14:04

Where's the next support if it drops further from here? Just noticed Robbie Burns in this - or was as he publishes his stop levels too. I'm tempted to try £5k.

[philanderer] 16/8/2019 13:34

Tricky one ;-)

UBS upgrading from 'sell' to 'neutral' tp 310p

[dippydodaa] 13/8/2019 16:39

Im trying to value these in the next 12 months, somewhere near 450?

[philanderer] 13/8/2019 13:36

Non-exec director buying 184,000 @ 294p last friday.

[philanderer] 09/8/2019 12:54

9th aug Credit Suisse neutral tp 370p
8th aug Berenberg buy tp 360p


Berenberg lowers target price on Synthomer

Analysts at Berenberg reiterated their 'buy' rating on speciality chemicals maker Synthomer on Thursday following the group's "robust" second-quarter results.

Berenberg praised Synthomer for its "pleasingly uneventful" first-half results in what it labelled a "difficult period" for the chemicals sector.

"Shares are now well into their fifth year of continued improvement in PBT, and the valuation would imply a magnitude of downgrades that are simply not materialising," said Berenberg.

The German bank said Synthomer's adjusted pre-tax profits of £70.0m appeared to have been "broadly in line with expectations" and highlighted that "robust margins" in nitrile latex seemed to have offset the impact of recent insolvencies in the paper industry, a key user of styrene-butadiene.

However, the broker lowered its target price on the group's shares to 360.0p from its previous 470.0p mark on the back of Synthomer's recently announced rights issue, higher pensions liability and lower estimates for its core business.

Their lower estimates for the company's sales and earnings mainly reflected the purchase of Omnova and assumed a 1 December transaction close.

The analysts "substantially" reduced their margin and volume estimates for Synthomer's styrene-butadiene rubber latex business to reflect the ongoing weakness in the paper industry and also trimmed their volumes forecasts for the coatings-orientated functional solutions segment, with the net underlying downgrade equating to roughly 4% of underlying earnings.

Nonetheless, said Berenberg: "This pales into insignificance compared with some of the cuts to heftier estimates for industrial chemicals and is clearly at odds with robust, synergy-driven earnings growth and a single-digit P/E."

[philanderer] 07/8/2019 09:23

7th aug Deutsche buy tp 375p cut from 500p

[riostroy] 07/8/2019 08:12

And going down again

[philanderer] 06/8/2019 10:48

6th aug Peel Hunt 'buy' tp 450p cut from 500p

[philanderer] 06/8/2019 10:03

Interim dividend 4.0p per share reflecting an 8.1% increase 👍

[clanger66] 06/8/2019 09:00

You need to look at the details rather than the headline. Yes some parts of the business have faced challenges but part of the reason seems to be down to the sale of their interest in the groups Dubai operations and the Malaysian rubber and resins production line closures in 2018. The difference in operating profit looks to be mainly down to special items so overall the results don't look as bad as feared in my view.

[philanderer] 06/8/2019 00:14

Tin hats on again tomorrow FTSE futures -140 pts at the moment.

[grahamnash] 05/8/2019 13:56

Hi. I'm wondering about getting into SYNT in a small way after results tomorrow (despite warnings to the contrary, above!). I notice that the borrowing limit has been raised to 1.5 billion at recent Extraordinary Gen Meeting. Anyone know the reason for this??
Cheers.

[riostroy] 01/8/2019 11:02

Now all who joined new placing become fooled. They all could have bought now.

[philanderer] 31/7/2019 09:22

Maybe those who took up the 5.5million shares in rights issue rump placing yesterday at 302.9p may have had a nod and a wink re the interims ? ;-)

[riostroy] 31/7/2019 03:38

I am afraid SYNT intensively issued new shares in such a rush before interims because the trading is bad.