Synthomer Share Discussion Threads

[brucethegoldfish] 21/10/2022 07:31

When did Qatar by their stake?

[geniechem] 20/10/2022 16:23

As much as I wanted to stay buying in at 94p, the dept is too high for me and if the market tanks, which it will at some point, this will most likely go with it. Sales will be falling over the next year due to recession so I've sold. Didn't feel comfortable.

[gary1966] 20/10/2022 16:20

There is no dividend to cancel!! Any proceeds of sales should go 100% towards reducing debt levels which in turn will start to restore the share price.

[aringadingding] 20/10/2022 14:38

Shares now up more like 5% today... a lot like more than what I would expect given the clearly good news in the RNS today about bank covenant easings.

Here is a thought:

If there is no new equity fundraising then any impacts on EPS of restructuring ought to be fairly minimal.

For example they can sell off assets, which reduces EBITDA, but then you have cash in, and you can use that to reduce debt (thus interest costs) or buy back shares (boosting EPS). Similar for cancelling the dividend.

So yes ok energy costs have gone up and the cost of their debt will go up over time, but their revenue (thus nominal pricing forecasts I guess) have gone up also, and weak pound is good. 2017-2019 EPS was circa 25p so we could be looking at a pretty low forward PE situation here.

If anyone has recent/up to date EPS forecasts they would be much appreciated.

[libertine] 18/10/2022 15:54

Berenberg Bank set a target price of 160 GBX for the company, which when compared to the Synthomer PLC share price of 93 GBX at opening today (18/10/2022) indicates a potential upside of 42.0%. Trading has ranged between 83 (52 week low) and 524 (52 week high) with an average of 3,038,236 shares exchanging hands daily. The market capitalisation at the time of writing is £439,062,157.

[tuftymatt] 17/10/2022 15:46

I hope they don't get an approach unless it's for north of £2.50
We were there just a few short months ago with a dividend to look forward to also.

I am happy to slowly add in the coming months and hope this now becomes a decent recovery play.

[gstarkey] 17/10/2022 15:41

Numis are one of their advisers so if they talk of a possible equity raise that view will have been blessed by the company. Ergo, it’s probable. Board is dysfunctional if it declares a dividend in August which it then cancels in October. A sizeable disposal would transform sentiment if it obviated need for an equity raise. Agree this is very vulnerable to an opportunistic bid from an overseas trade buyer at 90p but premium will have to be huge for the Board to recommend - like 100%, which I can’t see happening.

[geniechem] 17/10/2022 10:22

Or be bought out at these levels by a competitor, bought in at 94p so hoping a good offer is received during the next 12 months.

[hamhamham1] 16/10/2022 16:28

For me, this well tick by and be leaner, and more focused, ready for the inevitable economic upturn.

[fuji99] 12/10/2022 17:12

"Switched to CURY (LSE" - The worst place to be !!! Who is going to buy what with inflation all over the place and swimming deep in a recession ? What a disaster ! Better have a curry with basmati rice before you realize you are in a deep hole.

[blackhorse23] 12/10/2022 15:39

Switched to CURY (LSE) , still paying dividend & no DEBT

[sbb1x] 12/10/2022 15:35

Gap to fill @96

[aringadingding] 12/10/2022 14:43

Brucie5, very welcome I just hope it comes true. The name is a line of Bill Murray's in Lost in Translation... not original I'm afraid!

[tuftymatt] 12/10/2022 14:42

I hope so and it can slowly build from there too overtime.
Thank you muzmanoz 👍🏻

[sbb1x] 12/10/2022 14:02

See this going back to a quid pronto

[babbler] 12/10/2022 13:48

ignore that post. Stupid phone.

[babbler] 12/10/2022 13:47

I went long at 84

[sbb1x] 12/10/2022 13:37

Big buying opp down here

[my retirement fund] 12/10/2022 13:21

It looks a decent business at this level it could be in danger of being taken out by a foreign predator.

[muzmanoz] 12/10/2022 12:45

The presentation this morning was quite interesting. Need to rewatch it as it went on for two and a half hours.

Looking to streamline, already in talks with parties regarding the sale of one part.
£450m uk export finance agreement
£150m to £200m in cost savings to come (£100m working capital, rest dividends)
In talks with banks about refinancing/covenant changes
Margins holding up, costs passed on, raw material costs currently dropping
Nitrile gloves changed tac on reporting but could still change quickly

[sbb1x] 12/10/2022 12:40

Bid and ask rising now.