Synthomer Share Discussion Threads

[richardbroughton] 11/7/2014 10:59

Had these a while, from 160. Sold some at 2.80 to use last years CGT allowance, obviously should have sold more but hey? Bought back this a.m. at 208, target 230, think oversold but been wrong before!

[bigbertie] 11/7/2014 09:49

Actually it reads almost word for word the same as the statement on 1 May. The main difference is that it puts some numbers on it. There is really little change except that the adverse currency impact is now expected to be £1m worse than they thought.
Profit before tax in 2013 was £59m reported and £90m underlying. The difference is mainly amortisation of intangibles which will presumably be similar in 2014 as there is still a pile of intangibles in the balance sheet. So if they make the same as 2013 it's not too bad. The problem is that they assume a firming of nitrile latex demand and margins in the second half.....will it happen?

All in all I think I could dip back in now.....but no advice intended. Good luck

[luckymouse] 11/7/2014 09:31

Agreed - they are trying to sell it as in line but the word *Broadly* stinks

Given that boards can spend days arguing over the wording to give the best gloss possible - if that's the best they could come up with it could easily be interpreted as a warn - IMHO avoid

52w low is 189 - I wouldnt be surprised if that gets tested

ATB LM

[slogsweep] 11/7/2014 08:17

profits warning. Broadly in-line with this year sounds like 60m rather than 90m forecast which is 1/3 down just about the fall in share price from 292 in April. They have just built a factory in Asia i recall which is where they are having problems with competition. I don't see currency problem as all bad as they might be able to switch more production to Asia for sale in UK and US. I wait a little longer till the dust settles now the news is out.

[bigbertie] 09/7/2014 10:16

the plunge continues - my graph still looks horrible - I don't think it's finished yet. no advice intended.

edit (10th July) now down 25% since 4 April. Getting hard to resist going back in!

[bigbertie] 24/6/2014 10:57

PKA3 - JPM said underweight at the start of April but shares have fallen over 15% since then and yesterday a company related to JPM raised their holding to over 5% (see RNS on 23rd). On 18 June JPM re-iterated underweight with a target of 232p so maybe they are reconsidering now that the shares have just about reached the target.........I'm thinking of buying but still waiting as the graph looks horrible. Good luck

[pka3] 08/4/2014 12:19

Quote from Advfn news "Chemicals business Synthomer was trading firmly lower after JPMorgan Cazenove downgraded its rating on the stock from 'neutral' to 'underweight' after an "impressive" 40% run over the last 12 months. The bank said it sees this "as an opportunity to take profits" with the valuation now looking "stretched".

So nothing wrong with the company ..... Just an bit of profit taking ..... fxxkers.

[garbetklb] 08/4/2014 10:09

Any ideas for the big drop today? No RNS

[bigbertie] 04/4/2014 10:13

My worries in post 102 don't seem to have been realised (yet). Most of their profit comes from Europe & N America where business is weak (ENA op profit was down 10% in 2013 v 2012). So why so strong? Standard Life have put lots of their investors' money into it - their nominee a/cs own 13% of the shares. They must be very confident, but I'm still holding off.......all IMHO, anyone got other views?

[bigbertie] 12/2/2014 16:09

I think this is getting un-nervingly high, especially with continuing worries about European economies and currencies. I have pulled out for now. Dyor of course and good luck all.

[richardbroughton] 10/1/2014 16:19

No idea but it's a luvverly share!

[johnsoho] 10/1/2014 16:08

SP really motoring upwards today :) anyone heard anything or knows the reason why?

[bigbertie] 23/12/2013 09:31

This has had a good run, but looks like it's feeling dizzy at 250p! I still think it will eventually get a bid from a European company - they seem to like buying basic sorts of companies like bulk chemicals and cement.....

[major clanger] 18/9/2013 15:46

Broker upgrade:
Jefferies - Buy from Hold - TP to 305p from 220p
More here:

[beazer2] 15/9/2013 16:32

Hargreaves Lansdown rates SYNT a buy at 228p.

Synthomer is a leading European and Asian manufacturer of polymer chemicals for use in the construction, paper and healthcare industries. Over the last two years volumes at its European operations have declined by 15 %, heavily impacted by the EU recession. However, the company has nevertheless been able to hold profits broadly flat as synergies from a large acquisition and organic investment in Asia have offset a majority of the volume weakness.

Prospects from here look encouraging , as recent economic data suggests that European economies are set to return to growth. Synthomer is currently trading on just 10 times earnings , in what we believe will prove to be the trough in the current earnings cycle , providing investors with an attractive opportunity to participate in both a recovery in earnings and , in time, a substantial rerating.

[dr biotech] 24/8/2013 20:43

Interesting tip. Not sure how much growth there is in the markets they are in though.

[bigbertie] 19/8/2013 10:06

Definitely a hold for me, despite Mrs Alexander Catto offloading 200,000 shares (Mr AC still has beneficial holdings of 1,746,000).
My graphs have recorded a golden cross - I plot only the weekend prices, so my graphs show long-term trends. I expect a drift back from 230p before it moves ahead again. All just my thoughts - DYOR and good luck.

[major clanger] 13/8/2013 15:50

Today's broker recs & comments:

Canaccord Genuity - buy (unchanged) - TP to 248p from 253p
Morgan Stanley - overweight - TP 280p [unchanged]

Full story and comments here:

hxxp://www.brokerforecasts.com/news/article/articleId/4649919

[robow] 13/8/2013 14:07

nice turnaround today

[libertine] 13/8/2013 09:33

13 Aug 2013 Synthomer SYNT Morgan Stanley Overweight 201.50 206.00 280.00 280.00 Retains

[beazer2] 13/8/2013 07:57

Somewhat downbeat although reduction in debt, increase in divi and in Asia trading go some way to counter the negativity about Europe. Signs of growth in Europe should assist SYNT.

[beazer2] 12/8/2013 17:39

Interims due tomorrow

[foxman14] 07/8/2013 16:37

Bought back in today on the basis that on a p/e of less than 10 if it gives some sort of positve news then there should be plenty of upside. If it doesn't hopefully downside will be minimal. Bring on next week!

[chickcrumbs] 23/7/2013 14:31

Bought back in this morning at 202.3 here's hoping we get a nice rise up to results and maybe some good news.

[liam1om] 16/5/2013 15:30

I actually thought it might fall more, in fact I wouldn't be surprised to see this back below 200 within a day or two.

It's risen from 180 on the lead up to today's results and they've disappointed. You may get a few sellers taken profits.