Synthomer Share Discussion Threads

[hybrasil] 20/6/2023 13:53

Apart from a brief period in 2008 when it briefly hit .40p this is at one of its lowest ebbs. The risk/reward is good.
Thank you hamham for that article. I’m not going to hit the buy button yet but getting close

[hamhamham1] 20/6/2023 12:56

This is down coz of this company, and a sector wide slump.
It will recover, but hey.

[salpara111] 19/6/2023 11:30

Now pricing to exit the FTSE 250, we've only just had a review/reshuffle so they have almost three months to turn things around.

[edmundshaw] 16/6/2023 11:55

The debt is the worry. But yes, the PER does seem a bit light - so I added. But perhaps not one for widows and orphans...

[tuftymatt] 15/6/2023 19:14

Yeah I agree but it's so unloved right now when will the rot stop????

[justiceforthemany] 15/6/2023 17:24

If that is true then practically every sector has been selling down for months now. Only AI and Tech have held up. Total con.

[sbb1x] 15/6/2023 10:50

The trend is your friend

[pottsypotts] 09/6/2023 13:58

Nothing very rational about the share market

[muzmanoz] 09/6/2023 13:09

The debt covenant on the rcf are

Covenant temporarily set at higher levels for prudence as part of agreement:
– Net debt:
EBITDA
Jun 2023: 6x,
Dec 2023: 5x,
Jun 2024: 4.25x,
Dec 2024: 3.5x

No idea what they are for the bonds

[marvin tpa] 09/6/2023 12:58

That would make sense, although SYNT has already been battered by the market over the last 3 months so seems harsh to get another kicking based on another company's woes.

[pottsypotts] 09/6/2023 11:02

Fall out from Croda's results today maybe

[nomolos1] 06/6/2023 08:27

The debt covenant relaxation is maxed in June at 4.75 - and needs to be back at 4 by December by their previous updates There's only so many levers for the board to pull - selling the laminates business brought in cash but sacrificed good ebitda, I'm sure they'll be looking to sell other non core businesses but how in the current malaise.It seems the market are smelling out what the next viable lever is - and are just waiting to see at what price the raise. It's a hold until then for me.

[justiceforthemany] 05/6/2023 14:08

2 million x2 buys today.

Debt situation is overblown.
Calculate the equity ratio!

[boystown] 04/6/2023 17:46

There are lots of shares around at the moment which may prove very cheap with hindsight in a couple of years' time - but few as solidly so as SYNT IMO.

Of my current stable, I think HEIQ has the most potential to multi-bag, along with NWT and CPP, whilst solid asset value plays abound including DRV AIEA IPO BWNG ARIX COST CAM TND FIH PDL EPIC CNKS NTBR RECI WYN. But if looking at reasonable earnings multiples and recovery, few match SYNT and KLR IMO.

This all FWIW and none of it for widows and orphans - but it will be interesting to review this lot's progress around three years from now.

[uhound] 03/6/2023 11:27

Higher revenue but lower income - not a good business mix!

Desperately need to get the income up and pay down debt.
Are these deals going to achieve that? 😟

[justiceforthemany] 01/6/2023 21:10

Market cap down to just £400M, debt being main concern but revenue almost £3 Billion!

[brucethegoldfish] 26/5/2023 18:29

Topped up today at sub-£1.

A mid-term recovery play with potential for 2-3x at these levels.

[hamhamham1] 20/5/2023 11:25

From The Times at time of deal...

"Synthomer is paying for the deal via its cash reserves, £205 million raised from new shares that were successfully placed yesterday, and £300 million of its debt facilities."

"The new shares were placed at 485p, a small discount to the prevailing 493p price at the time of trading. Kuala Lumpur Kepong, the Malaysian palm oil and rubber plantation multinational that is Synthomer’s largest shareholder, bought into the placing to retain the size of its percentage stake."

[hamhamham1] 20/5/2023 05:45

Yeah, the Eastman purchase is what dropped this share price, although a lot of it was paid for with cash, a share raise (near £5?) and a fair chunk of borrowing.
Thus put a strain on the business profits, but IMO they are tackling it, so give then 2-3 years and you will see your £3 a share again I feel.

[nomolos1] 17/5/2023 07:36

The argument that it was £3 + pre covid and will get back there is missing what this company is guiding. The pandemic showed how a globalised supply chain for PPE doesn't work - so countries will now secure their own NBR capacity. It's a structural change. The Eastman purchase lines up with the company strategy but they're struggling to make it work. Trading update sounded promising but I'm doing nothing with these until results.

[al101uk] 16/5/2023 11:05

Cyclical company and the cycle changed, that was compounded by a bad purchase at the top of the market. I think it'll be a while before we see £3 again, trading conditions need to improve and debt needs to be reduced. It's a long way back from here.

On the positive side, things should start to improve over the next 12 months and once we start seeing that improvement we should see a corresponding move in the share price. Given the company has been valued at £5 in the good times (albeit with fewer shares in issue), it's not impossible that we see a much higher share price from here in a year or two.

Not buying more at the moment, but happy to sit on the shares I have. Barring another calamity I think we're at or close to the lows.