Synthomer Share Discussion Threads

[mrminister] 23/8/2023 12:21

wtf .....getting wacked every day ...dear me ...7th sep interims

[wigwammer] 22/8/2023 17:34

But it is repeatedly an MM taking stock off a seller, at sub the mid price. Which means tomorrow the MM has to offload (again...)

[darrin1471] 22/8/2023 17:01

Closing auction looks normal size for SYNT.
Daily volumes have increased the last 5 days and the price has dropped.

[wigwammer] 22/8/2023 16:41

300k or so dumped into every U/T. Surely there is a brainier way of discarding such a large amount of stock...

[wigwammer] 18/8/2023 09:31

I notice the enterprise value is now about what it was in 2018/19 prior to the Omnova and Eastman acquisitions..... you are now getting both for free ... combined purchases added £1Bn+ revenues and not a bad mix either... yes they have divested laminates but they also operationally generated hundreds of millions in equity during the covid boom phase... atb

[wigwammer] 17/8/2023 08:35

I don't think the debt is eye watering. SYNT is a multi billion revenue company with the potential to earn £300m+ EBITDA as margins recover. £800m net debt with the potential for more disposals to reduce it further is not particularly alarming.

[johndoe23] 16/8/2023 21:44

Well, debt is eye watering

[pottsypotts] 16/8/2023 20:46

So glad I sat on my hands with buying these ( wish I could have said the same with some other stocks lately)They getting hammered due to the longer/higher interest rate forecast

[hamhamham1] 01/8/2023 09:58

Topped up today.

[nomolos1] 25/7/2023 07:09

Yes of course - but that's the whole business - the NBR business pre pandemic was approx 90m ebitda.

[wigwammer] 24/7/2023 21:17

Hi nomolos.. if they reach target 15% EBITDA margins, or £330m+ EBITDA pa, won't that enable pretty material debt repayment?

[nomolos1] 24/7/2023 21:13

Is destocking of gloves the silver bullet?There's a good business here but looking at a normalised year for NBR even with inflation growth and some GDP isn't going to eat the debt quickly.Latest acquisition has to start pulling its weight. Own some, but not adding until I see progress with the Eastman deal.

[tuftymatt] 24/7/2023 10:16

If they end up in the pound stores then I bet they do a deal where if you buy two pairs you get a free share!!

[geniechem] 24/7/2023 09:27

I work in the chemical sector, shelf life is some circumstances is like a cars MOT, you don't throw it away because the year is up, just renew it for another year.If out of date they will be moved on to third world countries or pound stores as another option.

[wigwammer] 23/7/2023 20:23

Yes Pete.. but even if the shelf life is longer, is it not mostly about the product being disposable after use? I think Buffett cited the razor blade model, and razor blades probably have a shelf life running into decades.

[hamhamham1] 23/7/2023 06:51

Perish the thought of it ;)

[gary1966] 23/7/2023 06:51

Latex 3 years, Nitrile 5 years. These are average figures. Nitrile gloves have been known to last 10 years with no degradation.

[pete160] 22/7/2023 22:51

I don't know, but what's the shelf life of a box of unopened gloves? I'd imagine the ones ordered in 2020 /21 are coming up to the end of life, in hygiene critical areas at least?

[hamhamham1] 22/7/2023 18:54

I upped my holding this week.
Time will tell

[wigwammer] 19/7/2023 08:30

Hmm.. I suspect that once the inventory is worked through, the world will need to buy more disposable gloves again

[scepticalinvestor] 18/7/2023 17:54

Hard luck. Never a good idea to chase after a pipe dream. The world has more than enough hand gloves

[mr euro] 18/7/2023 15:21

Sold for a big -40%. Big holding too. Better places for capital, showing no signs of improving.

These falling knives.

Takeover time now I'm out.

[muzmanoz] 18/7/2023 12:37

The debt covenant on the rcf areCovenant temporarily set at higher levels for prudence as part of agreement:– Net debt:EBITDAJun 2023: 6x,Dec 2023: 5x,Jun 2024: 4.25x,Dec 2024: 3.5x

[nomolos1] 18/7/2023 12:37

Not good - don't seem to be making much progress on any fronts, and lots of promises made for the back 6 months.

[aringadingding] 18/7/2023 12:25

Anyone know how 5.5x ratio of net debt to EBITDA sits relative to covenants agreed at last refinancing? Interesting they describe the £400m as "committed capital" rather than "borrowing headroom". The whole thing has a cautious tone which I don't have a problem with. I agree with comment above re cylicality. Hopefully inflation will impact prices, then interest rates come down, prices stay high thus margins come back.