Synthomer Share Discussion Threads

[turvart] 17/10/2023 09:56

The RNS today was reassuring seeing the CFO buying 20000 shares at 205p

[turvart] 15/10/2023 16:05

lonrho,

Yes I have left in goodwill as SYNT is a going concern and as of yet not being broke up by receivership, most of the goodwill would have been from the Eastman's acquisition and any previous acquisitions adjusted, as Eastman's was only purchased on a P/E of 8 from memory (I will be corrected if I'm wrong on that) then I consider the goodwill to be an asset.

The EPS figures will look so much more attractive now from next year regarding full year results as there is now only approx 163.5 MLN shares in issue rather than the previous 468 MLN shares. This is why SYNT is a longer term investment rather than a quick in and out (Not saying that can't be done either at these levels).

[lonrho] 15/10/2023 13:01

Turvart, think you left in goodwill which is also an intangible asset,take all intangibles out and net assets were approximately minus 50 million at the half year and so tangible assets now are just over 200 million.

[red well] 15/10/2023 11:51

Thank-you Turvart - very helpful!

[turvart] 15/10/2023 08:55

Let me just quickly show people why SYNT is so under valued.

These are figures taken from the 6 months interim results ending 30th June 2023.

Total assets including intangibles = £2.681 BLN

Total liabilities = = £1.718 BLN

This then gives Net assets of £963 MLN.

If I actually then write off the Intangible assets (Because Intangible assets can be debated what there actual net worth is) then SYNT have 963 - 543 (Intangible assets).

= Net assets of £420 MLN (Excluding Intangible assets)

We then have the money from the Rights Issue of which should be after expenses some £261 MLN.

So this is what I would IMO refer to as NAV = 420 + 261 = £681 MLN

With approx currently 163.5 MLN shares in issue now this gives:

681/163.5 = NAV = 416p

[vulgaris] 13/10/2023 08:48

Now down to the rights price.

[sbb1x] 11/10/2023 16:41

New 52 week low 208

[meijiman] 11/10/2023 15:42

Come on institutions. When the dust has settled on the rights get together to oust this useless Chairwoman. The newish ceo can probably stay as he is only trying to repair the damage the Chairwoman oversaw on her watch. As before the non execs are a supine bunch of dead legs. THE FD may be good on numbers but that's about it.

[wigwammer] 11/10/2023 09:47

With respect turvart, I don't think we are at 10.75p old money. Post RI number of shares will be around 165m or a market cap of around £350m now. Using the "old money" number of shares of 470m, would get us to around 74p in old money. The benefit now rather than then, is that net debt should have reduced by around £250m, to hopefully less than £600m in total now. Management really have been abysmal - they squandered hundreds of millions in free cash flow during covid, overpaid for an acquisition, overgeared the balance sheet, and evidently failed to see the imminent downturn in both adhesives and surgical gloves. To wrap it all off - they have taken the easy route out by issuing shares and selling valuable businesses - a strategy which requires all the intellectual capability of the average primary school kid. All those responsible should be out, and it is weird to say the least that they are not. ATB

[turvart] 11/10/2023 09:09

I've been in and out of this stock since early last year when I was paying over £3 in old money, that would be £60 presently.

To be honest I think the management have been doing a good job IMO, I think the market has done what it always does and wildly over reacted, hence where it is today and seriously under priced.

I'm holding long term with these and confident these will 10 bag from this area of 215p.

[tuftymatt] 11/10/2023 09:02

Good luck Turvart.

If your 10 bagger comes off then that would get a few medium term holders back towards breakeven!!

It's been a disaster for sure but that doesn't mean it can't climb slowly higher if they kick the current management team out / into shape.

Good luck all 👍🏻

[turvart] 11/10/2023 08:57

I just bought in today, this stock really is under valued with only 23 million shares in issue and priced at 215p that's 10.75p in old money, this must be a no brainer and certain 10 bagger in the future. I'm buying for a firm hold.

[ben value] 10/10/2023 15:51

Hi I don't know whether to sell the rights or let them lapse. Which will get me more cash?

[tayle] 09/10/2023 21:58

Paid a decent dividend and scheduled to pay a decent interim to. Then their markets seemed to disappear, not all their business is in nitrile gloves, no improvement this year but next year is milk and honey. The lady who got a 23% remuneration increase it's criminal after investors got fleeced. Need to change their name to Secret Service Industries.

[wigwammer] 09/10/2023 15:16

It wouldn't hugely surprise me if a corporate buyer steps in soon. I don't think short sellers generally have a clue how to value a company - just a bunch of lemmings - and it would be a nice to see the market dish out a lesson to them for a change. But anyway, happy to sit this weakness out and suspect SYNT will eventually recover.

[wigwammer] 09/10/2023 15:11

Well of course, 1knocker - any share can go to zero. But there is the small matter of a £2.2bn+ revenue company here, that has some pretty good market positions. Yes - £580m net debt appears high in the context of current ebitda, but they don't have to achieve much from the £150m base this year to get below 3x net debt:ebitda. I think management have been appalling and I can't believe the company hasn't replaced all those responsible - absolutely mind blowing - but an awful lot is now in the price and balance sheet has been materially repaired.

[typo56] 09/10/2023 14:45

Rights raising £276m. Existing equity now worth less than £50m!

As long as they stay above 200p the underwriters should be safe and won't have to buy them. Friday morning will be interesting.

[1knocker] 09/10/2023 14:39

Wig, there is no price so low it cannot fall !
Any recovery is going to be slow and subject to setbacks. The company is going to be strapped for cash even with the new capital. The rights issue was left far too long. It was obvious (unfortunately only in retrospect to me, though it should have been clear much sooner to the BoD) that new capital was required, and the time to raise it was before the company was teetering on the brink.
I sold my rights. Something recovered from the wreck, anyway.

[montyhedge] 09/10/2023 14:05

I'm amazed shareholders put up with this management, shareholders own the company, directors just manage the company, very badly in this case.

[meijiman] 09/10/2023 09:50

Yes it was aimed at you tufty. Don't blame you to be honest.....equally as wig suggests there is plenty of cyclical recovery potential.
The Chairwoman should be forced out. Sacking a Chair is done by the institutional holders or occasionally by all the other execs and non execs in combination suggesting it is time to fall on your sword.

[wigwammer] 09/10/2023 09:33

Fingers crossed, the shares are so low now that they can't go a lot lower. Surely even a group of primary school kids armed with a box of crayons could achieve some sort of recovery from here. No doubt in years to come, our erstwhile chairman will be crowing about the incredible recovery she engineered, makes you feel sick really :(

[tuftymatt] 09/10/2023 09:30

meijiman, no chance if your question was aimed at me.

I would sooner wait and see a management change / signs of recovery and then buy on the open market.