Tate & Lyle Share Discussion Threads

[salpara111] 28/4/2014 14:25

The share price is being driven by takeover chatter....if it dies away then I expect the share price to ease back but there is always the possibility of a bid.
I hold and am currently in the money so I will just wait a bit longer to see if something does come of all the chatter.

[mach100] 26/4/2014 11:34

Didn't manage to get in at 626 as I thought it might go lower due to the macro picture of a wider market sell off. Definitely looking a bit toppy now based on the last profit warning. I expect some resistance now at 700p as profit takers take charge.

[woodcutter] 25/4/2014 14:23

well i guess i hadn't picked up on that i'm afraid. I focused on the financials and yield, neglecting a more peripheral view perhaps. Nevertheless you can't invest based on possible acquisition targets. My feelings now are without the bid speculation then it would drift down below it's previous support level 640/660...........ish.

Woody

[essentialinvestor] 25/4/2014 13:08

WC, there has been bid speculation here before, it was widely reported following
the warning.

[woodcutter] 25/4/2014 12:05

Not my best timing decision however any potential bid was clearly unknown at the time of my sale.

IE I sold my holding based on the ABF update on sugar believing that there's clearly a drive to reduce sweet flavourings from products in general by the looks of it. I accept the TATE model is different but feel the market globally may be changing.

I'd orginally bought on the basis that maybe the reduction in sweeteners was being overdone and TATE looked inexpensive but going forward i'm now not so sure, i guess it was a change of mind.

WC

[ny boy] 25/4/2014 10:12

Nice move up from the lows, which just got too silly!

[wad collector] 25/4/2014 08:33

Probably all B@@@@@@ks but good to see a surge in the share price Seems unlikely that the market is taking this too seriously as currently 692 ; would expect more like 792 if it was more convinced?

[santar] 25/4/2014 08:26

And ...

Excited professional investors suddenly turned sweet on Tate & Lyle amid growing speculation that Bermuda-based food processing group Bunge could be on the verge of launching a £3.9billion or 850p-a-share cash bid for the under-performing London-based food ingredients group.

[santar] 25/4/2014 08:24

Wondered what is going on.

Tate & Lyle boosted by renewed bid talk:

[melody9999] 25/4/2014 08:23

I only have a small holding in TATE and am not following things closely but from the share price action this morning it would appear the ABF results are having a positive effect. Such are the vagaries of the market!

[grahamite2] 24/4/2014 08:35

And it's only 3 weeks ago we were told to expect results to be in line.

[essentialinvestor] 24/4/2014 08:22

TATE focus on high intensity sweeteners, not sugar which was sold a couple of years ago.

There may be some impact on lower sugar prices possibly reducing demand for TATE's
product, however than would require product reformulations so unlikely imv.

Not currently holding however do not see the ABF statement as that relevant.

[philo124] 24/4/2014 07:34

Yes, thanks. I sold my holding yesterday as well.

[crabbeng] 23/4/2014 19:45

Woodcutter, many thanks, I've just read ab foods update, an eyeopener

[woodcutter] 23/4/2014 08:05

sold my holding this morning on the back of the ab foods update.

woody

[woodcutter] 09/4/2014 15:48

EI i think DVO management are confident on their market strength and the capex spend. Don't forget they've over 30% market share and operating margin of 17% coupled with fantastic cash flow. I figure they feel that if they can get these plants operating in the next few years they can get more land grab as the market grows. The cashflow plus a little debt will more than offset the capex spend. The market is being too conservative.

i think your over there too but I've posted similar details on the thread.

Sorry for off topic.

TATE looking nice again today.

WC

[wad collector] 09/4/2014 10:37

30 minutes? Impressed with your patience!
The broadly in-line statement should help this start to creep upwards again I hope.

[essentialinvestor] 03/4/2014 14:14

The TATE conference call is worth a listen, with questions it's nearly 30 minutes.

[essentialinvestor] 03/4/2014 14:12

woody, what DVO should have done imv was phase the Chinese and US CAPEX,
complete only one of these projects over say 18 months and then commit to beginning the next.

It may have delayed some progress in the business however the market may well
have preferred a less operationally geared approach., just imv.

[woodcutter] 03/4/2014 13:58

Wouldn't disagree with that EI. I've bought primarily as an income play and will add on the dips. The market is getting stretched and it's only a matter of time before we see a correction.

This tells me we're near the beginning of the end.



more keynesian economics, more debt!

I've begun to build stakes in defensives, mainly food producers and animal feed additive companies. You still have to eat no matter what the market conditions.

I now hold TATE, DVO, and SBRY, ANP. as my core holdings. I've also been buying quite a few CBG as i feel it's one of a few solid investment banks.

Much has been made on the risks attached to DVO but their cashflow is very strong imv and can support the capex programme.

The time to be accumulating is two years out from the reversal, it might lead to a few barren years of lower returns but you won't get hurt so much when things do change.

At some point TATE and other defensives will be seen as good value and the share price will re-rate for a bear market condition, aimho.

Woody

[essentialinvestor] 03/4/2014 09:43

I do not see much in that statement to prompt any short term re-rating,
will have a listen to the conference call later.

This is perhaps best viewed as a buy and hold income play on an undemanding PE,
with the possibility of a take out at some point.
There should ultimately be a re-rating, however TATE needs to contend with
multiple factors beyond their direct control, the very severe US recent weather
makes a mention this time.

Any other views?.

[melody9999] 26/3/2014 18:30

ending on a high again ...always nice to see.

[woodcutter] 26/3/2014 14:48

well i've added to my holding today on what i believe is the confirmation of a breakout.

Woody

[woodcutter] 25/3/2014 16:50

a gap up would be nice melody but i fear the auction trade after hours may well affect the mornings opening, we'll see. I'm waiting for the market to give a sign, i'd like to add but i want it to either break through potential resistance or drop to potential support again before deciding.

UKX, MCX, NMX all up between 0.75% and 1.17% so i figure todays rise 1.46% could be a good omen, not greatly significant but it shows willing on the part of investors. All depends what the numskulls across the pond do this afternoon.

WC

[woodcutter] 25/3/2014 16:43

Another UT trade in after hours auction 638600 sell.