Tate & Lyle Share Discussion Threads

[wad collector] 26/10/2021 09:27

Triggered my limit buy at 660 last night , I want to stay friends with Tate.

[spoole5] 25/10/2021 13:25

The most friendless share in the 250?

[cfro] 18/10/2021 15:03

Looks like Merrill Lynch still accumulating.

[spoole5] 08/10/2021 15:15

Where will this settle. Will it be sub 600?

[cfro] 06/10/2021 12:33

Two director share purchases and a trust (associated with a director) buying the ADR's.


EDIT: Merril Lynch also adding.

[spoole5] 06/10/2021 11:50

The dividend will be cut probably to 15p

[tornado12] 06/10/2021 11:20

What do you expect the divi coverage to be in future assuming 30p as reference ? The coverage will drop significantly?

[wad collector] 06/10/2021 10:37

Thanks for that EI , I had not factored in that EPS expected reduction. Still tempted to add some more. Especially now it is at my favourite 666!

[essentialinvestor] 06/10/2021 08:43

Around 16/17% less shares in issue with the capital reduction proposed,
depending on price etc.

[cfro] 06/10/2021 08:16

Re PE ratio,

One would reasonably expect the PE to move up to perhaps 20+ once the deal goes through as the company is rated more as a science/tech as opposed to a commodity based company as is now. At least that would be the hope for investors.

Don't forget they are getting $1.3bn from the deal. Let's see what they plan to do with all that money.

As to the recent director share sale: that was the president of the Primary Products division, so i would assume he has got leave his well paid job.

[essentialinvestor] 06/10/2021 08:01

Yes and no - they are entitled to future declared dividends.

But in terms of analysts earnings estimates they can't model for those as
it's an unknown, which is why the CFO guided for a 50% EPS reduction.

But remember there will also be less shares in issue, but not 50% less.

[spoole5] 06/10/2021 07:14

Have they given away a stable earnings stream?

[essentialinvestor] 05/10/2021 21:33

The post transaction multiple is way above 12 x.

CFO told analysts on the transaction conference call to model for a 50% EPS cut,
the capital reduction will offset some of that. Also an interest saving on debt payments to come.

[wad collector] 05/10/2021 21:08

Looks like we might be about to revisit the persistent 666 number imminently. Now that would be a stimulus for me to add..

Now has P/E of 12. That seems a surprising number for what I still think is a blue chip company with a relatively stable balance sheet.

Looking at the Director's Deals I see a non-exec sold 110k shares for 730p in August which was obviously lucky for him. Out of curiosity I looked back and see that no Director has bought any with their own money for almost 3 yrs. Interesting.
The most recent deal is the award of 41k shares to the Human Resources Officer , who has been at Tate for 3 yrs. The problem I have with these performance related share awards is the lack of a downside . If the company share price dives they lose nothing but the potential freebie, unlike real investors .I suppose the share price has gone up about 20p since she joined , so maybe it is deserved....

[spoole5] 05/10/2021 13:17

Can anything stop this falling?!

[keyno] 04/10/2021 16:34

Of course!

[essentialinvestor] 04/10/2021 15:45

Remember both, officer Dibble!.

[keyno] 04/10/2021 15:43

EI - worry not, I'm certainly old enough to remember TC, it's just that I was never a fan, whereas as a child I was a massive fan of the wonderful, though doubtless now not woke enough, Top Cat.

Tate certainly need some magic to turn that curve around and get the share price moving the right way again.

[essentialinvestor] 04/10/2021 15:24

Tommy Cooper!!.


That's made me feel old!, as a few years ago everyone would have got the reference
as he popularised that catch phrase.

[keyno] 04/10/2021 13:19

Aah - you're right cfro. Well done. I could only think of Top Cat. You must be like many of us, a man/woman of a certain age .....

[cfro] 04/10/2021 13:05

Don't think he means the most effectual Top Cat Lol, more like the magician with the Fez!

[essentialinvestor] 04/10/2021 10:01

The late great TC.