Tate & Lyle Share Discussion Threads

[yump] 04/11/2021 17:59

I think there's a discrepancy between what traders will be looking at and what institutions will be looking at.

Clearly many traders use charts. To also conclude that institutions are going to base decisions on historic charts would be an error imo.

So the end question is really, who is actually going to affect the general share price the most ?

@Essentialinvestor

I haven't quite got my head around the figures yet !

[essentialinvestor] 04/11/2021 16:06

Company debt free and the EPS fall offset only by about 16/17% on the current share price

Interest payments saving as well, small one.

[tornado12] 04/11/2021 16:04

Good results especially for the new Tate , but not clear for me what happens after March 22 ? The eps will reduce by what estimate 30% ? The 500 M£ is returned by way of share consolidation which will offset part of the eps reduction due to falling earnings ? Can I have your thoughts ? Thanks

[roguetraderuk] 04/11/2021 10:53

yump, all what you say makes sense, but historically its proven that there is muscle memory from points in history where the share price reversed up or down and proceeded to set a significant trend.
wad, im sadly only underweight too, as i say i was hoping we would see 500-600 on this down cycle. looking a little less likely after today, but we still dont have full visibility on issues such as inflation and supply chain, so there is a chance. the trend is still lower, but id expect todays news will provide some support for the shares in the near term, so we will just have to wait and see.
one which i did add to this week was bodycote, its starting to look better technically again. there was some good volume yesterday and they seem to be defending the 800 level on a weekly closing basis. this one was walked down 20% on the input prices, aero, chips you name it but the trading update due towards the end of this month may provide a bit more cheer regards some of those issues, going by what other industry and related industry players are saying. it did get a bit head of itself in reflection, earlier in the year, but i never completely exit this one as i think sooner or later private equity is going to take it out. however, now i think rebuilding a position here makes sense.

[essentialinvestor] 04/11/2021 10:43

Q&A just about to begin - only Nick answering questions.


CFO no longer on the BOD as from today - wonder what the hell happened?.

[essentialinvestor] 04/11/2021 10:30

wad, good fortune.

Listening to the live stream atm.


I think part of the recent share weakness is the market having difficulty in
valuing the business during this impending change.


yump, what's your call here re the share price?.

[yump] 04/11/2021 10:19

Surely the previous chart levels aren’t very useful with a business that’s changing like this. Plus the “true” level after taking off £1 a share, depends on where you start from.

[wad collector] 04/11/2021 10:16

EI ,I am going to hang on to my 660 buy, I reckon this is a good long term hold , albeit medium term uncertainties. Some good numbers on the Half Year results.

[roguetraderuk] 04/11/2021 08:15

mkt clearly wrongfooted here, worrying about rising input costs, yet tate have managed to counter it well. these were heading towards long term support at 500-600, but todays news may mean we wont see those levels unless supply chain and inflation issues were to worsen from where we are today.

[essentialinvestor] 04/11/2021 08:08

Sold my recent buys at 6.82, took ages to open.

[cfro] 04/11/2021 07:40

Sudden news of the CFO resigning. There could be a myriad of different reasons but as he was only in the job for six months perhaps he felt it simply wasnt for him?

That bad news has been over-shadowed by the excellent Interims out this morning. The difference between the "old" and "new" businesses is stark and the reasons for hiving off the primary products division is obvious. Where the new business begins to look very exciting going forward.

No idea where the share price will go today though just depends on what piece of news traders choose to focus on i guess.

[keyno] 03/11/2021 23:06

CFO only joined in March '21. Therein lies a tale, no doubt.

[contrarian joe] 03/11/2021 22:12

If I've read the Restatement re primary products disposal correctly pro forma eps 35p.
With an illustration of £500m special reducing eps by 16% giving 30p after share consolidation,a big cut in the divi is a given imo.

[essentialinvestor] 03/11/2021 19:35

CFO resigns - after hrs statement - on my.

[yump] 03/11/2021 16:09

So, basically is this a drop equivalent to the amount to be returned to shareholders, plus a bit more of a drop because quite a few investors don't like the strategy ?

ie. roughly £1 a share, plus some gloom.

[essentialinvestor] 03/11/2021 15:55

Lols !!.

I'm crying inside though!, luckily a small position,
let's see what they have to say.

Given the share price decline post transaction it may have been better to sell
out of primary products completely - a point made here at the time by some posters
and I was not one of those.

Market perhaps has difficulty in valuing a type of "hybrid" business.

[spoole5] 03/11/2021 15:47

Any day this doesn't fall?

[essentialinvestor] 29/10/2021 11:30

fair comment.

[tornado12] 29/10/2021 11:29

Looking to the next business update to understand direction here and what is the future for the divi special and divi outlook in general. For me is not clear and have other more favorable returns to invest. I keep my small stake as I see potential future developments here

[essentialinvestor] 29/10/2021 08:31

Test of 6.50.
Added.

[essentialinvestor] 27/10/2021 16:18

My other half frequently calls me daft.

[essentialinvestor] 27/10/2021 15:41

Would hope there is some support around this area, but let's see.


Someone here mentioned £6.50 a number of months ago, hopefully they
benefited from that call.

[cfro] 27/10/2021 11:51

That's called the benefit of hindsight EI ! We can all be clever with that Lol.

[essentialinvestor] 27/10/2021 09:29

Someone posted it was daft when I mentioned selling a few weeks back!

Bought those back.