Titon Share Discussion Threads

[sonofbanjosinger] 02/4/2015 15:49

Titon perking up a bit today pehaps another buy back like last year only a month to the finals.

[sirhedgealot] 19/3/2015 16:05

If the discount becomes "much" wider I think it could be interesting.

[jay083] 19/3/2015 00:20

Rainmaker,
No, but given that last year they brought 50k shares at 53p gives some indication that they are prepared to enter the market when the price is weak. That was only £25k but that is quite a lot of volume for this and would easily take up the slack

[rainmaker] 18/3/2015 16:52

Jay that's a very, very good point.Of course it only makes absolute sense if the share concerned is undervalued and we can safely say that TON who are trading at their minimum liquidation value despite earning returns in excess of their cost of capital, are such.Such a move would increase both earnings per share and net asset value per share and would be the most tax efficient way of returning value to shareholders. Have you or anyone else made this suggestion to the Company?

thx

[jay083] 18/3/2015 16:31

..when do they start buying back shares.... :)

v. illiquid so doesn't take a massive a amount to change things

[shanklin] 18/3/2015 14:28

Disappointed with this BoD initiated share price drop. A bit of common sense and they would have issued a TS. All IMHO.

[sonofbanjosinger] 16/3/2015 07:13

Sorry 62.75

[sleepy] 16/3/2015 00:59

Did you get them at 52.75? Can't see any trades that day at less than 60p

[sonofbanjosinger] 11/3/2015 17:21

Oh well, I asked the question before but was told it was not required anymore, just spent the dividend on some more at 52.75

[sonofbanjosinger] 11/3/2015 15:46

Might be able to add some more if it drops below 60p seems strange given the positive outlook for the company.

[shanklin] 11/3/2015 10:59

Given there are no broker forecasts for TON, IMHO there is no excuse for the absence of a trading statement on AGM day. Companies really need to apply some common sense as to whether or not to issue IMSs.

Continuing to hold but not impressed.

[sleepy] 19/2/2015 22:04

Thanks sladdjo

[sailing john] 19/2/2015 18:47

Sladdjo - Thanks for making the effort to attend and kindly providing some excellent feedback.

[sonofbanjosinger] 19/2/2015 17:43

Strip out the cash and less than 6 X earnings.Can see this doubling in the next two years, with a decent divdend.

[joe say] 19/2/2015 16:58

Thanks sladdjo - all positive (save the stay in Europe comment!)

[sladdjo] 19/2/2015 15:57

Went to the AGM yesterday - I was the only independent shareholder - other attendees were the directors and 3 old employees. Everyone seemed very friendly and welcoming. Did brief statement about business, no IMS as govt trying to encourage comps to only report every 6 mo's, so TON will only formally anounce 1/2 res after election. Hardware growth in line with ests - TON would like to see house transactions grow as most people replace doors & windows in 1-2 yr after move, so like high velocity. Want UK to remain in Europe. MVHR grew strongly last yr, est to continue growing this yr, however, dependant on social housing growth which seems to be slowing down due to govt cuts. Korean constructn market remains strong, competn starting to emerge from local operators but TON happy to compete. Sales are where expected.

Want to grow business organically, tho may do acqn if right opportunity comes along at right price. Ventilation director spends ~ 75% of his time on product development and hardware dir has brought in lots of new products. Feel that they've got much more to sell to people now. Have "ambitious growth targets for next 3-5 yrs." Big trade show in Frankfurt in next few weeks that will be a big opportunity for the comp as people come from all over the world.

my view is that TON looks very reasonably priced - baring a collapse in the market we should make >£1m profs this year, and have > £2m cash on hand as well as our own factory and no debt on the b/s. So we're only trading on a ~7x mult with a very strong balance sheet.

[shanklin] 19/2/2015 14:28

Shame we haven't had a Trading Statement.

[ohsod1t] 28/1/2015 16:29

Wonder if the 5000 seller knew that. Seemed like a strange time to off load.

[jay083] 28/1/2015 14:42

ex-div tommorrow

[profdoc] 18/12/2014 13:29

Thank you for your support Rainmaker on the Newsletter.
South Korea is now an advanced economy. What makes you think that manufacturing costs are 50% of those in the UK? With many UK companies now re-shoring because the cost difference is not that great but the disadvantages of distance and culture loom large.
60-70% of Titon's sales are in UK or Europe. It has a long history of manufacture here. It's R&D is here. It's culture is British. It customer relations are here. Disturb any of that and value goes out of the window (so to speak). The Korean partners are however welcome to buy us out at over £1 per share. But they would be wise to keep the European operations British IMHO. Spirit and culture in a business are fragile things.
Glen

[rainmaker] 17/12/2014 14:21

Hi Glen,
Sorry this is the first chance I've had to respond. Quite simply manufacturing costs in South Korea are half those of the UK. Titon already have a manufacturing base there which has proved to be remarkably successful. Instead of being loss making or barely profitable over the last 6 years, the UK market leading business could have been very profitable in that time if the business had manufactured in South Korea.I agree with Dean that there would be opposition or intransigence to such a move but I am sure that it will happen but it is far more likely to be as a result of a third party's intervention ie a take over. By my reckoning Titon could be bought at a discount to its tangible net assets of 93p a share yet with the remainder of its manufacturing business transferred overseas would. at a stroke, become a very profitable business.Its not a private public limited Company as I believe the board own some 3.3mln of 10.5mln shares outstanding.

AIMHO, DYOR etc

BTW, Glen,good luck with your newsletter. From your previous contributions,I'm sure we all know exactly what to expect ie detailed analysis of a Company with both depth and breadth of thought provoking research ,thorough,balanced and objective. I'm sure it do well and I would encourage all readers to subscribe.IMHO its a easy decision to make.

regards

[deanowls] 15/12/2014 19:57

I personally cannot see them relocating it to a business that is joint owned, I also get the feeling from reading the reports that there is a empathy for the staff that work for the company in the UK.

Whilst the last update seemed to under promise I draw comfort from the fact they have taken more staff on, are building and holding additional product, for such a well run prudent company I dont believe that they would be doing this for the sake of it.

Still undervalued (especially once the cash is stripped out) and under the radar.

[profdoc] 15/12/2014 12:22

Hi Rainmaker,
Thank you for you analysis - thoughtful and informed, as always. You make intriguing remarks about the likelihood of it becoming more South Korean and of a purchase of the company. I'm confused because as I see it, fundamentally, this is a UK engineering company even though on profits S Korea has been doing the running recently. Can you elaborate on your points please. Why won't it just, in structural terms, carry on as it is, enjoying a resurgence in the UK to match that in S. Korea?
BTW I'll be writing a 2,000 word analysis on Titon next week, asking if I should buy some more, so getting my head straight on the Korean-swing point would be useful. (I'll have to post it on (ADVFN insist, and its too long for a BB))
Glen