Tomkins Plc Share Discussion Threads

[jbi] 03/7/2001 16:03

tomkins plc

plus points so far:
sale of RHM (Hovis) + sale of Smith Wesson to concentrate on core business
focused business more likely to attract takeover
rid of Greg Hutchings
£770 million share buy back scheme (still about £400 million to go)
low p/e ratio
realistic dividend yield
chart shows good bottom formation
director purchased 100,000 shares today

negative points:
possible problems with greg hutchings
global economy

any thoughts??????

[bpoole] 03/7/2001 11:05

Good news.
On CNBC yesterday they said that manufacturing in the US seems to be coming out
of recession. Good news for TOMK. With the buybacks the share price should go above 200p again.

[scripophilist] 03/7/2001 09:22

They are citing US slowdown as the primary cause for their negative view. But unless it is catastrophic then I can't see it pushing the price further down as the business are well supported and generate a lot of cash. I can't see that reduced prospects can be priced further into the deep discount already.

[tortoise] 02/7/2001 20:05

Scrip,

Is their negative view explained in any way*, and is it strong enough to give concern re your view in post 354?

regards,
T.

* Other than US slowdown...

[scripophilist] 02/7/2001 13:17

Divdend cover is now at 1.6 times. Interest and preferance dividend cover is 5.5 times. After the sales in the last year debt appears to be nominal, so big cash generation due next year. They are a bit negative on prospects going forward.

Copy of presentation is here: -

[biker] 28/6/2001 09:52

7.4p dividend giving a total of 12p for the year. I love this share.

As well as the top line, the yield also suggests that it is half price or less.

[scripophilist] 28/6/2001 09:05

Result pretty much what I expected. For a stable business the top line figures suggest it's still selling at around half price. I'll post more when I see some more detail.

[scripophilist] 27/6/2001 17:12

No idea, Results out tomorrow morning. A late sell off is a bit strange isn't it?

I'm in on the presentation and conference call so will report anything when I get the chance.

[bpoole] 26/6/2001 09:47

Anyone know what the exact buyback figure is? I didn't think it was anywhere near
£350m.

[scripophilist] 25/6/2001 14:41

So as clear as mud then?

TOMKINS: Investors will want an update on the search for a new chief executive when the refashioned engineer files full-year figures on Thursday.

The company has previously indicated that it had a shortlist of three to four candidates to succeed Greg Hutchings, who left under a cloud last year, but analysts are sceptical that his replacement will be announced as soon as this week.

That will leave the focus on current trading at Tomkins’s remaining businesses after the disposal last month of Smith & Wesson, its handgun subsidiary. In its April pre-close briefing, the company gave warning that trading in its new financial year would be “challenging”, and analysts are pessimistic that its two largest operations — automotive and construction components — will yet show any signs of recovery. They are also bearish on Tomkins’s air systems components arm in the wake of a profit warning two weeks ago from United Technologies of the US, the owner of Carrier, a rival business.

Deutsche Bank expects a 38 per cent fall in clean pre-tax profits to £296 million (£478 million), earnings per share of 18.7p (28.3p) and a sharply reduced dividend of 12p (17.5p).

Investors should note that the figures will be complicated by a series of one-off items, including restructuring, relocation and strike costs, as well as a £19 million credit from a legal settlement. The earnings per share figure will also be skewed by a £700 million share buyback, now halfway complete.

[m.t.glass] 18/6/2001 16:01

Quite right too bpoole.

[bpoole] 18/6/2001 09:46

One thing I have learnt, don't pay any attention to
buy and sell information.

[m.t.glass] 18/6/2001 09:44

And all sells today.

[chrisg] 15/6/2001 20:45

A nice little bounce off the support today.

[scripophilist] 15/6/2001 20:35

Aha, Thanks for that.

[m.t.glass] 15/6/2001 15:42

Lehman Bros downgrades TOMK and other engineering shares

14 June 2001 - LONDON (AFX) - Engineering shares were under pressure in midmorning trade after Lehman Brothers reviewed its ratings on the Engineering & Machinery sector, dealers said.
The broker downgraded Morgan Crucible Co PLC to 'market perform' from 'buy',
Tomkins PLC to 'market underperform' from 'market perform', and upped its price
targets for FKI PLC and Bodycote International PLC.
Lehman Brothers said Morgan Crucible shares have performed well over the
last 18 months, outperforming the majority of its UK competitors.
The shares have now reached the brokers' price target, which will be
maintained, but the broker said it is taking this opportunity to downgrade its
recommendation.
It said it is also trimming the company's earnings forecasts for the full
year by 4 pct after the first half was weaker than expected.
As for Tomkins, Lehman points out its shares have rallied on the increasing
expectations of internal change and market recovery. It believes both changes
are now priced into the shares.
The broker notes that it remains cautious on U.S. auto production rates in
2002, and as a result recovery may come later than expected.
Lehman Brothers raised the share price target for Bodycote to 340 pence from
300 and FKI to 350 from 300.
It said it believes Bodycote deserves to trade in line with the sector with
first half results in line with expectations and the integration of Lindberg
proceeding well.
It remains positive for FKI's future with the management's strategy to focus
on growth business beginning to pay off and a strong cash flow.
At 11.40 am shares in Tomkins were down 3-3/4 pence or 1.95 pct at 188,
while Morgan Crucible stock was also under pressure, down 3 or 0.92 pct at
320-1/2.
Bodycote stock was 3-1/2 pence, or 1.3 pct, lower at 264 and FKI remained
steady at 262-1/2.
tw/ep

[chrisg] 14/6/2001 20:19

Glaws. My own interpretation was that when Scrip said resistance, he mean't support! I looked at the chart, and it seems that at the close tonight, the price was right on the lower of the upward trend lines. Resistance to further falls(?) or if it breaks, well, oh dear!

Chris

[glaws] 14/6/2001 19:40

Scrip.....

Do you mean the retreat from the £2 was the resistance ?

Thanks - Glaws

[scripophilist] 14/6/2001 18:00

Opps, Freudian slip. Resistance level. ROFL.

[chrisg] 14/6/2001 17:33

Er, whats that?

[scripophilist] 14/6/2001 16:48

If I were a chartist I'd say it was at a critical business level.

[m.t.glass] 14/6/2001 10:59

If this is more than just a bit of £2 profit-taking, does 170p look a likely resting place?

[m.t.glass] 14/6/2001 10:48

Yep. Tomkins now tumbling.

[scripophilist] 12/6/2001 00:01

Obviously a poisoned chalice.