Tomkins Plc Share Discussion Threads

[tompion] 19/5/2002 10:01

Looks as though things are under control at Tomkins, even if there aren't clear signs of improvement in some of the sectors, and that results next month will not provide any nasty shocks. This should support the price and I am looking for a further move from the 255-265p range towards 300p in the run-up to results. IMHO, a very good stock to hold for low risk, for the recovery, and for the dividend.

[scripophilist] 03/4/2002 07:58

Taken a put option out at 260p as insurance to cover an overweight position over the tax year end while I jumble my portfolio around.

[tomkin] 19/3/2002 10:18

Worth bringing to the top. Holding well above 250, 300+ must surely be realistic.

[scripophilist] 15/3/2002 17:48

I reckon fair value is between £3-4 so a £3 price target is not outrageous. Been buying these for a long time now.

[scripophilist] 15/3/2002 17:46

When Hutchings bought the Gates business he tried to buy it outright but the Gates family wanted some equity ownership. They received preferance shares, which I think were convertable. But I'd have to check that. The net effect is they own a fair chunk of the business.

[vodden] 10/3/2002 23:43

tipped in telegraph. suggestion that this might go to £3.00

[davet1p] 09/3/2002 15:19

The share price is now over 250, and I will continue to hold, can someone explain to me the options held by the Gates family.

[scripophilist] 04/3/2002 10:54

billy, you may consider some TNI as well?

[billy whizz] 04/3/2002 09:49

First target now achieved.....250....if this level is sustained then 300 is on the cards sooner than later.

[scripophilist] 26/2/2002 00:51

I would value them in the current state at somewhere between £3-4 (Worst, Best). So £3.50 is not unrealistic.

[seymour clearly] 25/2/2002 16:28

Just been reading me tea leaves and it looks that way to me also :-)!!!

Seroiusly, I agree about the need to have a package that attracts the right candidate, and if this is the price that is required I don't have any qualms - but again it's the old chestnut of the incentive to get the share price as high as possible short term, rather than long term benefit to the co..

But as we're looking at the share price increasing then what have we to worry about?

What am I talking about? I haven't got any TOMK stock (but I am thinking about it).

[billy whizz] 25/2/2002 13:37

I agree.............

[clem] 24/2/2002 00:59

Come on Scrip. give us a price target.

[scripophilist] 22/2/2002 20:47

Sorry Seymour RE:180dma it was a p*ss take on chartists!!

Re : Incentive package, I doubt whether they could have attracted a decent candidate if they would have offered him a british cup of tea and a pat on the back. So this does not concern me.

My main concern is that it is linked to real performance.

[seymour clearly] 22/2/2002 17:28

From Robert Peston at FT investor.com

Meanwhile, some of the elements of Nicol's package are - to a naive British person like myself - extraordinary.

Thus he has options over 2.5 Tomkins shares at a strike price of 197p - which the eagle-eyed among you will notice is comfortably below the current share price. And a third of these can be exercised in a year.

Another interesting element is a promise of up to £840,000 in payments over three years that are not salary (a tiddling £750,000 per year) and are not bonus (a maximum of 100 per cent of salary). They are simply payments.

Risk free

What I find amazing is that I can detect no element of downside risk in any element of the package. Thus he is buying £2m of Tomkins stock with his own money. And whatever kind of performance he turns in, he will be awarded the same number of shares after three years, or up to three times the number if Tomkins's share price trebles.

Meanwhile in the highly unlikely event that he turns out to be a complete dud, and his contract is terminated within 18 months, he will receive two years' money in compensation.

Anyway, there is not the space to go into other elements of the package. But if the share price doubles over three years, which is not impossible, it looks to me as though he will have made £28m - and of course it ratchets up higher with better performance.

Hmmmm, makes you think.

BTW Scripophilist, I didn't understand the bit about dividends triggered - If sales (i.e. turnover?) exceed all costs (i.e. make a profit) on 180 dma (of what - stock price)

Sorry if I sound a bit simple.

Seymour

[vodden] 21/2/2002 22:05

what sort of time scale do you predict?

[vodden] 21/2/2002 22:05

what sort of time scale do you predict?

[billy whizz] 21/2/2002 08:48

I've rec nearly £8k and more to come.....

[scripophilist] 20/2/2002 16:57

Worked out last night that I have received nearly £10k of dividends on this stock since my first purchase.

[biker] 16/2/2002 00:49

I know. I get plenty of them.

It's one of those things that flutters onto the doormat every six months. :)

[scripophilist] 16/2/2002 00:46

BW, a chartist told me to short if it fell below £2. So he did! BTW, What's a dividend? :)

[scripophilist] 15/2/2002 13:19

Apparantly if the sales exceed all costs on the 180 day moving average then this often triggers a dividend.

[seymour clearly] 15/2/2002 13:12

Excellent call on this one Scripophilist - I read the original post and thought you were right - but my cash was tied up and now I think I might have missed the party! Certainly worth watching.

[billy whizz] 15/2/2002 11:25

My faith in these is now completely restored, glad I stuck it out although risk was not great as income has far exceeded saving rates on offer at present and long may it last......
Looking for 250 in not too distant future.
Be interesting to see what you chartists make of this..??

[yogi] 15/2/2002 09:16

Broken that resistance that it has struggled with before. Hopefully the new CEO was just the momentum required to break the 2.20ish mark and maintain it. I'm certainly quietly confident with this one and the new CEO has certainly been sufficiently incentivised to do a good job.