Tomkins Plc Share Discussion Threads

[pw] 11/9/2000 23:18

Even more curious today. Apart form the the Xd heaviest fall for a while on little volume and a fairly balanced order book.

[pippin] 11/9/2000 09:22

Looks to me as though the buyback program was satiated with the big one on Friday. They may well be leaving it for now to see where the price goes before starting up again. Either that or they have set a new, lower, price than the 217p.

Annoying for my September up bet.

[clem] 10/9/2000 23:19

Hawkeye. Where as I dont like to predict, I can probably guess why the recent moves happen like they do.

Lets imagine Im an FD doing a buyback. I issue an order to buy £50m of my stock at £2. The MM's go out and find the stock by calling around. This sets both a ceiling and a floor on the price to my orders are filled.

Frankly I think this kind of buyback sucks. My feeling is that a lack of liquidity is as likely to push a price down as up. The idea that buybacks increase earnings and thus dividends and thus price seems a bit outdated in this world of high-techs in the FTSE with no turnover to show, let alone earnings. If dividends were so hot, then income stocks would not be so horrible out of favour. Investors want focus and growth; cash in the bank must be an important ingrediant for this stance.

I hold these shares because of my 'method', but I think the company is a bit lame, because they don't get the new paradygm. Therefore they're a bit doomed to remain in the backwaters unless they have some kind of brainstorm.

At the end of the day if you think your shareholders are better off with their money back how much of an admission of failure can you give.

... oh well rant off.

[stable] 10/9/2000 14:24

Yor comments about buy backs make interesting reading, I hold a few BAA which lost 20+ p last weeks with buy backs announced for the last 3 days of the week.
No comments in market to give reason although fuel costs could not help.

[clem] 09/9/2000 15:38

Something definately unusual going on here. Very peculiar chart indeed and Fridays traffic looks extraordinary. Just thought I'd point it out.

[rucksack] 16/8/2000 18:58

nearly 3m shares bought back today for cancellation with more to come.
hopefully the price will start going north again

[pippin] 16/8/2000 14:04

Sorry about my analysis of the fancy price paid on Friday night. It is clear that some institution needed the divi!

Still, 218p +12.85 div is not bad in the absence of buybacks. Could be that PW is right in his conspiracy theories!

[pw] 15/8/2000 15:10

But it's buried in here somewhere....

[pw] 15/8/2000 15:05

I knew it, see my previous comments, we have a fourth stakebuilder: -

Schedule 10 - Notification of Major Interests in Shares

1 Name of company:
Tomkins PLC

2 Name of shareholder having a major interest:
T. Rowe PriceAssociates, Inc.

4%

[kayak] 15/8/2000 08:57

Yesterday was the AGM. The previous authority would have expired on the day of the AGM so they wouldn't have been able to buy back without renewing the authority.

[pippin] 15/8/2000 08:52

No announcements of buybacks of late.

[pw] 14/8/2000 13:23

I'm going to get my wallet out today and buy a few more I think. I'll sit here and watch my order pop up on level 2.

[intfluf] 14/8/2000 10:38

You're all too nice. Let em sell and then buy some more on the cheap.

Ebeneezer Intfluf

[pw] 14/8/2000 10:30

I agree, I have had several messages this morning from a number of people asking if I can explain the drop. Which is actually quite easy but it seems to be causing a some confusion out there. I can find the ex d flag on most other sites.

[kayak] 14/8/2000 10:10

Definitely gone xd today, I think ADVFN's flags aren't working yet. There is some confusion in the market I think about the price drop, with some people selling in panic.

[pw] 14/8/2000 09:42

No ex-dividend flag this morning though.

[anon] 12/8/2000 17:05

This puppy goes xd on Mon by 12.85p so it will be interesting to see the price movements after that.
I calculate that since the RHM sale announcement, Tomkins has bought back approx 52 million ord shares from the total float of 950m ords at a cost of £120m. Still a way to go if it intends to spend £700m on the buyback.

[clem] 12/8/2000 10:50

Approaching interesting chart points... alerts 'lock and load!' :)

[pw] 12/8/2000 08:49

I've been watched some trades behind the grassy knoll on this one and there is somebody acquiring a stake in this mix of volume.

[pippin] 12/8/2000 07:57

The last deal yesterday was a buy of 100k @ 235.25. This suggests to me that the 230p resistance really has been breached. It's going up!

PW - have you sorted out the P/E now? Kayak is correct.

[colinf] 07/8/2000 10:45

The value enhancing part of the buy-back that doesn't seem to have been spotted, is that the RHm part constituted about 20% of profits, and the buyback alone (not the total consideration for the sale), is about 30% of the total market value.
In my book that means eps enhancing from day one, and therefore with their dividend policy, it will enhance the yield, unless the share price rises to take this into a/c - looks like a win/win to me, either fatter yield, or enhanced capital value (based on your tax position you will then act accordingly at either point no doubt).
Nice to see a few serious players in this thread, and as the count says, a fat yield like this is too good to miss, even if only as a temporary home in this turbulent market.
regards all,
colinf

[pw] 06/8/2000 20:26

I haven't done any maths but if the food business contributed 30% of prior EPS then EPS would fall 30% without the food business. Now, if you bought back 30% of the shares then EPS would be static on the same share price. Therefore with less shares in issue PER would fall, or if the market rated the company at the same PER as before the share price would have to rise. Unfortunately the market is not so rational.