Tomkins Plc Share Discussion Threads

[clem] 24/10/2000 18:10

Oh gawd, now they'vev got Mckinsey in to advise them on 'business strategy'. That either means one of 2 things.

a) Without Hutchins they dont know where they're going, which would be bad,

or

b) They want to do something nasty and want a '3rd party report' to back them up. Which would also probably be bad.

One more stupid move and I'm going to bail. This is starting to look like a Lew Grade disaster movie.

[chrisg] 24/10/2000 16:45

Kayak

I suppose the counter argument to your position about buybacks is that the share price has stabilised without the benefits of the buybacks to hold it up. Thus it shows real resistance! Even up today, albeit by a tiddly amount.

[pw] 24/10/2000 16:21

Kayak I think you are very brave being short on this as nothing in the chart or fundamentals suggest that you will make much money on this.

Remember that this is not a company in trouble, just moribund and hated by the markets at the moment, it still has very strong cash flow and growing, albeit slowly, earnings.

[kayak] 24/10/2000 15:54

ChrisG, I meant that after the recent two sets of good news, the price quickly settled down again as people took the opportunity to sell. I was watching the trades in real time so I'm sure of that. And when you say "up today", in fact only ¾p!

Yes I'm short. There is support from February at around 155p but it has not bounced from this even on positive news, and I think that it will be taken out soon. Everything happens very slowly with Tomkins though :-(

The buybacks have stopped which means even the company thinks that the share price will go lower.

[chrisg] 24/10/2000 15:33

Kayak

Not quite sure what you mean by "Plenty of sellers on any bit of good news."

These are up today! Can only presume you are shorting these, (or trying to!) judging by your consistent negative comments! ;-)

I'm with PW on these. Looks like real resistance at around the present price. Mind you, its about time too!

Regards

[kayak] 24/10/2000 14:25

Doubt it very much. Plenty of sellers on any bit of good news.

RNS Number:9878S
Tomkins PLC
24 October 2000


Tomkins PLC ('Tomkins')

The Board of Tomkins announces that it has appointed Credit Suisse First
Boston and Cazenove & Co. as joint financial advisers to assist the Board in a
review of strategic options for the group. As part of the review process
McKinsey & Co. have been appointed to advise the Board on business strategy.

A further announcement will be made in due course following completion of the
review.

[pw] 23/10/2000 18:17

I think we are close to the bottom on this one now. Some interesting buying occuring in the US tonight seems to suggest others think so too. If this spills in the UK tomorrow then it could be marked up tomorrow.

[kayak] 21/10/2000 01:38

down the plughole (2)...

[clem] 20/10/2000 11:55

If they stop the bloomin buyback then I'll be impressed.

[kayak] 20/10/2000 11:38

Let's see what other skeletons come out of the closet... now sitting just on support, another 3p down and it's virgin territory all the way down.


Date: 19 Oct 2000 18:23:40
Service: Regulatory News Service
RNS Number:7998S
Tomkins PLC
19 October 2000


Tomkins Announces Independent Review and
Engagement of Ernst & Young

On 11 October 2000 the Board of Directors of the Company resolved that there
should be an independent review of certain expenses and other items charged
to the Company.

Tomkins now announces that the Company's solicitors have engaged Ernst &
Young to undertake an investigation and to prepare a report on these matters.

Arthur Andersen fully understand and agree with the Directors' decision.

[pw] 16/10/2000 12:19

Good coverage in the ST about Hutchings departure.

[pw] 12/10/2000 07:44

Here is the news the city had been waiting for....

RNS Number:4030S
Tomkins PLC
12 October 2000



Greg Hutchings has resigned as a director and Chief Executive of Tomkins with
immediate effect. David Newlands has been appointed Executive Chairman.

David Newlands commented:

'Greg Hutchings has made an immense contribution to the growth and success of
this company since he joined in 1983. Tomkins is in good shape, with
excellent management teams across its operations around the world. I am
confident that the company has an exciting future and I look forward to
working with management to deliver value for shareholders.'

[pw] 09/10/2000 12:36

Saw the article in the Sunday times with a big smiling picture of Mr Hutchings. Should be some interesting times ahead. I'm surprise that Newland's has come out like this but pleased that he has as honesty is something I respect very much.

[kayak] 09/10/2000 12:06

Down the plughole...

Date: 08 Oct 2000 14:55:18
Service: AFX
LONDON (AFX) - The new chairman of Tomkins PLC, David Newlands, has ordered
an investigation into the financial affairs of Greg Hutchings, chief executive
of the industrial conglomerate, The Sunday Times reported, quoting Newlands.
According to the newspaper the inquiry began on Friday after Newlands learnt
that Hutchings' wife, Caroline, and the family's housekeeper were both at one
point on the company payroll. Newlands has called in Arthur Andersen, the
group's auditor, to carry out the probe.
The newspaper said the accountancy firm has also been asked to look at the
use of four jets owned by the company. It is alleged that Hutchings, who acted
as treasurer to Lord Archer during his doomed London mayoral campaign, used the
planes to fly to his holiday home in Portugal.
Newlands is quoted as saying: "All the matters will be thoroughly
investigated. I have already brought in the company's auditors and if necessary
I will bring in the lawyers as well. I need to find out whether these matters
were properly authorised and on what basis. Were there proper disclosures made
and were there Inland Revenue submissions made?"
A Tomkins spokesman is quoted as confirming that Hutchings' wife and
housekeeper had been paid by the company for several years. He said the
arrangement was cancelled this year but could not specify the date or how long
they had been on the payroll.
The Sunday Times said a number of Tomkins investors are disturbed at the
quality of corporate governance at the firm. Earlier this year investors forced
Hutchings to split his roles as chairman and chief executive.
jdd/jsa


RNS Number:2312S
Tomkins PLC
9 October 2000



TOMKINS PLC


Following recent press speculation and allegations relating to certain board
practices at Tomkins, the Chairman, David Newlands, can confirm that a full
review of both historic and current practices is now underway. This review
will be completed as soon as possible.

[pw] 06/10/2000 23:45

Sold this morning for £145m, 10 times earnings. At this rate they will be a cash shell before long!!!

[pw] 06/10/2000 12:19

Topic: (NYSE:TKS) Tomkins Plc
================================================================
Quote.com News Item #17102405
Headline: Tomkins PLC Sale of Murray and Hayter


================================================================
Investment, Inc. for a total consideration of $220.9 million. Of the
proceeds, $207.9 million has been received in cash and $13.0 million
in a secured subordinated loan note, repayable in 2006. The proceeds
of the disposal will be used to develop Tomkins' core businesses.
Murray and Hayter's combined turnover for the year to April 29,
2000 was $821.3 million and the companies generated total operating
profit of $23.5 million. The companies' combined net tangible assets
at the closing date are estimated to be $207.6 million.
Murray has headquarters in Brentwood, Tennessee and employs
approximately 2,000 people. It operates from three manufacturing
facilities in the US and is a leading domestic manufacturer of walk
behind and ride-on power mowers, snow throwers and bicycles. Hayter
operates from a single site in Bishop's Stortford, England and has
approximately 200 employees. The company is a leading British
manufacturer of high quality power mowers for domestic and municipal
use.
Tomkins is a global engineering group of businesses with market
and technical leadership positions, manufacturing value added systems
and components for the automotive, industrial and construction
industries.
Tomkins shares trade in the US in ADR form (each equal to four
ordinary shares) on the New York Stock Exchange under the symbol TKS;
its ordinary shares are listed on the London Stock Exchange.

[clem] 01/10/2000 09:15

Oh dear... makes perfect sense of course.

[pw] 01/10/2000 02:14

It will be an interesting outcome. Last weeks AGM was an interesting one and will probably attract some press. More sales on the cards I suspect, lower dividend growth probably. The strange thing is that it is the city that has forced most of this so they are the judge and jury but complain when things don't go to plan. Should be interesting.

[clem] 30/9/2000 08:22

PW you evil ramper you! :) This lot are clearly clueless. I've said it all along that a buy back makes your share price fall and Im vindicated.

So they've sold their cash cows and have thrown their cash away and are now left with a bag of dodgy brandless engineering widget metal bashing outfits plus a gun company which will get them sued.

This is surely the classic 'restructuring' a business down the drain. What price for a company clearly intent of squandering its assets?

What will we be left with at the end of the process. A small cap with little cash and mundane businesses in unfashionable sectors. This is why TOMK is cheap.

If the price doesnt bounce properly we are off to £1. Maybe the resumption of the buyback yesterday will crank up the price a bit, but my reservations about this company are starting to deepen. On a T/A basis it'll have to clear 240 to establish that this company is not going to carry on down into MBO/LBO/KKR territory.

[pw] 30/9/2000 06:35

Even if the company fails to grow it is still sitting at a huge discount to it's intrinsic value which at some point will be recognised by the market. It's current discount value is so great only a major collapse would value the company any where near it's current cap. The concern for others should be if the hint of a slow down in the US along with other high profile warnings in the US are indicating a broader decline in economic activity. If that is the case then trendy growth stocks will get savaged.