Tricorn Share Discussion Threads

[interceptor2] 03/5/2012 08:01

GCI, have now unblocked their review of Tricorn for general viewing which was very bullish, we know Caterpiller is their largest customer, but JCB are also mentioned as a major customer.

See below...

ic2...



Strong Buy.....

Recent weakness in the share price of tube manipulation specialist Tricorn (TCN) has provided a good buying opportunity according to house broker Westhouse Securities.

The AIM company recently issued an upbeat trading update in which it stated sales in the year to March are up 13 per cent on the prior year, leading to pre-tax profits slightly ahead of already upgraded forecasts. Its previously underperforming aerospace arm has also turned the corner with a swing to the black.

One of Tricorn's major customers is JCB, which has recently issued an impressive set of results and cited a confident outlook. In the second half of its financial year, Tricorn has enjoyed progress in all three trading divisions, buoyed by enhanced operating margins.

Westhouse argues Tricorn is set to deliver superior earnings growth to most companies in the engineering space, so a fairer share price would be 50p. The recent plan to open a manufacturing site in China is a positive move, and should help drive new business. First recommended in February 2011 at just 16.75p, our advice is to hold on ahead of a likely positive set of results on 11 June.

[rivaldo] 01/5/2012 15:38

Nice 24k buy at 34p has just caused another tick up.

[rivaldo] 30/4/2012 08:38

Blue start to the week and still looking good online. You can only buy 1,500 maximum at 33.5p, but you can sell 25,000 at 31.6p.

[rivaldo] 27/4/2012 10:49

Yep, certainly looks promising - I can sell 30,000 at 31.25, but only buy 1,500 at the full 33p offer.

[shauney2] 27/4/2012 09:48

Sorry riv.Just browsing while waiting at the airport.Article mostly about TSW.

Barclays maximum available online at the moment 1k at 32.99

[rivaldo] 27/4/2012 09:02

Nice start today on small volumes hopefully indicates the seller has been cleared out.

Shauney2, any further details on the Shares Mag tip?

[shauney2] 27/4/2012 08:17

Given as a buy in Shares mag along with TSW.
Notes the strong results from JCB

[glasshalfull] 26/4/2012 23:11

Here's Caterpillars statement;



Caterpillar Reports Record Quarterly Profit;

Company Raises 2012 Profit Outlook

First-Quarter Sales and Revenues Increase 23 Percent, Profit Per Share Up 29 Percent
 
PEORIA, Ill. - Growth in mining, strong replacement demand for products in the United States and a continued focus on cost management helped Caterpillar Inc. (NYSE: CAT) deliver record quarterly profit per share of $2.37 in the first quarter of 2012.  This represents an increase of 29 percent from first-quarter 2011 profit per share of $1.84.  First-quarter 2012 sales and revenues of $15.981 billion were up 23 percent from $12.949 billion in the first quarter of 2011.  Profit was a record $1.586 billion in the quarter, an increase of 29 percent from $1.225 billion in the first quarter of 2011.

"These outstanding results demonstrate our continued focus on execution and controlling costs as we increase production and expand capacity to meet increasing demand from our customers.  We're seeing strong global demand for most mining products and significant growth in replacement demand for products in the United States, which more than offset slowing in China and Brazil," said Caterpillar Chairman and Chief Executive Officer Doug Oberhelman. "During the quarter, I visited Caterpillar facilities, customers, suppliers and dealers around the world, and saw firsthand the progress we are making on safety, product quality, improved delivery times, factory efficiencies and customer service.  These improvements have been impressive considering they've occurred while we have so much going on-we are building new facilities, expanding existing facilities, integrating acquisitions and continuing the introduction of new products," Oberhelman added.

Regards,
GHF

[alter ego] 26/4/2012 22:49

Certainly agree that China is important market and they like to buy what is made in China so TCN should be seen as making the right moves to expand sales there. Bought more TCN today so hope you're right about a proper rating Rivaldo.

[rivaldo] 26/4/2012 19:11

Cheers GHF, looking forward to a good run here prior to the results on 11th June.

Alter ego, I meant in terms of perceptions rather than pure financial benefit. The potential of the China expansion may see a re-rating of the stock in advance from a paltry low single-digit multiple to perhaps a more reasonable (given the success of this management's strategy) rating of 12 or 13.

This would tally nicely with Westhouse's curent target price of 50p.

[glasshalfull] 26/4/2012 16:03

Great update from Caterpillar. I bought more earlier today.

Yep - Good to see you rivaldo ;-)

Regards
GHF

[cfro] 26/4/2012 15:21

Hello riv, nice to see you here. Long time no see. :-)

[alter ego] 26/4/2012 14:14

I think manufacturing in China is a couple of years off yet so there's a bit of cost to be incurred (£1m ?))before we see benefits.

[rivaldo] 26/4/2012 14:10

With what should be historic 3.5p EPS or slightly more TCN has to be pretty good value at this price imho, especially with such a rosy forward outlook from its main customers.

The expansion into China could also signal a higher rating once the results are out than the current historic P/E of around 8.5.

I particularly like TCN's statement below which shows that this is a carefully planned expansion and not something just recently begun:

"The Group has had a purchasing office in China for the last 8 years and as a result a well developed network of sub-contractors and suppliers."

[pedr01] 26/4/2012 13:38

1004 ... I believe that the TCN management have told us recently that CAT is their largest single customer.

That's interesting to know ... The stats TCN Revenues.v.Caterpillar Revenues have a creelation of 0.988 and R2 of 0.977 ... Bodes well!

[interceptor2] 26/4/2012 13:10

Every company report I have read this year that has an aerospace division has been very positive, and I expect TCNs aerospace division to have performed very well. As they are moving from a loss to a profit, this should have a significant effect on margins.

In 2009 the aerospace division had better net margins than either energy or transport divisions.

Better not go on too much, incase some investors are trying to build positions here ;-)


ic2...

[alter ego] 26/4/2012 12:44

Just to underline the opportunity in aerospace, MGGT issued the following update today "2011 saw a continued strong recovery in civil aerospace and energy, with reported revenue up 25% and order intake up 26%. Both revenues and orders were up 12% year on year on an organic (at constant currency and excluding the effect of acquisitions) basis."

We know TCN expect the aerospace side to be in profit again this year so a favourable market is a bonus.

[alter ego] 26/4/2012 10:41

I'm hoping that aviation, both commercial and military will also be a bright spot for TCN's RMDG division.

[shauney2] 26/4/2012 10:38

Not forgetting the aerospace division.That sector is flying at the moment;-)Great reports from SNR and MGGT.
TCN supply parts for Rolls Royce among others.

[interceptor2] 26/4/2012 10:31

Good to see you here rivaldo, and you are correct to highlight Caterpiller's strong results yesterday, I believe they are Tricorns largest customer.

UK manufacturing sector that export is a good sector to invest in imv, when you take into account UK OEM companies that TCN supply, then their products are about 70% for export imo.

ic2...

[electronica] 26/4/2012 10:28

Another excellent Quarter announcement from Caterpillar last night. Demand is v buoyant.

Bodes well for CAT's suppliers - which include TCN. I believe that the TCN management have told us recently that CAT is their largest single customer.

[rivaldo] 26/4/2012 09:58

APAD, if you trade online you can try "dummy" buys and sells (which obviously you don't accept) for differing amounts each time. Afetr a short while doing this for each stock you get a sense of the maximum levels of stock which are generally available to buy or sell and can cut down the amount of time trying out different amounts.

When I first tried this morning the maximum amount of stock available to buy was 50k, but this quickly dropped to 30k after a couple of buys. A little stock was available at 30.95p, but most could only be had nearer the full 31.5p, which is a good sign.

Sometimes this is an excellent indicator of (for example) whether there is a large overhang of stock, or whether there is no stock around at all and the prioe is likely to quickly move upwards. At other times it's no use at all, since the seller/MM will continually drip feed further stock onto the market!

[alter ego] 26/4/2012 09:41

yesterday, the best I was quoted was 31.3 for 10,000 - hoping to do a little better

[apad] 26/4/2012 09:35

"I've been buying in too and topped up this morning. There are now just a few left at under 31p online, but for 15k you're paying near the full offer."

How does one access these numbers rivaldo?
apad

[rivaldo] 26/4/2012 09:22

I've been buying in too and topped up this morning. There are now just a few left at under 31p online, but for 15k you're paying near the full offer.

In particular, Caterpiller's results late last night were terrific, and it increased its profit outlook for 2012:



"We have a record order backlog today, and we need to be ready for continued growth".