Wellington Hds. Share Discussion Threads

[the other kevin] 15/2/2002 00:37

Results coming on March 25

[salar] 06/1/2002 21:56

A good summary of the main reasons why WLN is an excellent buy/hold. Believe that citywire suggested the dividend might be raised next year when they reviewed the interims - would be icing on the cake if they did.

[azalea] 06/1/2002 18:38

I hold this stock for several good reasons:

1. The 29.24% stake held by venture capitalist First Britannia. IMHO this size of stake will eventually in one way or another be used to launch a bid.

2. The 29% increase in interim ptx suggests a very successful full year.

3. The excellent high yld, which looks safe.

4. With the U.S. government seeking to reduce its dependency on foreign imports and releasing 600m acres of land for oil exploration, the demand for seals should significantly increase. This is supported by the completion of a $1m expansion of production facilities in the U.S.

5. With OPEC cuts aimed at keeping oil prices above the $22 mark, oil exploration and demand for oil drilling associated products should continue.Oil and gas exploration is on the increase around the world.

6. This week's rise of 6% in the share price could be associated with the rise in oil price and/or an early indication of a profitable outcome for the full year. A purchase of 20,000 shares is quite a sizeable buy judging by recent standards.

7. On a speculative note, if the U.S. does attack Iraq, the price of oil will rise accordingly. On the other hand if there is no attack and meanwhile the airline industry recovers, world oil consumption should rise. The key here will be OPEC maintaining its grip on levels of production.

[puku] 07/12/2001 15:00

i looked for a reason for the 11 % rise, coudnt find one. still a good steady share with excellent yield, and yes i'm still in it.

[the other kevin] 05/12/2001 11:55

puku - Surged up today on no buying taking it back to where it was at the time of your last post. 120p could be within reach.

[puku] 21/8/2001 14:49

started to recover - again - after another downturn. the results should push it up. my target 120p.

[turnerpa] 13/6/2001 09:56

Wellington looks a good medium term recovery but why the downturn today is the sterling downturn affecting them adversley anyone please?

[arichard] 27/3/2001 00:02

Results are good and order book is stronger than expected. MMs ticking the price up. Good yield, low PE, interest cover 5.

A decent safe play, one could expect.

[hupper] 28/1/2001 21:21

If OPEC cuts production again it can only be good for wellington, the coffers of the oil companies are bursting so I can't see Wellington suffering any adverse reactions. The sealant division must be booming, this stock will be one of the first to be snapped up if there are any signs of a slowdown, just keep an eye on the institutions.
'citywire few weeks ago'
'And its restructured polymer seals distribution business is expected to benefit from the high oil price and is already making good progress in North America.'

[salar] 28/1/2001 17:02

Question I'd appreciate if anyone could answer:

Given that 50%+ sales are to N. America, will current slowdown/poss recession there affect their market?

TIA for any response.

[jrb] 04/1/2001 10:38

Morning, Hupper.

Looks as though you and I are almost the only people interested in these. I bought them on 6th and 7th December for similar reasons:

Sale of the troublesome rubber compounding business leaves the company focused on high performance fluid seal systems, currently much in demand in the oil industry.

At 83p, forecasts of 9.53p eps this year and 10.9p next year give prospective PEs of 8.66 and 7.57. Prospective dividend yield is 7.88%.

Chariman's statement with the results in September said that the new year had started well, with order intake substantially ahead of sales and an excellent result expected for the year.

Margins were up, operating cashflow was good and is expected to continue. (It needs to, because gearing is high at 115%).

For what it is worth, the chart seems to show a classic recovery pattern, with a well-definded triple bottom followed by a strong breakout and all the averages rising in the correct order.

This seems to me to be just the sort of small company whose excellent recovery prospects have been overlooked in present market conditions. Since your post, I note that the Acorn Income Trust has increased its stake to 7.3%. (On the other hand, Jupiter Asset Management appears to have sold out.)

[hupper] 07/12/2000 23:42

Looks a good safe play going on the increasing investment in the oil industry. In these bloody times you need a safe haven. 8.8% yield, 3.2m forecast with mkt cap at 19m. Anyone else into this one, citywire reckons the Americans are sniffing around it. Good institutional support with shrewd and frequently activist investor Chris Mills picking up a 1.25 million share stake (5.2%) for his North Atlantic Smaller Companies investment trust (NAS).'
Other holders are Alistair Curry's Edinburgh Smaller Companies investment trust (EFSW)
Peter Webb's Acorn Income Fund (AIF) with 5.5% and David Horner's BFS Smaller Companies Dividend investment trust (BSD) which has an undisclosed 1.8%.