Xp Power Share Discussion Threads

[owenski] 03/10/2023 09:57

This was a strategically well run business under Duncan Penny, it looks like it's now being run by incompetent clowns. Sad to see.

[1knocker] 03/10/2023 09:54

I think you need to do a bit of number crunching to say whether it is or is not oversold.

Take a look at how the Synthomer price has moved over the past year, for example. It was touted as a 'cheap' stock a year ago, but the true position was merely that its price was down a lot. It is now in the throes of a rights issue and the price (adjusted) about a quarter of what it was then. Its certainly cheap, but is it good value?

My problem with the argument that this is now good value is that without any 'event' to throw it off course, we have moved from 'all on course and orders looking up for the second half' 2 months ago to 'trouble at t' mill' and unable to meet its bank covenants today. It has been for some time carrying a lot of debt, but continued to pay a substantial dividend. Re-financing is going to be expensive, whether by way of new equity issue or bank borrowing. Until we have a clear and credible plan for the way forward, I don't see how one can determine at what price the shares constitute good value.

There may be a credibility problem for some time too. The BoD has either miscalculated badly, or has closed its eyes to problems which called for action well before the company ran out of road. I don't see any fast bounce back in the share price from that, even if the balance sheet can be shored up at reasonable cost.

[sbb1x] 03/10/2023 09:23

Few nice buys rolling in now ...

[dodddy] 03/10/2023 09:11

I very much doubt that

[sbb1x] 03/10/2023 08:57

Market maker wins on the bid, could be ready to move higher

[sbb1x] 03/10/2023 08:33

Grabbed a few

[glavey] 03/10/2023 04:56

"Lovely jubbly I'm in" "Money to be made here"

How's that working out? Just wondering...

[bathcoup] 02/10/2023 22:21

redartbmud,

A great job indeed, thanks. I was told a long time ago that "you learn something new every day". How true.

[redartbmud] 02/10/2023 17:50

bath

Non-Executive Director.
A non-executive director, independent director or external director is a member of the board of directors of a corporation, such as a company, cooperative or non-government organization, but not a member of the executive management team.
There to act as independent advisors or directors to help the company achieve its goals.

Hey ho.... Great job done!!

red

[kiwihope] 02/10/2023 16:50

I have been watching this for some years thinking to buy in. But the big legal case and costs and their ever increasing debt put me off. Glad I gave it a miss.

[bathcoup] 02/10/2023 15:46

redartbmud,

Sorry, what is NED in your post #2689?

[the codger] 02/10/2023 14:50

Way way oversold.looking forward to the recovery.

[redartbmud] 02/10/2023 12:43

knocker

My point of view too.
The system doesn't work, but costs obscene amounts of money to operate.

red

[1knocker] 02/10/2023 12:34

redart, you are learning that 'corporate governance' requirements and 'best practice' always have the opposite effect to that intended.
g
When did you last see NEDs rein in the executive directors?

Similarly, directors pay committees ALAYS conclude either
(1) this is a growing company with high aspirations, and the directors should be paid accordingly (ie at the high end of the scale looking at comparable, but larger, businesses), or
(2) this company is not doing well, and the directors should be incentivised (Ie at the high end of the scale looking at comparable, but more successful, businesses).

When did you last see the pay committee conclude that our directors are far from exceptional, are not doing a great job, and we need to rein in costs, including directors' emoluments?

Directors', and especially CEOs', pay has risen faster since such committees became the norm!

[redartbmud] 02/10/2023 10:48

Val

Agreed.
There are short term market issues that have impacted many in the sector, but management has to take the blame for the current mess.
What is the point of NED's? They appear to be invisible in the piece. Their job is to ploice the executives. A business plan that has been far too optimistic, and no margin for error.

red

[the codger] 02/10/2023 10:46

Never fall in love with a company

[redartbmud] 02/10/2023 10:43

codger

Assume you are trading the share.

red

[the codger] 02/10/2023 10:26

Funny that, I've just made money on this
And that's what it's all about.

[valhamos] 02/10/2023 10:22

"Quality" is not a word you would associate with XPP anymore unlike the Duncan Penny days. Debt is still far too high despite promises to reduce it suggesting some of the issues are deep-rooted. A sudden postponement of customer orders from the semi-cap sector is possible in the current downturn that we are experiencing but XPP have been far too lax in cash and capital management - the dividend has been increased too much over the recent past - in the face of such a risk. Also capex/acquisitions have not generated the previously high returns on capital. Recovery and a return of confidence will take a while.

[the codger] 02/10/2023 09:17

Money to be made here

[salpara111] 02/10/2023 09:07

Made some money on this way back when it was a ftse 250 stock and have always kept an eye on it as a potential recovery play.
As another poster above mentions, how can you put out a positive trading update 8 weeks ago and then this.
I guess its the debt/covenant ratio that is really hitting it today but I wont be taking a stake despite the very large fall.

[the codger] 02/10/2023 09:00

Lovely jubbly I'm in

[saltaire111] 02/10/2023 09:00

Well this is a bit of a blow.

Salty

[fegger] 02/10/2023 08:54

The update on 1 August said this: Significantly improved performance, full year outlook unchanged, longer term
outlook continues to be very strong

Now this. Unacceptable. Management can not be relied on. Uninvestable from now on as far as I am concerned

[kiwihope] 02/10/2023 08:40

Too much debt...