Zetar Share Discussion Threads

[spob] 06/10/2012 15:13

I have a separate account just for aim stocks and this was my largest holding

I got into this after it featured in an investors chronicle yearly bargain shares portfolio

It's been a while since one of my stocks was stolen from me

As always not sure wether to feel good about it

3 pounds will boost my aim portfolio but as usual there is probably more value to be had over the long term here

[miked500] 06/10/2012 13:13

German foods group Zertus agreed to buy UK-based chocolate maker Zetar Plc (ZTR.L) in a 43 million pound deal that gives the group its first inroad into the British confectionary market.

Zertus will pay 297 pence per share for Zetar, which is listed on London's junior AIM market, a price that is around 26 percent above Zetar's Thursday closing price.

Zetar makes chocolates and snacks under licence for media brands like Disney (DIS.N) and Hello Kitty, drinks brands such as Baileys and food brands like Marmite and Branston.

It listed in 2005, hitting a high of 590p in 2007. However, it lost 70 percent of its value during hard economic times in 2008 and has struggled to recover since then.

In 2012 the company reported adjusted pretax profit of 5.5 million pounds on sales of 128 million.

Zertus, which was founded in 1826 and owns the Dextro Energy and Loser wafer brands, said it would pay for the acquisition out of its cash resources

Think they have bought this on the cheap, but i cannot grumble only bought back on XD day, as it seemed odd to rise after going XD and the chart was breaking out. Wish the MM's had edged it up Friday as i may have had a few more. Still 3000x60p for 3 days is ok, but think the co could have regained 500p within 2/3 years. Interesting co taking them over, been around a while! - 1826.

[jeff h] 06/10/2012 12:32

To be swallowed by a German predator then...could have been wurst and 297p + div better than a kick in the nuts I guess.

I was looking forward to a Trading Update next month but given that 6 institutions owning 34% are in favour to add to the managements 15% then it will probably be an irrelevance.

[che7win] 05/10/2012 22:36

Valhamos,
I was hoping to keep this one for a while too, good quality company the bid is on the low side, any white knights out there?

[michaelmouse] 05/10/2012 20:10

"It looks like a done deal." Yep.



Cheers.
Michael.

[valhamos] 05/10/2012 18:26

I agree the bid undervalues the company but the market has been doing exactly that for a while.

I was hoping to increase my stake and hold long term with the expectation that it would get re-rated as the market put aside concerns about seasonality or nervous retailers (the lead up to Easter this year) and as the company's brands and strategy bore fruit.

It looks like a done deal.

[hpcg] 05/10/2012 18:25

You can flog to the arbitragers on monday morning. Deal looks done, funds onside, no regulatory hurdles so the discount should be quite small. The good thing is further evidence that the market knows f'all about valuing small companies, despite what some BB pundits will affirm.

[blobby] 05/10/2012 17:50

Yes a bit of a surprise. As far as I can see Zertus are a regular company (German) and not an insider stitch up.

I do think this is a terrible bargain. I was expecting a profit before tax of £6 million next year which on a p/e of 10 would imply a share price of £4.50 rather than the £3.00 offer. However the market didn't think so and hence the low share price and the chance of a takeover.

But then, the debit makes a difference to this calculation so perhaps it's better than I first thought.

So how quick will this go through and what to spend the money on?

[davidosh] 05/10/2012 17:09

Bid announced after the close at £3 including the dividend which will still be paid. That is rather better than I did out of Lees Foods but still undervalues Zetar IMO.

That only leaves me with a holding in Real Good Food RGD in the food sector and I started the year with three but clearly it is a sector where companies are getting snapped up.

I did mention the price had been moving up on no news. Rather suggests that someone had got a whiff of more than just the opening of a packet of marmite nuts !

[hpcg] 05/10/2012 16:54

Wow - bid announced and no comments until this one.

[blobby] 03/10/2012 09:25

Yes, very strange. It looks a bit like someone has tipped the share.

[che7win] 03/10/2012 09:24

I think there was an article about ZTR in current issue of Moneyweek.

I did want to accumulate more here but glad to see it rising.

[davidosh] 03/10/2012 09:10

Did anyone attend the Agm on Monday ? I am impressed that they went ex div today but are still up 6p when down 3p would be the logical move ! There seem to be keen buyers over the last few days. Confident tones from the Agm maybe

[che7win] 05/9/2012 11:50

Thanks Jeff, nice article.

[blobby] 05/9/2012 11:50

Nice bit of publicity, but does anyone have access to the report? It seems more bullish than I am at the moment and I'd quite like to give it a read.

[jeff h] 05/9/2012 11:39

From the Daily Mail:-

Broker Merchant Securities believes Zetar, unchanged at 221.5p, is an excellent recovery play.

The confectionery and snack foods group has made a strong start to the year.

The market fails to acknowledge the its superior earnings growth, the strength of the brand portfolio, its long-term strategy, its solid management team and the 26 per cent historic free cash flow yield.

It expects Zetar to deliver 48 per cent total returns over the coming 12 months.

Read more:

Merchant I believe have a 324p target price for the stock.

[jeff h] 16/8/2012 08:51

This one looks toast to me.



...well Marmite on toast anyway, another new branded product then.

[cockerhoop] 13/8/2012 15:12

Sorry posted in error to wrong thread.

[davidosh] 13/8/2012 08:51

I was sure they already produce Marmite cashews...Is this an extension to the licence or was the original product just a trial and now there will be a full range?

[cockerhoop] 13/8/2012 08:47

You're going either love or hate that news :-)

[che7win] 27/7/2012 13:54

Tipped in Shares mag. this week.

[jeff h] 27/7/2012 11:45

Edisons new research note ("Back on track"):-

[gingerplant] 19/7/2012 11:14

Sweet Unrecognised Small-Cap Value