Zotefoams Share Discussion Threads

[kimball808] 04/8/2010 07:11

HB say buy:

Zotefoams (ZTF, 108.0p, £41.36m)

Zotefoams (ZTF, 108.0p, £41.36m), the manufacturer and seller of high-performance foams, reports interims to 30 June 2010. A broader-based recovery in demand for our polyolefin products has driven group sales up 26% to £19.6m (H109: £15.6m) and adjusted PBT up 83% to £2.9m (H109: £1.6m). Stronger cash generation has eliminated the net debt and ended the period with net cash of £0.2m. The interim DPS of 1.5p has been maintained. Sales rose 33% in Europe, 27% in North America and 74% in Asia. Demand from car makers and manufacturers of packaging were especially buoyant. The group is traditionally H1 weighted. The outlook statement is mix. Demand for High-Performance Polymers (HPP) remains strong and is underpinned by orders. However the prices for LDPE, a major raw material used in the core polyolefin business, have risen consistently over H12010 and with the prices denominated in Euros, the cost is 42% higher in sterling terms than in H1 2009. The exposure to international market bodes well for the company. We believe the group is trading in line with 2010 PBT of £4.4m and EPS of 8.5p, which puts it on 12.7x earnings this year and 12.1x next year. Zotefoams has already benefited from some recovery in demand across markets and we believe it will continue to benefit from this trend. The group has good geographical spread. We reiterate our BUY recommendation but reduce our target price from 122p to 119p. (Amisha Chohan)

Recommendation: BUY

[geraldus] 03/8/2010 19:39

Thanks battlebus,don't think AVG will be so easy though.

[battlebus] 03/8/2010 18:38

Kimball808 as i said this morning this is early days here and as always it pays to stay invested. At the minute i can't see me selling short of £2. Well done Geraldus on doubling your money!

[kimball808] 03/8/2010 17:04

wow..cracking day today with ZTF being the star performer...now how much will we lose before we move on up again?

[kimball808] 03/8/2010 15:56

and another step in the right direction...this is nice...

[geraldus] 03/8/2010 12:54

Well,that makes it just over a double for me now in 12 months - very pleased,now if only they all performed that well.

[kimball808] 03/8/2010 11:12

oh..getting interesting...

[alfred] 03/8/2010 09:18

A modest dividend increase would surely have been appropriate.

[geraldus] 03/8/2010 08:59

Yes,very good eps figure - will hold.

[kimball808] 03/8/2010 08:17

And some one wants 100k paying top price...nice...:-)..yet 90K on the offer....why does that not get matched???

[wjccghcc] 03/8/2010 08:15

With H1 EPS of 6.0p, even if they're flat on H209 you're looking at a 10% upgrade.

[battlebus] 03/8/2010 08:05

Ah early days.

[kimball808] 03/8/2010 08:04

shame we got marked down today....MM's for you...

[topvest] 03/8/2010 07:48

Yes, solid!

[battlebus] 03/8/2010 07:33

Good set of figures this morning should underpin the shares.

[kimball808] 03/8/2010 07:23

Sure am...YULC, TTG, XPP, VLX all broke out of their 52 week range yesterday with XPP and VLX being top of the leader board. Great interims today...still cheap re PEG and against sector...:-)

[battlebus] 02/8/2010 18:56

Kimbal are you talking about my favourite xpp by any chance.

[kimball808] 02/8/2010 17:44

Well if its like others that have reported their interims today and as per their last trading statement 'to be above market expectations for the year as a whole', then we could be in for a nice rise...hopefully

[battlebus] 01/8/2010 23:40

Results on Tuesday so fingers crossed for all shareholders.

[battlebus] 25/7/2010 19:44

Should soon be another leg higher. £1.20 is a minimum.

[kimball808] 20/7/2010 13:24

Quite a busy day on the buying front today....;-)

[battlebus] 07/7/2010 18:57

I agree Darola this is still cheap just look at the chart and the company is in much better shape now.

[darola] 07/7/2010 18:52

Still cheap, potentially offering a good yield via the divi.

[battlebus] 07/7/2010 14:18

Great run at the moment a couple of pence a day will do nicely.

[darola] 06/7/2010 19:16

Great climb today, 7p spread could with narrowing a bit though.... : )