Zotefoams Share Discussion Threads

[battlebus2] 21/3/2016 20:46

Looks like almost 1 million shares changed hands today in four separate negotiated trades.

[battlebus2] 16/3/2016 13:31

Investors Chronically says hold..

[battlebus2] 15/3/2016 13:40

Thankyou exbroker ...

[exbroker] 15/3/2016 13:19

Bumped into the boys on their round the city seem in good spirits, will give more details when I get them later in the week.The analyst at Cantors used to be at Charles Stanley when they were joint brokers to the company,here is a summary of his thoughts.

Zotefoams (BUY) – In-line results

ZT LN (284p, TP 385p), Market Cap: £126m



Our view: Zotefoams has reported in-line results with good growth in all three business units and geographies. Trading in the first two months of 2016 has begun well with Azote® polyolefin foams growing in-line with management’s 2x global GDP target, high performance products (‘HPP’) experiencing strong growth and Mucell seeing high activity levels. The shares are trading on prospective PERs of 21x and 18x. Our target price is based on a sum of the parts that implies a c. £40m value for Mucell.



· Polyolefin sales ahead 8% to 43.6m. Azote foam volumes were ahead 10% with adverse current movements reducing the sales advance to a reported 8%. Europe grew volumes 11%, US 2% and Asia, where the group operates a JV, 27%. A delay in the expected delivery of a high pressure autoclave for the US will now see commissioning in the first half of 2017 as opposed to the second half of 2016. Management do not expect this to have an adverse impact due to de-bottlenecking in the UK. The price of LDPE, its main raw material, has remained relatively flat for the last three years.

· HPP sales grew 25% to £8.3m. Reported profit fell slightly to £0.8m from £1m as continued investment was made in the business. T-Fit® saw only modest progress, at 2% due to project timings but indications are now positive for its progress.

· Mucell sales ahead by 25%. The key performance indicator of this early stage business is the size of the installed base which grew to 88 units from 52. There has been success in reducing conversion costs and equipment revenues grew 47%. Licence income remained flat in the period.

[battlebus2] 15/3/2016 11:10

Broker Invested cuts price target on Zotefoams from 320 to 300 meanwhile Cantor retains their buy stance and 385 target....well what do they know :))

[battlebus2] 15/3/2016 09:43

Ex broker any views on this mornings numbers?

[battlebus2] 15/3/2016 09:39

But of AT selling pressure this AM, but the more I read this mornings results the happier I am.

[battlebus2] 15/3/2016 07:42

Excellent results this morning IMV

[battlebus2] 14/3/2016 18:50

New website zotefoams.com, looks very good. Hope tomorrow's results are likewise.

[battlebus2] 09/3/2016 16:21

Yes could be our seller finished perhaps, back to £3 plus sharpish please :))

[gleach23] 09/3/2016 16:09

Nice to see a little blue after the 150k trade this afternoon

[gleach23] 04/3/2016 16:58

Firming of the price would seem to support your assertion bb

Prelims a week on Tues...

[battlebus2] 04/3/2016 16:12

A few trades today which look mostly like buys..

[battlebus2] 22/2/2016 14:55

Not much in the way of trades today, large spread doesn't help matters.

[battlebus2] 19/2/2016 20:01

New products, new facilities and tie ups with China can all help, i expect to see new developments within their technology and eventually see them taken out at some point. I've taken profits along the way but i'm happy to hold the rest in what is for the most part a very steady well run company in which their shares are usually tightly held. This may prove a buying opportunity.

[cockerhoop] 19/2/2016 19:56

I agree if it can maintain 20% growth for the foreseeable it's fair value but it's record doesn't necessarily suggest that will be the case. EPS f/c for 2015 appear to have been reigned back from 12p to the current 11.4 as the year progressed.

EPS growth for the last 7 years has averaged 7.1%.

The last trading statement ahead of expectations was in May 2012 so they don't appear to have a ethos of underpromising and overdelivering on a consistent basis.

Anyway good luck with it, clearly they are introducing new products so I may be missing something but no one on the thread has pointed it out so far.

[battlebus2] 19/2/2016 19:23

Estimated EPS growth of 22% for 2016 with a P/E of 20 isn't that high a valuation, others especially in the U.S. have similar ratings.

[cockerhoop] 19/2/2016 16:50

BB2,

I'm not sure that's the case, I bought in Dec 2010 at £1.30, 2010 EPS was approx 10p and 2011 EPS was 11.5p suggesting a fairly modest PE of 12ish. Market Cap to Sales was also modest.

I sold in Oct 2012 at £2.10 when I felt the valuation somewhat stretched - PE perhaps 18. Earnings haven't really improved since then but the share price clearly has.

I can't quite understand why ZTF with Op Margins of 11% has a PE in the 20's whilst say VCT producing polymers with a far superior Op Margin of 40% is on a PE of 15?

[exbroker] 19/2/2016 16:22

There was a seller around first thing not sure he is there now buying is all about the level.

[investoree] 19/2/2016 15:10

gleach23 I also made a 1,000 top-up but at a slightly higher price than you @£2.80435. They partially replaced some of my earlier long term ISA sale from much higher following Ex-brokers strategy - although on a much smaller scale. If they continue to trickle down I will continue making small top-ups as it is never possible to time the bottom (at least it hasn't been the case in my experience) IE

[gleach23] 19/2/2016 14:31

now being quoted 11p higher than earlier for just 500 shares...let's hope you were right about the price being manipulated down to fill some orders janeann

[cockerhoop] 19/2/2016 13:17

On what metric do you guys think ZTF is cheap?

I'm clearly missing something as can't see the attraction even at the current price.