Zotefoams Share Discussion Threads

[battlebus2] 26/5/2018 19:19

Good to see you’re still currently a holder woody, a slight misunderstanding on my behalf over what you said. 👍

[kazoom] 23/5/2018 23:08

Woody - there is no doubt that Kentucky cost us money as sales were capacity constrained last year (although if they had brought the capacity in as per the original plan, maybe we would have been okay),

I don't understand though why you are sure the Croydon upgrade and new plant in Poland are too late?

Nothing the company has said suggests that they face demand that they cannot meet before these facilities come online - my reading therefore is that the timing is near perfect.

There is every chance you have more in depth research here than me, so I would be really keen to hear why you think these facilities are too late.

[woodcutter] 23/5/2018 19:57

If there's any doubt about the growth potential please read the last few prelims and H1 reports and I think you'll understand why I'm a little peeved. It looks pretty obvious to me that the growth potential was substantial, particularly in HPP...............why else are we invested here?

woody

[woodcutter] 23/5/2018 19:41

Could I please clear up a misunderstanding. I haven't sold and I think the expansion is great for business.

My gripe is that the board of directors have been slow in recognising the potential growth of the business. Imv this plant should already be in operation. The process of design and build should have been done much earlier.

ExB fortunately my background, before I retired, was in capital projects. Indeed I was a chartered engineer and was fortunate to manage a number of businesses designing and manufacturing mechanical and process plant so I'm very well aware of the lead time requirements for pressure vessels etc. Granted you weren't to know that, nonetheless your B&Q comment was a little presumptuous. Thankfully I don't take offence easily

This doesn't detract from the fact that, imv, they could have been more proactive.

I expect the share price to either
mark time in a long term consolidation period or
slowly decline to a level of support whilst the new process plant is built.
I don't see the share price moving forward indeed a couple of institutions have already reduced.

The decision is whether to wait out the time cost period or sell and come back in 18 months or so.

This kind of capital cost expansion is also on the list of selling points issued by Jesse Stine, make of that what you will.

For me it's now in the lap of the chart

aimho

woody

[ali47fish] 23/5/2018 09:08

why is this one retracing anyone please!

[dubai123] 17/5/2018 17:30

Nice one .... upgrades to come!!!!

[geraldus] 17/5/2018 15:04

Thanks for that Exbroker.

[dozey3] 17/5/2018 12:45

Yes, ex broker (1245)
but that’s for small takeovers or deals where speed/opportunity is of the essence and is no licence to favour one holder over another. You clearly have an insider’s point of view to which you are entitltled, but it does not make black - or even light grey - white.

[dubai123] 17/5/2018 10:37

Stock trading back towards highs

[dubai123] 16/5/2018 17:55

Well said ex broker

[emeraldzebra] 16/5/2018 16:36

The recent fund raising was heavily over - subscribed. My reps only got a very small percentage of what they applied for. Outlook seems v positive I would suggest.

[exbroker] 16/5/2018 14:24

Dozey3
Insiders feeding from the trough???
The company get authority every year at the AGM to issue up to 9.99% of the issues share capital without pre-emption rights, if you looked at the accounts you would know this! You can always vote against or as some on here have today either sell or buy in the market. This is one of the best run and least leaky companies I know, the price fell last week as the buyers were made inside on Thursday, so any buy order had to be cancelled and it did not take much volume of small selling for the price to fall.

[modform] 16/5/2018 13:59

I personally don't understand Rivaldo's reasoning that the PER of more than 30 makes it a sell. If you look at the quality companies ABC HLMA TUNE ZTF and many more, they are all on a per of more than 30.
And why the company was a "buy the dip" yesterday, and sell today because of placing. It's dilution but it's an investment for growth.

[soundbuy] 16/5/2018 13:28

Agreed BB

Stronger hold on news and developments IMO.........

[dozey3] 16/5/2018 13:27

Exbroker, of course a placing is cheaper for insiders feeding from the trough, but not for the loyal small holders whose pockets are picked. How it can be legal goodness knows, but if it costs the company fractionally more to be fair to all then so be it - just do what’s right.

[battlebus2] 16/5/2018 13:18

I’m struggling to see why Woody and Riv are so negoon the placing, I don’t understand how it’s a sell now when the company has taken major steps for growth. If we just stood still it’s would still be a hold 🤔. This is what a PLC should be doing and not standing still. I welcome this decision with open arms and look forward to a great future here. Well done management 👏

[janeann] 16/5/2018 12:44

well I struggle to comprehend what that means exbroker - apart from I am not eligible - but I added 5ks worth at 5.40 first thing this am - so I think the outlook is good.

[exbroker] 16/5/2018 12:17

Woody

The lead time for the sort of capx they are doing in Poland is 2 years, you don’t buy pressure vessels the size and standard they need at B&Q!

To all those on the board who wished they had been asked to patriciate in the placing see this notice which was part of the statement.

I discussed a rights issue not a placing but given the relative small size of the amount a placing is much quicker and cheaper to do.

MEMBERS OF THE PUBLIC ARE NOT ELIGIBLE TO TAKE PART IN THE PLACING. THIS ANNOUNCEMENT (INCLUDING THE APPIX) AND THE TERMS AND CONDITIONS SET OUT HEREIN (TOGETHER, THIS "ANNOUNCEMENT") IS DIRECTED ONLY AT PERSONS WHOSE ORDINARY ACTIVITIES INVOLVE THEM IN ACQUIRING, HOLDING, MANAGING AND DISPOSING OF INVESTMENTS (AS PRINCIPAL OR AGENT) FOR THE PURPOSES OF THEIR BUSINESS AND WHO HAVE PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO INVESTMENTS AND ARE: (1) IF IN A MEMBER STATE OF THE EUROPEAN ECONOMIC AREA ("EEA"), QUALIFIED INVESTORS AS DEFINED IN ARTICLE 2(1)(e) OF DIRECTIVE 2003/71/EC AS AMED, INCLUDING BY THE 2010 PROSPECTUS DIRECTIVE AMING DIRECTIVE (DIRECTIVE 2010/73/EC) AND TO THE EXTENT IMPLEMENTED IN THE RELEVANT MEMBER STATE (THE "PROSPECTUS DIRECTIVE"); (2) IF IN THE UNITED KINGDOM, QUALIFIED INVESTORS WHO (A) FALL WITHIN ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005, AS AMED (THE "ORDER") (INVESTMENT PROFESSIONALS) OR (B) FALL WITHIN ARTICLE 49(2)(a) TO (d) (HIGH NET WORTH COMPANIES, UNINCORPORATED ASSOCIATIONS, ETC.) OF THE ORDER (ALL SUCH PERSONS TOGETHER BEING REFERRED TO AS "RELEVANT PERSONS").

[petewy] 16/5/2018 11:31

I'm out but will look to come back in when the new factory starts up next year.

[dubai123] 16/5/2018 10:21

You guys are forgetting that that the company has visibility on forward orders to the point of what was announced yesterday.This is a well run and very conservative board so this move is massive !!!MuCell has yet to deliver contribution but has seen sensible investment. The market take up by the brands should accelerate

[woodcutter] 16/5/2018 08:42

One other point of note is the timing of this capacity increase. We are toward the latter stages of this market cycle, the yield curve is now getting closer and closer to flattening indeed it won't be long before it begins to invert. This has historically been a precursor to market downturn and recession. At this juncture the new capacity may well be coming on-line when the market has turned or in the beginnings of a recessionary period. you can never time the market accurately but there's more likely to be a move down at some point in the near future.

wc

[shanklin] 16/5/2018 08:41

rivaldo

I guess investing in the future has worked fairly well for Amazon

[rivaldo] 16/5/2018 08:37

I sold this morning.

I can understand the reasoning for the fundraising, and the placing price is good, especially given where the share price has been only recently.

But ZTF were already on a very, very high multiple, and this is will make it even worse.

ZTF themselves say that the placing will be earnings-dilutive for the next two years.

So whilst ZTF are a top-quality company, and I suspect the share price will hold reasonably well (in stable markets anyway), how much upside is there now from here for the foreseeable future? Maybe 10%-15% at most I'd have thought unless trading is exceptional.

N+1 Singer are reviewing their forecasts for the dilution - I'd expect ZTF will now be on a P/E of more than 30.

I've doubled my money in just over a year, so it's been an unexpectedly good run. ZTF are a good company, so I may have to buy back in and bite my tongue at some point! It'll certainly remain on the watchlist.