Zotefoams Share Discussion Threads

[clocktower] 03/11/2020 13:33

Will lockdown be negative again for ZTF ?

[ali47fish] 30/9/2020 12:49

this rise has been almost regular but would be nice to know what is triggering it and whether it is sustainable?

[edwardt] 25/9/2020 10:02

flash in the pan...

[garth] 25/9/2020 00:42

Might the rise have been in response to Nike last qtr results released 22nd?1% revenue decline but over 80% growth in digital.G.

[clocktower] 24/9/2020 17:18

Nice big jump after the expected steady rise since the last presentation. Very Rewarding.

[danieldruff2] 24/9/2020 16:28

Something similar happened to the price of NAH recently, two days later, proposed takeover

[emeraldzebra] 24/9/2020 16:21

Why is the spread so prohibitive here ?

[garth] 24/9/2020 16:20

Interesting close. I added some more a couple of days ago thinking it looked like it was going to break out.Then it dipped back and I thought I had read it wrong.Pleased now!G.

[janeann] 24/9/2020 16:16

Still not easy to sell in quantity tho;

ps not that I am going to!

[edwardt] 24/9/2020 16:13

either that or some one is working a large buy order badly!

[edwardt] 24/9/2020 16:12

something NIke said in results??

[whitleywarrior] 24/9/2020 16:01

It looks like something has got people interested. Searched for news but nothing found yet. Large rise on a number of small buys.

[janeann] 24/9/2020 15:46

yes a bit of a leap on no news!

[edwardt] 24/9/2020 15:34

oi oi someone wants them.

[edwardt] 23/9/2020 11:05

must be positive readacross from Nike's blowout results.

[dubai123] 11/9/2020 10:30

Well worth listening to

[dubai123] 11/9/2020 10:30

https://www.bbc.co.uk/sounds/play/m000md9s

[garth] 24/8/2020 12:18

Likewise. £200K worth sold.

I dont blame any director for selling - they have to some time and that is the point of the benefit.

But it never seems to present a buy signal. Generally speaking, no director would sell today if they believed they could sell in a few months time for 25% more.

Of course if the timing of a house move or settlement on inheritance tax bill etc required it, that's a different matter perhaps.

G.

[edwardt] 24/8/2020 11:54

pretty bullish. albeit he sold some so i temper my enthusiasm when a ceo does that!

[clocktower] 13/8/2020 12:48

At least IC may have provided us with the opportunity of picking up more stock at these levels.

My view is that the increase in inventory has been explained in detail and further more makes them business ready regardless if IC were to be proved correct, which I very much doubt, as huge building programs will get the economy back on it`s feet within 12 months, and I expect it to boom the following few years, as the green light is given to big projects that would have previously been held up.

In addition besides the spread of location of the business, they supply a wide range of both commercial and domestic needs.

I wish, I had got in sooner. DYOR.

[ali47fish] 13/8/2020 09:27

Dubai and Edward i am so grateful for such astute answers and exactly as i suspected - IC is useless except for simon thompson who seems to get much of his analysis right

[edwardt] 12/8/2020 21:44

Indeed. You build inventory when you have visibility. I expect management have better insight than investors chronicle who neither run actual money or manage a business.

[dubai123] 12/8/2020 16:14

The IC is blinded perhaps they should meet management as we did yesterday and ask them a question before writing stuff . It would save us all time. The CEO highlighted this yesterday having seen this happen twice before when there was massive destocking followed by demand that was needed yesterday. The company is prudent sensible and well run . The company have great visibility on sales and a products that are simple unique.

[ali47fish] 12/8/2020 14:42

i was happy with the outcome but investor chronicle has to spoil it with a sell tip- please can somebody with knowhow look into what they say and whether it holds any truth

Half Year Results yesterday
Zotefoams' shares jump on brighter outlook

SELL
Tip Update: Sell at 409p

By Alex Janiaud

Zotefoams (ZTF) shares leapt after the materials business predicted record sales for its second half, despite weakness in key automotive, aerospace and marine markets. Zotefoams’ polyolefin foams division bore the brunt of the coronavirus pandemic with a 23 per cent revenue decline. But this segment stands to benefit from high PPE (personal protective equipment) demand, and Zotefoams secured a significant contract with its largest UK client last month.


Zotefoams is ready to call its new Polish manufacturing facility into action in its fourth quarter should markets recover and demand rebound. The company is preparing for a surge and increased its inventories by almost a third, while raw materials for aviation purposes will take time to pass through given the turmoil faced by the industry. Inventories as a percentage of sales increased to 72 per cent from 23 per cent at the end of its financial year, having stood at 45 per cent this time last year.

Broker Peel Hunt raised full-year 2020 adjusted pre-tax profits and EPS forecasts to £8.5m and 14p, respectively, up from £7m and 11.5p.
ZOTEFOAMS (ZTF)
ORD PRICE: 409p MARKET VALUE: £199m
TOUCH: 400-430p 12-MONTH HIGH: 570p LOW: 152p
DIVIDEND YIELD: nil PE RATIO: 31
NET ASSET VALUE: 189p NET DEBT: 39%
Half-year to 30 Jun Turnover (£m) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p)
2019 42.3 4.93 8.55 2.03
2020 34.6 2.70 4.48 2.03
% change -18 -45 -48
Ex-div: 10 Sep
Payment: 9 Oct

IC View

The dividend is back and Zotefoams is clearly extremely confident over its prospects for its second half and beyond, with resilient demand anticipated for footwear and insulation products. But the company is carrying a heightened level of inventory and inputs in expectation of a swift rebound. This makes it more vulnerable if we were to witness further deterioration in industrial markets, which is not an unlikely scenario. Sell.

Last IC View: Sell, 207p, 7 Apr 2020