Jar-Jar Both
17 Dec 2016
Rise....takeover? Takeover in the offing?Just musing on the rise, maybe it looks cheap to the Americans?
First Time Buyer
16 Dec 2016
Rise? Any particular reason for today's rise, or just expectation of greater US spend next year?
Callun
27 Nov 2016
Re: Cobham directors accused of unlawfully t... If true, not good behaviour for a company that claims "The most important thing we build is trust".Callun
idontwanttolose
27 Nov 2016
Cobham directors accused of unlawfully transferring cash In the FT todayCobham directors accused of unlawfully transferring cashClaim by insolvency litigator alleges move left defence group’s subsidiary unable to pay creditors
IOMINVESTCOM
25 Oct 2016
Jefferies: CobhamÂ’s risks were well known Jefferies: Cobham’s risks were well knownThe year’s second profit warning from Cobham (COB) saw shares in the defence and aerospace contractor slide 13% but Jefferies believed the risks were already known.Analyst Sandy Morris retained his ‘buy’ recommendation and target price of 175p on Cobham after the company said trading had continued to be challenging in the third quarter (Q3). Conditions remained ‘subdued’ in the maritime SATCOM business, new management of its Wireless division had made slower progress than expected and a small number of space-related development programmes had been affected by previously reported technical issues, it said. Also, cash flow had been interrupted by lengthy testing by US authorities of its hose and refuelling system for use on the Boeing US KC-46 tanker.As a result the company warned full-year profits before interest and tax would be between £255 million and £275 million, compared with analysts’ consensus forecast of £295 million. Morris said the 10% downgrade could result in a 20% share price fall or ‘we could acknowledge Cobham’s previous guidance was regarded with some scepticism and that the risks flagged [in the trading update] are those also flagged at the H1 2016 stage’.The shares closed 21p down at 139.7p. They have fallen 53% this year.[link]
IOMINVESTCOM
24 Oct 2016
Re: Callun: Several sources told the Sunday ... There must come a point that there are attractive division's within cobham that will be of interest to a bidder .It still is making a profit.......
idontwanttolose
24 Oct 2016
Callun: Several sources told the Sunday Time... I parted company with COB at 171p per share at a small profit, I keep watching them as I wonder if they are vulnerable to a takeover/merger.I also cannot understand however the Forecast for 2016 and 2017profit Year Ending Revenue (£m) Pre-tax (£m2016-12-31 1,982.75 243.53 million2017-12-31 2,053.33 279.00Perhaps they will be subject to a reversal??
Callun
24 Oct 2016
Re: Several sources told the Sunday Times th... With hindsight I should have taken more notice of this post and sold pre trading update. The gradual drop in the SP leading up to today was also a clue as those in the know abandoned ship.Callun
Callun
24 Oct 2016
Re: Trading update This is the third profit warning so confidence in the management must be severely dented. Each warning seems to be associated with a different sector of it's divverse portfolio of businesses.SP now below the ex rights price, so all the goodwill built in since then has evaporated.The reliance on favourable currency impacts is also of concern, since it implies the profit hit would be greater with a stable pound. With significant foreign earnings profits should have been up, not down.Callun
idontwanttolose
24 Oct 2016
Trading update A down market update with profits anticipated in the range of £255m to £275m. when the forecast was around £243M so why the bleak outlook if they have their sums right??24 October 2016Cobham Trading UpdateOverall trading in the third quarter has remained challenging and is behind management's expectations. This has been driven by underperformance in the SATCOM and Wireless business units in the Communications and Connectivity Sector and in the Integrated Electronic Solutions business unit within the Advanced Electronic Solutions Sector. Underlying demand conditions and performance within the Aviation Services Sector have been as anticipated. The Mission Systems Sector has traded broadly in line with expectations, but is subject to certain risks related to the US KC-46 tanker, as set out below. Demand conditions in maritime SATCOM have continued to be subdued, offset in part by limited growth in revenue from next generation Ka band products. In addition, while good progress is being made in Wireless by the new management team, this has been at a slower pace than expected, with some revenue deferral and additional costs incurred from increased resource requirements. In Integrated Electronic Solutions there have also been some additional costs and deferred revenue relating to the previously reported technical issues on a small number of space related development programmes. However, these have largely been resolved in the third quarter. The Mission Systems Sector supplies the hose and drogue refuelling system and body fuel tanks for the Boeing US KC-46 tanker. This aircraft received Milestone C approval from the US Department of Defense in August, signalling it is ready to enter production. Having successfully completed flight test in support of this milestone, Cobham is progressing with the complex US Federal Aviation Administration conformity process and is also in discussions with its customer on the commercial terms for the conformity and qualification phases. While risks to the overall outcome of these discussions remain, it is anticipated that a satisfactory conclusion will be reached, although the exact timing of this cannot be determined. This is currently impacting cash receipts and could continue to do so through the year-end. Following the underperformance in the third quarter, the Group expects an improvement in fourth quarter trading from increased volumes in a number of areas. However, despite this the Group's anticipated full year outcome is now below the Board's previous expectations, largely resulting from a continuation of issues seen in the year to date. Within this, some quarter on quarter volume growth is anticipated in SATCOM. Wireless is expected to execute against an encouraging order pipeline, notably for in-building wireless products, although its overall performance in 2016 will remain significantly lower than previously anticipated. In Integrated Electronic Solutions there will be some increase in revenue from delayed development programmes and book and ship orders. Overall, after undertaking a detailed assessment of the likely outcome for the full year, the Board now anticipates that Group trading profit1 for 2016, including favourable currency impacts, will be in the range of £255m to £275m. It is now anticipated that the Group's 2016 year end net debt/EBITDA gearing ratio will be around 2.6x, after taking into account the updated assessment of the Group's trading prospects for the full year. As previously announced in August 2016, Bob Murphy, Cobham Chief Executive Officer (CEO), is to step down, with David Lockwood having been appointed as the Group's new CEO. David will join Cobham no later than 1 January 2017. In June 2016, the Group also announced the appointment of David Mellors as Chief Financial Officer who is also expected to join Cobham no later than 1 January 2017. He will replace Simon Nicholls, whose resignat
idontwanttolose
11 Sep 2016
Several sources told the Sunday Times that defence officials would favour a domestic merger between Meggitt and Cobham rather than an American deal Ministry of Defence chiefs are on high alert as industry sources said a succession of mishaps at aerospace group Cobham had stoked interest from US private equity giants and industry rivals, though Cobham’s woes could trigger another attempt to merge it with the UK engineer Meggitt. Several sources told the Sunday Times that defence officials would favour a domestic merger between Meggitt and Cobham rather than an American deal.May be the best result for Cobham in my opinion but as always DYOR
II Editor
02 Sep 2016
NEW ARTICLE: Stockwatch: A 'defensive' contrarian play "Is the worm turning for defence contractors? The Mid-250 shares in LSE:COB:Cobham - diversified in aerospace and defence - have bounced after appointing a new chief executive, with analysts projecting strong profits recovery. But the purer ..."[link]
II Editor
18 Aug 2016
NEW ARTICLE: A ‘wingless brick’ to high flyer? " LSE:COB:Cobham is perhaps worthy of an update. We last viewed the share early in 2015 and everything has fallen apart. It failed to achieve any upward triggers and has dropped like a wingless brick since.While the price indeed achieved our 282p ..."[link]
II Editor
17 Aug 2016
NEW ARTICLE: Trends and Targets for 18/08/2016 " Cobham PLC (LSE:COB) is perhaps worthy of an update. We last viewed the share early in 2015 (link here) and everything has fallen apart. It failed to achieve any upward triggers and has dropped like a wingless brick since. While the price ..."[link]
nk1999
15 Aug 2016
Barclays view "Barclays downgraded Cobham to 'equalweight' from 'overweight' saying it expects several unquantifiable bumps along the way in the next six months and sees cleaner yet equally compelling value to be had elsewhere in its coverage.The bank said that while the logic behind rebalancing away from defence was sound at the time, commercial markets have softened significantly since then, while pure-play defence peers have re-rated to all-time highs.It said the rights issue further dented sentiment and in turn valuation multiples, meaning the stock still looks cheap, but the the impending management change cannot be ignored in the near term."We remain compelled by Cobham's valuation, this is still the highest margin defence company on the planet trading at just 12.6x FY16E P/E, with a 4.8% dividend yield and a free cash flow of yield of around 7%, yet it trades at a P/E discount of around 30% to comparable US defence peers. Clearly the risk/reward looks to be skewed to the upside on a 12 month view," the bank said.Barclays said that while management remains cautiously optimistic in the company just about attaining the second half plan, this is unlikely to be sufficient to see that valuation gap close materially more than it has already as around 30% of revenues are exposed to non-aerospace and defence 'commercial' end markets, offering a lesser degree of safety than the pure-play defence peers."With the balance sheet now addressed the underlying story at Cobham should be a cleaner one. Should management be able to deliver their revised guide, confidence will slowly be restored in this 16% margin, highly cash generative technology business with high barriers to entry."From ADVFN.
