foolish learner
03 Jun 2016
price ex rights? Anybody who can help?If today the price is 139p then is it logical to assume (presuming that there is no drastic +/- news) that the price when the new shares are in issue the price is likely to fall further to 122.3p mark?Am I right to think (2x139)+(1x89)= 367 for the three shares or 122.3p each in valueDoes that equate to the rights issue being about 17.3p per share held again taking today price139 less 122.3 =17.3Or is the rights issue value the straight difference between today price and the89p cost
MyHobby
02 Jun 2016
Re: Rights issue I think the rights issue is a stay of execution. It's a temporary injection of cash which will all be used up on debt reduction. .. severe cost cutting is needed and more work to generate free cash flow from operations.
Callun
02 Jun 2016
Rights issue The rights issue is aimed at reducing current debt level to within the company's target of less than twice EBITDA.However, this does not address the fundamental problems which have hit performance, being the slowing growth in Asia and reduced spend by traditional customers. That is stifling organic growth, and with debt problems Cobham's traditional growth by acquisition is severely limited. With 2 profit warnings under its belt to date, how far behind can the third be, and will it be biggest of all?Any views?Callun
Andy01
26 Apr 2016
sell sell
Callun
26 Apr 2016
Re: Profit Warning AND EQUITY ISSUE This profit warning comes after a steady decline in the share price over the last year, now down 50% or so. One off charges have a habit of repeating. There was a previous £15M charge against the refuelling business. Now its the wireless business. The link between both charges is failure to deliver on time. Perhaps Cobham is biting off more than it can chew.Tempted to buy for the bounce, but no more than that. The old adage about profit warnings coming in threes keeps me cautious. Already under water here.
idontwanttolose
26 Apr 2016
Profit Warning AND EQUITY ISSUE First quarter trading was behind the Board's expectations. The Group's trading profit was £15m (2015: £50m). There are three principal reasons for this slow start to the year: operational issues in the Wireless business resulting in delayed shipments and a one-off charge of £9m; increasing headwinds in the commercial fly-in fly-out business; and cost increases on a small number of development programmes in the Advanced Electronics Solutions Sector. The remainder of the Group continues to trade in line with the Board's expectations, with the order book slightly ahead of the year end position on a like-for-like basis The impact on earnings of the slow first quarter coupled with the ongoing investment requirements in long term development programmes mean that Cobham now expects the Group's leverage could be close to the net debt to EBITDA covenant ratio of 3.5x at 30 June 2016, the next covenant testing date. Having considered its options, the Board has concluded that it is in the Group's best interests to reduce indebtedness on a more long term basis. Accordingly, the Board has decided to raise sufficient new equity to reduce the net debt to EBITDA ratio to around 2x. · The equity raise will enable the Group to continue to run its business with a view to value creation over the medium and long term, investing appropriately to bring major development programmes into their initial production phases and in the businesses' differentiated technology solutions and know-how, which are closely aligned to growth opportunities. · In addition, as part of Cobham's ongoing continuous improvement initiatives, the Group is targeting further net savings in 2016 as well as continuing to focus on working capital management and control of capital expenditure. This will aid mitigation of margin pressure, support the delivery of the Board's earnings expectations, and the generation of free cash flow.
Callun
26 Feb 2016
Re: Conflict Hi-tech does not necessarily equate to hi-profit, witness the woes at RR. Hi-spend in tech development is not where the profit lies. The profit is in final product sales and support, and until Cobham's new product line is turned into sales then the profits will languish.
First Time Buyer
12 Feb 2016
Conflict With all the conflict in the Middle East and Russia uncertainty. I don't understand why such s high tech company is down so much?
nk1999
15 Aug 2015
Investec From Citywire:"Don’t buy into Cobham, says InvestecDefence and security specialist Cobham (COB) is ‘still not worth buying into’ despite large investment at the firm.Investec analyst Rami Myerson reiterated his ‘sell’ recommendation and reduced the target price from 280p to 270p. Shares in Cobham were broadly flat at 285.5p yesterday.‘Cobham no longer expects mid-single digit organic revenue growth in full-year 2015 and full-year 2016 given uncertain defence and challenging commercial end markets, despite the large investments made in recent years to stimulate revenue growth,’ he said.‘Moreover, our analysis suggests further downside risk to consensus forecasts following guidance for flat margins in 2016. Downside risk from further deferrals of short cycle revenues and potential problematic execution are not reflected in the share price.’"
First Time Buyer
06 Aug 2015
Re: Results Results don't really tie-up with where the share price was sitting. Still some way to go in that respect.
once a week
06 Aug 2015
Results What a stonking set of results. I bet the Finance and IR guys were chomping at the bit to get that RNS out. I can't see any negatives.
II Editor
14 Apr 2015
NEW ARTICLE: Trends and Targets for 15/04/2015 "COBHAM (LSE:COB)Â continues our look at Aerospace sector components. From a big picture viewpoint, this share seems to be heading toward a long term 388p and would need break below 250p to rubbish the prospect. What interests us, therefore, is ..."[link]
scruffie1
24 Dec 2014
Re: On the up! Long-term this company will produce sound returns. Good diversification in aerospace and other things and not too reliant on one sector.
dhymeri
23 Dec 2014
On the up! Anyone else invested here. Have this in my little girl's JISA and it seems to be doing well.
