LK Hyman
12 Aug 2016
I'm in! I've been watching Devro for some time now and have plunged in today with the money thrown up by having sold Diageo, with which I have finally lost patience for reasons set out on the DGE board.I like esoteric products and they don't get much more esoteric than collagen sausage skins. It seems to me that Devro has been sinking recently but that, with the two new manufacturing sites in the USA and China now more or less complete and about to start churning out skins, the company ought to start throwing off a bit of cash, assuming the Chinees like high quality snorkers which I'm sure they do.The yield is nothing to write home about, but it's better than Diageo LOL.LKH on the flybridge 3.2% of wad in DVO
The buzz
11 Aug 2016
Sea Change? Hi,I posted that I felt that there was sea change. Well that not only seems to have been the case, but judging bu the rise today it looks like a tide change. 246.25p-250p. Perhaps I should have listened to my advice as I had wanted to buy some more... It might be a bit of an ovedue dead cat bounce so I will keep an eye on the price.The B
The buzz
09 Aug 2016
Re: Starting to Top Up ... and the Chairman also bought 15k shares at 284.1p on 28.5.2016.Well the shares drifted down a bit further along the trend line today with no dead cat bounce - but do I detect a sea change? There was a large sale a few minutes ago that did not change the price - has the overhang started to ease as there was quite active buying afterwards. Now starting to get into serious buy territory - just added 1.2k at 236.46p. With the £ weakening further, and the historically low share price, I am beginning to think that DVO could soon be a target (like PFD was) from the likes of Kraft or such like from the USA. 235.75p-237p. A 350p a share take-out bid would be most welcome - once I have finished topping up!The B
LK Hyman
08 Aug 2016
Re: Starting to Top Up The Buzz,I see the chairman bought 15000 shares t'other day ... and he's already down 10p a pop LOL.Not sure that £30k is enough to be sure that it wasn't a bit of chump change "pour encourager les autres".LKH at the LK Wash & Valet watching and waiting
The buzz
08 Aug 2016
Re: Starting to Top Up Still dropping - just picked another small dollop of 1k at 240.35p. I think that the price is starting to level out - but not obviously so: looking at the real time trades there is no clear rush by others to buy at this level. That said there has been a fair bit of buying interest today. It could be a little while before we hit the £3 level again, but that level would give a good capital gain with a modest dividend. In the mean time it is a question of just how low DVO will go - ie what is the potential downside?I keep pondering about the revised expectations for the Chinese and USA factories going into full production and wonder why this was not mentioned at the AGM - after all we are looking at a significant revision to expectations on something that they should have been fully aware about? I suspect that the evidence then was weak, so there must have been some relatively recent additional slippage, so they have now bitten the bullet now and announced some very conservative estimates rather than announce bad news with the full year results... Indeed they might be able to announce some 'good' news that the slippage was not as bad as feared... but this is just supposition on my part - and I could be wrong.. again.Spread still 240-240.5pThe B
Sambram
05 Aug 2016
profit recovery delay Results showed that conditions are challenging but momentum has increased through q2..Singers view on ResearchTree:"The transition programme is not proving smooth, which is disappointing. However, given we are now in the final phase this was always a risk and ultimately should be rewarding. Whilst we lower our 3 year EPS forecasts by 6%-10%, we keep faith in the recovery thesis, albeit pushed out to FY18... We also feel the recent setback does leave the group vulnerable to being taken over."
The buzz
04 Aug 2016
Starting to Top Up Just got 1k at 247.48p. Now 250-250.75pNo rush as will add if goes lower.The B
Paringa
03 Aug 2016
Tomorrow Hope springs eternal or Jam tomorrow ?Will tomorrow ever come ?Am a long long time holder !
nick2name
03 Aug 2016
ever the optimists directors view:underlying eps =6.3poh shlt, when we take in all of the bad news eps turns out as a loss of 0.7pnever mind rodney, this time next year...............................
The buzz
03 Aug 2016
Half Year Results Slightly disappointing, but no major issues. Lots of consequences due to the fall in the value of the £. eg Borrowings in US$ mean that the borrowing in £s is higher. but of course the income is more closely related to the US$. Underlying profit similar. The US and Chinese plants will be slower in producing product tailored to their market than originally planned. The Chinese volumes are well down due to not competing in low profit margin areas - and DVO will aim for premium market. Still holding 2.7p dividend. Overall the business still looks sound and the benefits of the capital investments are starting to show through. If the £ stays as low as it is at the moment - there should be some significant profit improvements in H2 (in remitted currency).Opened slightly down about 266.9p (spread about 3.8p) on low volume and a mixture of buys and sells.The B
The buzz
11 Jul 2016
Top Sliced Just sold 1672 at 291.04p. I expect DVO to go higher, but I thought that I would crystallize a bit of profit as I am rather top heavy in DVO - as might have been gathered by my earlier postings. I still hold too many, but I think that it will go above £3, and nearer £3.50 if there is a good progress report showing that earnings and profit are starting to wind up as the huge capital investments start to come to fruition.I did find it a bit curious that there had been very few sales this morning, and yet within a minute of my sell, two other meaningful sales went through. Closer examination shows that they were computer driven sales - I sometimes wonder what their logic is - follow the crowd either up or down seems to be the headless chicken approach - but if that works it does not say much about the market!! However they would make good sausages!!.The B
smilingmickey1
04 Jul 2016
Re: BrExit Oh that the Chinese operate in the same way!
The buzz
04 Jul 2016
Surge in Demand in Australia [link] well it might help DVO's plant in Australia?Hopefully the rise today will reduce your losses. I take the view that the new plants will be relatively low cost and should quickly produce profits. The risk with the new plants is now limited to commissioning delays - since DVO are using same technology (as used elsewhere in the company) in the new sites, one would reasonably expect that there are no major issues.The B
smilingmickey1
04 Jul 2016
Re: BrExit Devro is insulated from Brexit to a large extent. The latest trading statement was lacking in detail re the status of the new plant in the USA and China saying only that things are on track. It's a hold for me despite sitting on a loss based on expectation that Management performs.
The buzz
30 Jun 2016
Re: BrExit At least DVO has been holding its ground during the market upheaval. My recent purchase of AZN has risen well - and has been put down to it having assets and income coming largely from overseas investments. Exactly the point that I was making in my last post about DVO.After I posted the last comments about DVO's only UK asset being in Scotland - it suddenly occurred to me that Scotland is trying to get a special deal and remain in the EU!The other news is the Governor of the Bank of England suggesting that interest rates might go down due to Brexit. This is presumably good news for DVO (not thinking about the pensions for the moment) as this means that they should potentially have marginally lower borrowing costs.The B
