Boring Bernie
08 Dec 2016
Re: 100k share purchase by Chairman HmmmPage has bought 60,000 as well, admittedly he was holding something like 600,000 already so it's not a massive increase.I'm not normally a fan of the whole "averaging down" idea, and directors have been buying here relatively recently at higher prices than this so they're not infallible, but I think I might latch onto their shirttails tomorrow and see how it goes.
LK Hyman
07 Dec 2016
Re: 100k share purchase by Chairman The buzz,This is excellent news, m8. £153,400, while not a vast amount (do you see what I did there?), is considerably more than mere chump change.I look forward to seeing Mr Market react positively tomorrow.I am slightly surprised that the chairman was allowed to group three days' purchases into a single RNS, but there you go.LKH on the flybridge in upbeat mood about DVO
The buzz
07 Dec 2016
100k share purchase by Chairman RNS out after close of play today shows that the chairman bought 3 lots of shares over the last 3 trading days making 100k in total. He clearly believes in the company - and this is quite a significant stake. I read this as saying no massive dilutive share sale on the horizon. Perhaps he believes that the recent profit warning was to err on the side of caution - or am I looking at things with a pair of out of focus rose tinted glasses?The B
LK Hyman
03 Dec 2016
Re: Target? Games,I don't have a specific target on this puppy which is now 1.4% of my shrunken wad, having chewed its way through a goodly chunk of my initial investment.However I continue to believe that the value is well north of the current price. Whether that is achieved via a takeover from Disco duck or via DVO's highly skilled fleischmeisters finally getting their act together with their two new USA and China factories I know not, nor do I much care!The enterprise value at the current share price seems ludicrously low in light of the quality of the assets and the good industry reputation that DVO has, so I shall continue to hold and damn the torpedoes!LKH on the flybridge
gamesinvestor
03 Dec 2016
Target? DEVRO (DVO) 160P ✔ A share price collapse at sausage skins maker Devro could attract an overseas predator, with Spanish rival Viscofan (VIS:MC) likely to be among those watching developments with interest. Devro supplies collagen casings for sausages, salamis and hams and is geared into increasing emerging market protein demand. In August, Devro said a transitional period would be needed to extract benefits from £110m worth of new plant investment in the US and China. Shares slumped again in November when it warned 2017 profit would disappoint; and debt, taken on to invest for growth in China and the US, was close to breaching commitments given to lenders. Seeking to mitigate weaker volume trends, notably in Latin America where Devro is encountering disruption as it transfers customers onto new products, the food producer is accelerating restructuring plans and making investments in next generation products. This will improve its competitive position but hurt profitability next year. Devro’s management have been buying shares on weakness and see plenty of long-term value in the business. PREYING
The buzz
30 Nov 2016
Re: Ouch!! Hi BB,Yes the one think that I overlooked was the assumption that DVO could sell their product as soon as the new factories were operational. Yes it is a rather painful ouch for me as well - it was not all that long ago that I sold some for double the price. The 'small' reduction in the projected earnings has been a major factor - but if one believes the company, things should return to normal. I suspect that the shorters may be having a field day when there is a sniff of fear, conversely, there is plenty of scope for a rebound asuming some 'good' news' eventually filters out. In the mean time we can only console ourselves with the fact that the directors are also catching a cold with the current share price.Ah India - yes the fancy hotels have no end of extra charges that really bump up the price. Not to mention the attractions that have a ridiculously high admission charge for tourists and a pittance for the locals. I found that Delhi zoo and the railway museum were good value! Mumbai has the temples to visit. Goa has Portugeuse history to investigate - with a knowledgeble taxi driver.The B
Boring Bernie
30 Nov 2016
Re: Ouch!! Ouch indeed.In retrospect I should have sold out on the profit warning, but, mainly because I wasn't taking much, if any, notice of the markets, I didn't see the RNS. I'm going to blame the missus for this one for dragging us off to India to get some Winter Sun, which has turned into a more expensive holiday than was planned
gamesinvestor
29 Nov 2016
Ouch!! Oh dear, something serious is happening or about to.Another 4.5% drop.Not clever allocating 1.08% of my wad to this.All on it's own account it's now just 0.68%Games -- wonderful !!!
The buzz
23 Nov 2016
Re: Trading Update - Disappointing Yes the story is a bit more complicated if one talks about interest denominated in US$, but there again the profits are also in US$. The paragraph that I was referring to was in:-[link] the first half of 2016 there was a general weakening of sterling, with a significant further movement in the last month following the EU Referendum vote on 23 June 2016. These movements contributed £1.4m of translational exchange benefit to underlying operating profit for the first half, and if current rates remain in place for the remainder of the year we would expect further benefit in the second half."Since the exchange rate for the £ has fallen further from the 9th August statement, then presumably remitted profits in UK£ will be higher, but the debt and interest denominated in US$ will be higher in UK£ terms.The B
Health Observer
23 Nov 2016
Re: Trading Update - Disappointing The comment regarding exchange rates is contained within the statement from the company and I think it refers to the fact that there is a loan of $60m which bears a 4.5% interest rate.So my take on this is that the potential breach of the covenants are closer than the figures suggestApologies for not making the company statement c
The buzz
23 Nov 2016
Re: Trading Update - Disappointing You mention 'recent changes to exchange rates'. Clearly the benefit of the change in exchange rates has not fully worked through a full set of trading periods yet. About 90% of DVO's trade is overseas, so ther could be a substantial boost to profit.As for a rights issue, this would not worry me unduly if it was to raise a relatively small amount of money. In the eventaulity that DVO is forced to go to shareholders to raise some cash, since the current market valuation of DVO is about £160m, that makes me suspect that only a relatively modest amount of cash might need to be raised - and in turn a relatively small rights issue? I think that it is stlll too soon to think about a rights issue - a short term reduction in the dividend would be the first port of call.The B
Health Observer
23 Nov 2016
Re: Trading Update - Disappointing At 30 June 2016 the net debt to EBITDA ratio was 2.9 times and the EBITDA to net interest payable ratio was 9 times, meaning both ratios were within their limits (of <3.25 times and >4 times respectively) despite the recent changes in exchange rates.The above is from the last interims.......I'm no expert but this looks to be getting close to the limit. What worries me is the possibility of the banks pressing for a rights issue to reduce the gearing
LK Hyman
22 Nov 2016
Re: Trading Update - Disappointing T-D,"I think they are saying no further costs in 2016 in relation to the new factories. The 3mill is being spent on improvements to existing factories/plant. At least that's how I understood it."This is what the RNS earlier this month said:"The Board has decided to accelerate and implement more extensively the next stage of the Group's strategic development, focusing on growing sales through improved commercial capabilities, introducing the next generation of differentiated products, and further improving manufacturing efficiencies to reduce unit costs. This improvement project will deliver a fundamentally more competitive position."It's all a bit wooly but I suppose one could just about argue that that means that there will be no more exceptionals specifically associated with the build-out and ramp-up of the new factories in China and the USA.There still remains a bit of a question mark over exactly what the £3 million exceptionals in the final quarter of 2016 relate to. That uncertainty is perhaps one cause of the continuing weakness in the share price. Mr Market doesn't like uncertainty.However I continue to have faith in Devro's highly skilled fleischmeisters, so I shall hold despite being a little irritated at the wording of the update.LKH on the flybridge
T-D
22 Nov 2016
Re: Trading Update - Disappointing "If £3 million is to be incurred in the final quarter of 2016 how can there be no further exceptional costs [in 2016]?"See what you are saying there LKH, but I think they are saying no further costs in 2016 in relation to the new factories. The 3mill is being spent on improvements to existing factories/plant. At least that's how I understood it.I am well underwater here, in at 230 averaged down 182(with the directors) and again 172 I just dare not get in any deeper. I am sure they will come good again in the long term...gulp.GLA
The buzz
22 Nov 2016
Re: Trading Update - Disappointing [link] the author wanted to put the boot in and is a bit painful to read. Sounds like she was talking to Charles pick who is one of the analysts mentioned in DVO's fact sheet:-[link] has been around for a long time now and is usually highly cash generative. Interesting to read about some of its challenges but also that there is a competitor who might be interested in its assets.It praises Cranswick - but was it not Cranswick who bought Uniq's pig business for a song? I said a little while ago that it might be prudent for a short term cut in the dividend, but DVO does expect to be fully competetive with the completion of all this investment - and presumably will be able to build up its customer base in a growing market. I have held DVO shares off and on for many years and they had a bad acquisition (that they eventually got rid of) that cost them dearly a long long time ago, but they were able to recover due to the strong performance of their current business, particularly with their Czech manufacturing plant. There is one possible upside with the new US president - normailsation of Russian business - Russia was a major buyer of DVO's products at one time.It was also interesting to note recent director buying - they will also be suffering the recent share price movements. For now I will hope that their sales will get some more traction, after the disruption with all that new investment, and now that they are in a position to take orders that they can fulfil with the new equipment now operational.The B
