nk1999
07 Jan 2015
From Moneywise Seems a bit old, but it suggests Fenner is good value at 260p... (now 191.25p, so even better value?)"FennerFalling turnover and profit at Fenner are symptomatic of temporary weakness in coal prices and the global economy, but attempts to reduce carbon emissions may pose a permanent threat. Fenner, which makes conveyor belts for coal miners and other extractive industries, and components for industrial and healthcare applications, is susceptible to recession and low commodity prices. In the year to August 2014, revenue fell 11% and adjusted profit fell 21%.Judging by Fenner's enthusiasm for diversification over the last decade, it was preparing for a time when commodity prices would weaken. The company expects growth in its smaller but more profitable Advanced Engineered Products (AEP) division to be offset by contraction in Engineered Conveyor Solutions (ECS), which supplies mining companies.Economic growth and commodity prices follow separate cycles that can last many years or decades, but Fenner may also be up against a permanent headwind as governments take on climate change. Coal is the biggest market for Fenner's belt; it's also one of the principal sources of electricity, and one of the dirtiest sources of energy.Falling levels of investment at American coal mines in 2014 are the result of uncertainty about US government policy, as well as low coal prices and the abundance of a substitute in natural gas from fracking. Mandatory carbon emission levels for power stations in the US may force older coal-fired stations into retirement and encourage more electricity generators to switch to cleaner gas, wind and solar energy. In November, the US and China struck a deal that should reduce emissions in the US and cap them in China (by 2030).The market's valuation of Fenner reflects the uncertainty. A share price of 260p values the enterprise at £745 million, about 12 times adjusted profit in 2014. That puts the company on a tempting earnings yield of 9%. Tempting, that is, if earnings at 2014's reduced level are sustainable.Fenner has been very profitable during a period of rising commodity prices. It remains to be seen whether its more recently acquired businesses can cushion the impact if falls in commodity prices are sustained and governments continue to pressure electricity generators to burn less coal."[link]
Our Haven
07 Jan 2015
Re: Price Drop That's what I was looking at. Flat on a up day today
Hardboy
06 Jan 2015
Re: Price Drop Bizarrely, a large drop today in Fenner's price when miners are top of the risers.
LK Hyman
06 Jan 2015
Re: Price Drop OH,I imagine that, as the oil price falls, demand for US coal falls as power generators switch from coal to gas. Given that Fenner's biggest biznay is conveyor belts for coal mining it is perhaps not surprising that the share price is drooping. At some stage it's likely to recover but it would be a brave man who would predict that this puppy has yet hit bottom.I shall continue to watch from the sidelines.LKH at the LK Wash & Valet
city watcher
31 Dec 2014
Raising their Final Dividend Towards the very end of the month the company may pay the final dividend of 8p. If they do honour it, they shall have raised it slightly from last year. That shows confidence, so will theboard of shareholders pass it when they report soon? Buy the share for recovery and even a very good yield at this price.Name Fenner Epic FENR Sector Industrial Engineering ISIN GB0003345054 Activites As a leader in reinforced polymer technology, Fenner is the world's number one producer of heavyweight belting using PVC, fabric and steel reinforced rubber. Lightweight belting is also manufactured using PVC, urethane, thermoplastic elastomer blends and rubber. Precision polymer products, designed and manufactured by the Group, include detachable V-belts, thermoplastic belts, precision timing belts, reinforced thermoplastic ducting, high-temperature hoses, composite pulleys, sprockets and bearing housings, conveyor guide systems, keyless bushings and belt/chain tensioners. Fenner Advanced Sealing Technologies is synonymous with high quality, high performance hydraulic sealing solutions and consequently enjoy an enviable reputation within the worlds fluid power industry. Index FTSE 250 Latest share price (p) 217.13 Net gearing (%) 43.96 Market cap (£m) 409.35 Gross gearing (%) 56.40 Shares in issue (m) 194.00 Debt ratio 42.23 P/E ratio 18.03 Debt to equity ratio 0.57 Divs per share (p) 12.00 Assets / equity ratio 2.29 Dividend yield (%) 5.69 Price to book value 1.22 Dividend cover 2.82 ROCE 0.07 Earning per share (p) 11.70 EPS growth (%) -50.21 52-week high / low (p) 488.00 / 190.10 DPS growth (%) 6.67 Fenner broker viewsDateBrokerRecommendationPriceOld target priceNew target priceNotes17 Dec Credit Suisse Neutral 217.13 340.00 280.00 Reiterates 09 Dec finnCap Hold 217.13 290.00 210.00 Reiterates 12 Nov Citigroup Buy 217.13 410.00 350.00 Reiterates 11 Nov Canaccord Genuity Buy 217.13 400.00 400.00 Reiterates 11 Nov Credit Suisse Neutral 217.13 405.00 340.00 Downgrades
Warren Buffoon
24 Dec 2014
Re: Sad Picture Well... I'm looking to buy in here shortly. Distressed share price it is; but the company itself seems to be doing ok.Solid financials but poor sentiment. That's my ideal buying time.We'll see. . . . as my old mum used to say.
Hardboy
13 Dec 2014
Re: Sad Picture I don't really understand why mined minerals are moving in tandem with oil.I guess there is an element of economic demand is slowing so demand for oil & mined minerals are slowing too. But world economic growth forecasts have not deteriorated THAT much. When the bounce comes it could be a nice ride. (But it could be a fair way off yet.)
foglight
12 Dec 2014
Re: Sad Picture Hardboy, I was hoping that we had seen the worst of it at over 40p higher. Even the recent purchase by a director is way under water. The management have diversified the business to a degree as you indicated and there does seem an element of investor panic here, to my mind. It will be interesting to see what happens when/if the oil price bounces. (sp 202p)
Hardboy
11 Dec 2014
Sad Picture The last year's chart paints a rather sad picture. When will the fall stop?Obviously the market is hammering everything to do with extractive industries, and Fenner have had better periods, but their outlook released at their finals said they expected their ADP division to trade strongly and compensate for weakness in the mining world; so I am hoping that this fall is way over done.
II Editor
21 Nov 2014
NEW ARTICLE: Fenner: challenges on many fronts "Falling turnover and profit at Fenner are a symptom of temporary weakness in coal prices and the global economy, but attempts to reduce carbon emissions may pose a permanent threat.Fenner, which makes conveyor belts for coal miners, and ..."[link]
Our Haven
20 Nov 2014
Re: Today Looks overdone to me but sentiment continues to drive Fenner down. Time to buy?
foglight
20 Nov 2014
Re: Today Agree that the shares look oversold. Quality Company and management and a situation that may attract predatory interest on sp weakness. Bought again today at 249p.
Hardboy
18 Nov 2014
Re: Today "Ludicrous that a broker note telling us nothing more than we already know should wipe another 7% off an already depressed share price."Especially when it was already below their target price.
MrHdrum68
18 Nov 2014
Re: Today UBS downgradeShareCast news "Fenner lost more than 7% after UBS cut its rating on the conveyor solutions engineer from 'buy' to 'neutral' and reduced its target price on the stock from 380p to 300p."Ludicrous that a broker note telling us nothing more than we already know should wipe another 7% off an already depressed share price. Perhaps they where looking to short it but maybe I am just being cynical.Mr H
JoseFrio
18 Nov 2014
Re: Today Not aware of any comment. The share is in a downtrend since the last results. I'm gambling that it is significantly overshot and will soon start creeping up. The biggest problem is that the low oil price must be affecting coal production. Nevertheless they seem cheap to me at this price.
