Ivorjay
21 Apr 2016
Re: : Games City seems to like it, but at £500 Million and only an 18% operating margin for this type of business would suggest Smiths, as usual, are over paying for what it's actually getting.No doubt the MD top management won't hang around. Hope the due diligence was given a sufficient look and not rushed for convenience sake.
gamesinvestor
21 Apr 2016
Re: 06-01-2016 """"""""""Morpho Detection had total revenues of $320m in 2015 with an operating margin of 18%. Aftermarket services, including software, represented more than half of total revenues."The threat environment for people and critical infrastructure around the world is constantly evolving and becoming more complex and sophisticated. The response, to keep people safe and the world running, demands cutting-edge technology and cost-efficient solutions,” said Smiths Group chief executive Andy Reynolds."Morpho Detection is a high quality business with a strong management team, and I am convinced that this combination provides a compelling competitive platform for product, service and technology leadership."""""""So I wonder why they are offloading it if it's so successful, has high margins, and the market is seemingly growing so well? Is it that they see a problem with saturation looking forward?Games
Ivorjay
21 Apr 2016
06-01-2016 No surprise there then, now just an even bigger division to under perform.Smiths detection has hardly been a success of late.......................................
Ivorjay
05 Apr 2016
Re: : Games Perhaps the clear potential is too well hidden !But he only has to ask !
gamesinvestor
05 Apr 2016
CEO Commitments """"""Andrew Reynolds-Smith, chief executive of engineering outfit Smiths Group, will step down from the board of ceramic materials manufacturer Morgan Advanced Materials after its annual general meeting on 6 May.In a statement on Tuesday, Morgan Advanced Materials said Reynolds-Smith was stepping down as his “other commitments have grown.”Andrew Shilston, chairman, said: "I would like to thank Andrew Reynolds-Smith for his significant contribution to the company over the last three years and we wish him every success in the future."At 1517 BST, Morgan Advanced Materials' shares were down 6.60% or 2.95% at 217.30p"""""""Games
EssentialInvestor
21 Mar 2016
Re: RBC Cap A very generous reaction to results, unless there is bid speculation in the background.
nk1999
18 Mar 2016
RBC Cap From ADVFN:"Smiths Group got a boost after RBC Capital Markets upgraded the stock to 'outperform' from 'sector perform' and lifted the price target to 1,225p from 1,050p saying it expects the recent outperformance to continue.The Canadian bank forecasts 9% growth in earnings per share in full year 2017, driven by a resumption in organic sales growth and currency, with a weaker pound."We believe the share's current 14% PE discount versus UK peers will close over time and note the attractive 4% yield," it said, adding that the yield should be covered by cash flow following the recent pension funding exercise.RBC highlighted three key risks to its positive stance: a further downturn at John Crane, a stronger pound and a poorly-received acquisition."At 1,069p however we consider the risk/reward appealing," it said.The bank also said fears over the John Crane division were overdone."
gamesinvestor
17 Mar 2016
Sold Not held this long - bought in December.Looking at the debt, the pension even in it's slightly lower risked version, it's P/E of 14.7 and more pain to come with John Crane, I've decided to take a modest 6% profit.The market cap compared to it's net assets is still very high 4176/1540 = 2.71Given there is no clear growth here, It all seems predicated on a break up of some sort.Medical has the higher ROCE and detection looks OK but even that has only a 9% ROCE.If it drops out of the FTSE 100 this could drift.I'll forego the divi and move on.Games
gamesinvestor
17 Mar 2016
Avoid Smiths - Martin Waller - Times 17March [link] based on divisions pulling in different directions and it will drop out of FTSE100Games
EssentialInvestor
16 Mar 2016
Re: Clear Potential Net debt appears to be Up again.Worth a look under £9 IMV.
Ivorjay
16 Mar 2016
Clear Potential Well ARS, it's obvious you haven't found it yet, keep looking.'Squaring the circle just about sums it up'Just as well your remuneration isn't based on performance
gamesinvestor
16 Mar 2016
Half Year Report [link] as suggested -- Medical and Detection are the better components.Key points· Revenue and headline operating profit down in line with expectations· John Crane impacted by challenging oil and gas markets, although aftermarket revenues proved more resilient; operating margin down 330bps to 19.9%· Continued growth at Smiths Medical; operating margin up 150bps to 20.5%· Good profit growth at Smiths Detection; operating margin up 210bps to 12.4%· Cash conversion strong at 101%; headline free cash flow up 32% to £174m· Pension trustee negotiations concluded; £50m cash flow improvement from FY17· Interim dividend increased 2% to 13.25 pence per shareGames - stock down 2.6%
Ivorjay
10 Mar 2016
Re: : Games The hidden value is in the Medical Division, which has been mismanaged for years.In the right hands this could be a real cash cow. Unfortunately it has been left to drift lately & badly needs a significant enhancing acquisition or merger with a major, if it is not to be floated.Particularly disappointing has been the R & D performance, despite the millions invested, although many would argue too little, too late !Group Interim Results next week are less than inspiring with the dividend coming under pressure.
gamesinvestor
09 Mar 2016
Help!! Can anyone tell me why I still have 0.63% of my portfolio in this company?Yes it's share price is close to a 5 year low, but does that matter here?Earnings look like they are declining this year by a lot (13% ish). OK perhaps these are a little finger in the air but an estimated 74p compared to 86p doesn't look pretty.P/E is still up at 14, which ain't cheap for an engineering company, especially with one big division exposed to oil services.Into 2017 is it getting any better? -- too far to forecast out I suppose but the projections are still only 76p but the PEG ratio a year out is over 5 - ouch!!I'm sitting on a tiny 3.5% profit, is it time to head for the door, or are most here prepared to hang on for a 3.9% divi, which is covered 1.8 times (down from 2.2X last year).Or is this all about flogging the detection business to unlock hidden value?Games -- I wonder, if the value is hidden, why for the last 5-6 years?
Ivorjay
03 Mar 2016
Black arm bands ! A decade of stagnation at best ................................
