EssentialInvestor
31 Mar 2018
Re: Target Price (with large proviso) Excuse the typos - dyslexia and lack of an Edit function.
EssentialInvestor
31 Mar 2018
Re: Target Price (with large proviso) There are plenty of stocks selling on pumped up ratings at well over 20x which if there is a wider market plunge, may come back sharply.I recommend TATE to my parents as view risk/rewardhere looks (in my view) reasonable.When a wider equity bear market develops(as it ultimately will) higher growth on higher multiples tends to get hammered on any downward revision onexpectations. If a stock is priced for perfection, large downside exists on any disappointment.Now whatever individual views are in TATE, I think I we can agree that priced forperfection is not a concern here!.Current NAFTA uncertainty has eclipsed good growth in SFI, this looks ta longer term value creation opportunity in the business.At the very least TATE looks worth watching.SFI - specialist food ingredients.
FRTEB
29 Mar 2018
Re: Target Price (with large proviso) A balanced view there, Essential. FWIW I do think that TATE will be a good long-term investment but I also think, as you've pointed out, there are potential pitfalls along the way - known knowns. But there are also other concerns I have. Firstly, TATE seems out of favour with the market and although it might well be for the reasons you highlighted, what troubles me is what 'they' might know that we don't (yet). Secondly, the long term chart for TATE concerns me. I know this is hocus pocus territory for some and I've taken some flack for it but for me it holds some weight. Each to their own. Finally, I am increasingly concerned that a deeper fall in the market in general will occur before too long and if it does TATE will be dragged down with it. Nothing goes up or down in a straight line so there might be bounces along the way but I am sufficiently concerned about the wider picture that I'm holding off making new purchases for the time being. It's frustrating as I still have cash to invest but several stocks on my watch list are heading towards target prices but haven't got there yet, so I think this is pointing to a wider market fall.
EssentialInvestor
29 Mar 2018
Target Price (with large proviso) If NAFTA is renegotiated and trading for TATE develops inline with expectations,my own expectation would be in excess of £7 a share.They are two large provisos, and also wider market levels to consider-is the wider bull market about to roll over etc.So all things being equal and NAFTA and trading allowing, there looks large upside to me.However, there are risks, potential investors should be very aware of thisand this is just in my view Only.Also, I clicked a Buy at well over £1 a share higher, on a short term basis that was a woefulcall, so once again my view may be too optimistic. I would view this as a 2/3 year timeframe hold/buy.I also recommended this to my Parents recently at 5.48 a share. What I told them, is essentially what I have posted above.Best of luck, whatever your view. Will have a look back here post results.
Hardboy
29 Mar 2018
Re: 13 weeks I've not really got one. On fundamentals it looks dirt cheap at the moment, but as Essential points out there is a big concern over NAFTA. In the short term the dividend is almost certainly safe. But I also thought this when the price was quite a bit higher. Whatever happens though they are market leaders in a niche market which is not going to go away, so there may be some stormy times ahead, but whatever happens I'd back them to keep making money for their shareholders.
steve2016
28 Mar 2018
Re: 13 weeks Thanks for this Can I ask your opinion on target price ?Steve
EssentialInvestor
28 Mar 2018
Re: Last lot Unfortunately not near that league!, do hold a few though.
Hardboy
28 Mar 2018
Re: 13 weeks Steve:"High dividend (maybe not sustainable at these levels)"The ability to maintain the dividend is dependent on performance: profits & cash flow, which last we heard was improving., and was in line with expectations. Share price is dependent on emotions: concerns & hopes for the future.
Hardboy
28 Mar 2018
Re: Last lot Essential:"I added my last lot of TATE this AM."Hence the price rise!
steve2016
28 Mar 2018
Re: 13 weeks Thanks for this I’m long at 580 so will see how nafta pans out
EssentialInvestor
28 Mar 2018
Last lot Mentioned over on the 'other place' I added my last lot of TATE this AM.Any one considering buying should be aware of NAFTA,keeping this in mind my own take is risk/reward is reasonable.But as always I am unable to see the future!. Please reach your own conclusions.
EssentialInvestor
28 Mar 2018
Re: 13 weeks Steve, if NAFTA is renegotiated and TATE continues to trade inline,the share look value IMV, those two provisos remain to be seen.
steve2016
28 Mar 2018
13 weeks Hi all,Please correct my logic if anything thinks I’m miles wrong,13 down weeks after a relatively in line trading update,Very low debtHigh dividend (maybe not sustainable at these levels)At 2015 and 2010 levelsSurey this is one of the best buys in the U.K. at the moment as a defensive?Although it isn’t behaving as a defensive - it may gain attention from an activist...AlL thoughts welcomeSteve
EssentialInvestor
26 Mar 2018
Below £3.50 a share ... Well never say never.Last time TATE hit those levels was during the financial crisis.From memory, the SP was below £3.50 for about 9 months.Net debt around that time was nearing £1.1 Billion, debt is very approx £700 million lower currently.Now if NAFTA is dissolved, trading profit took a big hit resulting in a dividend cut,then those levels are possible. I would hope that will not be the case.However, the gift of prescience often eludes me for some reason ).
FRTEB
20 Mar 2018
Re: Re: " ...remember the words of the sage of Omaha - be brave when others are fearful. " Quite right. And with TATE I plan to start being brave below 350. Target is ~315. A long way to go yet... As for tobacco - I could never invest in a company whose main product is known to cause cancer/heart disease/stroke/premature death. Many of us have known someone who died from the effects of smoking. Not a nice way to go. Maybe people are increasingly finding the industry unethical as an investment. I do hope so.
