| 8:58 08/09/2010 | Through 300p - What Next? |
| A nice big uptick over the last few days & we're now through 300p. At this sort of share price it might be time for GHH to resume their "industry consolidator" role. There's no end of good, low cost candidates in advanced optics that could add £5-10m of immediate earnings enhancing revenues. I, for one, look forward to the next 5-10% GHH equity issue to further repair the balance sheet & add some more bulk. I'm targetting GHH at 600p+ in Q1 2012. GHH is still a doubler for me in 18-20 months. By MelchiorHoffman |
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| 9:40 02/08/2010 | GCI recommendation |
| By Robert Tyerman Gooch & Housego (G&H), the specialist maker of optical components and systems, has received upgrades from analysts following an unexpected, yet very upbeat trading update. AIM-listed G&H, guided by physicist Gareth Jones, CEO, makes precision optical, crystal and optoelectronic components – the company is best known for dominating the market for Q-Switch devices – and supplies the world’s major optical and laser system manufacturers. Encouragingly, the Somerset-based concern, which reported a 62% surge in operating profits to £2.6m for the half to March, has announced an ‘increase in management’s expectations’ for both sales and profits for the year to September. Enjoying sustained recovery in core markets and new business wins in aerospace and defence, G&H says it is benefiting from recent initiatives to increase manufacturing capacity and reduce leadtimes in order to meet strong demand levels. Tellingly, the G&H order book at the end of June stood at £22.1m, 11% north of the figure at the end of March. In the wake of the pleasing missive, house broker Investec now forecasts turnover of £42.5m and £5.2m of pre-tax profit for September 2010, ahead of £46.2m sales and £6.5m PBT for 2011. Earnings per share are expected to swell from 18.1p this year to 22.2p next. Enthusiastically recommended by Growth Company Investor recently at 211.5p, shares in the strongly cash-generative G&H offer exposure to some racy earnings growth and an eventual return to the dividend list and are still well worth buying and stashing away. http://www.growthcompany.co.uk/recommendations/1269038/gooch-and-housego.thtml By lukaslok |
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| 18:14 13/07/2010 | Re: It Just Gets Better - Again! |
| The interims in June… “Early in the quarter we took steps to increase manufacturing capacity as we could foresee that demand was likely to exceed available manufacturing capacity unless decisive action was taken.” AND “To avoid being constrained by our manufacturing capacity we are exploring several possible solutions including establishing strategic partnerships and supply-chain relationships.” …LED TO today’s news and a nice rise: “A number of initiatives to significantly boost manufacturing capacity and reduce leadtimes were implemented in the second quarter. These initiatives have now begun to take effect, with increased output and falling leadtimes, despite continuing high levels of order intake. The order book at the end of June stood at £22.1 million, an 11% increase on the figure at the end of March.” Good luck all and well done to those Eagle Eyed investors who were in before today. By PayZone |
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| 7:43 13/07/2010 | It Just Gets Better - Again! |
| Today's IMS is excellent. Order book still rising, output now expanding to drive revenues & a profit upgrade. It looks like we're going to make some more progress towards by 24 month target of 600p over the next week or so. By MelchiorHoffman |
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| 15:42 14/06/2010 | Motley Fool's Take |
| This from TMS today ............. http://www.fool.co.uk/news/investing/company-comment/2010/06/14/a-triple-bagger-with-further-to-go.aspx Not a bad take, although I would have been more positive. My call is still for a minimum 600p by end November 2012. By MelchiorHoffman |
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| 17:54 08/06/2010 | Encouraging results |
| GHH seems to be going strongly in the right direction, with the publication of its interims today. Operating cashflow for half year has improved by nearly 10% at £4.5m (4.1m). Net debt fell from £12.11m (30.9.09) to £9.31m that represents gross gearing of about 28%, which is a decent improvement in 6 months. However in the accounts for some reason they do not explain why short term borrowings (normally overdrafts) are shown in the balance sheet at £6.471m, yet overdraft by way of a note is shown at £3.956m. So what does the difference represent? Net debt should include all long term and short term loans and overdrafts. In fact they briefly mention this under "Cashflow and Financing", but show a net cash position later on of £3.181m, which is a bit misleading. Also 80% GHH's debt is denominated in dollars, so the weakness of the £ is not helping here. Hedging reserve shows a loss of £0.18m, so clearly they are making some wrong calls on the $/£ rate. Operating cashflow for half year improved by nearly 10% at £4.5m (4.1m) Eps dramatically improved in the half year to 6.1p (0.1p). For the full year 2009 this was only 5p. Eps for the full year is forecast to be 14p, which puts the share on a prospective PER of 14.3 (at 203p) which is not expensive. However no interim div is payable, which implies that the directors believe that the recovery may yet stumble. Certainly a double dip recession in the UK seems a likely outcome given the harsh cutbacks in public expenditure. Overall rather encouraging stuff, but can it continue? AT By Alan Tittymarsh |
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| 7:10 20/05/2010 | Re: Just Plain Wrong! |
| Sorry - wrong board! Well it is early! By MelchiorHoffman |
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| 7:09 20/05/2010 | Just Plain Wrong! |
| The complete failure of Institution Investors to award the "correct" price to GKN is just plain wrong! & it's also dangerous! It's no wonder that long established UK companies like Pilkington, Cadbury, Corus, etc, etc fall into foreign hands. The pencil necked yo-yo bean counters in UK fund management seem to have no idea of the real income producing quality (and price) of great industrial assets. GKN will go for a song (around 200p) unless these guys remove their head from their asses! By MelchiorHoffman |
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| 17:44 07/05/2010 | Re: GHH Investor Presentation |
| SP very vunerable on any Economic slowdown imv. By snapshots |
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| 12:27 06/05/2010 | GHH Investor Presentation |
| In case anybody missed them here are the slides from the Gooch Analyst's day on 22nd April .............. http://www.londonstockexchange.com/companies-and-advisors/news-events/ukevents/gcid2010/gooch-presentation.pdf They are well worth a read & point to a nice steady upwards move well into the future. By MelchiorHoffman |
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| 7:44 11/04/2010 | A bit of GHH elaboration on the IMS |
| Andy Boteler did an interview with his local paper on Thursday. It adds some intereseting depth to the IMS. Here it is ................. http://findarticles.com/p/news-articles/western-daily-press/mi_8034/is_20100409/booming-tech-optic-firm/ai_n53095804/ So it seems that Q-Switch demand (although up & improving) still has a way to go to repeat its peak. I see this as a positive - it implies plenty of potential extra growth for the 2nd Half & loads to go for in FY2011. The new USA divisions must also be going very, very well in order to support the bullish tone of the IMS. By MelchiorHoffman |
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| 15:53 09/04/2010 | Re: Fickle Broker |
| Of course not But I don't hold your view that GHH will hit £6 in 2 - 3 years either, although I'm quite happy to hold this for at least another 2 years. AT By Alan Tittymarsh |
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| 1:09 09/04/2010 | Re: Fickle Broker |
| AT "How can anyone take them seriously?".................. I don't, do you? To me GHH looks quite easy to call & today's news was bang in line with my own estimates. But while brokers guide the Fund Manager & lazy journo herd there is always going to be room for an informed PI to profit from "unexpected good news" By MelchiorHoffman |
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| 22:38 08/04/2010 | Fickle Broker |
| On 24th Feb Investec Securities downgraded GHH to a 'hold' with a target of 170p. Then today (8th Apr) upgrade to a 'buy' with a new target of 220p. What a fickle lot these brokers are. How can anyone take them seriously? AT By Alan Tittymarsh |
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| 11:15 08/04/2010 | Re: Good Sell Call Snapshots ...... LOL!! |
| When a Company refers to challenges presented by rising demand, combined with an uneven recovery, I do not consider its time to LOL. Add on the debt to the Market Cap and GHH id vslued at approx 45m. Calculate the PER on this basis and you are paying about 17 future earnings. If the Global recovery stalls, the SP looks highly vunerable at these levels imo. Just my view. By snapshots |
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