|10:39 03/05/2013||Broker's View|
| Beaufort Securities (who used to be HB Markets, who used to be Hoodless Brennan - I think they keep changing their name to escape their bad reputation, but I find some of these analyses quite useful)
Smith & Nephew (SN.L, 749p) - Hold
Yesterday, Smith & Nephew announced its results for the first quarter ended 30th March 2013. Revenues stood at US$1.08bn, broadly on par, with the revenues reported in the same period last year. The Advanced Wound Management division performed strongly with revenues growing 12% (on an underlying basis) to US$315m, but was offset by a 2% decline in Advanced Surgical Devices global revenues to US$760m. The performance in the US market benefitted from strong growth at Healthpoint. This was partially offset by weakness in Europe, with overall Established Markets revenue down 1%. Emerging and International Markets grew by 19%, led by robust growth in China and the Middle East. Trading profit was down to US$241m from US$252m, with trading profit margin at 22.4%. Pre-tax profit fell to US$204m from US$231m. Adjusted EPS was down to 18.5 cents from 19.3 cents last year. The company said it is acquiring Adler Mediequip Private Limited, and with it the brands and assets of Sushrut Surgicals. Adler Mediequip is a manufacturer and distributor of orthopaedic trauma products for the Indian market. The company also announced the start of a US$300m share buy-back programme as a part of its new capital allocation framework that would also see a commitment to continuing investment and acquisitions. The management said the outlook for the full year was unchanged but it does expect to see some variation in performance at the product franchise level.
Our view: Smith & Nephew reported a mixed batch of first quarter results with revenues up 1% on underlying basis, while it was down 1%, excluding Healthpoint. While solid growth was seen in emerging and international markets, trading in Europe continued to weaken. The Healthpoint Biotherapeutics business excelled in the first quarter and the Trauma business performed strongly, but performance at the Orthopaedic Reconstruction segment was weaker than anticipated. The company plans to invest further to build its platform and accelerate the development of products for the mid-tier segment in emerging markets like India and Brazil to offset slowdown in developed economies. Also, the US$300m share buyback plan is likely to cheer investors. Considering that Smith & Nephew is undergoing a transition phase as it looks to invest heavily and expand its presence in high growth markets, we believe the growth prospects over the near-term will remain muted. We maintain our Hold rating on this stock. By Hardboy
|15:17 02/05/2013||Re: Q1|
Perhaps Mr Market likes the combination of falling net debt and the $300 million buyback programme? Though, personally, I would have preferred a bigger divi than a buyback programme. The chumps who execute buyback programmes have a nasty habit of doing it when the price is high rather than when it's low, as any fule kno is the better time to do it.
LKH on th flybridge By LK Hyman
| The reaction to the IMS has surprised me - sales are flat, margins are down, markets are tough, and we get a 2% rise.
If markets were expecting worse than that, it is hard to understand why the share price has held up so well recently. By Hardboy
|15:04 30/03/2013||Re: IC View|
| I sold recently as I thought it was looking a bit over valued (needless to say it is now higher.)
I think it's a good company with a good long term future, specially when emerging markets turn their eyes from infrastructure to social needs. However, it isn't cheap on basics, and the dividend is not that good. I'd be happy to buy back in if the price falls a bit. By Hardboy
|15:46 29/03/2013||Re: IC View|
| Stockbrokers Pillings say buy at 750, medium risk. I see it has put on 26% since a low at about June 1st. last. By budu
|10:03 16/02/2013||Re: IC View|
Interesting to get the IC view. I tend to view the IC in the same way as I view Questor in the Telegraph ... If they say sell it's a buy signal and vice versa.
I shall continue to hold SN, which is a paltry 1.5% of my shrunken wad.
LKH on the flybridge By LK Hyman
|22:42 15/02/2013||IC View|
| SELL recommendation issued at 706p. EXTRACT:
".....That does not rule out the possibility of some capital returns, but the share price tends to give up the gains it acquires early in the year as another year passes without buybacks. In addition, Smith & Nephew's record with acquisitions leads us to be wary that the gains made since the Healthpoint deal will be sustained. So it would be no surprise if the share price fell about 10 per cent in the coming months. Time for a short-term trading sell."
| A Quick scan through them -
Looks like good steady progress, with PE around 15.5 & yield of 1.8. They don't look expensive or cheap. Short & long term prosepcts are still quite good, and I would feel quite confident of investing in them and feeling my money is safe and will produce steady returns, but with growth of 2-3% and such a low yield I still think there is better value elsewhere. By Hardboy
| From ADVFN:
"With Smith & Nephew having reached Panmure Gordon's target, the broker has downgraded the stock from 'buy' to 'hold' despite it remaining bullish for the group's long-term outlook.
Panmure said that it expects the medical technology firm's full-year results on Thursday to be "largely positive" but doesn't think that the outlook statement will be as strong as consensus forecasts imply - consensus estimates are for 5.4% growth in 2013 revenues."
nk By nk1999
|9:54 29/01/2013||Re: Sold|
| I dont understand the way shares move because I always think S&N will not appreciate more but L&G has taken 3% stake now and it would be wrong to sell when the momentum seems to be up By Doctorwilson
| Having been a loyal sahreholder for sometime I decided to sell yesterday, and bank the profits. The Finals are out in a couple of weeks, and positive figures & vibes may lead me to regret it, but their Q3 update didn't give any promise of great expectations, and anything negative could turn the recent good run the price has had back whence it came.
In the markets generally, we have seen steady gains and yet the fundemental state of Western economies is still fragile, so I can't help thinking we will get a panic over something in the near future to send markets lower, so, whilst I have capital gains allowances to fill, I'm banking profits, when shares begin to look overpriced, and I think at 720 SN. was beginning to look that way.
As I finished the paragrpah above I remembered I held this in my ISA, so the capital gains bit is a load of rubbish, but the principal holds. By Hardboy
|11:52 08/01/2013||Gets a mention here|
| http://tradingresearchpoint.co.uk/2013/01/08/dividend-of-the-week-itv/ By performer
|18:33 30/11/2012||Shore Capital|
| From UK-Analyst:
"Shore Capital issued a "sell" recommendation on medical technology business Smith & Nephew (SN.). The broker thinks that the operating environment in the established orthopaedic market in which the firm works remains challenging and does not see any signs of improvement in the short-term.
More specific to the company, the broker is cautious on the great deal of organisational change currently underway at the firm and believes that Smith & Nephew is trading at a premium to its US counterparts, Stryker and Zimmer. The shares fell by 2p to 657.5p."
nk By nk1999
|9:21 30/11/2012||Re: HB Markets|
| Yes sounds a lot to me - nearly $2m per employee - what are they footballers?
The statement from S&N seems confident that they will get a pretty quick payback though.
"I thought you could use lab-grown maggots to remove dead tissue in wounds!"
Bring back the leech doctors!
"What's the mad rush?" - Need to do their Christmas Shopping -
I don't think S&N are ever going to set the world alight, but steady growth, relaiable earnings, good geographic spread, growth markets (specially when emerging nations decide to stop spending their money of flashy buildings & think about healthcare) - would be a great defensive share if the dividend was a bit higher, but cover is nearly 4 times, so I assume they are holding money back to fund growth (like expensive purchases.)
|7:26 30/11/2012||Re: HB Markets|
| "cough up another $12 mill"
Make that $10 mill.
LKH etc By LK Hyman