"With political risk receding and the economy improving, investing in Europe is no longer the realm of contrarians. Cherry Reynard explains how there is still money to made on the continent.At the start of this year Europe looked vulnerable: ..."
Elis SA proposes a combination with Berendsen plc to create a strong Pan-European leader in textile and facility services
Combination would create a strong Pan-European leader in Textile and Facility Services
Complementary geographical footprints - balanced presence across Northern & Southern Europe with high-growth Latam exposure and enhanced position in Germany
Significant revenue, operating cost and capex synergies
Combination expected to lead to double digit earnings accretion
Cash and share proposal at a highly attractive premium of 36% to Berendsen's share price and 49% to the consensus target price for Berendsen published by equity research analysts
Berendsen shareholders would benefit from a substantial value creation opportunity through an approximately 35% stake in the combined group
Elis SA ("Elis") today announces that it has made a revised proposal to Berendsen plc ("Berendsen") to combine the two companies and create a leading Pan-European textile and facility services company, which has been rejected by the board of directors of Berendsen (the "Berendsen Board").
Revised Proposal is Highly Attractive to Berendsen Shareholders
The revised cash and share proposal (the "Revised Proposal") that Elis made on 16 May 2017 is to acquire each Berendsen ordinary share for a combination of:
SP has been trading at 1200p+; low beta share; Cash £300M; Div cover 1.9x; oversold RSI 30
At a current price of 842p, its shares trade at 12.9 times its consensus forecast for full-year earnings per share of 65.1p. Thats a big discount to the sector average of 17.2 times, and seems unfair given its turnaround potential and above-average dividend yield. Shares in Berendsen yield 4.0%, with a dividend payout ratio of 52%.
I realise that these people have come off the rails - I was very unhappy about that, but fortunately sold a large chunk of our holding some weeks ago for unrelated reasons. Nevertheless, these latest results do not look too dire and this looks like an overreaction as regards the sp.
This remains a solid company that knows what it is doing. The trading statement is unexciting, but this company is not about excitement, it is about solidity. The shares remain attractive from a defensive point of view.
I am not surprised that the price has bounced back after the results. As ever, they were solid but not exciting. But where else can you get this sort of solidity in today's markets with a reasonable dividend yield, up 7% this year?
"Rounding off the week, industrial laundry services company Berendsen will release its half-year results.Analysts' expectations: Although admiting that LSE:BRSN:Berendsen's activities are not "terribly exciting", Brewin Dolphin's equity analyst ..."
We are long-term fans of this company - they specialise in their chosen field (workwear rental) and have good exposure outside the UK via their investment in Scandinavia. The share price is getting a bit heavy now, but we will hold and buy again on any weakness.
* Bookmark the links if you wish to 'pass the LINK/s on'.... or read later?
* The Campaign is specialized among the investing fraternity only. The population as a whole would hardly vote for a ban on shorting...most people have never heard of it, have they?
Whereas, the other Govt epetitions command votes from the *general population..and if you check, NONE are doing better than a handful of votes !
Deramping SHORTERS !
Shorting a rising stock....is much worse when it is done by your resident posters that seemingly are your buddies and convince 'long' holders to give up!
What many pi's fail to grasp is the extent that shorting is taking place. Often we tend to think that the 'shorter' is gone, 'he' is out of the way? You'd be wrong in most cases, for ( he ), the shorter, is often joined by others that keep the stock down !
Some stocks fall after GOOD NEWS!
The main reason for many pi's selling, is they are afraid they'll be left in losses AND because they FEAR shorters !
Consolidating shares often sees the sp fall as the *multi-bagger potential is greatly reduced. Shorters know this and will take full advantage to get 'longs' to give up and sell !
BUT, where does that leave the genuine investor that has put stocks into their pension funds?...holding losses again!
* Once pi's know the stock is being shorted...they'll SELL UP IN THEIR DROVES !
We can't both WIN !
The 'shorts' therefore 'win' their bets, whereas the 'longs' lose the best part of their investment, possibly for some time to come......and just when you thought this couldn't go any lower, THEY'LL SHORT THE STOCK AGAIN !
* Thanks for all your support. We are now heading towards 5,000 votes!
* Investors are saying something? They are voting in their hundreds !
# The big problem with shorting is that THEY (the shorters) WOULD most likely lose most of their money IF they just 'bet' on the price going down without trying to 'help' it down?
'Catch 22' .... No one would know of an RNS to be released that will contain BAD NEWS, if they did and then 'shorted' the stock, then they are guilty of 'insider trading'.
The only sure way to short a stock and WIN is to spread dis-information to defame the company with help from other posters that are in concert with them. To ENSURE that they don't lose the biggest part of their 'short', ironically, then, they must deramp with (seemingly) believable posts.
* When the pro's do it, they simply get the media or well known 'crooked' tipsters, analysts or brokers to do it for them. (say no more).
# The campaign against shorting is for the benefit of the 'cheated' investors that cannot control their investments due to the dirty tricks played out by co-ordinated shorting !
The results will be reviewed by Govt legislators for further action! The FCA will be asked by Davide Serra to conduct an investigation into short selling practices, with the view to either ban short selling, or to be better regulated !
Important message from the Financial Conduct Authority:
Posting inside information that is not public knowledge, or information that is false or misleading, may constitute market abuse.
This could lead to an unlimited fine and up to seven years in prison.
If you have any information, concerns or queries about market abuse, click here.
The content of the messages posted represents the opinions of the author, and does not represent the opinions of Interactive Investor Trading Limited or its affiliates and has not been approved or issued by Interactive Investor Trading Limited.
You should be aware that the other participants of the above discussion group are strangers to you and may make statements which may be misleading, deceptive or wrong.
Please remember that the value of investments or income from them may go down as well as up and that the past performance of an investment is not a guide to its performance in the future.
The discussion boards on this site are intended to be an information sharing forum and is not intended to address your particular requirements.
Whilst information provided on them can help with your investment research you need to consider carefully whether you should make (or refraining from making) investment or other decisions based on what you see without doing further research on investments you are interested in.
Participating in this forum cannot be a substitute for obtaining advice from an appropriate expert independent adviser who takes into account your circumstances and specific investment needs in selected investments that are appropriate for you.