"Laird (LSE:LRD)In the great scheme of things, few things define utter boredom more than LSE:LRD:Laird's share price during the last six months. But oddly we'd a flurry of requests for an update, so perhaps something interesting is possible.Let's ..."
" LAIRD (LSE:LRD) In the great scheme of things, few things define utter boredom more than Lairds share price during the last six months. But oddly we'd a flurry of requests for an update, so perhaps something interesting is possible. Let's ..."
Hoping for a bit more stability now that management has done the rights issue and re-based the dividend. This has been one of my poorer stock picks over the past five years and should probably have got rid of it long ago. For the moment we are in an up cycle for their end markets so we should see an improving price.
Yes you may be. Currently I can buy a Laird nil paid rights share (LRDN.L) for 62p. Each share requires me to pay a further 85p next week in order to convert it to a Laird ordinary share (LRD.L), else it will become worthless. And guess how much one of these is currently worth? Yup, 147p. No arbitrage opportunity there methinks. The nil paid share price will track the ordinary shares very closely, but 85p lower.
You can sell the nil paid rights at any time before conversion, but the only way you can buy them back cheaper is if there is a fall in the Laird share price.
Am I missing something? Currently the rights issue are selling for less than the take up price of 85p. So it would be better to sell the current allotment of rights and buy again in the market, or as I say, am I missing something?
Electronic technology group Laird PLC was also a strong mid cap riser, adding nearly 7% at 178p after German broker Berenberg double-upgraded its rating to buy from sell with a new target price of 240p, up from 130p.
I backed up my view posted on the 20th October by purchasing a few Laird shares and have to say I didn't expect the further drop back to around 130p.
They have now recovered from what I believe was a ridiculous low and even with the rise (as at 11.30am today) offer exceptional value for those who would like some exposure to a high quality business albeit with what should be a few short term financial issues to resolve. Add to this the very real prospect of a hostile takeover this makes a compelling case for investment.
It seems that the markets are currently incapable of reacting in a balanced way to any news. Look at the Next statement yesterday and the market reaction to that!
The concept of holding shares has been eroded in recent years and it seems to me that more and more PI's and fund managers are too quick to sell rather than sitting it out or averaging down on weakness. Mr Market knows this and contributes to the mayhem with, in what some might say, not me :-) was a 'concert party' of extreme pricing.
I believe Laird has a strong core business which faces challenges not existential risks.
They could be a great place to park some funds with realistic hopes of a recovery in 2017.
Not confident in management handling this well, no proof of that so far, thus i'm out. Painful but given the correction going on in the market i'll take my £500 loss and roll what's left into something like GSK or VOD, at least i'm reasonably sure of a sustained dividend there.
And here is the rights issue. At least they aren't claiming Laird has a strong balance sheet anymore. As I suggested previously the permanent reduction in profitability in some of Laird's activities will lead to impairment of the goodwill in the balance sheet which was stretched in any case. The banks would not be happy continuing to lend in such circumstances so a rights issue if they couldn't make a big disposal was inevitable. There is no final dividend. Laird has been paying out excessive dividends when it should have been strengthening its balance sheet.
Laird Launches Worlds Thinnest, Smallest Ceiling- or Wall-Mounted Wideband Antennas
Press release date: November 16, 2016
Remarkably thin form factor delivers superior performance in large coverage areas; enables continued growth of IoT and EIoT
The mobile industrys thinnest, smallest ceiling- or wall-mounted wideband antenna that is more efficient and meets the design needs of office and apartment buildings, hotels, airports, and other large coverage areas, was announced today by global technology leader Laird (LRD: London).
Lairds new CFS Low Passive Intermodulation (PIM) Ultra-Low profile antennas just seven millimeters thick, or about half the thickness of a smartphone improve in-building wireless telecommunications and deliver consistent, reliable Internet connectivity, further enabling the Internet of Things (IoT).
Because they are so thin and require eight to 40 percent less wall or ceiling space, they are less visible on walls or ceiling panels and can even be hidden behind wall pictures.
This patent-pending innovation radiates an indoor signal up to 20 percent more efficiently than other in-building Distributed Antenna System (DAS) antennas on the market today.
Industry experts forecast that by 2020, more than 23 billion things globally will be connected to the Internet, and about 40 percent of them will be used for business, industrial, healthcare, and other sectors for the Enterprise Internet of Things (EIoT). Furthermore, the majority of EIoT mobile data traffic will be generated indoors at offices, hotels, hospitals, universities, shopping malls, and multi-tenant, multi-use buildings.
The new CFS Series Low PIM Ultra-Low Profile antennas provide pattern coverage optimized for indoor requirements at 600-960 MHz, and 1690-3800 MHz supporting global GSM, DCS, UMTS, AWS-3, and 3G/4G-LTE/WiMAX frequency bands.
Lairds technology enables the wireless world to work, said Jack Cowper, Laird's Senior Vice President of Infrastructure Antenna Systems. Improving indoor wireless coverage and capacity usually requires the installation of more ceiling antennas resulting in higher costs, and at the expense of the design and aesthetics cherished by building owners and management firms.Our new CFS antennas are smaller, more aesthetically pleasing, and deliver next-gen performance for high-quality, in-building connectivity.
Cowper added that these new, ultra-thin antennas reflect Lairds ongoing commitment to deliver market-driven solutions that resolve critical customer needs.
For more information: CFS60383P Low PIM Ultra Low Profile Antenna CFS69383P Low PIM Ultra Low Profile Antenna Laird Design and Testing Capabilities
About Laird is a global technology company that enables mission-critical mobile connectivity through wireless applications and antenna systems, and components and solutions that protect electronics from electromagnetic interference and heat.
Products are supplied to all sectors of the electronics industry including Connected Transport, Connected Industry, Connected Medical, Telecom/ Computing, and Mobile Device markets. Laird, a unit of Laird PLC, employs over 9,000 employees in more than 50 facilities located in 19 countries.
For the latest news or more information, visit: Lairdtech.com
You may well get the chance to invest some more money if they decide to have a rights issue. Laird will be having some interesting conversations with its auditors at the year end about all those intangibles in its balance sheet. If there has been a fundamental downwards shift in profitability in any of its operations that will lead to an impairment review and probably some red ink. Borrowings are too high for a business with so much goodwill from acquisitions in its balance sheet.
Much as I love recovery situations, I feel it is too early to be looking for a bounce here.
Self help measures is code for no END divi. Hardly surprising given the debt levels. END
You might be right. However a short term cut to this divi perhaps is more likely given the extreme reaction to yesterdays news. The new boss, who could be 'kitchen sinking it' might not want to 'chuck the baby out with the bath water' as well. Stopping the divi completely whilst forecasting a better 2017 and sends a rather mixed message.
The smartphone market has in essence be mature in the'1st world' for years but thankfully, as most know, these products have a very limited life and are replaced at least every 3 to 4 years by the those who break them or just use them like jewelry. The improvements to functionality with every new update are largely irreverent to 95% of users who just use the camera and a handful of apps, most of which would work perfectly well on an iphone 4, to send pointless pictures and messages in various formats and of course to surf the net. The car market is also saturated but just the same we keep changing and scrapping cars which would run on for years with a little TLC.This is because they are often not just a mode of transport but a way of saying something about you, your status and progress in life. In the scheme of things, they are more than just functional.
Growth may slow but smartphones will be bought, used, broken and replaced on an epic cycle for year to come. that is until the the next big thing comes along to replace them. Hopefully laird will be involved in that!
Apple supplier Laird has warned annual profits will fall sharply following a sudden downturn in its smartphone components business and unprecedented pricing pressures.
Shares in the group almost halved to 165p as it said it may be facing a new reality in the mobiles market after an expected pick-up in smartphone production failed to materialise.
Tony Quinlan, Laird chief executive, said the company was looking into whether there may be a permanent shift in the way the consumer devices market operates.
What we have to accept is that this might not be a one-off. It might be a new way of working. Weve got to look more forensically at this stuff.
Are we looking at a sector that is reaching maturity? We dont have the answers yet.
The profit warning comes at a difficult time for Samsung, one of Lairds key customers. Last week Samsung suspended production and sales of its Galaxy Note 7 after devices caught fire.
In a gloomy third-quarter trading update, Laird said it now expects underlying full-year pre-tax profit of around £50m. That compares with analysts expectations of £75m, and £73m profit in 2015.
This is not good news, Quinlan said, but we hope that once the dust settles people will see we have a specific challenge in one part of the business at a time when other parts continue to perform well.
He added pricing pressure during the third quarter had been truly relentless, and that it was taking a number of self-help measures to improve operations and stabilise the business.
The Samsung exposure is tiny compared to Apple and it is this along with a frothy market which is at the top of a sort of bull run which has spooked the markets.
Not great news but pretty much overdone is my guess.
Whether there is any bounce tomorrow is another thing but longer term it probably will and given today's modest investment returns it could be a chance to lock in a dividend yield at a favourable level. Time will tell.
At the very least given the companies other innovative enterprises and the devaluation in sterling it may make Laird a takeover target in play.
Talking of takeovers IMG which has significant, almost existential dependence on Apple doesn't seem to have taken the same bashing today. Funny old world!
Debating whether this is the classic process of a new CEO painting the worst possible picture in his first 100 days or whether there is a long lasting problem. Certainly Samsung does not help but I do not know what percentage of sales it represents. A 47% fall in SP seems overdone but it is difficult to know at this stage.
" LSE:LRD:Laird has executed a pretty impressive and fast-paced turnaround this week. Weak first-half profits triggered a severe sell-off last Friday but, given time to digest the figures, the market has changed its mind, reversing the slide. It's ..."
Another day, another electronics company
Falling profitability at electronics companies is becoming a familiar theme. I mentioned Wolfson Microelectronics on Wednesday and Holders Technology on Thursday. Now itâs Friday Iâm ..."
"After M&A speculation caused its share price to spike this week, Laird will release a much-anticipated trading statement. Monday 18 JanuaryAGM/EGMeServGlobal, Aquarius Platinum, Polo ResourcesTuesday 19 JanuaryWell-placed to smash expectations ..."
Forgot to mention these recentish cluster Buying by Directors.......
Laird director deals
Date Director Type Volume / price Trade value
11 Nov 2015 Mike Parker Buy 17,000 @ 346.58p £58,918.60
11 Nov 2015 Jack Boyer Buy 7,000 @ 345.70p £24,199.00
10 Nov 2015 Kjersti Wiklund Buy 6,200 @ 350.77p £21,747.74
10 Nov 2015 Kjersti Wiklund Buy 2,800 @ 350.77p £9,821.50
LRD Laird PLC (Designs and manufactures wireless and other advanced electronics components)
Just love this chart with the staircase technicals I look for , its a kind of hybrid of the Elliot Wave System and as proved very profitable in the past, very profitable indeed.
It was there staring me in the face on my hot watch list but didnt pick it up until 20 minutes before the close. My target SP on the chart could prove to be very conservative...............fingers crossed. DYOR
Annual Income Statement Data
Actuals in M GBP Estimates in M GBP
Fiscal Period December 2012 2013 2014 2015 2016 2017
Sales 520 537 565 636 688 723
Operating income (EBITDA) 81,9 85,7 92,1 102 113 122
Operating profit (EBIT) 68,1 67,2 71,2 82,8 91,0 99,3
Pre-Tax Profit (EBT) 45,1 43,2 48,1 62,7 67,6 73,6
Net income 46,5 30,8 50,1 32,5 53,9 60,5
P/E ratio 0,12 0,24 0,17 19,1 17,4 15,4
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