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Time to buy.

lse:ule

#1

At £12 this has to be a buy.

Yours Glass Half Full
vb6


#2

Source: Alliance News
Ultra Electronics PLC said Chairman Douglas Caster bought shares worth GBP100,000 amid a share price collapse on Monday.

Mr Caster is not a man to waste his money.
Yours Supportively
vb6


#3

CEOs leaving suddenly, warnings that profits will be below expectations, delays in projects with one of your biggest customers, and judicial delays in take-overs are all bad things, which will make the share price fall,

But since the highs in March, we’ve lost for getting on 50% of the value; but turnover will be only 4% down on last year, and profits will be up (according to this morning’s trading update) and we have an experienced MD with a wealth of history within the company. The fall must be overdone.

I’ve only put a weak buy, as once a share is unloved by the market, it can take a little while for the recovery to start, so I think it is a buy, but there may be a better time by waiting a while.


#4

Hardboy

"But since the highs in March, we’ve lost for getting on 50% of the value; but turnover will be only 4% down on last year, and profits will be up (according to this morning’s trading update) and we have an experienced MD with a wealth of history within the company. The fall must be overdone. "

You could well be right, but I think comparing SP fall with a single year forecast revenue or profit fall is too narrow a comparison. The valuation is market’s view of the profitability over a number of years with whatever growth is factored in. After Friday and Monday’s the debacle and downgrade, I would think the growth expectations will take a hit, it will be interesting to watch for changes in future year EPS forecasts. 4-traders have a good summary (these are the reported numbers not the much higher up adjusted figures).

http://www.4-traders.com/ULTRA-ELECTRONICS-9590141/revisions/

I sold all yesterday and took the hit, I don’t feel comfortable holding given the risk of further bad news, but of course I could be wrong, the forward orders sounded encouraging but that is jam tomorrow with no guarantee.

Re Doug Castor’s purchase, he bought 8160 shares, adding to his 300,000 holding, ~2.7%. A positive sign but hardly overwhelming. Arguably it would add sufficient support to the SP to pay for itself.

Good luck to those who are holding, you may well be proved right, I’ll watch from the sidelines for now.

H2


#5

H2,

“Doug Castor bought 8160 shares,”

He still shelled out £100k to buy those. That’s significant by almost anyone’s standards.


#6

Furthermore Douglas Caster is an honest guy.

Yours Honestly
vb6