Smith & Nephew: UFO Identified And Could Flush Out An Offer

Bloomberg reporting that activist shareholder Elliott has taken a stake in perennial disappointment and takeover target Smith & Nephew reminds us that the idea of an activist entering the fray was suggested here with reference to another perennial disappointment – sleeping pharma giant GlaxoSmithkline.

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CEO To Step Down

But as far as the wound management specialist is concerned, news this week that the thankfully the CEO is to step down after failing to shoot the lights out for seven years, does finally clear a fundamental log jam. It also means that after everyone and their mother has been speculating regarding S&N in recent weeks, and the company high on the M&A hit parade lists for 2017, we should see things start to gather momentum.

Therefore it would seem that the “UFO Alert” flagged here (at the website that must not be mentioned) some days ago has come into land.

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Flushing Out An Offer?

The Elliott stake is likely to be the catalyst to flush out a long awaited offer for Smith & Nephew. Moreover, whatever they have already bought it is likely they will be looking to top up such a holding given that they would have expectations of a deal. Bidders such as the often named Stryker, and Johnson & Johnson can be assumed to be on the runway here at the now somewhat rudderless UK group.

Disclaimer:

Zakmir.com is a purely journalistic website – Zak Mir is a member of the NUJ. There is no intention here of providing financial advice and absolutely no interest in speculating in the companies mentioned. It is  recommended you seek an independent professional opinion before deciding whether or not to take any action with regard to anything written here.

 

BAE: Shareholders 1 Non Management Employees 0

After The Cull

Every time there is a jobs cull of non-management operatives by one of the large blue chip UK companies, there is a storm in a teacup /  kerfuffle in the mainstream media.

And it is always the case that not only is it the newswires who get the perspective wrong, so do the politicians. Right leaning politicos wheel out issues of the state of the sector in question, Brexit, or the policies of previous Governments. Those on the left- the Unions / Labour want businesses to be run as charities.

Yielding To Shareholders

However, the truth here is that listed companies are beholden to their shareholders (allowing for gravy train / fat cat executive remuneration) and the dividend payments are the sweetener. You will be hard pressed to hear anywhere that BAE is giving people the sack in order to afford to keep paying a 3.5% yield.

Corporate HR Double Speak

In the case of BAE Systems today, the defence contractor has come up with all kind of corporate HR double speak regarding the loss of 2,000 jobs. The reason is allegedly “boost competitiveness, accelerate technology innovation and improve operational excellence”. This is the kind of sentence which is like a compilation of the kind of empty phrase one sees at Party Conference. Interestingly enough, the BAE announcement came in just after the car crash Tory conference?

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From a stock market perspective it is usually the case that job losses, as with CEO resignations, are a buying opportunity.  One notes the way there has been a recovery in the BAE Systems share price since mid September – presumably not on the basis of any leak of the cull announced today. If there is anything to highlight here it is the way that BAE Systems has effectively flagged today the way that it requires a rethink of its place globally, given the way that it stands little chance in a world dominated by US giants. Sacking people in order to afford a dividend payout is only a temporary sticking plaster.

Disclaimer:

Zakmir.com is a purely journalistic website – Zak Mir is a member of the NUJ. There is no intention here of providing financial advice and absolutely no interest in speculating in any of the companies mentioned. It is  recommended you seek an independent professional opinion before deciding whether or not to take any action with regard to anything written here.

Interview: Hemogenyx

The Hemogenyx breakthrough heralds the double whammy of the end of chemotherapy and the need for bone marrow transplants to treat blood diseases, as well as a new investment situation.

Dr. Vladislav Sandler is the founder and CEO of Hemogenyx and Adrian Beestan, Director at Hemogenyx Pharmaceuticals talk to host Zak Mir about the company’s mission.

 

Smith & Nephew: “UFO” Alert

Now and again there is chatter regarding a perennial takeover target. The one in focus at the moment is Smith & Nephew. By rights the group should have allowed itself to be taken over years ago. But instead the management seems to have preferred to soldier on, attempting to extract shareholder value. Good luck with that.

One could describe the present position of the surgical devices group as it being something of an Unidentified Flying Object, with no real story or substance to the talk surrounding it.

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That said, the daily chart appears very strong, a point witnessed by the April / May / June and July gaps to the upside. The latest recovery of the 50 day moving average at 1,353p is encouraging, with a weekly close above this number underpinning the idea that the next time the shares touch 1,400p they could keep going. This is on the basis that since April the appearance of the chart has been very constructive.

Disclaimer:

Zakmir.com is a purely journalistic website – Zak Mir is a member of the NUJ. There is no intention here of providing financial advice and absolutely no interest in speculating in the companies mentioned. It is  recommended you seek an independent professional opinion before deciding whether or not to take any action with regard to anything written here.

Yoox Net-a-Porter: Update

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Shares in Yoox Net-a-Porter have continued to rally after a couple of articles written highlighting its M&A credentials. The latest entity to get on the bandwagon is HSBC, tipping the stock as a potential takeover target – slightly behind the curve one could say.

Interestingly enough, the present charting trajectory of the shares within a rising trend channel which can be drawn in on the daily chart from as long ago as June last year is implying a €40 target, well above the €37 rumoured price of any deal.

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Disclaimer:

Zakmir.com is a purely journalistic website – Zak Mir is a member of the NUJ. There is no intention here of providing financial advice and absolutely no interest in speculating in the companies mentioned. It is  recommended you seek an independent professional opinion before deciding whether or not to take any action with regard to anything written here.

 

Refresco: Likely To Reject Latest Offer, Aim For €22

Refresco has been on the runway as far as intense M&A speculation in recent days, with hedgies and others getting what they wanted today with the €1.6bn offer from PAI Partners. This according to sources is likely to be rejected, in similar fashion to the offer from Cott Corp in July. However, the rumour is that a higher bid at €22 a share (versus the equivalent of €19.75 on the table now) could eventually be forthcoming in this bidding war situation. This may be worth waiting for as far as fans of the Dutch juice bottling group is concerned.

Disclaimer:

Zakmir.com is a purely journalistic website – Zak Mir is a member of the NUJ. There is no intention here of providing financial advice and absolutely no interest in speculating in the companies mentioned. It is  recommended you seek an independent professional opinion before deciding whether or not to take any action with regard to anything written here.