Enodis (ENO)

Riz

Experienced member
1,266 5
#1
ENO provides cooking, refrigeration and food preparation equipment to restaurants, hotels and supermarkets...share price started rising from 202 (Oct. 27) to 246 (Nov.17) when they started diving to 218 when they said there had been some slowing in customers' capital expenditure in the US retail and global beverage markets on their preliminary results...

However as FT commented the fall looks excessive. While the markets are nervous about any company experiencing a slowdown in the US, expenditure on food is ultimately non-cyclical. Meanwhile, Magnet, the group's non-core kitchen furniture retail chain, increased like-for-like operating profits by 13 per cent to Pounds 25.3m. Mr Williams appears wise to be holding out for a better selling price as the business improves. Analysts have reduced this year's forecasts from Pounds 114m to Pounds 110m, putting the shares on a forward p/e multiple of 6 - which is deservedly in line with the sector.

A look at the Financial Highlights from Preliminary results for the 52 weeks ended 30 September 2000 announced on 21 November 2000

Sales up 56% to £1,180 m
Profit before tax, goodwill amortisation and operating exceptional items
up 40% to £105.2m
Underlying operating profit growth in:
- Food equipment up 8%
- Building and consumer products up 13%
Adjusted diluted earnings per share up 18% to 35.0p
Free cash flow before dividends up 80% to £89.5 m
Dividend up 10% to 13.75p

Basic price movements in the last 3 months 205-225-235-245-217-222

Chart looks nicely shaping up with a strong resistance level at 218...RSI up, money flow index and onbalance volume improving..

Recommendation in Tempus coulmn of todays Times on the basis that Enodis, the renamed Berisford kitchen equipment maker, has historic yields above 7 per cent. They have a prospective dividend payment covered at least two times by earnings per share. Focus fire on these.

Director dealing on 21 Nov.
Investors Chronicle's positive comment on 10.11.00
Brokers' Recommendations
1 Strong Buy
5 Buy
2 Neutral

ENO is sure worth watching... they are higly likely to recoup the recent loss of over 20p soon..and take it up from there..

chart: http://www.advfn.com/cmn/chrt/chartol.php?epic=eno&name=&draw=2&period=12&date1_day=01&date1_month=01&date1_year=1997&date2_day=25&date2_month=11&date2_year=2000&epic2=&index =-1&se arch.x=41&search.y=8

This link will take you to ukwire for further information on the group and its preliminary results... http://www.ukwire.co.uk/cgi-bin/articles/200011210700564352U.html

[This message has been edited by rizgar (edited 25-11-2000).]


[This message has been edited by pigsy (edited 25-11-2000).]

[This message has been edited by rizgar (edited 25-11-2000).]

[This message has been edited by rizgar (edited 25-11-2000).]
 

cookie

Active member
248 1
#2
Riz,
Just noticed your post and remembered I had done brief research last week.

Supplies equipment to the likes of Macdonalds who are one of their largest customers.
Volume spiked on Tues 21st @ 735% avg. vol.
Massive sell-off.
225 down to 219
On 24th ( Fri ) - 5 separate trades of 50k shares MM to MM @ 220 . Moved up to 224 on good buying. Opened AM today 227 now back to 225.

Am not quite sure what to look for on chart but it appears to me that recovered from a low end Sept 190 to reach 245 by mid Nov at 245. Retraced back to current at 225.

It would make sense to wait for trend reversal rather than to guess bottom.

Am watching.

Cookie




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Riz

Experienced member
1,266 5
#3
UP 4.5 to 227..

Thanks Cookie, nice research..this is how I like the threads to be: continuity and news, research and TA support from fellow members...

Looks like a strong supprt level has been formed around 200..charts started to give some classic TA signals..but still need further shaping up to indicate a strong long term uptrend..so we'll keep watching..