Market's view on Essentra
Published on April 2024
- Stock watchers discuss potential takeover rumours and mention vague bid talks appearing in the Times.
- Concerns are raised about the slow pace and inefficiency of the share buyback process handled by Peel Hunt, with expectations for more aggressive acquisitions to support share prices.
- There are observations of significant purchases, including millions of shares bought after hours, leading to speculation about potential mergers, acquisitions, or strategic investments.
- A stock watcher points out that the company’s share price is approaching its 52-week low despite rumours of bids, indicating market scepticism.
- Discussions focus on the implications of general meeting (GM) special resolutions, particularly around financial manoeuvrings that could potentially prepare the company for a takeover.
- Some stock watchers express frustration with the lack of news and perceived inaction by the board of directors and CEO in expanding business aggressively and increasing sales globally.
- Comments on the company’s cost structure, highlighting the impact of polymer costs linked to oil prices and poor like-for-like sales figures in the latest statements, raising concerns about financial health.
- Observations are made about the company’s stock hitting a 14-year low, with a day of significant buying possibly by Peel Hunt as speculated, amidst a challenging national and international economic environment.