Market's view on Pressure Tech
Published on April 2024
- Stock watchers discuss the potential of a takeover bid involving Gyllenhammer and Harwood, noting that although it’s possible, there are significant minority holders at the AGM who resisted the disapplication of preemption rights, indicating they’re not seeking a quick exit and might invest more if needed.
- Concerns are raised about the financial stability of Rockwood, which could complicate any takeover attempts due to its inability to justify such an acquisition to its shareholders.
- A high trading volume accompanied a recent drop in PRES’s share price, but only 150k shares traded, suggesting the impact might be less significant than expected.
- CSC holds a valuable unencumbered freehold property and has higher gross margins than PMC, which could enhance group gross margins post-divestment. Positive developments are expected soon, including potential significant orders from the US Navy and HAR1 Hydrogen projects.
- Discussion highlights the potential for substantial net cash and increased share value for PT following the sale of the PMC division, with speculation about a trade sale possibly fetching a much higher price.
- Pressure Technologies announces new defence and energy sector contracts for its subsidiary CSC, including a significant contract with the Royal Australian Navy and a contract for energy storage systems with Cheesecake Energy.
- Stock watchers discuss several positive updates, including the sale of the PMC division, potential substantial orders from the HAR1 funding round, and qualification as a supplier to US submarine programs.
- Delays in hydrogen project implementations are reported, attributed to inflation, higher interest rates, and changes in governmental funding, affecting customer expansion plans.
- There are ongoing discussions for global naval contracts that could support manufacturing activity well into the future, highlighting the strategic importance of CSC’s naval and hydrogen storage solutions.
- The breakup value of PT shares is discussed, with concerns about high central costs and the potential surplus value of the Sheffield property. The addition of a new director is seen as a positive step towards safeguarding shareholder interests.
- Ongoing challenges include selling the PMC division and managing central costs post-sale, with calls for more clarity and action from the board.
- The share price shows slight buoyancy, possibly due to anticipated positive news, including the potential sale of the PMC division and significant orders from the HAR1 funding round.
- An interview indicates potential upcoming firm orders from the AUKUS program and additional funding for hydrogen projects, which could positively impact PRES.
- A discussion about a recent shareholder loan agreement highlights the minimal dilution impact and potential transformational effect on PRES, setting a positive outlook for future revenue and net profit growth.