Market's view on Science Group
Published on April 2024
- A stock watcher speculates about a potential private takeover of the company.
- Concerns are raised about the company’s diverse range of businesses, with suggestions that selling parts like the revitalised TPG maritime business could unlock value.
- Positive sentiment is noted regarding two large share purchases, seen as good news whether they are company repurchases or private investor buys.
- Criticism is made of a company executive for not updating forecasts and for his difficult personality, despite being effective at orchestrating low-cost takeovers.
- Some praise is given to the CEO for good company management and significant dividend increases, though there is a call for the company to raise its market profile to aid its performance.
- The low valuation of the company is discussed, with calls for management to engage more with private shareholders and suggestions of possible forecast upgrades from brokers.
- Confidence in the management’s strategy of using strong cash positions for acquisitions and share buybacks is expressed.
- Discussion about the impact of past acquisitions on stock prices, with a specific example where the acquisition did not lead to a recovery in share price.
- Positive view on the financial strategy of continued share repurchase, and a general positive outlook on the company, citing well-performing divisions in life science and engineering.