Market's view on Smith & Nephew
Published on April 2024
- Concerns raised about a high-profile CEO potentially needing to be replaced due to frequent share sales and perceived poor performance.
- Tesla, led by Elon Musk, proposes a potentially record-breaking $56bn pay package, concurrently announcing a significant workforce reduction of more than 10%.
- Suggestion for stakeholders to proactively communicate with Investor Relations instead of solely expressing frustrations in forums.
- Discussion of a potential buying opportunity if the stock price hits 9 pounds, considered a good entry point by some.
- CEO’s request for a 30% pay raise deemed unreasonable by stock watchers, questioning the alignment with company performance.
- Comparison of long-term stock price stability, highlighting a lack of significant growth over a decade, prompting discussions on the attractiveness of the company for a potential takeover.
- Frustration over a 30% loss on investments, with the last favourable results failing to act as a catalyst for improvement, leaving some stockholders resigned to holding their shares with low expectations.
- Observations made of the company’s stock being out of favour, with calls for top executive changes due to disappointing performance.
- Analysts from Citywire noted an ‘unconscious bias’ against the company, suggesting a disconnect between market valuation and the company’s fundamentals, with a recommendation to buy based on achievable revenue and margin guides.
- Debates over the comparative value and performance against industry peers, with specific mentions of competitors like Stryker, highlighting stark contrasts in stock prices and earnings per share.