Market's view on Tyman
Published on April 2024
- Discussion on the performance of Tyman (TYMN) includes concerns about the current offer being perceived as low, consisting of both cash and shares in a US company, which many find unattractive.
- Concerns about the dividends, specifically that Quanex’s dividend yield of 0.92% is lower than Tyman’s approximately 3.5% at the offer price, thus affecting income investors negatively.
- Discussion about the logistical aspects of holding shares post-acquisition, such as the listing of new shares on the NYSE and the establishment of a CREST depositary interest (CDI) dealing facility to assist UK shareholders in managing their US shares.
- Points were raised about potential taxation issues for UK shareholders receiving US dividends, which might be subject to US withholding tax but could be offset against UK tax.
- Some stock watchers express dissatisfaction with the company’s management, particularly in reference to the recent resignation of the CEO and other interim appointments that could be destabilising.
- Discussions around the market’s reaction to financial updates from the company, noting that positive outlook statements have helped improve share prices.
- Comments on the strategic fit and potential benefits of a recent acquisition by the company, which was funded through debt.
- Concerns about broader market conditions affecting the company’s stock performance, including comparisons with broader market indices and the impact of macroeconomic factors.