Does anyone have any feelings for Yule Catto?

I sold short on CFD a few weeks back but now they seem to be on the way back up.
They seem to be building support at 240 and are testing the 270.

If any has any opinions on which way they're heading, I greatly appreciate.

Graham

StockMarketWire.com
Yule Catto & Co has seen further reductions in demand in the fourth quarter.

Following the modest volume reductions reported for the third quarter, percentage volume declines in the fourth quarter have been in the mid teens. These volume declines have been largely offset by continued margin management.

The speciality chemical producer's latest trading update shows net debt has fallen substantially with lower working capital requirements and proceeds from the sale of the Pharma division. Year end net debt is expected to be comfortably below £200m.

Synergy delivery from the acquisition of PolymerLatex continues to progress well and to plan. The Group exited the year with an annualised run rate of £15m, and remains on track to deliver the planned annual synergies of at least £20m in the second 12 months post acquisition.

The Board expects the impact of these synergies to add some £14m of profit in 2012 compared to 2011.

Not quite sure why this one is surging ahead. Not in a recovery sector yet.

Gone long again bouncing off supp/res

Forward P/E to 2012 just 8.5

Derd Cheap.

Think results are next week aswel.

YULC YULE CATTO

Strong Broker following....

Forward P/E 8.5 to end 2012

Way too cheap.

Yule Catto & Co PLC

FORECASTS 2011 2012
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

N+1 Brewin
05-03-12 BUY 87.10 18.40 3.00 109.80 23.20 3.30
Peel Hunt
05-03-12 BUY 92.21 19.70 3.00 116.05 24.50 3.30
Broker Name Withheld 3
22-02-12 BUY 87.70 18.70 3.50 104.70 22.10 4.50
Numis Securities Ltd
11-01-12 BUY 89.60 19.80 3.00 103.40 22.60 3.90
The Royal Bank of Scotland NV
28-11-11 HOLD 84.88 20.56 3.15 94.50 19.59 3.15
Altium Securities
10-11-11 BUY 88.00 19.40 3.00 117.60 25.90 4.00

2011 2012
Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Consensus 88.82 19.24 3.11 109.09 23.23 3.68
1 Month Change 1.21 -0.01 -0.03 2.80 0.50 -0.13
3 Month Change 1.45 -0.16 0.02 0.32 -0.09 -0.04


GROWTH
2010 (A) 2011 (E) 2012 (E)

Norm. EPS 18.14% 5.25% 20.74%
DPS % 138.92% 18.45%

INVESTMENT RATIOS
2010 (A) 2011 (E) 2012 (E)

EBITDA £64.82m £110.60m £143.49m
EBIT £50.20m £98.70m £118.10m
Dividend Yield 0.65% 1.56% 1.85%
Dividend Cover 14.06x 6.19x 6.31x
PER 10.89x 10.34x 8.57x
PEG 0.60f 1.97f 0.41f
Net Asset Value PS -5.32p 95.70p 111.48p


hemscott Premium

YULC

Bouncing off support...

Broker Ratings

Strong Buy 8
Buy 3
Hold 0
Sell 0
Strong Sell 0

YULC Yule Catto.

TA position looking extremely bullish
for YULC. A bounce up from a long
established support line going back
to 2011.

goldy you seem to have got this one right.

.

StockMarketWire.com
Yule Catto & Co reports underlying Group sales up 92% to £1,117 million, mainly due to the PolymerLatex acquisition.

Underlying profit before tax was up 99% to £84.8 million up 25% to £96.0 million on an underlying pro-forma basis.

Underlying earnings per share were up 30% at 18.8p and net borrowings of £164.3 million, reduced by over £70 million since PolymerLatex acquisition.

Net cash inflow from operating activities (IFRS) up 85% to £45.0 million. The board announced a final dividend of 2.3p per share giving a full year dividend of 3.5p, up 35%.

The PolymerLatex acquisition completed in March, effectively doubled the size of the business.

Integration is well on track, with synergy run rate of £15 million at the year end; synergy run rate now expected to reach £25 million by March 2013

Disposal of non-core Pharma business in November marked the last stage in the Group's transformation to a focused speciality Polymer business

Adrian Whitfield, Chief Executive, comments: "2011 was a pivotal year in the development of the Yule Catto Group. With the increased scale created by the PolymerLatex acquisition, and the subsequent sale of our Pharma business, Yule Catto has now become a substantial focused speciality Polymer business with a strong and diversified portfolio of products and well invested facilities in Europe and Asia.

"Whilst the general economic environment requires a degree of caution, I am pleased that the business has made a solid start to the year, and the Board remains confident about the prospects for the Group in 2012 and beyond."

Excelent results and excelent response in the market. very nice.

Questorr/Telegraph:

http://www.telegraph.co.uk/finance/markets/questor/9144115/Questor-share-tip-Yule-Catto-has-the-right-mix-to-weather-tough-times.html

14 March: Barclays reiterates: Overweight - ups TP from 237p to 278p.

Numis: downgrades to 'add'- previously 'buy'.

16 March:

Brewin Dolphin: Downgrades to Add

Numis Securities: Upgrades to Buy

22 March: JP Morgan reiterates: Overweight. TP upped from 250p
to 280p.

From last week's Shares Mag:
"Royston Wild -
BUY Yule Catto (YULC) ahead of works completion at its Malaysian latex factory in the fourth quarter, which represents the next major milestone in ramping up its exposure to key emerging markets in South-East Asia. The Harlow firm is due to expand its nitrile latex operations at the Pasir Gudang plant by 70,000 tonnes, which it hopes will give it the edge in the accelerating synthetic glove industry. The FTSE 250 firm’s share price has rocketed following
last week’s full-year results (14 Mar), which showed a 25% increase in pre-tax profits to £96 million, on a proforma basis that excludes the impact of the March 2011 PolymerLatex. Yule Catto is seeking to boost capacity in Asia by 50% by 2013 as it ploughs funds in to developing geographies. A forward price/earnings ratio of 10.3 times, according to consensus estimates, looks good value for a firm due to increase earnings per share by 26% this year and 10% next, to 23.6p and 25.9p respectively.

StockMarketWire.com
Ishbel Macpherson has joined the Board of Yule Catto as an independent non-executive director.

As announced previously, Neil Johnson has succeeded Peter Wood as chairman. Jez Maiden, who has been an independent non-executive director of the company since 2007, will assume the role of senior independent director with immediate effect.

Pre-Close Trading Update

Yule Catto & Co plc today issues a trading update in advance of entering its close period.

The challenging trading conditions outlined at the time of the Group's May Interim Management Statement have continued through the remainder of the first half of the year.

In our Europe and North America business segment, demand remains subdued, driven by continuing economic uncertainty and its effect on general business confidence. Demand is currently a little weaker than the first few months of the year, with business in the construction related sector continuing to be the weakest area of activity. Margin management has fully compensated for the volume declines, and our European business is benefitting from the synergies of the PolymerLatex acquisition at the expected levels.

In Asia and ROW, the Group's non-nitrile businesses are performing well. In nitrile, the weakness in end market demand continues. This, combined with the effect of recent capacity additions has led to increasingly aggressive competitor pricing and a further weakening of profitability in nitrile. Additional competitive capacity is also due on stream during the course of the summer. The Board remains confident in the long term value that the Group will derive from this high growth sector. However, given the overall supply demand position, competitive behaviour and the volatility in trading caused by rapidly changing input prices, the Board now anticipates the current weakness in nitrile will probably continue throughout the remainder of this year and into next year. This will substantially lower operating profit in our Asia and ROW business segment while this persists.

The impact of currency remains uncertain, with the volatility in the euro. Based on current exchange rates, the Board anticipates a reduction to operating profit of some £5 million from translation consistent with the guidance on currency issued with the Group's IMS in May.

While the combination of weakness in nitrile and currency translation effects will impact the Group's performance, the Board still anticipates that full year underlying profit before tax will be ahead of prior year pro-forma.

Yule Catto will announce interim results for the six months to 30 June 2012 on Tuesday 28 August 2012.

Explains why the sp has been falling recently
culminating in today's statement and dive.
But timing purchases judiciously has been a
good move for me in the past and market tends to
over-react initially.

What do you think, HC?

Short term profit possibly in a quick bounce, but not one I am holding atm and not currently tempted. I tend to dip in for the divi, but looks like the recession has eventually affected this company now. Mervyn King also noted yesterday that Asia was now starting to slide towards recession, so YULC isn't out of trouble yet. (MK : my concern about the worsening I see in the position in Asia and other emerging markets," King said "and my colleagues in the United States are more concerned than they were at the beginning of the year about what is happening to the American economy,")

Always good to get another view. Not holding either
and not thinking of jumping in atm. Better value elsewhere, imo.