KPC PEEL HUNT buy 4% stake (17.35 million shares)in ELEMENTIS the chemical maker on behalf of mystery client has sparked a buying spree. This purchase followed at 12 million purchase a few minutes earlier and it has been all buy of this share since. Is this a share that is about to bounce.

Trading on a P/E of just 8.9 ..... far too cheap imo....... should be at least twice that P/E..................

Elementis ForecastsYear Ending Revenue (m) Pre-tax (m) EPS P/E PEG EPS Grth. Div Yield

31-Dec-10 453.77 44.28 6.56p 10.2 0.1 +134% 2.98p 5.0%
31-Dec-11 482.94 48.56 7.53p 8.9 0.6 +15% 3.15p 5.3%

Monday's tip on UK-Analyst is from the growth company experts at Small Cap Shares‏.

From: Small Cap Shares (smallcapshares@news.t1ps.com)

Sent: 05 July 2010 16:58:13

BUY ELEMENTIS (ELM) at 61.5p

VALUATION

A key catalyst for the shares is the release of interim results in August, where we expect Elementis to report a significant turnaround in trading in line with its recent comments.

Broker Brewin Dolphin increased forecasts by 10% on the trading update and currently anticipates earnings of 5.81p for the 2010 financial year, rising to 6.34p next year.

These estimates put the shares on a current multiple of 10.6 which falls to 9.7 in 2011. The shares also offer a healthy 4.87% yield if as forecast the 3p dividend is maintained. BUY.

Greetings Goldfinger - just a note to let you know that you are not alone in ELM. I bought in July 09 on a tip in Shares Mag, when they were just 29p each. Yield was a tasty 9.5% - so two times a winner with these. These will go a lot higher as the recovery gathers pace. I will look to trade higher up, but only to improve my running yield - I am mainly an income investor these days.

Hope you and I both do well then Lord Gnome.

Just updating the Broker table.....

Far too cheap, a P/E of just over 8 going into 2011, far too stingy and a great chance of upgrades along the way.

From Hemscott premium....

Elementis PLC

FORECASTS 2010 2011
Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

The Royal Bank of Scotland NV
08-07-10 BUY 47.72 7.21 2.90 52.76 7.97 3.00

Brewin Dolphin
02-07-10 BUY 49.66 7.46 3.14 51.82 7.81 3.28

Collins Stewart [A]
23-02-10 BUY 5.30 5.70

2010 2011
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 48.62 7.33 3.01 52.33 7.90 3.13

1 Month Change -1.04 -0.13 -0.13 0.50 0.09 -0.15
3 Month Change 15.40 2.11 0.11 14.89 2.25 0.18

Notes to forecasts
(24 May 10) A flag refers to outlook


GROWTH
2009 (A) 2010 (E) 2011 (E)

Norm. EPS -91.34% 826.28% 7.78%
DPS 0.00% 3.83% 3.95%

INVESTMENT RATIOS
2009 (A) 2010 (E) 2011 (E)

EBITDA 27.70m 69.68m 74.17m

EBIT 14.20m m m

Dividend Yield 4.36% 4.53% 4.71%

Dividend Cover 0.27x 2.43x 2.52x

PER 84.08x 9.08x 8.42x

PEG -0.92f 0.01f 1.08f

Net Asset Value PS -7.19p 44.60p 49.71p

Monday 1st November trading update

Short term looks ugly for ELM....

see chart below

http://charting.webs.com/elm%201.JPG

Elementis +47pc

The speciality chemicals group Elementis is enjoying a sharp increase in demand for its products in Asia and South America, which is offsetting economic uncertainty in Europe .

The company, founded in Liverpool in 1844, makes coatings and chromium, and is benefiting from a boom in the oil and gas drilling sectors. For example, Elementis sells coatings additives for shale drilling and unconventional, high temperature, high pressure drilling.

The group is also cash-rich. Last year the dividend was increased by 42pc and investors are ready for more returns after Elementis said in April that it is “in the process of reviewing the appropriate balance between cash reinvestment and shareholder returns”.

Elementis to acquire Watercryl Quimica
StockMarketWire.com
Elementis has agreed to purchase Watercryl Quimica Ltda, a Brazilian coatings additives company, for $24m in cash. Watercryl was established in 1993 and is a leading supplier of additives to the Brazilian coatings industry, with manufacturing and technical facilities based in Palmital, São Paulo.

Elementis says the acquisition will significantly increase the company's presence in Latin America and provide a platform for its specialty products business to accelerate growth in the region.

The transaction is expected to close during the second half.

At 9:11am: (LON:ELM) Elementis share price was +5.3p at 193.2p

http://www.moneyam.com/action/news/showArticle?id=4417892HIGHLIGHTS



· Total revenue increased, with good organic growth in both of our core businesses:

o Specialty Products up 4 per cent despite the downturn in Europe.

o Chromium up 9 per cent.

· Group operating profit increased by 12 per cent.

· Group operating margins improved from 18.2 per cent to 20.1 per cent.

· Earnings per share increased by 15 per cent.

· Continuing investment in Specialty Products growth, including recently announced acquisition in Brazil.

· Further strong cash generation, with net cash of $29.9 million at the period end.

· Special dividend programme announced to further enhance shareholder returns, returning up to 50 per cent of year end net cash on the balance sheet.

;-))

Well played DC (what price did you get?), but I think there is more to come. The last report on 31/7 had a lot of positives that the market likes (promise of special divis, cash in the balance sheet etc) and the stock has just been admitted into the Stoxx600 index so there should be demand from European funds kicking in. The market cap has also just broken £1BN which may also attract bigger funds.

With a short term bull market after QE3, I see more gains to come here.

Thanks Bones , I got 239.5 p . Bought them in Jan this year. I am very wary of hanging on to long. Sitting on quite a few now with good profit, so nice to bank some.
No other reason to sell, the company looks good as you say. Thanks again.

That's impressive work since January for sure and I agree a profit is not one until banked :)

I have only gone in after 31 July between 205p and 217p so still working my trades.....

Good for you. I just want a good war chest if we get a down turn (lets hope not).
Good luck.

Cheers DC!

Gone long here, results due 1st nov. Always seems to have a good run up and good day on the results day..........

Broker Update....

21 Oct 2013 Elementis PLC ELM Berenberg Buy 247.30 247.30 290.00 285.00 Reiterates

SP TARGET 285p.

21 Oct 2013 Elementis PLC ELM Canaccord Genuity Buy 250.35 247.30 275.00 275.00 Reiterates

SP TARGET 275p

Elementis - Interim Management Statement



Elementis plc (ELM.L, "Elementis" or "the Group"), the Global Specialty Chemicals Company, today issues its Interim Management Statement for the three months ended 30 September 2013.



Commenting on the Group's performance Group Chief Executive, David Dutro, said:

"Elementis is pleased to report another resilient performance in spite of an economic background where growth is turning out to be slower than generally anticipated. The Group's strategy of creating its own growth opportunities, combined with its strong, diverse market positions and a return to more normal trading patterns in oilfield drilling are the key drivers of the Group's 12 per cent sales growth in the current quarter, compared to the same period last year. The integration of the Group's two recent acquisitions, Watercryl in Brazil and Hi-Mar in the US, is progressing well and the second and final phase of our new coatings additives plant in North America is well underway. These investments strengthen the broad geographic presence and enhance the Group's exciting market positions and will support further growth over the medium term."





Specialty Products sales improved by 15 per cent, or 8 per cent excluding acquisitions and currency.



· In coatings, sales in North America were higher by 12 per cent, mainly due to the acquisition of Hi-Mar earlier in the year. In Asia Pacific, sales increased by 11 per cent as the business continued to benefit from its market position in China, experiencing strong demand from local high-end industrial markets. Latin American sales increased by 68 per cent, driven by the acquisition of Watercryl in September 2012, and good progress is being made in expanding Watercryl sales outside of Brazil. In Europe, underlying economic conditions continue to be subdued as headline sales improved by 3 per cent, with currency contributing 4 per cent.



· In personal care, the business continued to benefit from the initiatives of a refocused management structure, with additional resources in new geographies and new product launches. As a result, sales improved by 16 per cent or 13 per cent excluding currency.



· Sales to the oil and gas drilling sector continued to demonstrate a sustained recovery following the impact of industry destocking in the latter part of 2012, maintaining the robust pace reported for the first six months of the year. Consequently, sales to this sector were at a similar level to the average quarterly sales in the first half of this year and 35 per cent ahead of the same period last year.



· Operating margin in the third quarter was similar to that reported for the first six months of the year as overall pricing and contribution margins remained stable.



As expected, following the planned maintenance shutdown in the early part of the year, Chromium trading patterns in the current quarter returned to more normal levels. Chromium sales in the quarter were 5 per cent ahead of the same period last year and at a similar level to the second quarter of the current year. As production volumes and plant utilisation returned to more normal levels, margins improved compared to the first half of the year and operating margin for the full year is expected to be in the range of 24-26 per cent. Consistent with our strategy of stable earnings and cash flow, we expect the performance of Chromium in the second half of 2013 will be similar to the second half of last year.



Cash flow continues to be a positive aspect of the Group's performance and it is anticipated that the end of year balance sheet will show a net cash balance of at least $30 million.



Overall we remain confident in the Group's ability to deliver growth that is in excess of the underlying economies in which it operates and expect our full year earnings per share to be in line with market expectations.











Enquiries:

Elementis + 44 (0) 207 408 9300
Brian Taylorson, Finance Director