EKT is having the turn around most companies would like to have at the beginning of the economic recovery.

The change of management and subsequent restructuring has brought the desire effect on the company fortunes, by eliminating loss making business and careful control on cost, they had managed an operating profit on all the three divisions at the Interim stage.

The good news has not finished there, as new products were introduced and were well received and the next stage will be for expansion on the Far East markets on selected niche areas of component distribution.

A 14% reduction on borrowing at a time of restructuring is very significant to the aims of the company for the future.

At 7.125p the shares have plenty of upside from now on, not only from the recovery on profits, but also from the most likely return of dividends at the final and that will be the icing on the cake for the share price.
Update
27th Oct 03 Elektron Employee Benefit Trust buys 300th shares at 6.40p
29th Oct 03 Director Richard Bulgin buys 25K at 7.25p latest

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EKT broker note... predicts a dire outlook. doesnt mate good reading.

can be downloaded from here :

http://freefilehosting.net/download/422ij

gives an idea of the current trends in the sector. House Broker has downgraded the price target from 16p to 12p.

Highlights :

Outlook and Valuation. The order book is currently 5.5m or 0.9m softer
than at this time last year. We have therefore trimmed our sales forecasts for FY10 and FY11 to reflect these deteriorating conditions. In light of this and recent macro economic events, we reduce our fair value estimate from 16p to 12p or 6.6x our FY10 EPS estimate of 1.83p.
===============

2008 EPS 2.77p
2009 EPS 0.96p ............... -65% from 2008
2010 EPS 1.85p................ -33% from 2008
2011 EPS 2.27p................ -18% from 2008

So even looking out to 3 years on.... EPS will be LOWER than what it achieved this year.

=============

page 2 :

we do note that the average PER for the group has decreased from
7.35x to 5.48x and we are therefore compelled to reduce our fair value estimate on this basis.

we accept that electronic manufacturing and consumer electronic end markets are suffering under the current global economic crisis and finding sources of funding to acquire companies have and will continue to be a challenge over the near-term. Therefore, we expect management to focus on improving operations in both the UK and overseas and do not expect any significant acquisitions for the rest of this calendar year.


Given the current macro economic climate and the specific risk of
Elektron delivering its business plan to acquire and relocate
manufacturing operations to China and Tunisia, we reduce our fair
value estimate to 12p (Old; 16p) or 6.6x our FY10 EPS estimate of
1.83p.

HOUSE BROKER DOWNGRADES ELEKTRON

5,000,000 IN DEBT

GOING BUST SOON !!


LATEST BROKER NOTE HERE.... MAKES DIRE READING :

http://freefilehosting.net/download/422ij

Yep slowly but surely going bust !!

I have watched this since Keith Roy joined as non exec in 2008 after 30 years with Halma, a particularly rewarding investment for me over last 30 years ( and still doing OK!). Interesting set of half year figures today. Sales down 27% but gross margins up, cash has been generated from operations and balance sheet in reasonable shape. Sales drop not wholly unexpected as previous comments suggested they were slowly moving into better margin business. Nothing wrong imo with the "Sales are vanity, Profits are sanity and Cash is king philosophy" which they seem to be applying. Nevertheless, EKT is working hard to stand still.They do not appear to be going backwards, however and prospects improving in some of their markets. Although definitely not for widows and orphans, I have dipped a toe in - always DYOR

Bit of a co-incidence, but on the day of the EKT results Hartest Holdings (HTH) announce possible takeover this afternoon -at initial offer 50p. EKT owns approx 23% of HTH and was itself involved in abortive talks with them earlier this year (at price 25p). If the deal does proceed, however, should a nice little boost to the second half profits of EKT - reading of exceptional gains makes a pleasant change from the more usual exceptional losses these days and the cash will be useful.

Bit of movement today, although very illiquid. Could be that the bid for HTH is nearing its conclusion (Delta Controls earlier indicative offer raised from 50p to 61p) - takeover panel deadline for "put up or shut up" is end of this month. Would be a nice boost for EKT if it did happen, as they have struggled in own trading last couple of years.

Breaking out on the 15 month

edit but must fill it out with something a long term chart ......

edit

1 post and money am convert it into 3 post

What is going on

Good news on two fronts today - big improvement in underlying trading and looks like they have persuaded Delta to offer a bit more for HTH (now 69p).

Some nibbling last few days is encouraging - trading statement suggested year just ended will be better than expected earlier. Deadline for HTH bid extended to 22nd Feb. Only negative for me is recent departure of highly competent non exec director. I hold.

Delta offer for HTH did not proceed, but EKT taken that in its stride (HTH performing well in own right) and looking strong ahead of results to end of January.

More activity than usual today - perhaps trading statement after Easter. If Barclays Stockbrokers website is to be believed, broker forecasts eps 3.4p for year ended Jan 2011 and 4.4p for 2012. Even with their patchy track record, P/E ratio of 3 or 4 looks a bit harsh to me, but always DYOR. I hold.

Encouraging trading update today. Prospective P/E still in low single figures after recent rise and may even get a decent dividend later in the year. I still hold.

Very strong again today. Nice to win one occasionally, although never won until profit banked and I still hold these.

Expected good results posted today.Prospects look sufficiently encouraging for me to continue to hold, but always DYOR.

Been lonely on here - anyone know why the spurt today?

Looks like another stock getting too high too quickly. I have been watching these for years and have never rated them much.

Must be a screaming buy then!

Appreciate both inputs, although question not answered. Like your style, tab! Recent trading performance has been first class, albeit very short time since big problems. Have sold sufficient to more than recover initial outlay and will watch the remainder with interest over the next year or two.