ANN - Ansell Limited

[finicky]

Pretty dubious looking long term monthly chart imo. The more so given that they conducting a buyback.
No comment on whether a short term trader's opportunity could occur, not my thing, although I doubt that also. I would take a monthly or even a weekly close below 21.50 as a sell signal if I were holding, as I take that level as support for a potential irregular head and shoulders top (just the way I visualise it).
I believe they have down guided earnings for FY24?

Not Held

MONTHLY

 

[UMike]

Pretty dubious looking long term monthly chart imo. The more so given that they conducting a buyback.
No comment on whether a short term trader's opportunity could occur, not my thing, although I doubt that also. I would take a monthly or even a weekly close below 21.50 as a sell signal if I were holding, as I take that level as support for a potential irregular head and shoulders top (just the way I visualise it).
I believe they have down guided earnings for FY24?

Not Held

MONTHLY
View attachment 163414

I take all that on board.
Naturally years 20-22 were boom years due to the demand of protective products demand.
I guess costs are the main pressures now.

 

[The Triangle]

Still buying back shares... Stupid idea. Was stupid 18 months ago. Still stupid today. Could have had better return of paying debt, investments in cost reductions, or minor acquisitions.

Whats the investment case for a company which pays a minor dividend and has limited growth? Takeover?

Cash generation is still ok but is it worthy of a $3 billion market cap/$21 share price?

 

[UMike]

Still buying back shares... Stupid idea. Was stupid 18 months ago. Still stupid today. Could have had better return of paying debt, investments in cost reductions, or minor acquisitions.

Whats the investment case for a company which pays a minor dividend and has limited growth? Takeover?

Cash generation is still ok but is it worthy of a $3 billion market cap/$21 share price?

Great Question.

In this scenario of rate rises being more likely that decreases eliminating debt Is probably the most sound investment.
Even if the company feels the SP is undervalued.

 

[divs4ever]

Still buying back shares... Stupid idea. Was stupid 18 months ago. Still stupid today. Could have had better return of paying debt, investments in cost reductions, or minor acquisitions.

Whats the investment case for a company which pays a minor dividend and has limited growth? Takeover?

Cash generation is still ok but is it worthy of a $3 billion market cap/$21 share price?

ANN has been around for a long time , many investors will have it tucked in their 'bottom drawer ' at a much lower entry price

now i have seen one rationale for keeping the debt loads up as a 'poison pill' defense

i do not hold this share ( i could never crunch the numbers attractively enough for me ... but then i only started investing in 2011)

PS i agree on the buy-back , but then i don't get a vote at the AGM

 

[finicky]

Chart's looking much better and I've even been thinking of it as a buy candidate.
I'd forgotten I'd made a negative post on this and it looks more likely @UMike will be vindicated.
The price has not made a weekly close below $21 - I said earlier 21.50, but that makes no sense and I might have missread the scale - so it appears important support is holding.

WEEKLY

 

[qldfrog]

Was surprised looking at the monthly chart since 2019
I jump in like an awk in Feb 2019 with Covid starting..looking at the chart it should have been a right move but I remember that stock as a dud.
It took ages to slightly rise while people were doubling or more their money on zoom or other idiotic remote working stocks.
I sold with a slight underwhelming profit and a note of : do not touch again...
If a stock of medical protective supply can not kill it during Covid, let's not bother.
Not sure much exîst to change my stance

 

[Dona Ferentes]

one that came and went ... A long time ago.

is there a transformation going on?

Ansell receives a number of broker upgrades following its $400m capital raise to acquire Kimberly-Clark's businesses

 

[UMike]

Ansell is tapping the market for $400m through a placement run by Goldman Sachs. It will also source $US377m through new debt and launch a share purchase plan for up to $65m.

Shares are being sold at $23.89 each, a 6 per cent discount to their last close.

From the Oz

 

[Dona Ferentes]

Ansell is tapping the market for $400m through a placement run by Goldman Sachs.

Ansell’s $400m placement yields strong returns​

By Glenn Dyer |

Big investors seized a lucrative opportunity on Tuesday as Ansell, the global leader in protective solutions, executed a $400 million placement. The move, aimed at financing the acquisition of Kimberley-Clark's PPE business, resulted in significant gains for shareholders across the board.

The day marked a substantial uptick in share value, benefiting all stakeholders amidst the company's strategic expansion plans. Despite a slight dip during the session, trading activity soared, with over 1.4 million shares changing hands—surpassing the previous week's volume.

Investor interest surged following Monday's announcement of the impending deal, prompting a trading halt. Tuesday saw Ansell swiftly resume trading, confirming the successful completion of the fully underwritten institutional placement.
Priced at $22.45 per share—a 6% discount from the April 5 closing price of $23.89—the placement attracted robust interest from both existing and new institutional investors. This enthusiasm translated into a notable surge in share prices, reaching heights not seen since the release of the company's 2022-23 annual results.
Initially opening at $26.27, shares peaked at $26.92—an impressive 14% increase—before retracing slightly. However, they managed to regain momentum, closing at approximately $25.43, marking a notable 6.4% gain from the previous week's close.

For savvy investors who participated in the placement, early profits were substantial, with millions of dollars potentially realized upon sale. Even for those opting to hold onto their shares, the promise of future gains remains enticing.

With 17.8 million shares issued in the placement, holders collectively enjoyed a paper profit of around $34 million by day's end. However, the positive spillover extended beyond placement participants, with other shareholders also reaping the benefits of Tuesday's surge.

Looking ahead, Ansell is set to launch its share purchase plan (SPP), with the aim of raising an additional $65 million. The SPP will be priced at the lower of the placement price or a 2% discount to the five-day volume-weighted average price of Ansell shares leading up to the closing date, scheduled for May 6, 2024.

As Ansell continues to navigate strategic growth initiatives, shareholders remain optimistic about the company's trajectory, buoyed by the success of the recent placement and anticipation surrounding the forthcoming SPP.