Updates

UMECO

May 2012

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

UMECO, the supplier of specialist composite materials for large commercial aircraft, has just received a recommended cash offer of 550p-a-share, making for a juicy 61% premium to the average closing price over the past six months. The buyer, New York-listed speciality chemicals and materials group, Cytec, is paying a princely enterprise value / ebitda of 14.7 times and enterprise value to sales of 1.42 times. Interestingly, analysts at Jefferies believe there is positive “read across” for fellow TMI favourite Senior, 199p because UMECO's exit multiple would value Senior's aerospace division at £1.1bn even though its overall market value is just £807m. The broker also sees a positive read across for GKN, 203 ...

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Abcam - Makes US$155m acquisition

Ultra Electronics - Goldman Sachs has Â£22 price target

Umeco - Piggy-backing on demand for Boeingâ€™s â€œDreamlinerâ€ (January 2012)

Umeco - Activity levels high in civil aerospace (December 2004)

Umeco - Recovery in civil aerospace (October 2004)

UMECO (August 2004)

UMECO - Acquires Advanced Composites (May 2004)

Umeco - Buoyant new business pipeline (March 2004)

UMECO (December 2002)

UMECO - 355p price target (September 2002)

Umeco - Major extension to Rolls-Royce contract (July 2002)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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