What on earth is happening with this share? This is way beyond a grudge with the lack of dividends...surely?
Aspen - JSE: APN
Posted 14 September 2020 - 09:26 AM
I am not a happy camper at all, this was supposed to be one of my "safer" holdings. I can accept a drop in share price when I know what the cause is or when I invested in a company knowing that it could be volatile, but this is just ridiculous.
I can find nothing other than what you have mentioned about the dividends. There must be some cryptic code in the financials that only the experts can decipher.
Posted 11 September 2020 - 01:55 PM
Are investors punishing aspen for not paying dividends and reducing debt
Very confusing indeed. I suspect you are right although markets usually forward looking which would imply investors would be taking the R13B Mylan sale into account. The decision to withold dividends should not be a massive surprise given Aspen are committed to addressing their debt + COVID uncertainty but logic no longer at play these days. Very confusing indeed.
Posted 11 September 2020 - 12:59 PM
Posted 11 September 2020 - 08:31 AM
I have Aspen shares & believe in the shrewd management now that they have had their nose bloodied by those expensive deals they concluded with Glaxo which caused them to sell the infant milk business...Their crown jewel & money printing machine literally...
They have received some negative attention by EU regulators & selling some of the more monopolistic injectables businesses is a step back under the radar.
I feel there'll be the mild volatility until year end when the sale concludes & the cash is allocated...Hopefully entirely towards debt....Then they can re-boot focus on improving margins on existing businesses & really cementing their local knowledge & position above all others.
Should they choose to acquire something then borrow for that..
It's a solid profitable business that has a bright future & these top guys Saad & Atteridge have plenty skin in this...I'm always a buyer below R130
Have a profitable day.
Anyone need a heads up...!
Posted 10 September 2020 - 03:29 PM
Posted 10 September 2020 - 03:11 PM
I think it has to do with the non-payment of dividends. The downside pressure may just be individual investors taking their cash elsewhere.
They have done really well to reduce debt without the sale of the european business which will bring the debt leverage ratio down significantly to 1.8. Approximately half the covenant ratio of 3.5. A much more sustainable business. They can now turn their focus to improving their remaining operations.
Posted 10 September 2020 - 01:33 PM
Hope the below statements help with regard to the Mylan query. The transaction is expected to be completed before 31 December 2020.
"The Transaction was not considered highly probable as at 30 June 2020 and accordingly will be disclosed as a post-balance sheet non-adjusting event in terms of IFRS 5."
"With the proceeds applied to reduce Group debt, Aspen has headroom to support and invest behind core growth territories."
I am stumped as to the negative impact on the share price, but then again I have no financial background to to assist with the finer details.
Posted 10 September 2020 - 12:33 PM
Posted 09 September 2020 - 04:24 PM
I hope that the slight slump today is not an indication of what to expect from the results.
Posted 08 September 2020 - 05:14 PM
Posted 08 September 2020 - 11:45 AM
There goes my theory of it not being a divestment...just when you think you may be learning something. Good news nonetheless, very grateful that the markets have reacted positively.
Lets hope this momentum carries through to the results that are being published tomorrow.
Posted 08 September 2020 - 10:21 AM
Posted 03 September 2020 - 12:44 PM
Anyone have any clue what might be going on with Aspen? Their share prices keeps dropping even with the apparent benefits of COVID.
They also have the below announcement which does not give away any clues, but if I look at the previous cautionary announcements, this one looks like it could be an acquisition on their part, as in the past if they were selling a division they would refer to it as a "divestment."
Aspen is currently engaged in discussions related to a possible transaction in respect of a segment of its
European commercial business.