The Investment Column: Laporte
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.AT FIRST glance, Laporte's decision to scrap its interim dividend and distribute the pay-out via redeemable B shares looks a poor deal for shareholders. They will receive a slightly reduced pay-out of 9p and will have to wait longer for their cash even though Laporte will cover the timed value of money with an interest payment. At least the ruse will save the company pounds 25m in tax that can be re-invested in the business.
This made Laporte's half year figures something of a sideshow yesterday. The warm air currents under the company's share price have been provided by takeover speculation following on-off talks with the Swiss group Clariant. Analysts reckon Laporte shares are worth around 600p on fundamentals, compared to yesterday's 749p, down 35p on the day. On full year forecasts of pounds 133m the shares trade on a forward rating of 15. The stock has almost doubled since October and though sentiment has improved towards chemicals recently, there should be more uplift on the trading side..
Whilst the shares are looking overvalued, they may appeal to investors willing to gamble that Laporte is worth more to the next interested party.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments