Hornby shares tumble over 50%

[Graham Walters]

I can't see hornby disappearing completely the name is too well known to disappear, they would be open to a takeover or even yet another merger, when you think of the brands they own the opportunity to buy out the company would be too good to miss for someone.

[Nik96]

Since the New Year pretty much all shares have been affected because of whats happening in China, along with mining stocks prices of oil and commodities all have taken a tumble as well.

So Hornby is not alone!

Except today the FTSE100 went up. Don't be confused by a general downward turn because of china compared to the collapse of a company as we see with Hornby today.

[Graham Walters]

Since the New Year pretty much all shares have been affected because of whats happening in China, along with mining stocks prices of oil and commodities all have taken a tumble as well.

So Hornby is not alone!

Except today the FTSE100 went up. Don't be confused by a general downward turn because of china compared to the collapse of a company as we see with Hornby today.

The FTSE rose on the day .71% and is still way below what it was last Friday, despite todays small rise the trend is still down over the previous 5 days trading. Suggesting are it could level out now that crude prices seem to have stabilised, but if countries continue to buy less oil, as they will during the spring and summer months, the trend could be to further falls.

Some experts are suggesting that eco and renewable fuels are starting to hit oil prices, as is America's reliance on fracking which means they need less automotive fuels from the global markets.

[MalcolmInN]

Just be thankful lads that if it goes pop our only loss is the Belle... What will the Orribly Oversized gang do!!!!

I had not thought of it like that, nice(?) one !

On the other hand - our model railways are built on dreams and we had the dream that Hornby might, with Arnold, the Belle etc be on the brink of doing great things in N,
this has perhaps shattered that wee dream ??  **

My daughter is blaming me for not having bought anything from Hornby ,,
since they discontinued the 3-rail !!

** or maybe they are about to announce a vast new venture into N and the insiders got wind of it and sold, sold , sold ? 

[Nik96]

Since the New Year pretty much all shares have been affected because of whats happening in China, along with mining stocks prices of oil and commodities all have taken a tumble as well.

So Hornby is not alone!

Except today the FTSE100 went up. Don't be confused by a general downward turn because of china compared to the collapse of a company as we see with Hornby today.

The FTSE rose on the day .71% and is still way below what it was last Friday, despite todays small rise the trend is still down over the previous 5 days trading. Suggesting are it could level out now that crude prices seem to have stabilised, but if countries continue to buy less oil, as they will during the spring and summer months, the trend could be to further falls.

Some experts are suggesting that eco and renewable fuels are starting to hit oil prices, as is America's reliance on fracking which means they need less automotive fuels from the global markets.

The market naturally fluctuates up and down dependent on a whole range of things. The point you seem to be missing is Hornby's price of shares has crashed at 60%. The FTSE has not crashed in its overall value anywhere near this value. You must know that one companies share price has little overall effect on the FTSE but the overall FTSE has a greater effect on a companies price.

You say the general trend is downwards over the last five days. You're correct but the percentage change between 4th and 10th of February is a whopping 4.13%. Still nowhere near hornby's crash of 60%.

This appears to be the point that is missed at the moment.

Three companies in the FTSE 100 were also mentioned and have shown you the percentage decrease of each share price from today.
BAT Down 1.18%
J Sainsbury Down 0.91%
BSKYB Down 0.36%

All three of those mentioned companies are down a fraction of what they started. This won't cause much alarm to other traders as they see these percentages everyday.

Hornby Down 60%

Well this companies traders have lost confidence, they have all sold they're investments so the price drops to encourage new investors. Except more investors have become unsure and it has dropped even more and now because it has dropped so much it's a high risk of losing more. Now the basics are call (buy) low and put (sell) high.

Today's biggest mover up was Prudential with a whopping 4.40%
Today's biggest mover down was Antofagasta down 3.04%

And these are the two biggest movers in the FTSE 100, Note Hornby isn't on the FTSE 100 but is traded in London.

So our 0.7% is calculated on all the companies between 4.4% growth and 3.04% decline. SO Hornby's crash (partially caused by a warning on profits put out yesterday) hasn't affected the FTSE100 but has greatly affected it's own share price.

In Conclusion, your "well below" is actually 4% below in the last five days, Hornby is not greatly affected by the price of crude despite most of the models being made of plastic of which crude is a big player. Also the americans will start taking their RV's out as it warms up and that causes a suck in fuel to move them so the price should pull up slightly during the summer. Finally your last point experts suggest eco and renewable fuels are hitting oil. Can you point out this article to me please, are they petrochemical experts or money experts?

[Graham Walters]

Since the New Year pretty much all shares have been affected because of whats happening in China, along with mining stocks prices of oil and commodities all have taken a tumble as well.

So Hornby is not alone!

Except today the FTSE100 went up. Don't be confused by a general downward turn because of china compared to the collapse of a company as we see with Hornby today.

The FTSE rose on the day .71% and is still way below what it was last Friday, despite todays small rise the trend is still down over the previous 5 days trading. Suggesting are it could level out now that crude prices seem to have stabilised, but if countries continue to buy less oil, as they will during the spring and summer months, the trend could be to further falls.

Some experts are suggesting that eco and renewable fuels are starting to hit oil prices, as is America's reliance on fracking which means they need less automotive fuels from the global markets.

The market naturally fluctuates up and down dependent on a whole range of things. The point you seem to be missing is Hornby's price of shares has crashed at 60%. The FTSE has not crashed in its overall value anywhere near this value. You must know that one companies share price has little overall effect on the FTSE but the overall FTSE has a greater effect on a companies price.

You say the general trend is downwards over the last five days. You're correct but the percentage change between 4th and 10th of February is a whopping 4.13%. Still nowhere near hornby's crash of 60%.

This appears to be the point that is missed at the moment.

Three companies in the FTSE 100 were also mentioned and have shown you the percentage decrease of each share price from today.
BAT Down 1.18%
J Sainsbury Down 0.91%
BSKYB Down 0.36%

All three of those mentioned companies are down a fraction of what they started. This won't cause much alarm to other traders as they see these percentages everyday.

Hornby Down 60%

Well this companies traders have lost confidence, they have all sold they're investments so the price drops to encourage new investors. Except more investors have become unsure and it has dropped even more and now because it has dropped so much it's a high risk of losing more. Now the basics are call (buy) low and put (sell) high.

Today's biggest mover up was Prudential with a whopping 4.40%
Today's biggest mover down was Antofagasta down 3.04%

And these are the two biggest movers in the FTSE 100, Note Hornby isn't on the FTSE 100 but is traded in London.

So our 0.7% is calculated on all the companies between 4.4% growth and 3.04% decline. SO Hornby's crash (partially caused by a warning on profits put out yesterday) hasn't affected the FTSE100 but has greatly affected it's own share price.

In Conclusion, your "well below" is actually 4% below in the last five days, Hornby is not greatly affected by the price of crude despite most of the models being made of plastic of which crude is a big player. Also the americans will start taking their RV's out as it warms up and that causes a suck in fuel to move them so the price should pull up slightly during the summer. Finally your last point experts suggest eco and renewable fuels are hitting oil. Can you point out this article to me please, are they petrochemical experts or money experts?

Point taken, but as I stated in a previous post other companies have taken a big hit, Man Utd have suffered a 22% drop, unheard of for that club, albeit on the NYSE. Whats more alarming about that hit is that shareholders outside the Glazer family have no voting rights, so that small amount of share holders must be selling in droves.

Can we suspect that Hornby may be just playing the market, and like other companies issue a  loss warning, then post losses a lot less than expected, and we get a resurgence in investment ?

On the Eco front, I had it reliably pointed out to me by a friend in the states that sales of eco vehicles are hitting pump sales in the states, plus the Americans are getting more automotive quality oils from fracking, so further reducing their reliance on gulf imports, this was in fact reported on the BBC some time ago.

[MalcolmInN]

You say the general trend is downwards over the last five days. You're correct but the percentage change between 4th and 10th of February is a whopping 4.13%. Still nowhere near hornby's crash of 60%.
This appears to be the point that is missed at the moment.

Exactly so !
a point that @MikeDunn and I were trying to make earlier !

But it is all **** in the wind, tomorrow will reveal if I, perhaps in partnership with others, will be able to do anything with it
muwahhhaha 

[MalcolmInN]

more automotive quality oils from fracking, so further reducing their reliance on gulf imports, this was in fact reported on the BBC some time ago.

It is way more simple than that,  not automotive products alone :
Way back in the 70's Sheik Yamani of the House of Saud (sp may have suffered with age !) held us to ransom by restricting exports from (the then, now a rump) OPEC and thus pushing up the price of all oil derived products and services, which only served to push production into other  spheres, North Sea and now Shale and Frack

Now the law of unintended consequences springs Parkison-like into action :
The House of Saud opens the taps to reduce the price of oil to put the American ( and Canadian) new shale and frack out of business, - which are more expensive to extract and process than Saudi oil :
so America does a deal with Iran, to bring them back into the fold of international friends, who promptly add their new un-embargo supplies, without national limit to market, to do down the Saudi sovereign wealth fund which will be bankrupt in ( at present rates) about 5 years

wheels within wheels
with the added advantage that it totally cream-crackers the Russian oil 4casts/economy

[DesertHound]

Graham - I see Man United are lurking at fifth in the league, so any share price drop less than 25% is doing okay surely!   

Not wishing to go off topic, but I feel the club sold its soul when the Glazer deal was done. Wasn't it something like borrow money to buy club, then transfer said borrowing onto club's books? Nice one for the fans that.

I think Hornby's share price drop of 60% can only really be attributed to Hornby, since the wider market didn't move anything like that on the day. Market sentiment most probably didn't help (in that we have nervous sentiment) but I don't think we can pin the reasons for the drop on the wider market.

I too feel more for the employees than the trains.

Cheers (and all Man U comments in jest)

Dan

[Graham Walters]

Graham - I see Man United are lurking at fifth in the league, so any share price drop less than 25% is doing okay surely!   

Not wishing to go off topic, but I feel the club sold its soul when the Glazer deal was done. Wasn't it something like borrow money to buy club, then transfer said borrowing onto club's books? Nice one for the fans that.

I think Hornby's share price drop of 60% can only really be attributed to Hornby, since the wider market didn't move anything like that on the day. Market sentiment most probably didn't help (in that we have nervous sentiment) but I don't think we can pin the reasons for the drop on the wider market.

I too feel re for the employees than the trains.

Cheers (and all Man U comments in jest)

Dan

No offence taken, all you say about United is true, I mentioned them because their shares have been on the rise since being issued, the drop just shows what a results led market the stocks are.

[MikeDunn]

Well, it's 9:20 & the shares have ... dropped more.

Not as bad (let's face it - it can't drop over 50p anymore  ), but it dropped a further 2.25p - call it 7% - since opening.

[Nik96]

Can we suspect that Hornby may be just playing the market, and like other companies issue a  loss warning, then post losses a lot less than expected, and we get a resurgence in investment ?

Not really they have a business plan to save the company and it appears what was planned probably meant a breakeven or profit for this year, that now has become a loss and investors have no faith in those with the power.

On a separate note, the employees probably heard about this and are most probably worried about their jobs, and that is a fair few people to get new jobs in one town. I'm sure something will be done to solve this problem.

[Nik96]

Closing down today another 27.5% down to 23p, Does anybody know what happens if they hit a rock bottom of nil value?

[joe cassidy]

If the price is zero I will buy all the shares 

Best regards,


Joe
P.S. How much debt do they have ?

[Mr Sprue]

With a whopping 181bn wiped off the FTSE so far this year its no wonder stocks are plunging, this week alone has suffered a further loss of 80bn!

Losses such as this along with the global market losses affects every stock.   As for the post that mentions "Today's biggest mover up was Prudential with a whopping 4.40%" Their shares have actually been the the biggest casualty on the 100!

Read this to see why