New HYP candidate?

[teecee90]

Anyone considered Synthomer (SYNT) as a potential HYP candidate? Not FTSE 100 but has a market cap of £1632m (FTSE 250), a forecast yield of 5% and a decent track record of dividend growth (if you treat 2019 as Covid exceptional).

Any views/holders hereabouts?

Moderator Message:
Spelling of company name corrected. -- MDW1954

[Ricksure]

Share price in free fall for the last six months and nearly 25% less than it was five years ago, could be at the bottom now however is it worth the risk for a forecast yield


(Sharecast News 06/12/2021) - Synthomer tumbled on Monday after Morgan Stanley downgraded the shares to 'underweight' from 'overweight' and slashed the price target to 400p from 568p.
The bank cited a sharp deterioration in the supply outlook and associated risk of faster-than-expected normalisation in earnings.

"We believe this, combined with volume risks, a management transition and rising leverage, leaves risks skewed to the downside," it said.

[idpickering]

Anyone considered Synthomer (SYNT) as a potential HYP candidate? Not FTSE 100 but has a market cap of £1632m (FTSE 250), a forecast yield of 5% and a decent track record of dividend growth (if you treat 2019 as Covid exceptional).

Any views/holders hereabouts?

To be honest, SYNT are to much of a minnow for my taste. Personally, I don't see the need to fish in the lower market cap waters, when there are higher yields on offer from the larger fish out there, but each to their own. Having said that, I admit to holding LXI which is only £1Bn in market cap size. All my other holdings are a lot bigger though.

To give us more of an idea of where you're coming from even considering this company at all, why don't you share the rest of your HYP with us?

Ian.

[gnawsome]

Anyone considered Synthomer (SYNT) as a potential HYP candidate? Not FTSE 100 but has a market cap of £1632m (FTSE 250), a forecast yield of 5% and a decent track record of dividend growth (if you treat 2019 as Covid exceptional).

Any views/holders hereabouts?

I've held and added since the days of ARROW CHEMICALS - thro REABROOK Hldgs - YULE CATTO to SYNT and freely admit to being none the wiser. I don't know why it went over a fiver and can see that European involvement plus currency plus Ukraine would all have influence but it all comes down to how the movers and shakers can interpret and act on 'general opinion' of value.

[teecee90]

I first became aware of SYNT a few years ago when I was on Jury service with their Finance Director....but the yield was too low back then.

More recently they popped up in an article on Fool.uk today:

https://www.fool.co.uk/2022/02/09/3-secret-inflation-busting-dividend-stocks-to-buy-for-passive-income/

I'm struggling to post my HYP as the "Generate Lemon Fool Table" button in HYPTUS doesn't seem to be working.

[tjh290633]

I held Yule Catto for a while as a replacement for ICI. Bought in 2008 at 153p and sold in 2010 at 240p after 3 passed dividends and a reinstatement at 2p, having had a yield of 6.34% when bought. I have kept in touch with Synthomer as it now is, in my watchlist and must update it regarding dividends.

I would have it back if it fits the bill. No worse than holding Marstons.

TJH

[Wasron]

This article appeared today and positively mentions Synthomer

https://www.sharesmagazine.co.uk/article/why-now-is-a-great-time-to-look-at-ultra-cheap-shares

I don’t hold but i’ll Certainly add them to my watchlist

Wasron

[Alaric]

Share price in free fall for the last six months d.

Presumably that helps explain why they have a high yield.