Chemring (#CHG) – contract award & now “slightly ahead of expectations”
- 2019-11-01 07:17:00
Chemring Group (CHG) has confirmed that at approximately 5pm on Friday there was an incident in a flare manufacturing building at its Countermeasures facility near Salisbury and that, although emergency services attended the scene and the incident was quickly brought under control, “tragically, one employee was fatally injured and another employee was badly injured and is currently receiving treatment in hospital”…
You will note my name is not Bernie Madoff and therefore I have my fair share of share price howlers. I strongly believe such howlers should be discussed and learnt from…sometimes they provide an opportunity to double or triple up on a share and sometimes it is a straight lesson on what not to do by Mr Market.
The last time I wrote about Chemring (CHG) I noted the lack of questions on its conference call and noted that a lack of interest is generally good news for investors. All eyes are on the defense company today though as it punches up an RNS shocker combining a sounds-almost-certain potential delay to an ammunitions contract with a right issue. Quelle surprise the shares have been slammed over 30%!
Conflicts around the world seem to be on the increase, and if anything it looks likely that we can expect more in the coming years. This is of course bad news for most companies operating in those regions, especially some of the African and Middle Eastern ones, with the exception being those companies that are in the defense and aerospace sector. One such company that would be likely to benefit is FTSE-listed Chemring Group (CHG), which released a fairly bullish trading update earlier this week.
I am a strong believer in accountability and that’s why you will often find me referencing previous articles (good or bad) I have written on ShareProphets. Chemring’s (CHG) results stood out to me today as I have written before about the specialty defence company noting approximately a year ago at approximately the same share price that the share was worth holding.









