Going along nicely these shares now. As it turned out the RI was applicable to all shareholders. Got big hopes for Costsin
15 Mar '14
RE: So why the big drop?
The current price seemed quite understandable given the falling stock market generally, dilution, uncertainty and the fact that the share went ex-div on 12th. What I did not understand was the way the share price stuck to 270p like a plateau over the last few days till mid-way through Friday - maybe some major buyer had finished buying? I was waiting for what seemed like an inevitable easing, and was happy to get back in at 262p.
15 Mar '14
So why the big drop?
Market sentiment or a deeper reason? I want in.
12 Mar '14
£150m contract for Crossrail
Yesterday, Costain was awarded a £150m contract for the Crossrail North East Spur from Network Rail, covering the delivery of infrastructure and stations between Stratford in east London and Shenfield in Essex. Costain, in collaboration with Network Rail, is immediately starting with the designing and professional services work to formulate a comprehensive plan for the project. Costain’s work programme includes designing and building of major station improvements at Romford, Ilford and other locations like Forest Gate, Goodmayes, Harold Woo. Costian also plans to carry out upgrade of tracks and overhead electrification equipments at some of the sites. The main works is likely to take place in the period between late 2014 up to 2017. Our view: The latest deal is an extension of Costain’s ongoing relationship with the UK’s railway network company – Network Rail. This deal would increase Costain’s appeal to the passengers in east London and Essex, who would benefit in terms of a range of new trains, better stations and faster journeys. Overall, Crossrail project is worth £14.8bn and is due for completion in 2018. With continually strengthening order book and tapping of further business prospects, Costain holds good promise. Given the late February 2014 sell-off in Costain’s shares, following negative reactions to its £75m share placing, the stock is available at an attractive price. We upgrade the stock rating to a Buy. http://www.proactiveinvestors.co.uk/columns/beaufort-securities/15641/beaufort-securities-breakfast-today-nostra-terra-oil-gas-san-leon-energy-tangiers-petroleum-and-costain-15641.html
11 Mar '14
Google alerts have just let me know this is reiterated to a Buy - target £3. Been working in construction for 20 years and this seems like a company pushing forward. Their deep into LUL and Network Rail.
8 Mar '14
RE: A buy
Buying other companies can add value and you may well be right - COST lacks nothing in quality but does lack size compared to some competitors. However, markets only generally react well if purchases appear rational, well priced and not just geared towards empire building. If any of these flaws is suspected, expect a sudden drop in SP
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