The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Subsequent to a string of profit warnings and the new Group CEO taking reign, Mr Dew left Balfour early 2015 alongside a large number of other Balfour executives.
Mr Dew wasn’t the group CFO at Balfour, but a divisional FD I think.
Cringsing, and where did Kier get their outgoing FD from........
BlackRocketh, Squarepoint Oportuniteth and Marshall Wallaceth shorts reducing.
Of course it mattereth - it may not be the soleth factor, but an orderbook tenneth times as biggeth is clearly preferable all elseth being equal!
Orderbook size doesn’t matter, but the quality does !!
When Connaught went bankrupt in 2012, they had a £2.6bn orderbook. Most of the contracts being with local government businesses. The company pleaded for an extra £50m in help from banks, which was small change for a 30.000 staff plc. The banks who was already heavily invested did their due diligence, and said no and the company folded. Connaught’s auditors were fined for poor quality auditing some 7 years later !!
http://www.facilitatemagazine.com/news/business-news/sgp-wins-with-ms/connaught-ceo-mark-tincknell-stands-down/
Metamorphosis84 / Auson
Agreed. At 250p this was logical asymmetric risk/reward scenario for shorts. A short placed now is late and just non sensical. Mathematically you would have better odds on a roulette table. The funds hold many short positions in many companies and so long as a few of those pay off, they can offset the losing shorts at a profit, but they must hold on to all of them to conclusion or the model fails. Currently, there is more government construction work to be done than there are firms who can take it on. Kier is safe. It will take a bit of time to fully right its self but a large, sudden spike North is highly probable. Following a KL sale, the shorts will start to quickly unwind in a practiced fashion. Anyone left here with a short position when that happens is going to be buying our stock back at an eye-watering premium. The memory of Carllion is exactly what is going to cause these people to lose their money here. its human nature. People expect what they have seen before to happen again. We should always observe history of course, but that means REALLY go back over longer time periods not just the last, most recent firms to go bust. In a situation like this, one must invest with their calculator, not their instinct. As a buy, this offers tremendous long term value with a limited downside if structured correctly. As a short, this offers more risk than potential reward at this sp. All IMHO DYOR
Debt arises from badly performing contracts. Kier is where Balfour was in 2012-2015 where profit warnings came fast one after the other. It took a new management team and the sale of numerous underperforming assets to turn the tide. As for Kier, selling a well-performing asset as Kier Living seem a bit desperate, but maybe necessary. The less good pieces left, the harder to turn the corner.
Who decides that the debt levels are too high? That is the question you should be asking yourself.
If you're happy to lend my mate £2 million then why is it okay for him to have £3 million in debt and yet you tell me that my debt limit is £1 million. Everywhere I go what I say makes more sense to the majority of people than what my mate says. Why are you happy to lend him another £2 million but not myself?
Metamorphosis84,
I think everyone here knows the debt levels are 'too high' although that is in the context of the Future Proofing Kier program and interest rates are set to remain very low. They can't exactly say the debts fine everythings fine but we need to sell Kier living and make twelve hundred redundancies. There is a good £400+m of debt facility headroom. If your short here now you are taking a massive risk !
"sloweth"? Is that even a wordeth?!
The quotes are literally provided within the context of the RNS released to the market!
They couldn't be any more IN context!
Are you sloweth of learning or something Piles?
"They are direct quotes from Kier RNS's, released by the board."
Aye - but you've reproduceth them completely devoideth of context!
Whocares,
It not me being negative dear fellow.
They are direct quotes from Kier RNS's, released by the board.
Oh, the old ‘fact or fiction’ dilemma. Anyone looking at the trades can see the Kier share trade is dominated by day trade opportunists. As ‘facts’ from Kier (and most companies) are few and far between, day-trading happens on subtle differences in the perceived narrative, which has a life on its own. Nothing is more buoyant than expectations founded in hopes and fears. Nothing wrong with hope, but never forget, it is just that. Hope !
YAWN........................... OH Look who's back peddling his negativity against Kier again! Best advice Bunsen, IGNORE anything Meta says!
Have a good bank holiday
Bunsen, as this board is quite dominated by day traders (nothing wrong with that btw),rather than taking the opinions of those here on Kier v Costain prospects, try reading recent RNS's and form you own conclusions.
Personally, i would cut through the nonsense that the BODs give you with soundbites, so thats "Future Proofing Kier" and in Costain's case "Leading Edge Strategy". They are as meaningless as Interserves "Fit for Growth"
Go straight past all that ****. Instead go to the bits that for Kier say
""the Group today has debt levels that are too high."
And for Costain:
"The Group continues to have a robust net cash"
Then look for other nuggets like Kier
"The Board is suspending dividend payments for FY2019 and FY2020."
And Costain
"the Board has declared an interim dividend of 3.8 pence per share "
Bunsen, there is so much information out there that the BODs have been required to LEGALLY INFORM THE MARKET. Read it. Quite literally do your own research and I guarantee you will he happier in your investment decisions.
What’s everyone’s take on costain? I’ve got Kier and costain. Costain seems to be very quiet whilst always lots of activity where kier SP is concerned