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wish I could of stayed in here when I first saw the spin off opportunity back in Nov 21 I got it to 1.3 Bill GBP as a comparison against WSP if you go back and look at the second post by me on this thread
GLA especially pokerchips if he's still in
I needed funds elsewhere unfortunately
OK, maybe you you choose a different word for it but 160million and the benefit of maintaining the contract is positive sentiment, I'm sure if the headline was "shell change to petrofac contract" that would have an additional negative effect on the WG share.
Agreed now isn't the main interest for the company but it additional to this it keeps 200 people on the books who can't perhaps move into the more "fit for future" ideas?
Either way I'm sure we all agree it is better to have won the contract renewal then to have not!
Dontknow9
I worked for them for 40 years in management position all over the world until i retired a year ago. I know the senior management team quite well. Oil and Gas revenue is very good basic work I'll give you that but its a real volume business. you need twice as much of it as yoy do other business to deliver the same return to the bottom line. I think you will find O&G is less than 50% of their business now and has been reducing over the last 5 years - that was part of the thinking behind the AFW acquisition - buy it, clean it up, sell the nuclear and keep the civil/infrastructure/consulting piece.
Im not saying its not good to win £160m of O&G business I,m just saying "fantastic" it is not especially when some of it is really only keeping some existing business
No, the oil and gas sector remains the foundation of Wood, it has been for 40years (previously fishing vessels)
I understand it wants to move some of it's expertise into the more "green" sectors but we are not there yet on a whole due to current and short term requirement for oil & gas.
Wood are not trying to get away from Oil & Gas, they just understand that they can't have all their eggs in one basket with all this pie in the sky "green" chat that is this year's fad..
I guess Dontknow9 meant winning traditional business still will allow time to diversify which is the exactly WG. is doing. Any margin of business is good at the moment. 160 million will keep 200 people fully employed for a couple of years , I understand. Many recent news announcements indicate deals to be done over the next few years. No doubt WG will turn a corner to better times. Plenty buys at the moment.
Dontknow9
Good news but hardly "fantastic". One is the extension odf an existing contract. While £160m of revenue is welcome its in the low margin business stream and will not produce double digit margins.
As for being a solid foundation for diversification I dont understand that comment. Its in traditional business stream which is what Wood are trying to diversify out of.
Has to be fantastic news, bread and butter for Wood, solid foundations for diversifying into other sectors..
When the share is getting punished , it will present opportunities for these brokers to state something easy to make a quick buck. AS the company has been winning deals every so often, it will turn the corner with plenty revenues, then all these shorters will be punished. One thing is clear WG. will not go bankrupt as it is making a good transition. Patience in this one will pay off
Pokerchips
I understand but these sort or announcements dont help in any way.
It looks like all yesterdays gains (and more) are going to disappear again. Back to the volatility associated with the stock.
Aucuba,
I think it is best to try and get a consensus view than taking the view of one analyst in particular
Same with COVID ..I don't tend to listen to just Professor Ferguson who would prefer if we were all locked up for months
https://www.woodplc.com/investors/analyst-consensus-and-coverage
oh dear!!!
"JEFFERIES CUTS JOHN WOOD PRICE TARGET TO 130 (150) PENCE - 'UNDERPERFORM'
and another .....
https://www.woodplc.com/news/latest-press-releases/2021/wood-to-drive-refinery-efficiency-on-ultra-clean-fuel-project
Another contract win
https://www.woodplc.com/news/latest-press-releases/2021/Wood-awarded-Front-End-Engineering-for-Safaniyah-and-Manifa-plant-expansions
and ...as if like a merry dance ...the longs have their turn again ...
wow they really spanked it , this afternoon ....Even I took a second bite just before close
Lower volumes these last 2 days ...good time to sell down ..on a Friday afternoon when interest has gone home for the weekend
Doubled my holding here. Now the largest holding by far out of six I possess.
Like you I could not resist at 185
couldn't resist a nibble at 185!!
I am back in at 189p .... just take it as it comes ....
Another top up had to buy in lots of 500 shares to get confirmed quotes
Can't wait Aucuba MorningStar fair value 370 today perfectly fits my wsp comparison value GL waiting hope it works for you I'll just top up some more
2phevs
Should have waited - its going they are going to get cheaper!
I'm sure WG could easily raise £1-£1.5 bill just from spin off BIM consulting all the other business must be worth another Billion so just doubled up @193.41
I went too early @ 195 first thing and gone again @ 190 will have another go later.
Price reaction crazy imo happy to build nice position on the way down value will be unlocked here and throw in a take out potential as well which I think is a very real possibility...
Topped up too chaser @190