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To deliver a big MW project firstly you have to secure one which is not on the horizon , secondly you then require the skilled engineers , ( not just guys who think they are engineers and came from a sugar factory ) to make that project happen to the standard that is required and expected.The core success of AGK in the past was its employees, orange blood , how times have changed
More job cuts this week. Not just from support staff but from the core functionality. (i.e. engineering and project delivery) Sustainability for the project business is now a big question. Rumors are that there will be more swinging cuts in Q1 next year. They are now in the situation that even if win even a moderate size contract it will be hard for them to deliver. Getting ready for a sell out or takeover? Chris Weston is a clown, they have sacked all of the top management team and now they have no knowledge of the temp power business. Rupert Soames saw this coming....saturated market and a sales force with it's head in the cloud.
Berenberg eyes shareholder returns from Aggreko http://www.proactiveinvestors.co.uk/columns/broker-spotlight/23580/berenberg-eyes-shareholder-returns-from-aggreko-23580.html
Aggreko higher on full year profit forecast http://www.theguardian.com/business/marketforceslive/2015/nov/09/aggreko-higher-on-full-year-profit-forecast
They haven't learnt from their previous mistakes. They had good years with regular massive bonuses but didn't plan for when the market became saturated. Ok shedding 600 jobs will help the short term P/L and balance sheet BUT they've taken away the capability to deliver big projects....how can that take them back to growth. Too reactive and not proactive and very top heavy with management. All Weston has done (apart from receiving a huge golden hello) has effectively broken the company.
Lets face it the management need to change the way they manage the business from the way they managed the business into its current precarious predicament . Making people redundant is only a short term fix and as usual always starts at the bottom - why not be brave and start at the top of the tree and take out the long term waste!
So, they've appointed a cement man to save the fortunes of a power rental business? Do they never learn?? Tipped to nose dive to 650!
This is only the start of the redundancies, it will be the first wave followed by many more
Watch out for news of redundancies tommorrow - lets hope they start at the top with the Professional Tourists who plague this company ,contribute nothing and take out everything .
Under a tenner is coming
See III for some not so complimentary comments
TARGET 1410 Trend of AGGREKO PLC is showing strength for selling. If it breaks the support level then one can initiate the selling position in the stock. Support level of 1445 with the stop loss of 1475. INDICATORS:- RSI is trading near to 29.95 level with negative bias, in upcoming session downside movement is expected. MACD and Signal line is sustaining below the zero level line. Skype tayal.smith1
Aggreko still has to answer growing problem: Aggreko’s corporate split and management reshuffle does little to solve the pressing issue of sluggish growth, as the temporary power company dropped out of the FTSE 100. The faster-growing and more profitable part of Aggreko’s operations has been providing power to developing countries. In emerging markets, populations are growing faster than the infrastructure can handle, and this demand on the electricity grid offers opportunities for Aggreko. Aggreko is fundamentally an asset hire business. It makes money from owning a fleet of large diesel generators and charging a fee when clients use them. These generators are most profitable when they are hired for long periods of time, as Aggreko incurs costs when it transports them to its clients. The shares reached a peak of £25.21 in September 2012, after the steady growth in Aggreko’s international business since 2003 led investors to believe this would continue in the future. Questor still doesn’t think that represents good value because Mr Weston hasn’t solved the problem of rejuvenating growth in the power solutions business. Without that growth it is difficult to justify a rating on the shares of 20 times forecast earnings. Aggreko’s first-half results on August 6 will give Mr Weston a better platform to outline his plans. But the forecast dividend of 28p, which offers a prospective yield on the shares of 1.7%, doesn’t look worth hanging around for. Aggreko at £14.88 +22p. Questor Says “Sell”.
Massive shares being sold in the dark pools today... doesn't show up on trade volume as its off exchange but a lot more than todays volume gone through outside the mkt
http://www.investegate.co.uk/aggreko-plc--agk-/rns/contract-win/201501070700144746B/
The recent free fall of this SP is quite alarming but not unexpected - a lack of natural disasters,flatline order intake and lack of leadership could be the reason for the dramatic slide . Lets hope the new CEO puts a strategy together that lifts the gloom - maybe starting by cutting out the high maintenance deadwood and proffer a new vision .
The results are ok but nothing special. The dividend is very well covered and the departure of Soames and Cockburn is an opportunity for the company to make a re-assessment and take necessary actions. I wish we had a heavy weight from outside been brought in as things need a fresh pair of eyes.
It doesn’t look as though this will raise any capital for the company, rather a tax-efficient way of returning capital to shareholders.
I dont share your opinion in that the results announced today were good - i would say they were same old same old with the same old comments regarding the overall picture for the year.The loss of the charismatic Soames closely followed by Cockburn leaves the new man a tough act in a stagnant environment where Aggreko could go from an outstanding performer to a very ordinary business riddled with fat cats .Maybe the new man will cut the cloth to suit - lets hope he does !
I have been in Aggreko from day 1 when Christian Salvesen gave us the shares free. They themselves having bought it for £8m in the 1980s. It is now worth £4.5bn. One of the great success stories of the UK market. The brokers are all over the place. UBS have a price target of £22.50, whereas HSBC have £16.50. Espírito Santo (bless them) have £17. The results today were good. And the scope is endless - listening to a programme in the night about Liberia, where only 2 per cent of the population have any electricity. Too many political risks, but there are vast areas where "temporary" power is desperately needed. Having bought assets from GEC some years ago I would not be surprised if someone like them had a pop at Aggrekp. Doing something that is desperately needed and with a big market share. If not, £18 today is almost £4 above the year's low. Having sold some at £23 I am not selling any more for now.
Share price has been static for ages now and i can only see it going down in the future ...this company has seen the glory days but unfortunatly they are very much in the past now ..
Well it was announced 2 years ago that they had won the tender - small fry after the Olympics ,rumour has it £5m but every little helps depends on profit .
Travelling throughout Glasgow over the past few days and every venue powered by Aggreko
Nice timing. Broker uprate today to £20. GL
Not so sure i share your optimism - APR dropped from 850 to 600 - AGK flat lining and still no big project news on the horizon,new CEO appointment went down like a fart in a diving suit so im not confident of the £18 you predict.I