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Spread: -158.00 Spread as %: -8.15%
That's a biggie and it's not the only one today.
United Rentals dropped 3.73% tonight as their results came in lower than analysts expectations.
I put it down to rising interest rates in the US. Any stocks with large amounts of debt look to be falling along with a strengthening pound even if they are doing well financially. The market probably assumes that their profits will be effected.
"Can anyone explain why the price has fallen so much and so consistently recently? I am puzzled."
No idea; nor why it's gone up a bit.
AHT tends to follow its peers in the USA. Over the past week AHT is down about 16%, URI 18%, HEES(which is rumoured to be in URI's sights) down13%. Various reasons : IMF cutting global growth outlook affects cyclicals and Trumps tax wars don't help.. Just as well to check how these shares have performed before committing to any dealing.
Can anyone explain why the price has fallen so much and so consistently recently? I am puzzled.
Just seized that falling knife again..
When a company has excess cash flow (over and above capital maintenance and growth needs), they can either pay it back to owners (ie SHs) in higher dividends or use it to buy back shares which are then cancelled (so increasing EPS). I would much prefer them to do this than simply reinvest the money wherever they can, potentially diluting returns. Share buybacks can be more tax efficient, and unlike dividends, don't generally act as an 'anchoring point' - ie stopping Share BB programs has little effect, whereas cutting divvys does! From a personal perspective, my marginal tax rate is much higher on income than on capital gains, so I much prefer the BB option!
They're not necessarily bad but share buy backs are an alternative to spending the money on growth and/or dividends. Also they can be used to inflate the share price giving a false impression. That said I believe AHT's buyback is a sign of management confidence rather than otherwise.
AAS - why don't you like share buybacks?
Good to hear all ur positive reactions. Can't understand why people sell at this low point. You have to trust the companies your'e invested in (unless of course you own patisserie valerie). Would add myself but funds not available.
Got a few more in this morning after reading up as much as I could on this co. Don't like share buy backs much but it seems to be a trend in the USA and AHT announced theirs in 12/2017. I guess Trump will see Florida gets the help it needs if not Puerto Rico.
In view of the increase in destructive hurricanes in the U.S, I can't think of a better business to invest in than the rental of heavy industrial equipment.
I see this correction as a buying opportunity when the market steadies
Getting to be steal. Might not be able to resist further purchase tomorrow.
Can't see any issues just appeared. It'll go on down just because I just bought back in.
Bit of a freefall here. Should we be worried.
Sure this will be a safe place to hold in the next 6 months, good place to weather the coming BREXIT storm
Hi Matt, agree, excellent results again and the buyback plus weak sterling really helping eps growth.
Have pencilled in 182p eps for year end based on this mornings numbers, so an undemanding PE of 15 gives at least £27. As you say £30 wouldn’t be too outlandish.
Regards
DD
ps not posting much on here (apart from the ENQ board, mainly use the other well known BB site).
Echoed by Jeffries new rating of 2750 :)
Yep - another cracking set of figures. EPS up nearly 50%. If they keep going at this rate they'll hit consensus earnings for April '20 in April '19 - 180p. On that basis, the stock is on 13x this year which doesn't seem to expensive. £30 target over the next 12 months doesn't seem ridiculous now, providing we don't see a loss of momentum. Sterling will be interesting as it's probably either 20% overvalued, or 20% undervalued depending on final BREXIT deal (or lack thereof)! - This will have an impact on AHT earnings when converted to £.
Still going strong
Revenue up 22%
According to RNS buying back 70000 shares/day
Decided to take profits at 2422. Might come back if it goes below 2250 depending on what else grabs my attention.
It may seem a lot but in reality that's peanuts!
Back in December, directors of Ashtead sold over 1.25m shares.