Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Be nice to reach the all time high today... wouldn't it ?
I am optimistic. It's been reported that in the hearts and minds stakes, infrastructure spending is the low hanging fruit for Biden. Trump's promises were largely just hot air with no follow through. Other than the infamous wall for which Mexico was to pay!
AHT took a good increase in 2016 on the promised news from Mr Trump about spending on infrastructure and construction. Will Biden do the same? As the second largest rental company in the US, this would benefit AHT's business over there greatly. As would (sadly) any disaster recovery programmes, post-hurricane/flood etc as the business over there are experts in deploying the right equipment to the right areas.
AHT's employees are fairly active on social media, particularly LinkedIn and it gives an insight in to performance and desired direction.
In the UK AHT's business seems to be heavily involved in the COVID19 testing infrastructure and this continues to allow them to perform well - I am not sure there is an end in sight in terms of testing so from a financial perspective this is good news. While all their competitors were closing branches, furloughing employees, AHT's UK business were mopping up all the work and I think we will see that this has stood them in good stead when the next set of figures are produced. Having the testing infrastructure work in place and boxed off while the economy get's going again and adding that work on top surely means this should be a bumper year for AHT.
I note from their report and their employees LinkedIn they have been spending Capex on new equipment which when the dust settles will set them apart from their competitors who have been forced to take a more conservative approach to spending. AHT's businesses will be able to win new work as their equipment innovation will be ahead of the competitors and their equipment age profile will be far more favourable - an increasingly key point on large projects tenders.
I'd say although the price may be a bit heavy for some to get involved it would still be worth taking what you can, whenever you can. DYOR though!
I'm so tempted to buy more but it's now at an all time high of course.....but why wouldn't I buy? Can't think of a reason not to. If there's a dip tomorrow I'm in.
Looks like his infrastructure spend will weigh heavily with companies like Ashtead. Been in since £13 and averaged down at £11.50 and up at £23 but not sold any. £38 on the way.
Yep, and going higher as I write after what could have been a bit of profit taking this morning. ATB to all for the new year.
And now £36......and rising !
Told ya. :-(
Marching onwards and upwards.
Oh no, that's torn it .
I used to have these years ago at 500 to 600 and did ok. Only back in recently, DOH, again.
A gem of a company , just keeps on gaining. Just imagine when COVID improves...WooHoo. hopefully haven't jinxed it now, DOH ! LOL
up 5% .looking like a good day wit Today rns ,also watching syme difficult to buy shares there again Today ,bought some this morning ,
looking like a nice strong day here Today at aht ,
good result ,hoping might see a stron week here at aht for share price
You have to hand it to them - very impressive, particularly free cash flow! Biden's infrastructure plan probably helpful in the coming years as well. I'm glad I kept 3/4 of my holding although it really does look a bit pricey at these levels!
MattTheBrave
I first bought into AHT at 333p and have added to my position over the years, with a few shorter term trades along the way. My holding is now over 40% of my ISA (given I've had a few other companies in my ISA hit hard by Covid) and I agree that there appears to be a growing disconnect between the share price and results, so I've been selling down my position when Mr Market serves up a good price on the day (e.g. today, when I sold a small %).
I'm going to retain a fair bit of my holding as we could see £30 or more given the broker forecasts and momentum, but I'm seeing more risk at the moment. The share price could well take a hit near or after the US election so I've got that on my radar - the business may not change it's performance....I'm more concerned with investors taking a risk off approach for a while until the dust settles, and thus the recent momentum could reverse for a while.
I agree that the dividend does mitigate that risk a little, with relatively few companies paying a solid and rising dividend, but even now we are possibly getting to the point where the s/p is at the point when the yield starts to become less attractive.
FCF of £1bn for full year - wow!
and AHT SP is back to where it was before the crash.
Always like to see directors keep their share options. Shows confidence.
Ok, let's agree to differ! Can't see this moving back to your "prediction" though. I'm not reducing. Nice to have a share that pays increasing dividends.
I disagree - you don't have to invest in any share or indeed the stock market as a whole if you think it represents poor value relative to the fundamentals. If the environment is now worse for equities and this is not reflected in prices, there's plenty of other places you can go to preserve value, and reinvest at better levels.
I dont think you get this. Back in December there were other places to invest. The landscape has changed. Yes, the revenue this year will most likely be hit. But lots of other places to invest have been hit harder. Its all about relativity in the environment that you're in.
rylidan - So you are saying if I'd told you in December (so pre any covid worries at all) that AHT earnings over the next quarter were going to halve you would have doubled your position!!!?? So you were thinking back in December that the market was discounting something worse than that!!! How can you expect people to take you seriously with a clearly ridiculous assertion like that!
I see two brokers have raised their targets here. We could easily be trading over £30 by end 2020
I would double my not inconsiderable holding at your price! You have to compare value with the rest of the market AND other investment options. Profit only halved in the quarter, and I expect Q1 to show an improvement on that, and back to normal by Q2. Is a discount really likely? Personally I think not. It's only a hold from me and not a buy because of my holding here already. I'm now close to starting to add more.
So if I'd told you in December (when the stock price was £23) that AHT Q4 earnings were going to halve, would you have sold? I'm going to say yes. Now the price is £27, but you think it's a hold? It's on 15x last years' earnings, and I wouldn't expect a lot of growth this year given how the first quarter or two might pan out.
Now, don't get me wrong, I'm not selling my entire holding here, but did just let a quarter of it go at 27.70. I'll buy it back if we go back to the low £20s.
It all depends on your belief in the resilience of the business. I think Q1 this year may not fully recover to last year, but the rest of the year we'll see record growth driven by companies playing catch up. The share price has basically stood still for at least 4 months, surely that's enough? We have still made a profit in the last quarter, and the company has grown.
Try comparing the dividend policy here with the vast majority of FTSE 100 companies. Make your own mind up! I've decided my strategy.