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Some nice big buys here today !!! Any news pending / rumours etc etc ?
This share is one to watch and that's why I bought a few. Most rental companies recorded very poor results for the first half of 2010 through poor trading conditions as well as very bad weather. The share price values the company at about half of its balance sheet value. Many of their competitors are experiencing good fleet utilisation and improving hire rates right now but Lavendon need to take total control of their sales people and become leaders. Much of their poor performance is down to themselves. Their average fleet age is quite old and to replace this equipment will cost considerably more than it did some 8 or 9 years ago. All manufacturers are raising their prices and will do so as the price of steel and other raw materials grows. Their hire rates and returns need to go up now otherwise all the consolidation of the past 2 years will have been wasted.
down 18% OUCH
Surprised to see no post on this although so much activity after the news this morning. I am quite new to trading so need some advise please. Any experts out there have any opinion as to where the SP is heading from here?
I agree with DTFDAVE, anyone who who knows anything about the powered access industry specifically and the hire industry in general knows that planning your strategy (which lavendon have) around winning large amounts of work on the Olympics are just asking to become busy fools. According to someone in the know, they have even undercut themselves to put equipment on this project.
LAVENDON, will be one of many access platform providers for the OLYMPICs construction sites. EPL was a small player in the market and there are all of the big competitors circling the Olympics and already dropping rates on the site to gain work while the rest of London/SE England is slow. This will ensure that whoever gets a lot of business on the Olympic site will be making little or no money as rates already cut to the bone and only gonna drop from here on in. Some of the non access specific plant companies are based on site and taking big costs to be on site and needing to maximise every opportunity and will only effect hire & transport rates in a negative way. Good luck to all on the site !!
Hi there,and happy new year to all of you....:)) Lavendom will be the main service provider at the access platorm business for the olimpic construction and after taking over EPL is much less competitors at this sector.So keep faith ,it will be a good return ........
Some massive buys today. Watch these folks!
Worth watching. These have fallen a lot and still have good earnings and are reducing debt. A recovery stock.
Plummeting over the past 3 months...hmmm.
Havent a clue why...first I've seen these posted.....hmmmmmmmmmmmmmm........lets check the graphs and see how they have performned over the past 5 years.
These could end up below the 70p offer price before too long.
Just done some quick maths and it would appear that unless they can get this price up before April next year they will have to pay out some 4.6 million as part of the platform company deal. ( 885,000 shares made up to GBP 6.00 each )
They say the market is down, but the competitors are rubbing the hands with glee. In yesterdays announcement they said they would concentrate on cash generation and debt reduction. They really should be concentrating on improving customer service, as no one wants to use them. They also said in yesterdays announcement that the East London Olympic site will start to pick up at some time. You've only got to visit the site to see large customers are using other companies. They don't like Lavendons management. The only time the company were succeeding was in 2007, when the UK MD was pushing customer service. Once he left it went downhill for the UK. The management are now completely out of touch with customers. At the moment utlisation is up as they are pushing them out at giveaway prices. The CEO must go soon. If they dilute the share price any more, they might need to give the shareholders some some vimto in their glass.
Long term I think these will return to their previous trading range £4 to £6, but not quickly. Could take a couple of years. I've followed this company for the last 10 years and they definitely go through cycles of acquisition/expansion then a few years of consolidation before starting the acquisitions again. The recent acquisition of EPL for cash is very positive. That they were bought for cash shows that there is cash available to make purchases and demonstrates the business is cash generative, buying £6.6m of equipment for £1.3m cash is a real bargain and helps add more vehicles to the existing fleet at a very attrative price keeping capital expenditure down this year without sacrificing fleet expansion/replacement. Adding more customers through the acquisition is also positive. I think this year the goal for LVD has to be to generate cash, the Olympic contracts will be a big plus over the next few years. I'm not worried about LVD and would hope to see a share price over 220p by the end of the year, possibly sooner.
Been watching this one for a while, where do you think they will go long term. what do you know about them ? Kevin Appleton and co seem pretty relaxed about this year, but I am unsure what they can do next to keep the share price improving ..... Your thoughts would be greatly appreciated.
Gutted. I sold last bloody Friday
Shame you sold. I'm still holding and expect these to continue to rise. Be nice if every day was like today but they won't be. Slow and steady will be fine.
don't know if you're still here but i thought I'd tell you why this is going up. Well, obviously it's because I finally got fed up waiting and I sold last week at 137p so expect a continued rise into the stratosphere with this one now. Still, can't complain really. With the money I bought EMED and I've already recovered the loss I made on this. GL if you're still here
I agree, I've been looking at this for a while - I should have got in before this morning rise. ATB
definitely buying some for the long term!!!
http://www.hemscott.com/news/rna/detached.do?id=77515575082329
Lavendon released their Q1 Interim Management Statement this morning which showed that whilst revenues increased by 8% over same quarter last year there were local currency declines in all countries except the UK. They have renegotiated their banking covenants increasing the margin payable by 125 basis points. They have also revised down their forecast for pre-tax profit for 2009. I think this is all good and not bad, more room within their banking covenants, revenues up (albeit under pressure) and the Olympics contract won. I think these were priced down too aggressively this morning and have already bounced back 33% of the initial drop. Will try and find a link to the announcement as I received it on email.
Any reason for the sharp fall in LVD today? Cant find anything as of yet
You might find the following a useful read, especially page 27 - http://miranda.hemscott.com/static/cms/3/1/7/7/binary/9226450301/833258.pdf. In the absence of any published contract values I've done some rough calculations based on what we do know. Document is dated 4th March 2009 so if we take the the timeline on page 27 as weeks from 1st Jan they fit. Suggests up to week 10 revenues from Olympics build was growing at an average of £2,700 a week. If this continued on a straight line through till end of 2011 we'd be looking at total revenues of £31.8million to that point. Given this type of project seems to get finished just in time we should see equipment on hire through to the date of the olympic start 27th July 2012. Straight line growth in revenue to this point would be total of £45.5million. Of course the growth will not be straight line, it will have a point whereby all equipment needed is already on long term hire so the revenues will flatten. Considering total rental revenues (not just powered access) are estimated at £150million and Lavendon are one of many companies having a slice of that total I don't think they'll get 1/3rd, so perhaps somewhere around 1/6th might be realistic, perhaps £20million. Anyone any thoughts?