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http://www.investegate.co.uk/Article.aspx?id=200910011709191031A
Builders’ supplies specialist Wolseley racked up losses of more than £750m last year after a raft of one-off charges and remains cautious on the outlook for the current year. Pre-tax losses came in at £766m in the year to July, against a profit of £399m, as the company took write-downs of £595m and restructuring costs of a further £464m. Profit before tax, exceptional items and amortisation and impairment of acquired intangibles reduced by 54% to £293m (2008: £631m), slightly above market forecasts.
This has a great Dividend. What do others think?
Building supplies group Wolseley has confirmed that trading conditions for the 11 months to June 30 continued at the depressed levels outlined in its May update, adding that it conditions will continue to deteriorate until the end of 2009.
'“While management change is not a major surprise, an external replacement will probably be seen as better news as it should mean that no stone is left unturned, if indeed it hasn’t already been turned!” suggests broker Panmure Gordon, which nevertheless remains a seller of the stock.'
"Wolseley is the best performer as chief executive Chip Hornsby has stepped down with immediate effect to let Ian Meakins take the helm at the building supplies group. Hornsby, who leaves after 27 years at the company, has led the group since August 2006."
Yes I did read in a book that the brokers shouldn't be taken too much notice of, however Friday morning I thought I would try a few broker recommendations anyway since I like to fall flat on my face with empty pockets before I actually learn something ;-) I can't possibly do worse than I just did on MEC - which strangely enough is something else my book warned me about - never invest in a share who's every tiny movement is constantly discussed in triplicate on a forum
The stock was 'unborrowable' so I couldn't put it on. Bloody good job really! Brokers downgrading it and trading warnings so it could still be good for a short at some point...
It dropped below 1000...How's the short going?!
Can someone explain to me what the crack is with WOS. When it went up 1000% i was under the impression they put the price up ten times but they divided everone shares by 10.. Since then its gone down 50%.so confusing..
In a gloomy interim management statement for the nine months to 30th April 2009, Wolseley said the difficult economic climate has resulted in falling sales in the majority of its markets. Quelle surprise. The building materials distributor said pre-tax profits for the period were 88% lower than the corresponding period in 2008 as sales, on a constant currency basis, fell by 15%. The company said cost cutting measures during the period would result in a charge of 336 million pounds to the accounts. Wolseley said it expects trading conditions to continue to deteriorate in the short term and to remain challenging until early 2010. Net debt at 30 April 2009 was 1.53 billion pounds in comparison to 2.87 billion pounds at the same time in 2008. Commenting on the results, broker Seymour Pierce said: “For FY2010, despite the fact that losses at stock will be curtailed, we reduce from £375m to £355m. EPS reduces from 87.3p to 77.2p. On our new EPS numbers the shares are on a PE for FY2009 of 14.9x, falling to 15.9x in FY2010. This looks generous given the uncertainty, but with the funding issues now resolved, we retain our HOLD stance with a target price of 1100p.” Shares in the firm slumped 223p to 1,005p on the news.
Looks good if it drops below 1000 to me
I sold immediately this morning taking a loss and watched all day as it slipped away waiting for the recovery.I am not convinced this is it yet.
...but don't jump in too soon!
Don't hold shares but keep an eye on what's happening with this company as it's one of our customers. Is it normal for a very large trade (over £3mn) to get booked at 4:35?
Surely people should be buying into this at the moment ? Are the shares not basically 0.90p today???? I dont get this at all currently
To be fair you have done alright. Though I am half expecting that this may manage a bit more.
Well I just sold at £22 profit as had crying baby and couldn't concentrate. Of course minute I sell the sp motors forward and crying baby falls asleep. I can't complain as I've had a very successful trading week. Best of luck to all.
Well done! You have to start somewhere, and profit is profit!!lol
£1 in profit - get in there!!!!!
I'm in too today. Just got to a profit point so hoping it keeps motoring. 1142-1144 just now.
In on this. See it as a Segro type of situation - i.e a short term trade. Showing up as Up on the halifax market info
I think the surge was something to do with the rights issue, giving it yesterdays (wrong) reading. In situations like that it's often worth betting on it coming back down again (going short).
As I wrote ysterday, the market cap was: 2700 * 661.99M shares = £17.87373Bn It's now just worth just over £7Bn. Bet the management team and bank manager not quite so happy now and wishing he didn't have quite so much champagne yesterday! lol
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