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Pokerchips

All depends on which fish Blackrock decide to fry although I agree this may not be the end

Pokerchips/coaster

Well said. I was tempted to reply but decided it had all been stated by Harrycash before and a number of us had alrready responded so .....

Harrycash

Reading between the lines on your posts - never a good thing do do on these sort of boards I know - you really should not be pinning your hopes on a VC buyout. If I was you I would get out of this one.

Harrycash
Brokers play a different game from teh day to day investor and Jeffries are not renowned for their predictions.

The SP has been a lot lower than this over the last 2 years and has recovered. I dont see the fundamentals any different this time around and if anything the company is much less dependant on oil and gas than it was back then so I consider them to be in a pretty good position. Having said that its not going to turn on a dime and anyone in this needs to consider this.

VC offer is not on my radar. As Ive said before Wood have pretty much stripped out any fat from teh big acquisitions so its a lean company and not much for a VC to gain - again this is only my view.

Again the US drags this one down after a good start! Happening so often its the norm.

Also lots of buy volume today which may indicate individuals are getting back in at this 240 level

Pokerchips
Yeah. Just caught up on that increase in shorts as well. Im interested in the approach they are taking. Do you think they are shorting it to benefit from a bounce post the mid year update next week?
In the meantime I tend to agree this is going lower - perhaps 225 by close of the week.

US did it again. Fine move up until about 3pm Uk time then the apparently inevitable decline. Anyone understand what exactly is going on with this trend?

Need a FEW good days! Always worried when this starts lower or level as inevitably the open in teh US drags it lower. I would love to see that trend broken.
On a slightly positive note "Wood extends long-standing relationship with Equinor in Norway". Not new work but its the second long term relationship which has been extended in the last few days. Wonder if these were included (at least in part) in the booked work for 2021. Backlog for 2021 was one of my concerns from their update earlier this year.

Update next week will move it - one way or the other!!

This is starting to get a bit depressing. It the same story every day apparently. Momentum in the morning cant be held once the US market opens. Starting to lose faith and revisiting my strategy to hold this one. Some of my other shares are doing well which makes my overall portfolio look OK but cant help but think this one is losing the battle in even trying to tread water

Back to the old ways of progressing well then being dragged down by US opening.
On a positive note they have announced 5 year extension to the Hibernia contract in Nova Scotia.

Pokercips

I agree in that i dont think the update will be startling in a positive or negative way. I will be looking to see what the think the next six months holds however in particlar as regards projects and operations. Its lower margin than the consulting business but much higher volumes.
Holding onto these at the moment as i still think this is undervalued. No real need to sell so just going to tred water at the moment

Thats a little bit concerning given Wood market update for the 6 months to June is due in a couple of weeks. Perhaps they are just hedging their bets:)

Pokerchips
I also find this interesting when you look at how they see their transitioning into other energies in the coming years. Ther are many synergies here in what Wood have been setting themselves up for over the last 4/5 years. The Amec aquisition form teh backbone of the transition away from traditional oil and gas and Wood now have soem sound JV's and agreements in teh developing energy sector. I see all this as really positive in the medium to longer term for a company such as Wood.

HC
If you are concerned about liabilities linked to legacy issues and that £200m is not enough provision then get out now.
If you are concerned about asset grabs get out now. Wood survived this in Venezuela many years ago. Its a fact of doing business in these areas.

Im finding it hard to believe VC is on the cards and if thats your ultimate scenario for making money in this then get out now.

At today's price you would be gaining 10% from your 233p - not too shabby and it will remove your concern on the future liabilities.

Just my thoughts - its your call but i think we have beaten to death the points you make for and against this and will continue to differ in our view of the future (short and long term)

HC
Of course the numbers quoted are "guesses" - thats a given since the matters are not resolved. While you see them as guesses I see them as estimates from a company who understands these things and Wood are usually (and i stress usually) conservative with such matters. They have grown over the last forty odd years doing very well in teh acquisition space.

We need to agree to differ on most of the points you make and it worries me that you are still invested at this level if you believe everything you are posting

Paddyboy1

Id like to think you are right about the 265. I do find it interesting Wood is rising with teh US market opening at the moment as its used to slide. Havnt looked back to see when this may have changed and have no idea why it might have done so!!

Harrycash
If you are inferring to legacy issues which have been "imported" during an acquisition which i believe are by far and away the majority of those Wood have, then I would say they will have been discovered through the pre acquisition process by the due dilligence team and will have been reflected in the price paid for the acquisition. Of course some of these things are moving targets (asbestos etc.) but i believe Wood are welll experienced in acquisitions and will have taken a prudent view.
Again its about what added value the overall acquisition brings and how wood believes it fits in teh overall strategy.

Harrycash
You are clearly not understanding how the award of company shares works. Having worked for Wood for over 30 years I gained some of my existing holding this way. You simply "sell" some of the allocation to cover the tax liability on the award. The company does all this for you. CGT only comes into play if the sell the part of the award they retain.
I have not seen any directors of Wood actual sell shares outwith this method so don't see a "lack of confidence"
As for debt - its been mentioned on here before - it depends what you are doing with the debt and what return that gives.
You really need to dig deeper if you are looking for downsides on this one.