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Wins like these dont seem to matter at all to this one. It still keeps falling and Id think it must be becoming an acquiation target for somebody at this price.
Im not getting out but would like ot see it just holding in the short term. Volatity used to be here but it appears to have disappeared. I,m not someone who uses charts etc. but must be breaking most rules on teh way downnnnnnnnn!
Cant say I really undersdtand fully the shorting piece. Does the fact the shorts have not reduced mean those holding believe there is more downside here or is there other things they (shorters) need to consider befor getting out (contract timing etc.)?
Barny
I dont have any details about this one, It wasnt on teh radar when I was with Wood at the time of the acquisition. The purchase of AFW was, in my humble opinion, a huge distater for Wood. previous smaller aquaitaions ahev been relatively successful with Wood extracting considerable valuae from the integration. I think the AFW acquisition is one of the reasons the CEO "resigned".
It seems to be one liability after teh other and almost of of them came with the AFW piece. I dont know if any of the asbestos stuff will go with teh asset sale and Wood talked at some point of offloading the majority of the iabilty although not sure how thats done.
I have to think post the asset sale the share price is still going to be stagnent and it may leave Wood open to offers - smaller, leaner company at bargain price? The sale is almost completed as far as I can tell (Q3) but the fact they do not seem to be returning at least some monies to the long suffering small investor is not good. I realise debt reduction is the main focus and they may have some ideas for bolt on acquisitions to deliver their long awaited strategy but .....
Like otherrs on this board i am well under water on this one and really have hovered over teh sell button a couple of times in the last few days.
Wood has secured a new contract to deliver engineering, procurement and construction management (EPCM) services for Igneo Technologies’ e-waste metals recovery facility to be built in Savannah, Georgia.
Wood has secured a new contract with INEOS in excess of $100 million to deliver engineering, procurement, and construction management (EPCm) services for Project One, a new state-of-the-art petrochemicals complex in Antwerp, Belgium, which will deliver an ethane cracker with the lowest carbon footprint in Europe.
Below 150 again!!! As always I would like to support the optimism on this chat board about Wood but its hard - the support just doesnt seem there and the shorters show no immediate sign of getting out. Honestly even with a heap of good news in the future its a hard slog up from here. All teh anticipated news about the asset sale is surely proced in by now and a final sale announcement is not going to move the needle as far as i think some people expect.
Just my thoughts and happy to hear alternative views as to why this should go anywhere north of 200p in teh next few months bearing in mind thats a 30% increase! from todays price
https://www.londonstockexchange.com/news-article/WG./holding-s-in-company/15561523
I cant help but think we are all missing somethngh here....
Yes the market is pretty much in the pits at the moment with many stocks at or near 52 week lows but this one is taking a severe beating every single day. Investors seem to be ignoring the asset sale and any upbeat one liners on 2022 second half showing improving sales through new contracts, potential for dividend reinstatement etc.
Even when the asset sale is confrmed and the proceeds reflected in the accounts I dont see this one coming back anywhere near the 250p mark in the foreseeable future - its a really hard, slow climb from here.
Dont get me wrong - I added a few around the 144 mark and im in with my holding until I see what happens in teh next 6 months or so but I am finding it hard to "hold the line" when the big players obviously see/know something I dont.
johnjohn
Absolutely nothing wrong with back of envelope calcs and if that alone is what drives your investment strategy then great. The market however prices in other things including sentiment (on the company and the market in general), forward growth etc.
johnjohn
Dont disagree with anything you are saying but the reality is in the share price. At this point I would have been more relaxed about an upwrd movement if the CMD was closer than late Q4 - if what they say is true then teh strategy post asset sale must already be baked - new CEO isnt going to fundamentally change that is he so whay wait? Maybe they want the salke done and dusted so they can show the new Wood more clearlybut again I dont expect massive upside until they do all this.
Again - just my view and I would love to be wrong
Back of enevelope calculations very seldom reflect reality. The fact they have pushed the CMD back to late Q4 is a "kick teh can" on strategy and thats what the market wants to see. Market confidence in this one is not there yet and will not be until they complete the sale, reduce the debt AND make it clear to teh market what teh post sale Wood looks like in forward projections. When this is done and the macro environment improves (:)) then the 400p might be attainable but until then its going to bouce around.
I agree there is no real negatives in their but I cant see the share price moving much to the upside based on all this. It was all in the mix beforehand. Id love to be wrong and the price really does not reflect the reality of teh situation but its been like that for months.