re: Dividends30 Aug 2013 14:46
This, as well as the potential for capital growth in the stock, is a main incentive for my continued & committed hold of the stock and irrespective of any transient short term price movements that may occur.
I've had communication with a senior member of Lamprell (as advised on this board previously) and confidently look forward to the re-establishment of a healthy dividend to contribute towards an ongoing revenue stream.
I mentioned before that I missed out on buying & holding Barclays in large quantities when the price was circa 60p for the sake of a quick profit. Many canny investors used that opportunity to secure taht particular stock, looking forward towards their healthy dividend structure.
Lamprell at current price levels offers an excellent opportunity imho, to take advantage of a similar situation and notwithstanding the (obvious) fact of being different companies & sectors.
Some people will still look to some catastrophic scenario such as last years profit warnings to capitalise on a sharp price reduction. That just isn't a realistic prospect & again, the canny ones took advantage of that situation at THAT time, amidst all the prevalent negative talk & extremely contradictory broker assessments (target prices ranging from 35p -270p+ !!).
With changes to senior management, debt restructuring, a focus on core specialities, massive order book, sector growth & confirmation of support with new orders, Lamprell is a solid recovery story in the making.
This is in the 'process' of recovery with other competitors obviously also looking to capitalise on the sector growth, albeit against Lamprell's established position as a quality provider of their 'core' specialities (as opposed to the windcarriers).
I fully expect this to reach its past price levels (within a reasonable timescale) with a progressive rise as well as an influx of Institutional investment as recovery continues & we move towards the re-establishment of a the strong dividend stream.
On a macro level, it looks like interest rates are to be held down until mid 2016 according to Mark Carney (BOE governor) although the market seems to think a late 2015 rise might be the order of the day. With Govt bonds giving meagre returns, gold prices erratic & further concerns on the possibility of another housing bubble created, stocks look like they'll be a prime beneficiary for investors money, especially given further indications of macro economic recovery.
I believe there'll be a further influx of funds into the stock market (along with the end of Summer break) & despite any short term corrections along the way. Recent concerns over military involvement in Syria 'seem' to be receding & the technical indicators underpinning an overall market uptrend are still in place.
In the meantime, further contracts should underpin the recovery further with investor advantage being the 'recovery' perspective still in play as we progre
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