Member Info for cringsing

I reckon some people thought something wld have happened re KL prior to Xmas.

Can’t say I quite understand the convertible mechanism ????

https://www.cityam.com/kier-housebuilding-arm-targeted-by-us-private-equity-firm/

“Targeted” ??? What a load of rubbish. Somebody clearly want to talk the SP further down, putting a negative spin on a very positive piece of info.

If PE is getting involved, it clearly means (to me) that Kier are considering the MBO proposal, which in my view (stated often) by far is the best way to extract value of a KL sale. So this piece of news is sweet music to my ears :-)

As for the rumours of banks selling Kier debt for 70p to the bank, if that is true (probably not), those banks surely haven’t done their homework, or they know things are much worse than portrayed by Kier. My money isn’t on the latter. The Kier debt may well be history in 6-12 months.

@Gioviano.

Market sentiment. One day the market is your friend. The next day, not so much.....

The good news is the SP is likely to go back up one day.

@BillTucker
That’s perfectly plausible, but my doubts re that being in the offing partly relies on the ‘banks selling Kier debt’ story not being overly substantiated, and partly on shorter’s covering their positions quite rapidly. That would be a non-sensical thing to do if they thought shareholders were about to be wiped out. Well, as always, the proof is in the pudding. Maybe the Xmas pudding in this case....

@BillTucker

Goes to show even pro’s makes mistakes....
I’m not familiar with IRV’s demise, so unsure if comparable, but I struggle to see who’d benefit in pulling the carpet away on Kier, other than a handful of hedge funds which are now rapidly bailing out... Forces for good is working the problem :-)

Absolutely, I’m buying it.

Haven’t be more sure about anything since I bought OCDO at 48p, selling it later north of 400p. Retrospectively, that of course was a mistake, but there’s an end to everything.

Kier is probably not a x20 opportunity, but can easily see a x5 in a very short space of time. Good leadership and a fat order-book is a great combo.

Blimey, who would have thought a huge financial institution as Aviva would be buying stakes in a ‘debt-ridden dying company’ ;-))

@BillTucker

Show me anything in writing that evidence any bank bailing out of Kier, and I’ll believe it :-)

Not just inaccurate articles from ppl associated with other ppl involved in fast-money making on rumours.

So here 12 trading hours after a couple of Kier doomsday prophecies, we’re back in the usual trading band. Circa 4m shares changed hands at a low price, and I bet the bad news and the timing of it was neatly designed so the hedge funds guys could cover shorts cheaply without paying a premium to long holders. Nice and neat. Pity for everyone who fell for it and sold.

Sorry, doesn’t warrant a RNS.

@TheBigMan21

No, that does warrant a RNS.

It happened a month ago. Way more exciting is what money their Jacobean HQ will bring in.

https://www.constructionenquirer.com/2019/10/03/kier-offloads-london-office-for-50m/

@SBB1

Talk down the SP maybe, including the HSBC selling debt story which (surely) is either wrong or 6 months old, maybe both.

Kier recently sold a property in Hammersmith for £50m. Now they are planning selling their Jacobean HQ in Bedfordshire, recently refurbished for £11m. I’ve tried to ascertain the sales value of the place, but as Kier has owned it for donkeys years, there’s no historical data. Anybody here having an idea ?
With KL presumably also being offloaded, I reckon the Kier debt could be a thing of the past before we even know it....

@SBB1

I can’t see the evidence of the mentioned 7m vol KIE shares of Friday anywhere. Where should I look.

The Telegraph (which is a terrible paper anyway) printed this Kier story today, which does seem to be at odds with shorter consensus. It’s all a bit odd.

https://www.telegraph.co.uk/business/2019/11/02/kier-fight-survival-lenders-offload-debt/?WT.mc_id=tmgliveapp_iosshare_AtVvk7Xq7qbq

Do they still own 20% of Kier ??

@Brobson,
The ceo do not control the share price. Market sentiment do set the SP, and I reckon some thought that £25 was a tad too expensive. Fair enough, we are all on the look for the better deal. The SP however has come down some 25-30% lately, whilst Greggs most certainly also have taken drastic steps to increase revenue and profits. It’s a great business in my view, and sentiment will turn in favour of Greggs again. I’d just sit tight... As for the CEO’s trading, he could have all sorts of legitimate and genuine reasons. Personally I’d not read too much into that......

@WN

I reckon is was simply oversold, if there is such a thing. Investors falls out of love with companies doing incorrect reporting. 2 mishaps in a year was probably too much (incorrectly classified debt, and the unexpected high number of final PPI claims).

Nobody can explain the share price. Nothing to do with Greggs. That’s the nature of market sentiment. Sometimes it’s there, sometimes it’s not. They are on to a good thing in my opinion, but a no-deal Brexit is looming. That’s what people voted for, and most businesses bosses have said it can devastate their businesses.

@Metam.
Watching the results video, the ceo was pretty clear that offers were in and sale was progressing. Mr Davis is well reputed and imho bang-on when concentrating on shedding the debt, even if that means selling profitable assets. As for the speed of the sale, some divestitures are easier than others. If (as rumoured) KL will be part of a management buyout, the sale would include Kier aiding the buyers in setting KL up independently which is a time consuming process, but often worthwhile compared to etc selling to a competitor. No idea if it is a management buyout in the offing, but if it is I’d say it bodes very well for shareholders. Downside, it will take longer than just being annexed to an existing builder. Let’s hope it’s worth the wait.....

The usual optimism here appear a bit subdued today. Thankfully Xmas isn’t too far away now. Have anybody here managed to find out where the rumour re the £144.9m sale came from. I had no luck on Google. If that was to be true, that with the sale of the office block in Hammersmith will pretty much wipe out the debt, and with that gone, only the sky (and Brexit) is the limit....