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Sellers clear, and buys still rocking up, expect this to hit 86 region fast

Taking everything into account the drop was way oversell. 20% would have been reasonable, so landing at 100 (ish)

The whole thing smells like a takeover is happening.

Maybe during due diligence Sidara found the inconsistencies.

The get Franklin to buy up 5% and then take half of that through a private buy, while at the same shorting to cause an overall price drop, then use the moment to buy up all the freefloat.

Now they can make a takeover bid for 140(ish), getting what they want at massive discount.

It all seems very ood.

This is why i suspect that the shares were sold in a dark pool.

and there is a bigger game playing out towards a takeover.

Franklin Mutual Advisers buy 34,635,014 on the 21-Oct-2024 for circa £46 million

Then Franklin Mutual Advisers sell 17,550,860 on the 07-Nov-2024 for potentially £12m, at a lose of £10m

The is no way that such a massive lose would be allowed with out due diligence within a 14 day period.

Did they sell them in a dark pool at a higher level to avoid the price rising back to 124 instantly, as such suppressing the price and cleaning up all the cheap shares to sell at a high profit margin?

The BoD are done, the company will be bought up and asset stripped.

On the plus side anyone buying now gets a nice easy pay day.

Wood group is about to get snapped up for a billion, swollen whole by a UEA or USA whale..

and once again another UK company taken private by a foreign entity and anther gutting of the FTSE.

Well done to all that bought in the dip, a nice 3x coming soon.

@Jxp101, the price is a 10% premium on the price of the 6 Nov before the drop.

Once again, if you look at the business as a part shop for upstream, then buying the tools, IP, and experience for a UAE oil company is cheap.

In fact I would expect the US sharks to be coming for this now, ready for the fossil fuel driver Trump administration.

Wood Group is now a part shops ready to be bought up and stripped.

The BoD have opened the company for a £1billion takeover (circa 145 per share).

Pocket change for someone from the UAE and will add very vital tools to their upstream revenue generation.

I suspect a director has been a bit rubbish and not project planning, hence why there have been big write downs as good will.

I suspect that when the due diligence was being done turn takeover it got flagged, and now the BoD are in touching cloth mode bringing in a audit to cover their backsides and fix the issue.

As such, we are looking at some heads rolling and the share price jumping back up, and with the price here we could see a very aggressive take over offer.

The BoD would have to report bringing deliotte, however reading the way its worded it would appear that basically the margins they were expecting were not met and they are bringing a third party for oversight.

given the nature of the world and energy needs, Wood Group are a core necessity.

There has been a lot of outflows in ii sector that funds will have very strict auto triggers to sell under even a 5% dip.

Looking at the ticker tape it looks like the auto went crazy and it domino effect which would cause funds to sell compounding the effect. this why the price jumped 20% north the next day with funds rebuying what they could, and this will happen next week.

Wood is a sitting duck for a takeover at this price. I expect that the sharks will buy everything in sight next week while the price is here all the way back to 100. The drop has to be the most silly overreaction I've seen this year, and there has been plenty of them.

The news of a review got taken as bad, however it actual looks like the business has been reporting slimmer margins than expected on projects so they are bringing third party expertise to understand why to fix the situation and make the business more profitable:

https://www.pwc.com/gx/en/industries/assets/pwc-controls-processes-and-procedures-1.pdf

"Companies that have significant capital project portfolios may have hundreds of projects, ranging in cost from thousands to billions of dollars. Managing a mix of projects—either several large or “mega” capital projects with multiyear timelines, ever-shifting requirements, and complex procurement challenges, or a huge number of small capital projects—comes with inherent uncertainties that can affect costs, schedules, and quality.

To effectively manage such complex capital projects, companies can benefit by adopting an integrated capital project procedural framework and manage their projects through:

• Transparency of controls

• Clear accountability

of responsibilities

• A meaningful audit trail

• A rigorous risk management process"

Key Takeaways from the Wood Group Third Quarter Trading Update:

Performance:

Group Revenue: Up 1% year-over-year.

Adjusted EBITDA: Up 4% for the first nine months of the year, driven by strong growth in Operations.

Projects: Disappointing performance, impacted by weakness in minerals, life sciences, and chemicals.

Consulting: Expanded margins despite weaker top line, benefiting from higher pricing and a shift to higher-margin work.

Operations: Strong growth with higher activity levels in Europe and the Middle East.

Outlook:

Full-year guidance confirmed: High single-digit growth in EBITDA and net debt to be broadly flat compared to last year, assuming the sale of EthosEnergy completes by year-end.  

Strong fourth quarter expected: Driven by increased momentum in sales pipeline and billability focus in Projects.

Other Key Points:

Independent Review: Commissioned to review reported positions on contracts in Projects, accounting, governance, and controls.

Disposals: Two non-core businesses were sold to generate net cash proceeds.

Sustainable Solutions: Growing pipeline of sustainable solutions now accounts for 46% of the total pipeline.

Overall, Wood Group is making progress in building a higher-quality, simpler business. While there are challenges in the Projects business, the company remains confident in its full-year outlook and is taking steps to improve performance.

The drop was completely irrational, there was only a small volume of sells compared to the total share free float.

Most sell were auto, so expect that the algorithms went into hyperdrive, with the big buys being manual.

It just the market at the moment with any negative news resulting in bigger than usual drops.

The recovery was easy, expect next week this will rally to 100 fast.

The RNS looks like some manager had been writing off projects as deductibles, which implies someone taking backhanders, as such the investigation is to determine who and scale.

Considering there was a bid for 230 just months ago, would expect those suitors to buy any free shares on the open market to hold for another bid very soon.

On yahoo finance:

7 Nov at 4.40pm, buy for 3.28 million shares

8 Nov at 8.46am buy for 3.92 million shares

get ready for a great week and rise back to 100 fast

The short position was increased on the 7th Nov, when the RNS come out, expect they did that in the morning which would have help the oversell.

However at this price both Qube and Systematica will be looking to get out before this moves back to 100 next week.

Would expect some hedge funds and ii to take big new positions next week to hold for longer term.

Takeover would have to be fast to avoid a ramp

Dont see it, the company will be watched too much and have too much oversight to cook books.

I expect that they have been spending money without proper sign off, and will end up firing a few people for taken contracts for dud goods.