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Hi Guys
I appreciate i am a little naive and likewise the question but it is always good to get a more experienced investors comments. If Carnival has raised funds to buy the UK shares does this mean that we are A) obliged to sell them B) If not then will they be delisted on the UK exchange and we are left holding U.S shares ?
Sorry as i say a little naive but help much appreciated.
Sage thanks for a response. You may believe otherwise when you read on but i am fairly informed on the political front and whilst i agrtee with you to a point ............... I belive Boris ( not through altruism but practicality ) is a more socialist tory than we have seen before and just slightly less in hoc to the banks than some. this is an easir position to take these days with the banks having blown any good will they ever had! In addition he knows very well that his position ( and that of the party ) relies on keeping that red wall down and that involves more 'real' manufacturing/construction type jobs and less 'city boys'. There is an overwhelming dynamic in politics and that is self survival ! I believe that we are in a new 'norm' in more ways than one and Boris is not daft enough to ignore it.
I guess the beauty of share picking is the number of factors you have to consider and i personally believe this is the overwhelming one in the medium term Differences of opinion are howver always welcome.
HB I am always happy to listen to all opinions ( whther short or long ) so i will begin with where i wholeheartedly agree. Galliford Try is clearly , for all sorts of fundamental reasons the 'safer bet' . In respect of Kier i am a little more positive than you on the following basis :
1) In view of the goverments stated aims to invest heavily in infrastructure projects there are a limited number of companies capable of fulfilling these . The goverment will not want to lose one of the few.
2) The order book is very significant and only a minimal improvement on margins will therefore see a significant impact on the bottom line. In view of the level of works being required its not improbable that firms will be able to squeeze this.
3) The debt is significant however the cost of borrowing is likely to remain very low for a very prolonged period of time ( and we are entering a new era where carrying debt will be the 'norm' ) . If the above mentioned enhancement can be achieved then it could be reduced relatively quickly. In addition to this there is still a fair possibility of a sale of the residential business , again reducing debt
4) The govermement ( despite suggestion to the contrary ) do have significant influence over the banks and have a strong political will not to see large firms who are capable of big infrastructure fold with massive job losses. They are also politically /idealogically averse to publically stepping into private commerce so rather than risk having to why not ensure the banks are co-operative ( to a point ) and that the contrats awarded are sufficently generous to ensure the company remains profitable . Its effectively a way of subsidysing an area of national importance?
5) I do not believe a rights issue will occur , apart from anything else it would be embaressing after the last effort. I think this was a cry for some 'supportive' policies from goverment and i think those will be forthcoming.
Those are my thoughts and fair enough reason to give this company some backing. Hopefully i have read it right.
Stonking good RNS and gfrd are up 4.5% ( as we speak ) , Kier with no new news but a heavy debt burden up 4.8% ? Think i might drop my research and just toss a coin in future!
Hi Guys . I am new to the share chat thing ( though not to investing ) so please go gently! Just curious on others opinions. I am confident on this sector based, as many peoples opinions will be , on the big spending plans announced by HM Goverment. I split my investment in this area evenly between Galliford and Kier based on my belief that Galliford is the safer but has significant potential but Kier has a good chance long term of being the larger growth stock. More risk of course.
Do any of the more expert investors out there have a view on the Galliford v Kier investment opportunities ?
Great update from Galliford btw i really really cannot understand the modest improvement to share price.