Member Info for JKG53

.....and down it goes again.

Profit taking I guess.

Decent and promising set of results, why the drop in SP?

Nice 10% rise since end of last month.

A strong government would step in and ban shorting when companies like this are struggling.

My stop loss on Kier shares activated yesterday, so I used some of that money to buy some Costain shares at 178.2p today.
From what I know and can see, Costain look to be in better shape than Kier, but I hope both companies can turn things round and recover. If they can, current SPs are at bargain levels.

Well my 95p stop loss kicked in today, which surprised me tbh.
Will keep an eye on this with a view to buying back in if things settle down.

It's not his decision, but typical of him to comment so positively on something he knows little about.

Booking income early seems to be a problem in construction and outsourcing. It's an easy way for Directors to hit targets and get their annual bonus. Trouble is, it always catches up with you eventually.

Don't forget that £1500m revenue isn't Costain's own capital, it's mainly Client's and Subcontractor's money. Around 2% profit is typical in the UK, Contractors on the continent claim to make around 5%.

I need to stop trying to catch falling knives, I'm no good at it.

Do market makers deliberately drop prices quickly to try and trigger stop losses?

Costain are down 40% today following a trading update which was pretty good, except for mentioning some delays to project starts. Investors are obviously getting nervy about the whole sector.

Construction and Outsourcing companies have had a tough time in the last few years, but I reckon Costain are one of the more successful Contractors in the UK. Have a bit of a soft spot for them as I worked for them one summer in the late 60s when they were building the Newcastle Central Motorway East. Came across them quite a few times in my later career and they were always good to work with. One of the few large Contractors left from the 60s, many big names have disappeared.
History aside, I bought in at 189p and will probably buy more later. Drop today seems to be a massive overreaction in a nervy market. Financials seem stronger than Kier, less debt.

Nice rise right at the death, let's hope it continues.

Don't forget to ask them if they sleep well at night knowing some people have lost 99% of their investment in this scam of a company.

You make some fair points Matlot, but let's not forget that Kier appear to be still making a profit and its greatest assets are its people. Their year end is upon us and I imagine the next few RNS will be crucial to the SP.

There's no denying margins are low and contractors seem to be chasing turnover in a tight market. All contractors appear to be struggling at present, those who survive will be well placed to do well when the market improves. I see Kier as a good long term investment, if they can survive the shorters.
I think Kier are in a similar position to Capita, the new CEO has probably found a few problem jobs where losses will be higher than previously admitted, and he is clearing the decks to make the core business more efficient in the mid to long term.

Speaking as someone who worked in construction for 40 years, including bidding, winning and directing quite a few framework contracts, I fully endorse TripHop's view that a good contractor can make decent profits on framework contracts. The construction industry has always operated on large turnover and low margin, and clever contractors know how to make this work.

...Kier are nothing like Carillion. New CEO is chucking out the kitchen sink, so more like Capita who survived their problems.