Member Info for my2penneth

It was tanking whilst MS was there...look at the share price history. The new guy is trying to put WPP on a different course.

If I was an investor in SFOR I'd be scrutinising Company expenses...if you know what I mean?

' Martin bowed out'..? Well, that's one way of looking at it! My interpretation was 'Go, before we prosecute for misuse of company funds".

A very small change in profit & revenue and the market reacts as though the company has got leprosy! A well covered dividend and still making a profit. This will bounce back over the next week or so when the bargain hunters come a looking.

Brokers recs are purely messages put out to attempt to drive prices higher or lower. They are not some magical definitive calculation of a share price...if they were, why do we see such discrepancies between different brokers and why do they make such dramatic corrections in their target prices?

fair Mkt value ? Yes..but I'm biased ;-)

Looks like you took the Simply Wall Street assessment?

https://simplywall.st/stocks/gb/energy/lse-pfc/petrofac-shares

Claims the company is deliberately being shorted following a report...which no one seems to be willing to acknowledge being the author...so that's a deliberate attempt to manipulate the share price in my opinion.

https://www.telegraph.co.uk/business/2018/10/15/fears-babcock-target-shortsellers-mysterious-report/

Does it mention the recent PDMR share buys ...no! The directors/ pdmr's are spending their own money to buy Bab shares.

Well said, Redceo!

Velo....I think if we err on the side of caution and conclude that most CEOs are self serving ( what you said) then we won't be too disappointed.

I don't follow....the dividend doesn't depend on the share price so when you say it is not sustainable?

The free cash flow should ( just) cover the £240m dividend payment ...assuming that profit comes in at £500m - the lower end of the revised forecast. Then there are distributable reserves of approx 8 X this (£2 billion ) which the management can dig into IF required ....so a maintained dividend is on the cards with the possibility of a dividend increase. It'll be interesting to see if there are any management share purchases in the near future.

I reckon it's a Hold for current shareholders and a Buy for new ones.

DYOR etc.

The percentage is small , or rather, the total investment is low thousands ...doubling in share price wouldn't affect my lifestyle. Some people here invest/ gamble many tens ( or more) of thousands.

Seen all this before many times. Just ignore the noise folks. To be honest , they do not matter... none are buying significant levels of shares that effect the sp to one jot.

Either short the share if you want or buy into it...either way, the negative comments do nothing!

( My position...RMG is about 1.5% of my portfolio of over 80 holdings and I only bought in this week on the drop. Even if the price were to double it wouldn't have much overall effect on my portfolio. I'm in it for the dividend of 7% which is covered by the free cash flow).

The board have said they'll be holding or even increasing the dividend. Current yield is just over 7%. When the dust settles the share price will recover. Meanwhile it will be touted as the share from hell. The company is STiLL making a reasonable profit...it's not as though it's up **** creek. Give it a while and they'll be pushing RMG as a must buy for the dividend and the possibility it will be promoted into the FTSE100 ( after demotion).

Remember PFC...the brokers were saying that they will never get any more contracts and that they would receive a ( stupidly) big fine! The only way these guys make money is by introducing volatility..

how the sp has almost halved from it's peak in less than 5 months. The company is still making a profit. I'm guessing that the shorts are simply driving down the price aided by a generally falling market. The management team made a bit of a co ckup with regards to timing.

10% down at the moment

Well, GFRD posted some tasty results today (12 September)... hopefully KIE will also be doing likewise.

"GFRD’s INTRINSIC VALUE BASED ON FUTURE CASH FLOWS etc. is around £15"

That's what Simply Wall Street makes the sp based on free cash flow.

https://simplywall.st/stocks/gb/capital-goods/lse-gfrd/galliford-try-shares

I wouldn't read too much into that though but at least they reckon it's undervalued by that specific calculation.

Ah, the divi is cut "numerically" but remember there was a rights issue a couple of months ago when existing shareholders could buy new shares for 568p ( a 38% discount) based on 1 new share for every 3 held.

https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/GFRD/13582154.html

The SSE share price itself will most likely drop after newco is hived off. Shareholders will them hold shares in SSE AND the newco.