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I'm just wondering what the effect will be when the cash is in the bank and the debt paid down.
Having said that, we are still to hear exactly what the new cash will be used for. eg: what percentage to pay down debt and what percentage will be used for other things.
Petrofac's update last week really seemed to be a repeat of what they said last time around (costs and outflow are up but things are looking good looking forward).
I'm expecting the similar with woods update (sure it could be better I would not be surprised if it's not given how recent the last update was) unless they mention something about the new cash.
Talking about Petrofac, they are up over 3.5% today so will keep an eye on them to see what might be up there.
There are plenty £billion + contracts going around, but they don't get awarded in days/weeks.
DYOR but there are a lot of experts saying the stock market is in a bear market rally.
It's only natural to want a share we hold to go up in price and we only buy because we think it will go up.
But time scales are important.
I've owned Wood and PFC for some time and too many people are expecting the prices to shoot up in a matter of weeks.
I'm holding Wood and would love it to shoot up :o)
But i don't expect much from next weeks update.
Like PFC, they said in the last update that the first half is not great but should be better in the second half.
To me, that does not mean the next update is going to make the stock rise.
I'm looking forward to the sale to being finalised. Not because I expect the price to rocket but because I'm genuinely interested in how it will effect the price.
I'm now down to an average of 162p from 212p in February.
Not by averaging down but selling on peaks and buying back on dips.
I will carry on doing the same but I will only do it with fractions of my holding as I don't want to risk not holding a decent amount after the sale is finalised and you never know when a BIG contract win might come along.
And if after the sale, there is no big jump, I will be disappointed but not surprised.
Why? because the decent gains will be on months/years rather than days/weeks.
Wood awarded two major multi-million-dollar projects in Uzbekistan
https://www.woodplc.com/news/latest-press-releases/2022/wood-awarded-two-major-multi-million-dollar-projects-in-uzbekistan
Yes S4 have never made a post tax loss of £2919 million.
Yes, but last year S4 made an Operating Loss of £42.05 million.
last year WPP made an Operating Profit of £1,229.00 million.
A loss making company needs to worry about debt more than one making profits which can be used to pay the debt down.
Yes, WPP has gone from 1150 to 817p. (29% drop)
But S4 have gone from 570 to 146p in the same period. (74% drop)
Everyone has different investment goals.
The two companies are in the same sector but they are in very different positions.
One has been paying divi's for years, one has never ever paid one.
WPP pays a bigger Dividend though.
Bloomberg have an artivle headed are saying "DOJ Is Preparing to Sue Google Over Ad Market as Soon as September."
"The US Justice Department is preparing to sue Google as soon as next month, according to people familiar with the matter, capping years of work to build a case that the Alphabet Inc. unit illegally dominates the digital advertising market."
https://www.bloomberg.com/news/articles/2022-08-09/doj-poised-to-sue-google-over-ad-market-as-soon-as-september
Would this effect WPP?
Well I'm joining Barny in his flabbergasted flabbergastation.
Wood has learnt from past mistakes (write downs) and changed what it bids on now.
There is no reason for the sale not to go through. They said it will be in H2 and they only just got the shareholder vote passes this week.
There share price is down because there is no reason for it to be up right now.
Wood is not paying a divi and profits are down.
Oils producers are making missive profits and paying decent dividends. but they are not rushing to invest.
It takes time for big projects to go from planning to bids being won.
They will come but the big gains will be in quarters rather than days/weeks.
It's general advice. I often average down but you have to be carful not to fall into a value trap and average down into a stock with a downward trend. Rather than averaging down, the money can be often be better used to invest in another stock with more upside potential.
Last step completed before sale completes in the second half of 2022.
https://www.londonstockexchange.com/news-article/WG./result-of-meeting/15569745
These are questions everyone would like to know the answers for. I'm averaging at 165p at the moment so only 9% down at current price. I have some dividend payments due on Friday so the price moving down right now is not such a bad thing for my long term goal.