Member Info for ParanoiaBlue

"THE wheels came off Scotland's two listed transport operators yesterday after Perth-based Stagecoach warned over revenues at its rail business. Shares in the group reversed 16.5 per cent to close at 143.2p, touching a two-year low of 133.9p earlier, as it warned of a potential slowdown in its UK train business due to the impact on commuters of the economic downturn. The slump came despite Stagecoach posting a 24 per cent rise in first-half profits to £105.2 million. Analysts at brokerage Cazenove said: "These are solid results but the market is likely to focus on the more bearish outlook for rail." Aberdeen-based bus and rail rival FirstGroup shed 35.25p, or 8.2 per cent, to close at 394.75p in sympathy."

"At 143p, Stagecoach shares also offer a solid 4.4 per cent dividend yield, with the payout more than three times covered by forecast earnings. At seven times next year抯 forecasts, the shares might appear attractive but, given the capacity for rising unemployment to send Stagecoach further off track, the shares are still best avoided, says the Times"

Interim results from transport company Stagecoach Group (SGC) showed revenues of 1.05 billion pounds for the six months to 31 October 2008, a 27% improvement on the same period a year prior. The group made 105 million pounds in pre-tax profits, up by 24%, after strong growth in its UK bus and rail operations. That equated to earnings per share of 12.1p, up from 9.4p. The group also increased its interim dividend by 33% to 1.8p per ordinary share. At the end of the period, Stagecoach managed to strengthen its cash position by 24% to 238.5 million pounds, up from 191.3 million pounds. The company’s results have prompted it to invest in growth through significant capital expenditure and contract bids, including a bid for the new South Central rail franchise. Yet in the long term, the firm said that its rail operations remained more susceptible to changes in economic conditions. “The short to medium term outlook for our UK rail operations is challenging and in anticipation of a further deterioration in economic conditions, we are taking action now to ensure our rail businesses remain competitive,” added Brian Souter, Chief Executive. The results prompted broker Shore Capital to deliver a ‘buy’ recommendation on the basis of the company’s robust balance sheet but shares in Stagecoach fell by 28.7p to 142.8p.

Panmure Gordon: Hold [reiteration] Target 205p

The Board of Antonov announces that contrary to information currently being circulated on a number of investor web forums, the Company has no bank liabilities and continues to receive funding under its existing funding contracts. RNS Number : 4272J Antonov PLC 03 December 2008

Always difficult in these markets to say. I’ve been busy elsewhere, but I see that they have come back a bit, which is often the case. Where from here? Well, they could drop and drop cf. banks, miners etc.. I don’t think that will happen with SGC, however they could certainly “go sideways” for a while, or even drift lower. I would be one who would chase it up with a very close stop loss to hold profit. If it triggers – you always can make the decision to get back in again, later. I’m keen on public transport as the recession bites, however the other side of the coin is, if things get really bad, and unemployment really takes off [which it actually appears to be doing] – them, of course, there are less commuters. ATB

Yes, I've been watching for a wee while. Brian Souter is certainly a man, who has "his head screwed on the right way"!! It will be interesting to see how things develop. Probably sitting on my hands for now. Too much dross to sort out at present!

Bus and train operator Stagecoach reported a rise in first half pre-tax profits but said it is likely to see downward pressure on 2009/10 rail profits. Pre-tax profit rose to £105.2m in the six month ended 31 October compared with £84.6m last time on revenue of £1,045m from £820.8m previously. The interim dividend increased by 33% to 1.8p per share. “Given these changes and the increasingly uncertain economic outlook, we have less visibility of the 2009/10 financial performance of our rail businesses than in more normal circumstances,” said the group.

Only one more day as a free spirit, before the absorption into BTG.

"Pennon's water business should be solid and reliable, but waste unit Viridor has good prospects for growth. As well as being involved in landfill operations, Viridor produces energy from waste, an area in which the UK has been lagging behind the rest of Europe. The shares are trading on a March 2009 earnings multiple of 12.3 times and implying a yield of 4.9%. Shares in Pennon are a buy says the Telegraph."

Yes, I need a good bit of upside here! The depth of the plunge with GFM, ORE, and especially Au shares, really surprised me – way overdone! However, I think that we are very close to – if not actually past - the nadir. So I’m hoping for a strong upswing before too much longer! ATB

I’m feeling quite comfortable with ASM, just now, for reasons that I’ve said before. I’m holding them for a while longer – hoping for a steady SP increase. ATB

Hi - I also posted this on the BTG board: I think this merger will produce a great synergy. They will have a large cash balance, and a good product pipeline. I’ll be taking my quota of BTG shares, and holding them, at least into the New Year. I’m quite keen on pharmaceuticals, right now – they seem to be undergoing a bit of a renaissance. ATB

Hi, I think this merger will produce a great synergy. They will have a large cash balance, and a good product pipeline. I’ll be taking my quota of BTG shares, and holding them, at least into the New Year. I’m quite keen on pharmaceuticals, right now – they seem to be undergoing a bit of a renaissance. ATB

Good rise, again, today as we move towards 4th December acquisition date.

Crazy – there will be another “barroom brawl” before long, and this “chancer” will be flat on its back again! “Last Chance Saloon” - I’ve got a big short here!

Sorry for being so facetious. I was getting a bit bored waiting on a few deals. Off out to catch up with the shopping before the “good lady” gets home and bends my ear – so I won’t bother you for a while :)

"attach words together properly" [sic] is actually syntax.

"Grammar"

..these deals - 617 @ 3.25p = £20.05 ??