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What a great run we've had and what happens next is anybody's guess. My only comment is we have risen from 45p to fleetingly touch 81p yesterday. As i believe in 6p support/resistance levels my theory seems to have played out well. The sp bounced off 45p last August and rocketed through 51p, 57p (a real toughnut to crack), 63p, 69p, 75p before faltering and recoiling from 81p back to 77p now.
That's some performance smashing through six barriers. I think some retrace is overdue but that's only my own personal opinion and may be wrong. I took 20% of my holding off the table at 75p and was wrong. This morning i sold another 20% at 79p but could be wrong on that too. Good luck all whatever you decide.
Nearer 70p on the rally up to Xmas with a Conservative win i reckon Steve. All eyes will then focus on the mother of a giveaway budget in the new year with massive spending on infrastructure first and foremost.
I think we will be break the 2015 highs of 79p by next Spring. This is a chance for Walking Boss to invest (and his newly created alias Kork) but he's too dim to do so.
We can look now forward to a prolonged period of clarity and accelerated growth following three and half years of paralysis and fog.
UK Investor magazine are forecasting 8% growth in revenues to £426.8m this year and a 13% rise in underlying pre-tax profit to £36.2m. They expect net debt to decline from £89.4m to £77m by March 2020, even after hefty capital investment.
"The total dividend is expected to grow by 10% to 2.2p a share this year. That is a forecast yield of 3.7%. The prospective 2019 multiple of nearly 11 is not unusual for a hire company, but the increasing importance of services, and their growth potential, means that Speedy Hire deserves a higher rating."
JackHammers at least take the time to read Walking Boss history of diatribe which dates back well over four years. He's a disgruntled employee who hates Speedy with a passion. Whenever results are due he appears like the grim reaper frothing at the mouth with his warnings of impending doom. In fact the SP is guaranteed to rise whenever WalkingBoss sounds his death knell.
A massive political event like Brexit has left investors transfixed with fear. I prefer to focus on the large institutional buying that's been taking place in the last fortnight - Polar Capital & Merian Global Investors who have hoovered up more than 10.5 million shares between them. More massive buying going on yesterday and then again this afternoon a purchase of 2 million shares.. My hunch is that they are still accumulating and expecting another RNS in a day or two.
With London traffic gridlocked Max i can see a lot of customers claiming there free-week hire by default.
NoHearts agreed Speedy need to be more aggressive in growing organically. They have plenty of headroom to borrow more should a bargain arise.
The Shares magazine today suggests growth for Speedy is in services rather than plant hire.
<Lloyds British is a gem of a business with very high returns. For example testing and inspection firm Intertek (ITRK) has a ROCE of over 27%>
https://www.sharesmagazine.co.uk/news/shares/speedy-hire-delivers-strong-growth-and-dividend-hike
Shares “materially undervalued” says broker
In a note to clients, analysts at City broker Liberum said the results provided evidence that the group was continuing “to deliver on its strategic aims”, adding that “improving asset utilisation and significant share gains with SME clients suggest an encouraging outlook”.
The broker also said that with the balance sheet providing “an additional source of optionality in the medium term”, the shares were “materially undervalued” and pegged the stock with a 74p price target, a 27% premium on the last close of 58.2p.
In early trading Wednesday, Speedy Hire shares were steady at 58.2p.
Liberum's latest notes are quite bullish:
"Despite the headwinds created by the liquidation of one of its largest clients, Speedy has delivered impressive revenue growth in 1H19. This has been helped by a particularly strong performance in its SME business. The successful execution of this part of the strategy, combined with continued focus on asset optimisation, leaves the company in a strong position to deliver continued improved return on capital employed and cash returns. With 18% total shareholder return potential to our unchanged target price of 74p we reiterate our buy rating."
Jambon you really are embarrassing as you blunder from forum to forum spouting absolute rubbish.Carillion was the last company you were gushingly singing the praises of ad nauseam until you suddenly vamoosed the day before its demise. HSS a has debt pile of �232 million and will spend yet a further �70 million implementing yet another round of cost-saving measures which will save at best �6 million per annum. These same changes started years ago and were such an abysmal failure that even the last CEO threw in the towel. It's the perennial promise of 'jam tomorrow' with HSS which always fails to deliver.
Liberum said this morning :"The improvement in utillisation suggests that the company is successfully execting its strategy to optimise fleet and improve the underlying performance of its core rental business. Crucially, not only is the 11% ROCE expected in FY18 well ahead of our previous forecast of 9.9%, it is also the first time in a decade that the group has generated a return at or above its cost of capital" brokerage Leberum added.
Liberum have just said although this news is "unhelpful it is not as bad as first feared. Despite the potential write-down of receivables that will result we believe the long-term impact on financials will be limited. This reflects the likelihood of JV Partners and other third parties taking on much of Carillion's workload, as well as the flexibility within Speedy's own operations" the broker adds. The broker added it sees Speedy's immediate share price reaction as overdone.
Surely many of these contracts now in limbo will be re-tendered pretty quickly with Government help, otherwise its going to backfire quite spectacularly on the Conservatives. I note other companies like AHT and even HSS haven't reacted negatively at all.
Happy new year to you all. Some big transactions yesterday and and a further 1.6 million just now which ostensibly look like sells, however 61p still holds firm. I expect to see a quick ascent to 66p if the bullish momentum does continue.
..And we're off! Play Vaughan-Williams 'The Lark Ascending' as we soar. The SP has to break well clear of that dogged 57p resistance/support line for me to be really confident, preferably a close at 59.5p or above.