Ashtead Share Discussion Threads

[discodave4] 17/6/2016 15:39

Be nice to see this close above £10.DD

[ianwwwhite] 17/6/2016 11:00

kilgallup


Re 52358, I think we are both on the same wavelength, great results but 'brexit' is making things a bit choppy at the moment. Do nothing and hunker down is still my favoured strategy,

[2flatpack] 16/6/2016 22:10

This early start to the buy back has got my backside off my hands.
An aggressive buy back should underpin the S/P.
If we say 5% shorting that is 25,162,198 shares @ £10 = £. 251,621,980 investment by the shorters.
A £200M buy back = one big headache for some.
I shall start my buy back tomorrow.
Exciting times.
Ha,Ho.
Cheers

[discodave4] 16/6/2016 18:55

BrackeThe consensus rating is buy with an average price target of £1239 hTTp://www.americanbankingnews.com/2016/06/15/ashtead-group-plc-aht-given-sell-rating-at-deutsche-bank/There is only Deutsche though who seem to be forecasting that the end of the world is nigh!.........from the recent results it doesn't look like that to me. IMV eps could be at least 100p for 16/17, and even with a modest PE of 12 is a TP of £12.koobaURI was at least 7% down on early US trading this afternoon, AHT got off lightly!.DD

[bracke] 16/6/2016 18:24

Just a fleeting thought why a couple of brokers have a low rating for the share price

AHT is very cyclical share. If they think that the US is heading for a down turn cyclical shares such as AHT will be hit.

It was just a thought

[discodave4] 16/6/2016 18:15

Nice to see Barclays taking the opportunity to commence share buy back. Quick calcs, if Barclays plan on buying the same volume every day until April 2017, then an average share price of at least £10 should equate to the £200m share buyback target.....will see how many they buy tomorrow!.DD

[kooba] 16/6/2016 17:58

Still biggest faker in ftse 100 seems strange move after strong results? Least off the lows.FTSE 100 - FallersAshtead Group (AHT) 962.50p -3.56%Mediclinic International (MDC) 856.50p -3.27%Anglo American (AAL) 612.40p -2.95%Severn Trent (SVT) 2,128.00p -2.88%

[bracke] 16/6/2016 15:56

Just look at the market!!

[kooba] 16/6/2016 15:55

Anyone know why so weak today?

[bracke] 16/6/2016 14:59

SP just about holding at 960. The end of day volume will be interesting.

[kilgallp] 16/6/2016 10:37

Ian, I too am happy to hold. It's by far my best performing share over the years. I very much liked the delivery of the 4th qtr results.

[bracke] 15/6/2016 17:29

Good day uppompeii

I am! Iam!

[ianwwwhite] 15/6/2016 17:23

kilgallp

Interesting indeed, thank you, I have now read the Questor piece and I am not really impressed.

I am puzzled by the statement for example "We think it prudent to look at earnings per share during the past ten years, which seeks to smooth out construction cycle. On that basis the shares are trading on 38 times average earnings, and that looks expensive when compared to the 11 times forecast earnings" seems to miss the point.

Ashtead is a growth company and has grown exponentially over the intervening years between year 1 and year 10 in reach, number of outlets, turnover and profit. Ten year old data seems largely irrelevant when forecasting future trends in my view, and ignores contextual issues like the financial crisis etc.

However to each his own, but personally I am happy to hold and anticipate a satisfactory return. DYOR

[kilgallp] 15/6/2016 17:15

Interesting though Ian, the article commends Ashtead, but Questor says Avid.

[uppompeii] 15/6/2016 16:59

Oh come come. You're not surprised at all.

[bracke] 15/6/2016 16:34

and back to 1000. There's a surprise......

[room_101] 15/6/2016 16:07

We can only hope..

[ianwwwhite] 15/6/2016 15:49

Telegraph Business report commends Ashtead:

Ashtead launches £200m share buyback as profits jump 24%:



"...........................Mr Drabble added that the group’s profit margins, which were a record 46pc, were “particularly encouraging”.

Shares in Ashtead have struggled in recent months, dropping to a low of 749p in February, as investors expressed concern over the outlook for the US economy.

But analysts this morning have suggested that those fears look overplayed, and that Ashtead’s performance should mean that shares recover some lost ground."

[ianwwwhite] 15/6/2016 13:23

Broker view:

15-Jun-16 JP Morgan Cazenove Overweight 989.00p - TP: 1,140.00p

(JPM were in yesterdays AHT results briefing/presentation I believe)

[ianwwwhite] 15/6/2016 11:49

broadwood

Yes strange indeed.

I wonder whether if you were one of his banks clients and acted on his analysis whether you would consider that you had cause for complaint?

It will be interesting to see whether the guidance is updated in the light of the latest results.

[bracke] 15/6/2016 11:41

Yes I agree masterly inactivity is the option until the dust settles.

[broadwood] 15/6/2016 11:39

ian - its very strange. He's maintained his TP at £6.60 for a long while but each time the results confound him.

I can only assume they are anxious to hold the price down - but nothing on the horizon suggests any weakness.

[ianwwwhite] 15/6/2016 11:37

Good morning bracke,

Thanks for sharing your views.

As usual when faced with uncertainty, my plan is one of 'masterly inactivity' until its safe to come back from behind the sofa!

As Dilbert said 'do nothing, avoid criticism!'