||EPS - Basic
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|Construction & Materials
Real-Time news about Birse Grp. (London Stock Exchange): 0 recent articles
|dontknowitall: Earlier I sent the following email to the FSA, London Stock Exchange and the Takovers Panel.
Perhaps you might care to investigate this takeover, the increased trading activity that went on before the announcement and whether the shareholders are receiving value for money?
1. Unexplained increase in volume of shares traded before the announcement.
2. The valuing of Birse at £32m seems highly questionable.
3. The involvement of Citibank. In the past there has been a dispute between Birse and Citibank (one of the main reasons the share price has been held down). Citibank has been advising Balfour Beatty - who are taking over Birse.
I feel that "things go on" in the City that are not entirely fair to all the investors and employees of these companies.
I'd be grateful for your initial comments and would like to know if you will investigate this affair.
I've had one reply (from the Takeovers Panel). They said they're not interested and I would have to approach the FSE on matter one and Rothschild on matters two and three. Rothschild have acted on behalf of Birse in this episode.
In my experience the FSA is like a wet lettuce and totally spineless.
I'm not going to contact Rothschild purely because they will say it is the best deal that could be found.
And who regulates Rothschild? The FSA of couse.
And the Stock Exchange will not want to get involved in this.
There seems to be no one looking out for the small shareholder in this.|
|the bounty hunter: Generally good news to see the rise in the share price over my average cost - so have enjoyed good divis and a reasonable capital gain. Not the golden egg I was hoping for.
It is not impossible that another player may make a move, but they will have to act quickly - in th next 10 days IMO or this is a goner! Costain always looked a good fit. I certainly think that bie is going a little cheaply as if this is well run, then the extra turnover will enhance balfour's eps.|
|chrissey: The explanation is simple, however suprising you find it!
Over the last 4-5 years Birse have done a pretty spectacular job of completely messing up a major contract, the outome invariably being a large cost to them as a result of not having proper contract terms, etc. in place.
This created a perception, quite rightly, that the management of the Company was incompetent and based on their pretty reliable track record in this respect, people began to factor this into their share price!
I suspect the pleasant, although very suprising, fact is that we appear to have got through the last year without such a mess so the bad news expectation can now be factored back out!
This does not mean we will not have a similar mess next month, year or whatever but the fact is that up to now the shareprice has been reflecting this negative expectation and without the problems with their management, the Company is actually in reasonable shape financially and with a good order book.
Make of this what you will but I think you will find I am closer to the truth than just pre result speculation!|
|sandbank: Results are out in three weeks...
Otherwise I suppose the rally is for the same reason the share price went up in January - and came down again - and went up again and came down again.
Too late to buy for the dividend now though.|
I would be interested in any Chairmans statement that you can direct me to, that doesn't put the best possible gloss on the situation, even in the case of a company which subsequently went bang.
For most of the past two years I've been writing occasional "bear" posts on the Jarvis board where about 99% of the other posters have been taking any bits of positive gloss or spin as an indication that the future is wonderful, while the share price dropped steadily from £2 to 2pence (the present equivalent)and the company very narrowly escaped bankruptcy (and subsequently just about acknowledged this) on four occasions.
I happen to know Birse and this industry, which I work in, quite well. At the moment, the transition from the old style "return a tender, win the job and start, on the start date mentioned in the tender documents, within a month", to ECI, which on one job I'm working on (not with Birse) has now taken 2 years and will probably take another 9 months because of public enquiries, and similar procurement methods, such as PFI, design and build etc, is causing cash poor contractors serious problems because of its unpredictability.
An example of that predictability is a job I tendered with Birse for the first time at least 3 years ago which we have had to revisit as a subbie at least half a dozen times and there is still no start in sight.
Another contractor who I've been talking to for six months on a job we priced for them / with them (and this is a far bigger contractor), really has lost interest as the start date recedes while his actual workload increases. To start up too many delayed jobs at once, would put cashflow and staff resources under pressure for any conractor, never mind one who is short of cash - but he doesn't say that in his statement does he?
|mitchy: I expected the share price to surge ahead after the news of legal settlement because that was the only 'risk' with this company that I can see.So why has the market not reacted?
I guess because of the overall size of the settlement which in my opinion isn't that significant for a company the size of Birse.There seems to be some doubt remaining about operating cash from reading the comments here but I just don't see the same concerns.
They are making money,have ample liquid assets and an excellent credit rating should they require more.They have maintained a very healthy dividend during all their recent problems because the fundamental earnings are there and I would expect an increase in the divi going forward.So where's the problem?As has already been dealt with on these boards all building companies delay payments,it's par for the course not an indicator of an inability to pay.
So I say that failing another debaclé that we don't know about,and that could be said of any company,I see this as the floor/platform for Birse to build on.
The building sector, as a whole, has been somewhat muted by the increasing interest rates and flat housing market.It now appears the fears over inflation have been over inflated and therefore lower rates ,as a result,are much more likely.
What with the ongoing business that Birse are generating ,Olympic money,depressed share price and newly focused and determined management and knowing this company personally i'm happy to be holding and am now looking to add.
Do your own research...as they say.I've done mine.|
|michaeld: I don't think that the Adjudicator/s have to defend their decision? The Court will take their report/decision into consideration though and are generally liable to confirm it unless they feel that the decision was unfair for some reason (eg that new evidence has come to light). If Citibank are considered to have been frivolous in appealing the Adjudicators decision then they are likely to be liable for the court and Birse's additional costs, I believe. Citibank might also face a reduced settlement from Birse? If the decision of the court goes with Birse then there may be a nice little windfall in the accounts for next year? Time will tell but in the meantime we shareholders face a further prolonged period of uncertainty which is likely to keep the share price depressed?
I do wonder if having a barrister on the board of directors is a good thing or not? Does he like to engage in litigation rather than help prevent it? The signs are not good.|
|day_dreamer: I'm not asking where the bottom is for the share price, i want
to know what are the implications should Birse lose the litigation
case, can they cover the potential damages should/if that happened ?
|johnbea: peter birse has sold two tranches of shs this yr but still retains 13pc - this w/give him an exit without causing an overhang on the share price - however,outcome of citibank litigation still hanging out there...|
|jwcs: I thought these results were quite respectable as well.
If only they could avoid the annual stuff-up with a major contract turning bad, then 6-7m net profit per year would have the share price well into the 20's. I have held a large chunk of these for 3 years now at an average of 10.9p. On the face of it the performance doesn't look great, but when you add the 3p dividends that I have received the average buy-in cost reduces to 8p giving a 3 year return of around 65%, and that in treacherous markets.
Going forward there are worse places to leave your money, particularly if there is another general market downturn. Once the 'selling on the news' has dried up these may even tick up a couple of points.|
Birse share price data is direct from the London Stock Exchange