Chieftain Share Discussion Threads

[veryniceperson] 04/4/2008 17:02

With the large buys going through today, surprised to see a minus, perhaps its not all as its seams?

Any thoughts anyone!

[targatarga] 03/4/2008 20:25

nice to see some sizeable buys....very rarely do we see blocks of more than 5000 traded in these. regards

[penpont] 20/3/2008 10:33

But Chieftain dosen't just 'have cash' - it has cash amounting to almost a third of the current market value of the company. Take out that and you probably have a PE of 6/7. Very low I'd say for a company with such exposure to the energy sector.

[masurenguy] 20/3/2008 09:38

"TIP UPDATE: Buy: Chieftain's shares have slipped slightly since we last suggested buying them (207p, 15 August 2007). But its ability to ride on the coat tails of the oil and gas boom, and provide long term earnings visibility, still makes them a buy on a modest 10.5 times earnings estimates."

That would have been true this time last year but at the moment there are just loads of stocks, either with cash of very little debt, on forward PER's of 6 to 8 and these even inclue some listed on the FTSE 100. So 10.5 doesn't really reflect good value in terms of market sentiment at the moment !

[penpont] 20/3/2008 09:09

From IC today:

Record order book for Chieftain
Created: 19 March 2008 Written by: Malar Velaigam

Engineering services provider Chieftain has benefited from the buoyant oil and gas sector, with pre-tax profits up 40 per cent and a record order book of £69m, which chief executive Bill Taylor says can carry the group through to 2012.


The outfitting business - which is contracted to maintain three submarines for BAE - has been boosted by indications of BAE's intention to extend the Astute class submarines contracts to a fourth vessel. Mr Taylor says this fourth contract will provide earnings visibility through to 2014 and he is confident of winning work for another three submarines from BAE.

Cash generation remains strong - operating cash inflow was £1.6m - giving the board confidence. And management are still open to bolt-on acquisitions with a view to expanding the electrical business. However, the stellar run was marred by the less than perfect integration of steel maintenance service company Kevin Lloyd (bought in March 2007), which saw most of its labour leave. But, the business was purchased below net asset value, and assets have now been integrated into Chieftain's engineering unit.

Broker Brewin Dolphin Securities expect 2008 EPS of 17.8p, rising to 19.6p in 2009.


TIP UPDATE
Buy: Chieftain's shares have slipped slightly since we last suggested buying them (207p, 15 August 2007). But its ability to ride on the coat tails of the oil and gas boom, and provide long term earnings visibility, still makes them a buy on a modest 10.5 times earnings estimates.

[jeff h] 19/3/2008 08:49

aren't they always penpont!

[penpont] 19/3/2008 08:45

Thanks Jeff. Even taking into account the exceptional item relating to Kevin Lloyd which boosted profits last year, the estimates look ultra cautious.

[jeff h] 19/3/2008 08:12

New Brewin Forecast (Buy rec 18/3/08)

Y/E 31/12/08 Pre Tax £2.2m EPS 17.6p Div 8.0p

Y/E 31/12/09 Pre Tax £2.4m EPS 19.3p Div 9.0p

[veryniceperson] 19/3/2008 07:54

We could hopefully see a rise today, that would make up yesterday. Perhaps a mention in a couple of the papers, you never know!

[davidosh] 18/3/2008 22:50

I doubt the directors have that kind of mentality Felix.....especially as it was only just over four years back that the directors had to make a loan to the company so they probably like the luxury of cash in the bank.

It would certainly be efficient use set against having to pay a sizeable dividend for each share as well. Take enough into treasury for future option and share based payments would be useful though.

Nice to see lots of visitors here too btw....Excellent results will bring a few newcomers for sure

[felix99] 18/3/2008 20:23

Should be buying back the stock like LTHM with all that cash ?

[veryniceperson] 18/3/2008 17:15

How about that, with those results you wouldn't expect a minus. Anyway would expect them creep up gradually over the next few months, or the AIM market is going the same way as the Dodo.

[gorse] 18/3/2008 11:02

Just had to top up on these results. Wish I'd allocated some of my money from purchases of bank shares to CFT earlier. This company also has the additional headwind of a weaker £ which must, I presume, bring some benefit to the bottom line.

[davidosh] 18/3/2008 10:26

On the 19th December last year I stated in post 637...

I suspect eps will come in around 17p if guidance has been given so late in the year and after such a bullish trading update. So last three years would be...

2005....5.46p eps

2006...11.90p eps

2007...16p ++ eps

2008... ?? (I expect over 20p with the order book still ballooning)

Not to forget nearly 50p net cash too

All that growth and cash for a fwd p/e of under ten

Looking very good to me.. (Ends)

- - - - -


After such excellent results for 2007 and with strong bullish comments from the Chairman and chief exec in their statements today it is difficult not to see further very good growth in 2008. The company now has over 60p in net cash too. So the question is .....

2005....5.46p eps

2006...11.90p eps

2007...17.16p eps

2008... ?? (I expect 22p with the order book already very healthy and more contracts in the pipeline suggested today)

60p net cash and a dividend up 50% to reflect the healthy balance sheet and outlook.

It will be interesting to see the updated forecasts and although I am sure they will be fairly conservative and in line with the under promise /over deliver sensible guidance from management that we are used to. Well done to Bill and all the team at Chieftain

[glasshalfull] 18/3/2008 09:57

Concur with above posts.
Excellent results in the current climate.

Regards,
GHF

[simso] 18/3/2008 08:47

Fantastic results. One would think that in these difficult times, that companies like this would be "safe havens" for investors' cash. The past few weeks have taught us there is no such thing as "safe as houses"..or "safe as teh Bank of England", but companies like this, with strong profits, dividends, growth, cash....are as close as you will get.

[philjeans] 18/3/2008 08:20

Super-hero little business!

In a normal market, these would be 3 quid by now - they still will be once sanity returns.

Buy before they're all gone!

[veryniceperson] 18/3/2008 07:37

With turnover up 39% pretax up by a whopping 40% finale dividend up 50% should see a nice rise today, but with market conditions? But what a great set of results.

[matt] 18/3/2008 07:09

Great results, increased dividend and big cash pile too.

PRELIMINARY RESULTS 2007

Chieftain Group plc ("Chieftain" or the "Group"), the industrial and engineering
support services Group, announces its preliminary results for the year ended 31
December 2007.

Highlights

* Turnover rose by 39% to £46 million (2006: £33 million)

* Pre-tax profits increased by 40% to £2.1 million (2006: £1.5 million)

* Basic earnings per share up 47% at 17.16p (2006: 11.66p)

* Biggest ever order book totalling £69 million

* Strong cash position - £5.3 million at year end

* Final dividend per share of 4.5p (2006: 3.0p) - up 50%

Bill Taylor, Chief Executive of Chieftain, said: "This has been an outstanding
year for Chieftain with the Group achieving record results. The Board's strategy
to develop the business through its core skills is proving very successful and
we are continuing to win high quality long term contracts. Having already
secured clear visibility of the order book, I believe that the Group is in great
shape to capitalise further on the excellent opportunities which are presenting
themselves."

[dreggspicker] 14/3/2008 08:10

What, so they can all have £12,000 kitchens ? Ect, Ect ? I pay my tax, but I don't pay what I don't need to !

[veryniceperson] 14/3/2008 07:47

Come on you lot, stop trying to get away without paying your taxes. Gorden and puppet Darling need all the money they can get, we're skint

[dreggspicker] 13/3/2008 19:41

Thanks for that, that would work if you haven't got a Mrs to sweet-talk, I am surprised it is not done more often, not many do I am told.

[robhammers] 13/3/2008 19:37

This I believe is my best holding at moment. To have government contracts in these times is very reassuring.

[davidosh] 13/3/2008 19:34

Another option if you want to keep hold of the stock but utilise your taper relief is to consider a transfer of your holding into a spreadbet company. You will no longer have any overall rights to the stock but will still have the benefit of any gain from here. After the necessary qualifying period for the sale and into the new tax year you can consider buying the stock back in certificated form or nominee and close off your SB holding. There will be minimal holding cost and you will save the spread as the MMs are not involved ie. broker to broker.

[dreggspicker] 13/3/2008 19:04

Sorry to give you the jitters, my Mrs dreggs wanted to be out of cft, I didn't, so she sold & I bought. I actually bought more than she sold. I would suggest asking your Mrs (if you have one) if they would like to own some cft's, you maybe getting tired of them, then you can have the capital gains ( maybe aim taper as well ) as you will probably not get the chance after 6th of April.

Regards, dreggs