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Interserve Share Discussion Threads
Showing 4001 to 4025 of 4025 messages
|I've got back in after selling a couple of years ago. Although probably not the right timing if its been tipped by Motley Fool ;)|
|Have we now seen the share price nadir as it touches 327p?
MF on Monday;
A buying opportunity
Shares in Interserve (LSE: IRV) have fallen by 28% in the last months after it announced delays to its waste-to-energy plant. While disappointing, this provides investors with a chance to buy a slice of the business at a lower price, thereby offering greater capital gain potential.
With Interserve trading on a price to earnings (P/E) ratio of just 4.9, it seems to offer an exceptionally wide margin of safety. Certainly, there could be further pain ahead in the short run if news flow disappoints, but with the company being financially sound and reasonably well-diversified, its risk/reward ratio has considerable appeal.|
|Let us hope the new Chairman is asking some searching and probing questions of the Exec Board. Something badly wrong here and the market always knows even if we investors do not. The 10% fall on the Wednesday prior to the Friday fall of circa 25% signals some had knowledge and acted upon it. The world has changed a lot since 2003 when the Chief Exec was first in post, this Company looks to be in need of new direction.|
Just catching up but when I saw this £25m contract story I got concerned..why do they need to issue a RNS for a £25m deal if last year's revenue was £3,269.Indeed UK construction was £1,040 ie £20m per week..anyone understand???|
|waddy is being a wag. Last contract announcement was followed by a warning...|
|Not sure I understand why the contract announcement is bad news wad collector?|
|A new contract RNS; this is a bit worrying ,are we about to hear more bad news?
18 May 2016
INTERSERVE WINS GBP25 MILLION HAMPSHIRE LEISURE CENTRE CONTRACT
Interserve, the international support services and construction group, has won a GBP25 million contract to build one of the south of England's biggest leisure developments, the Fleming Park Leisure Centre in Eastleigh.|
|Bottom feeding at 308? Added some , perhaps unwisely as I hold a lot here , but I don't believe this is a crisis.If next yrs broker guesses of EPS are anywhere near correct at 75p , that is almost a quarter of the current share price|
|There is no transparency. BBY was a classic example that specialised in trumpeting their contract wins while burying bad news. 4 years ago their wheels finally came off after issuing a glowing interim statement in August followed by a profits warning 3 months later. As things got worse they finally admitted they lied in their earlier statement and the CEO departed. We live in a culture where lies and deceit seem to have become the norm. Just look back at the banking crisis or Tesco. There is no safety when you invest in shares, because of the dishonesty of the management or negligence of the auditors who often look the other way if they spot something irregular. And that's before one even considers the prospects for a company.
Personally I think IRV has further to fall as bad news rarely arrives with single revelations, so I would expect more profit warnings and possible CEO resignation.|
|mayers, I agree with you that this leaves a bad taste... To just come out with a £70 million write-off is either incompetence or dishonesty. That was almost 15% of the company's mkt cap before the fall as well as half of the entire contract's value (the Glasgow plant). Also, looking back at all the positive statements regarding contract wins (which mention nothing of the upcoming shocker) I noted a strange coincidence: the directors were given shares in April, sold them, and then released the bad news. It doesn't look good.|
|Amongst the enthusiasts I am reminded that the day after the report of a not insignificant contract there was a major fall in share price I believe that this was an attempt to hide bad news and that this was something some people knew about. If so I resent this as I honorably invested good money in this company on the basis of its record. Is this the sort of company I want to invest in? I would suggest we look closely at this at a time of increasing transparency. Just my thoughts. edmundshaw will doubtless advise!|
|Is your name Marvin? Do you have a brain the size of a planet?|
|Who's to say they won't be down to 290 in the next few days. Could be choppy for a while|
|I remember buying IRV first time around in 2008 for 180 and selling up around 5 yrs later. It has probably been my best investment. Hoping for similar returns this time around, whilst also enjoying the divis.|
|Good shot, sir!
I was planning to add more if they dropped to around 290p. Sigh... Still got plenty though :-)|
|That's a nice start :)|
|Good luck! I am with you.|
|I bought back in here at under £3 after a successful investment over 3 years ago. Will top up if price reduces further.|
|Had a chance to listen to the conference call now. Thanks for the link edmundshaw. They certainly meet the problem head on and give good response. I'm tempted to add for the long term but need to see a bit of stabilisation first. The market tends to over-react to the unexpected - good and bad - and I'm not sure it's finished kicking IRV yet.|
|I have to agree that while selling the equipment services business would fix a temporary cash problem, it would remove a major profit centre from the business.
I find myself struggling to work out what the overall business strategy is now.
FTSE 250 relegation now looks inevitable so I will sit on my hands and wait for the next market update to see if that can bring some more clarity.|
|My understanding is that equipment services accounted for a third of operating profit (last financials). Why sell it? What are the ramifications if they do sell it?|
|Equipment services apparently doing OK. Also ME OK from Interserve's viewpoint, though as ever visibility is poor there - they seem to be reducing exposure to Saudi Arabia too, which is probably good news...|
|Interserve have been pretty canny over the years at financial problem-solving. Not many years ago, one of the things holding back the share price was a substantial pension fund shortfall. They got round that one by transferring some of their PFI schemes into the pension fund, booking a profit on the 'sale' and keeping the cashflows! We know from recent statements pre-dating the profit warning that Equipment Services was under 'strategic review' (i.e. for sale!). Maybe go some way to plugging the recent shortfall? Haven't listened to the presentation yet. Any mention of this?|
|Interserve has already successfully and profitably completed (and been paid for) a contract in waste-to-energy. Glasgow is the only (rather catastrophic) failure to date and Interserve is keen not to have another, another 2 contracts in the area should be OK. The final outcome from Glasgow is set at a "prudent" (I quote) £70m provision, but there were some suggestions that some investors may consider that some good may come of attempts to claw back some of the losses - but no detail and no guidance could be given due to sensitivity of discussions in the area. And £70m is apparently a "subjective" evaluation (whatever that means). My take is it could get a bit worse or it might get better.
Seems £70m is a prudent provision for me to use too.
Interserve management and contract writing is usually pretty good - I have been a bit surprised that they haven't had a serious problem before in the last few years (looking at the tribulations of some of the competition) but this one is a shocker. I'd be very disappointed to see another one anything like this scale.
From the CC it was good to hear other segments of the company business seem to be doing just fine.|
|Date Broker Recommendation Price Old target price New target price Notes
09 May Liberum Capital Hold 310.15 400.00 320.00 Upgrades
Appear to be low ball caller but CC2014 has rased a very worrying point re the Air Products withdrawal and write offs. Could it happen with Glasgow and if so at what final cost.
From UKWIN no apparent successes in this area - From memory I considered investing in a similar exercise in I think Avonmouth some 10 years ago but with luck never followed though - it was never successful (as a quoted company) and I think went bust after being taken private.
Just Googled and memory was correct
but now sems to be operating BUT in a very high value and specialist area of medical waste . https://waste-management-world.com/a/medical-pyrolysis-plant-resurrecting-avonmouth
On the surface does not give me much hope for Glasgow -
Thoughts - comments - or am I wrong ?|