Kentz Share Discussion Threads

[marben100] 24/5/2014 15:50

For clarification, the "-" in Rivaldo's post, which ADVFN have "kindly" censored stands for s t o c k o p e d i a where you will find the article referenced.

[scottishfield] 23/5/2014 16:06

Tks rivaldo, you should post that on the ZULU thread.

[rivaldo] 23/5/2014 13:39

Just got an e-mail from - about Zulu stocks coming back into fashion - KENZ comes off rather well. I hold KENZ and RNWH of the stocks mentioned and held TRI previously:

"Zeroing in on Zulu stocks with the StockRanks

For - subscribers, here's a fork of the current Zulu screen with the full set of StockRanks in the table view. With these on display it's possible to get a general insight into the overall Quality, Value and Momentum (QVM) characteristics of each company on the list.

In -'s soon to be released 1-year StockRank performance results, companies ranking in the top 5% of the market produced a market-trouncing average return of 33%.

Among those qualifying now is South America based oil and gas group Amerisur Resources (LON:AMER) with the lowest PEG of just 0.22. It is followed by engineering group Kentz (LON:KENZ) with a PEG of 0.33 and an exceptional StockRank of 95/100 - meaning that on a blended range of QVM measures, it ranks in the top 5% in the market.

In terms of StockRanks, Kentz is only bettered by Renew Holdings (LON:RNWH) and Trifast (LON:TRI), which make the grade as Zulu GARP stocks with StockRanks of 98 each. You can see the original Jim Slater Zulu Principle screen here."

[steeplejack] 23/5/2014 10:17

It'd be nice to get back above 720p which provided good support until quite recently.

[fizzypop] 23/5/2014 10:01

700p almost there ...

[owencoffin] 23/5/2014 09:55

beaudelaire
12 Jan'06 - 09:26 - 109 of 3900 0 0
petrofac pfc.

This will be pushed up over £3 easy in the afternoon once everyone
is aware and the city realises the growth story of this gem.

[pixi] 22/5/2014 22:49

Looking good for the future.

[dr_smith] 22/5/2014 17:06

Thank-you Rivaldo and you are right, it wasn't on my usual reference 'Digital Look' and can't see it elsewhere. Oddly, no amount stated, so even those in the know on the potential gains of the aquisiton can't say if its a good deal without knowing this cost.

[rivaldo] 22/5/2014 15:31

Bouncing nicely now.

Interesting that last week's IMS included a company acquisition which went virtually unnoticed. KENZ issued a news release about it with more detail:



"Kentz Acquires Further Construction Capability in Canada
CALGARY, May 16, 2014

CALGARY, May 16, 2014 /CNW/ - Kentz, the engineering and construction group, is pleased to announce that it has completed the purchase of the business of Alegro Projects and Fabrication Ltd ('Alegro'), an organization offering fabrication and construction services to the industrial sector in Western Canada.

Highlights:
•Strong fit with Kentz's existing Canadian operations; supporting strategy to increase Kentz's multi-discipline fabrication and construction services in Canada
•Adds structural, mechanical and piping (SMP) fabrication, along with site construction capability, to Kentz's existing in-country electrical, instrumentation and telecoms expertise
•Alegro has long-term customer relationships with repeat business in the Western Canadian market; working on multiple projects throughout the region
•Over 85 skilled employees, based in both the Nisku fabrication facility and on a number of project sites in Alberta
•Provides Kentz with a presence in the greater Edmonton area, Alberta's industrial heartland

Background to Alegro

Alegro designs, fabricates, and installs piping, structural steel, and storage tanks, along with a range of other oilfield equipment. The Company has been in operation since 2004 and is based in Nisku, Alberta.

Alegro has completed a number of significant facilities projects in Alberta, for clients in a variety of sectors; in particular oil and gas.

Rationale for acquisition

One of Kentz's strategic objectives outlined in its 2013 & Beyond strategy, was to acquire SMP capabilities, to augment its existing electrical and instrumentation (E&I) expertise, and to support Kentz as it evolves as a multi-disciplined construction contractor within the Canadian region. This will enable Kentz to target, self-perform and execute multi-disciplined construction opportunities as a prime construction contractor, as the company does in many other regions globally.

Business outlook for Canada

CERI estimates capital investment in the Canadian oil sands to add up to $207 billion over the 2013-2022 period, and this estimate excludes additional maintenance, repairs and operational expenditures. This acquisition further supports Kentz's capability to significantly target a larger portion of the capital expenditure.

Paul Knowles, Director for Kentz's Construction Business Unit in Canada, said:

"The addition of Alegro to our existing E&I construction business in Canada, creates a wealth of opportunity for Kentz in the Canadian oil and gas construction market place. Alegro has a strong record of delivering for its clients and has a strong cultural fit with Kentz; I welcome all at Alegro onboard and look forward to working with them.

"The addition of further construction capability was a key strategic growth initiative identified by Kentz and combined with our engineering and technical services, gives us a rounded offering to existing and new clients across the region.""

[rivaldo] 20/5/2014 11:13

Comment today from MGW - Buy :o))



"Kentz Corp

Another contract for Kentz this morning, today it is from Sadara the JV between Saudi Aramco and Dow Chemical for their Sadara Petrochemical Plants in the Jubail industrial city in Saudi Arabia. Another good piece of ME work for Kentz in an area they are highly proficient in and for a long standing client over a multi-year timescale which will reward them well. No size of contract given but will be decent and yet another add to the order book which is in very good shape. As I said yesterday, Kentz has fallen around 100p from its peak and investors should be buying at these levels."

[rivaldo] 20/5/2014 08:11

I suspect today's news is rather big, though no quoted numbers as yet...



"Kentz Awarded Sadara In-Plant Support Services Contract in Saudi Arabia

London, 20th May 2014 - Kentz Corporation Limited (LSE: KENZ), the holding company of the Kentz Engineering and Construction Group, is pleased to announce the award by Sadara Chemical Company, a joint venture between Saudi Arabian Oil Company ('Saudi Aramco') and The Dow Chemical Company ('DOW'), of the In-Plant Work Support Services Contract for the new Sadara Petrochemical Plants being constructed in Jubail Industrial City II in the Kingdom of Saudi Arabia.

Kentz's scope of work is to supply manpower, management, supervision, skilled labour force, construction and maintenance equipment, small tools and consumables, and procure other equipment, materials and services that may be required by Sadara. It also includes support of construction, pre-commissioning, commissioning and start-up activities. The project will be performed on Work Unit Rate and Time Unit Rate bases and will be executed through Kentz Construction & Technical Support Services Business Units.

Shane Dooley-Cullinane, Regional Managing Director, Middle East for Kentz, commented: "Kentz is delighted to be awarded this package and to be part of the world-renowned Sadara project. Kentz has experienced impressive growth in the past few years in Saudi Arabia, with the award of this contract further strengthening our local presence. Kentz has been working in Saudi Arabia since 1977 and is looking forward to successfully and safely executing these works.""

[slim9] 20/5/2014 07:28

150p upside :-)

[fizzypop] 19/5/2014 15:38

Well on LSE the buys now exceed the sells so perhaps the bots are growing weary.
They must indeed be desperate since I saw a sell of one share this morning.
However, grabbing at straws, the share price is now bouncing off 659p which should set a baseline.

[dr_smith] 19/5/2014 11:11

As the sell off seems to be without business foundations, I wonder if it's another symptom of these auto-tradings bots.
My trades are controlled by a human though :-)

[jeffian] 19/5/2014 10:47

Look at what's happened to the FTSE 250 over the past few trading days -



- it pretty well mirrors what's happened to KENZ and many other mid-market stocks which have had a good run. The FTSE 100, which is stuffed with foreign miners etc, doesn't reflect the wider market where something of a sell-off has been going on.

[sheyac] 19/5/2014 10:39

Maybe related to board pay dispute?

[deadly] 19/5/2014 10:28

Strange to see it continuing to fall after those promising statements.
Must be a chance to top up.

[rivaldo] 19/5/2014 07:41

Thanks for the AGM notes Mark, and good to see you topping up.

Broker update with an 810p target:



"Broker snap: Kentz a buy on optimistic growth outlook, says Investec
Fri, 16 May 2014

Kentz's interim statement on Friday paints an optimistic growth picture for 2014 and beyond, according to Investec.

The engineer said it achieved higher order intake and backlogs in the year to date. Backlog at the end of April was $4.5bn, up from $2.8bn a year earlier, and order intake came to $1.8bn in the first four months, compared to £1.7bn last year.

"The key number is its $4.5bn order book, +47% since end-2013 and up a further 10% since the most recently disclosed figure at end-February," Investec said.

"We leave our forecasts unchanged but believe the recent pull-back in the share price offers an attractive entry point. Buy."

The broker issued a target price of 810p and said Kentz is trading on a 2014/15 price to earnings multiple of 10.9x, a 13% discount versus Investec's sector average and a 16% discount versus its target sector.

"We see a 5% discount as achievable given Kentz's earnings growth, strong bid pipeline and financial strength. his implies a target price of 810p. Key risks are commodity prices/client spending levels."

[davidosh] 17/5/2014 23:37

Thanks for the excellent review of the Agm

It has to be said that the company had their Agm two years ago at 11am which was a sensible time. For some unknown reason they moved it to 10am last year and the ShareSoc representative asked for a presentation to be provided to encourage shareholders to attend as there were only three there at the earlier time ( incidentally there are excellent reports covering the last three Agms now in the ShareSoc library so you can use them as a useful minutes like resource) ...This year a 9am start makes no sense at all. Now there are just 2 shareholders that made it.

So one has to ask ? Why did they not listen and move it one hour earlier yet again and still no presentation ? Will it be 8am next year if it moves another hour?...even with the best continental breakfast in the world that is not the way to attract investors and shareholders from outside of the square mile !

Maybe they did not want further embarrassing questions about remuneration ?

I wonder what the response will be if I ask for a presentation now at a Mello event ?

[jeffian] 16/5/2014 22:51

Ah, middle names! I am called by my middle name (Ian) and sign myself as such which can cause problems, so when I set up my credit card, I put my first initial (D) in front of it to avoid confusion. The first communication back from the company was to "Dr. Ian J...". No, I explained to them, it wasn't Dr., it was D. Back came the reply........

"Dear Diane......."


Doh!

[dr_smith] 16/5/2014 21:28

Thank-you again Mark.
Considering the eventful last last 6 months for Kentz, it is surprising there were only 10.
Also interesting the attendee 'hat' is implied by the clothes.

Though appearances can be decptive - I'm not a Doc, but have middle name Russell.

[marben100] 16/5/2014 18:25

Hi Dr Smith,

As I attend many AGMs (I like to get to know the management of companies I invest in), I don't find it difficult to spot shareholders vs "suits" (various corporate advisors). You might be surprised to learn that, apart from the Board, there were a total of only about 10 people present at Kentz' AGM, including Meg Lassarat, who sat in the audience. I was the only person that asked any questions.

Undoubtedly the early start and lack of a proper presentation deterred many shareholders from attending. There was a good continental breakfast buffet, however!

I have now posted a write up of the AGM, for ShareSoc members on our members network website: . Thanks to Alex Lawson for doing most of the write up.

For anyone not familiar with ShareSoc, we are a not-for-profit organisation that supports individual shareholders and campaigns for shareholder rights. If you're not already a member you can join us here:

Once you've joined, you'll receive an invitation to register for our "members network" private social network, from where you'll be able to access the report (and reports on over 100 other AGMs). If you're already a member and have any difficulty accessing the report, please do not hesitate to contact us here:

Cheers,

Mark
Twitter @marben100
ShareSoc Twitter @ShareSocUK

[dr_smith] 16/5/2014 17:34

Thank-you for the AGM perspective Mark.
I've never been to a big co's AGM, I'd have expected quite a few attendees, be they employees, reporters, investors, fund managers etc, so curious how you knew there were only 2 shareholders in a room full of strange faces.
Was there a web link to explain the low number of (shareholder) attendees?