Shanks Share Discussion Threads

[cerrito] 24/5/2013 23:06

Glad to see SKS shares buoyant not only with market turmoil but also the poor results announced yesterday by Pennon and their waste subsidiary Viridor, whose EBITDA went down by 29% largely due to falls in recycling prices. In addition Viridor had to make exceptional impairment charges of £189m.
Surprised to see how much bigger Viridor-revenue all of which seems to be in uk £704m-is compared to SKS whose UK sales seem to be £170m
I read somewhere in the last week that the secondary market price of PFI assets is very good given high demand and lack of supply of new projects; if true that could be useful to SKS who have £125m of PFI assets due to go up to £195m in the next 12 months. We will have to wait till the annual report to see how they are valued.

[wipo1] 16/5/2013 13:45

Yep awfull, looks a good short target price 73p for starters

[contrarian2investor] 16/5/2013 12:48

Mr_BlueSky

Results out and pretty dreadful with the exception of cost savings.

Maintaining the dividend shows some confidence I suppose. My stop-loss remains in place. Unless triggered I won't alter it until ex-dividend date.

[mr_bluesky] 08/5/2013 11:30

con:

Prelims are on May 16 so the price could meander until then,but I will be watching for signs that there may be an early leak that the news will be good.

when this gets over 100p then that will leave some major resistences behind and should act as support IMO

This was the last broker rec and as you can see it was a conviction buy.Target a bit low but I can see that being extended.

29 Apr 13 Shanks Group PLC Goldman Sachs Conviction Buy 84.00 113.00 108.00 Upgrades


Mr Bluesky

[contrarian2investor] 08/5/2013 11:26

I have raised my SKS stop-loss to 77p.

Mr_BlueSky, I am hopeful for a slight upward surprise from SKS next week. Which would see the share price push on towards and maybe above 90p.

[mr_bluesky] 07/5/2013 19:13

SKS looks to be on the verge of a break out right now and with prelim results for the year end due on May 16 this could well be a good time to get in if you are not already IMO!



09 April 2013

Year end trading update for the year ended 31 March 2013

Shanks Group plc, a leading international sustainable waste management business, provides a year end trading update for the year ended 31 March 2013.



Since the Interim Management Statement on 5 February 2013, the Group has continued to trade robustly and to implement its cost management actions, in market conditions which remain very challenging. There has been an additional material impact from the recent unusually adverse weather conditions on activity levels in the Solid Waste, Hazardous Waste and Organics Divisions. Nevertheless, the Board expects to deliver a full year result broadly in line with its expectations.



The Group's structural cost reduction programme, which is expected to save £20m per annum by 2015/16, is progressing well and, as previously indicated, will result in restructuring charges and asset impairments in the year ended 31 March 2013. These are expected to amount to approximately £32m, with £10m of this in cash. In addition, as indicated at the time of the interim results announcement, the annual goodwill impairment process will result in some further (non-cash) reduction in the carrying value of the Group's goodwill. The Board expects this impairment charge to amount to £19m, approximately 8% of the Group's total goodwill, relating primarily to certain Scottish recycling assets, a Belgian sorting centre, and a landfill site and a loss making ground works business in the Netherlands. The aggregate restructuring and asset impairments are in line with Board expectations at the half year.



Cash performance has been ahead of the Board's expectations due to very effective capital management. The balance sheet remains strong and the ratio of core net debt to EBITDA at 31 March 2013 is expected to be between 2.1 and 2.2 times.



The Group is scheduled to announce its preliminary results for the year ended 31 March 2013 on 16 May 2013.

[contrarian2investor] 30/4/2013 11:52

The strong breakout above 80p. As led me to buy another tranche for 82p. Combined stop-loss raised to 73p.

[contrarian2investor] 29/4/2013 19:36

ADVFN---------------------------

[contrarian2investor] 29/4/2013 19:25

A0148009,

Great find. I find it astonishing that GS have chosen SKS from the number of companies they could choose from, to add them to their "conviction list". Maybe its because I have a negative view of their calls v behaviour.

But I am not complaining at the moment.

------------

wad collector,

With these two large buys today, I am within a whisker of saying "YES".

Number of share 61068 price 79.75p value £48,701.73
----------------41683----------80.00p--------£33,346.40

[craigends] 29/4/2013 16:02

Ansc -all held in 'offshore' accounts. will they add more, and more...

[ansc] 29/4/2013 15:46

STERLING STRATEGIC VALUE LIMITED now own just over 3%:

[a0148009] 29/4/2013 08:52

A revival of takeover speculation helped Shanks outperform a falling London market on Friday.

Shanks gained 3.3 per cent to 77.5p after Goldman Sachs argued that sector consolidation made the group a potential takeover target. It added Shanks to its "conviction buy" list with a 108p target price.


Cold weather adds to Shanks' headwinds




Goldman noted reports that Dutch waste handler Van Gansewinkel was looking to sell divisions similar in size to Shanks for about €1bn, and that compatriot Attero is being auctioned to peers for up to €800m. The Netherlands is Shanks's biggest market.

Deals in Holland would "highlight the appetite for cheap waste assets in Europe ahead of a potential recovery in volumes and prices", Goldman said.

In 2010, Shanks fended off a £535m takeover approach from Carlyle, the private equity group. Based on the earnings multiples of Carlyle's offer, Shanks would currently be worth about 121p per share, Goldman argued.

"We do not believe the strong growth outlook and M&A potential are reflected in the current share price," said the broker. "M&A activity in Shanks' fragmented waste markets could highlight the undervaluation of the shares and the potential profit recovery driven by cost control from the current-year lows."

source Weekend FT

[contrarian2investor] 26/4/2013 16:32

wad collector,

Once we get above 80p. Then I would be inclined to say yes, but not before. I have got these on a tight stop-loss of 68p

[wad collector] 26/4/2013 15:46

Have we bottomed?

[ansc] 26/4/2013 14:33

It's ironic that when I read the Investors Comic's 'sell' recommendation in WHS this morning, I thought 'that's bound to be a bullish signal'. I didn't for one minute think it would be this quick!

[craigends] 25/4/2013 11:49

Encouraging RNS released this morning,main holder increased their holding - we are not alone!

[wipo1] 24/4/2013 22:40

Erogneous jones, you could be right. You have to keep a open mind it could easily bounce when its back in favour, I was short stob then went long. like you say you win some u lose some.

[wipo1] 22/4/2013 18:56

Yeah looks like SKS heading for 65p or lower.

[gswredland] 22/4/2013 17:25

doesn't look good does..chart a bit sickly looking

[craigends] 22/4/2013 11:20

early morning high volume of trades, someone unloading?

[wipo1] 16/4/2013 12:06

barlick lol - well gd luck whatever you decide to do.

[barlick] 13/4/2013 13:54

wipo1

'barlick - lol. let winners run sell loss makers'

Which means?? Presume you mean 'let winners run and sell loss makers'.

Pure genius LOL

[wipo1] 11/4/2013 20:56

barlick - lol. let winners run sell loss makers