Tclarke Share Discussion Threads

[grahamburn] 02/8/2016 20:42

Pension deficits are an ever-present problem in the current environment and the statement hints - no, states specifically - that it is a growing problem for the business.

I agree with CC2014 that until the updated valuation is available, the company needs to cautious with its resources as the Trustees may well be looking for additional payments into the fund.

Add to that the prospect of a rate cut on Thursday and/or further quantitative easing and pension liabilities (albeit on paper) will only increase.

No wonder companies are so cautious about the future.

[cc2014] 02/8/2016 19:32

I was happy with the forward order book, cash position and the cautiously optimistic Brexit statement.

The lack of increase in the dividend was disappointing but I believe they had no choice given annuity rates.

It was great to see the day end with a 15k buy just before the close at 68.5, with another 15k on the buy side at 68.0

[tuscan4] 02/8/2016 17:42

Thanks gdjs for pointing that comment out. I think they are being very cautious, understandably so, in view of Brexit, and want to overdeliver rather than get everyone's pulses racing and encounter setbacks. Even so a rise in the dividend to even 0.75p would have cost little and steadied nerves. Feeling happier and still believe this is a high quality situation .

[gdjs100] 02/8/2016 17:19

One more mention, on their Investor Pack for H1 2016 (presentation) on their website:"Market conditions continue to present bidding opportunities that will give us good revenues into 2017."The company is focused on improving performance and margins throughout the Group despite the uncertainty as a result of the EU referendum."

[gdjs100] 02/8/2016 16:51

For the minute I am happy to give them the benefit of the doubt on the H1 margin - which is just for six months after all:"Operating margins were slightly lower... reflecting the mix of work and stage of completion with a number of significant schemes having only recently started on site."Then, later, with respect to increasing margins:"...although margins vary by sectors, they are showing cautious signs of improvement..."

[sspurt] 02/8/2016 14:38

Quite a change in tone and as tuscan says no mention of rising margins. Div held is also disappointing given there is now net cash on the balance sheet. I think management need to be more revealing or investors will fill in the blanks themselves - and it won't be flattering.

[tuscan4] 02/8/2016 08:40

What's happened to margins? Plenty of positive margin comments in recent months but now barely a mention. Something not quite right here.

[spooky] 02/8/2016 08:14

Well i am very disappointed with the results but the market appears very relaxed. I do not currently own any shares

[tuscan4] 01/8/2016 10:25

AS I have said before I believe that the dividend is the key to the share price moving to a higher level. Any dividend below 1.5p tomorrow will be a disappointment. Miton presumably have not increased to 17% without a pretty clear and positive view directly from the company. Still think this is a superb investment capable of 150p plus over the next 18 months providing margins are AT LAST returning to normality.

[cc2014] 01/8/2016 08:16

Interims due tomorrow. Should be really interesting to see whether the directors feel able to increase the dividend given the post Brexit climate and what comments they make on the forward order book.

[coolen] 22/7/2016 15:30

Looks like they paid 68p.

[cc2014] 22/7/2016 12:39

Miton can't resist can they? Another 500k picked up the other day taking their holding to 17.7%.

[cc2014] 05/7/2016 09:23

That's my sell this morning as I got 9% from my purchase last week and I could resist the prices on ALD and BLND. I'm quite surprised the MM's absorbed it so easily and L2 hasn't moved at all. Still 20k sitting at 67.5 so I assume they are working a nice buy order.

[cc2014] 01/7/2016 08:37

L2 is stacking up on the buy side in exactly the same way it did yesterday afternoon. I will be interested to see if we get another move up later in the day

[cc2014] 30/6/2016 19:16

I'm doing fine Spooky. I bought a shed-load between 43 and 53, 2 years ago so I've still got a load of them in profit. Add to that I've had 6.2p dividend on those and 3.1p from most of the others higher up.

I wouldn't want CTO to fall much further though. The last week has been a little frustrating.

It was good to see the price come back this afternoon on decent volume, with solid buy volume in the closing auction at 65.0 left unfilled.

Tbh my time horizon on CTO has always been long term (say 5 years). We will see how the single market negotiations go and for the government to get on with this asap. Uncertainty doesn't help anyone.

[spooky] 30/6/2016 10:40

CC2014 - You must be taking a bath in these, do you ever use stop losses?

[cc2014] 30/6/2016 10:37

Topped up here. Another 26,774 shares for the portfolio.

[bazzer1000] 08/6/2016 17:31

oops ..... sorry! Yes you are right I've got my posters mixed up. Well I'm still looking forward to your thoughts as this does seem very cheap. This has come up on my zulu screen, but I think it's more of a value play really with a good dividend which should provide a bit of support to the price. Also net cash and good (over 5 year period) cash flow. Margins seem to be improving plus a bit of top line growth. The only downside seems to be the pension deficit. However Paul Scott seems keen and he normally stays away from anything with a weak balance sheet.My thoughts so far.Cheers Baz

[effortless cool] 08/6/2016 17:18

Hi Baz,

Whilst I am usually all too happy to bask in any credit given for the quality of my contributions, I'm afraid that you are mistaking me for someone else in the case of the OPG post you are referring to.

[bazzer1000] 08/6/2016 17:04

Looking forward to seeing your analysis too EC. I thought the post you did on OPG recently was very good. I think that will come good in the long run too.CheersBaz

[bazzer1000] 08/6/2016 16:56

Yes me too EC hence bought in yesterday. Baz

[tuscan4] 08/6/2016 16:40

Hi Effortless. I too have been running the numbers over this for over two years and whichever way you look at it it looks seriously cheap. Unfortunately we will have to wait until the August results before the rest of the world wakes up. Miton you, me and a handful of others know the score. I sure wish the Sherrif would let a few more people in on the secret. That dates me but I think is apt. In the meantime the market background encourages a steady trickle of nervous holders to depart. Patience I am sure will be rewarded

[effortless cool] 08/6/2016 14:34

I've been doing some analysis on this, which I'll share in due course, but it is clear it is very cheap based on my model.

Accordingly, I just added £40k worth to my holding. The fact I could do this in one transaction (at 82p) without budging the price demonstrates (IMO) that there must be a sizeable seller in the market. (I had to buy my first £20k worth a few weeks ago in three separate blocks).

[its the oxman] 07/6/2016 08:13

Thought last trading comment read ok but this could soon be under 80p.

[cc2014] 26/5/2016 18:37

Assume this must be Robson's shares coming on to the market and keeping the price depressed.

I wonder when the price will interest Miton as they paid top whack at 90p for the last 250k they bought