Aggreko Share Discussion Threads

[beaudelaire] 18/11/2008 09:18

queeny -

Emerging markets would revert to aggreko for their energy supply
as it will be diffiicult for them to fund new power plants.
read citi notes below -

'We think Aggreko will be a credit crunch beneficiary as funding for new power plants in emerging markets will be negatively impacted by the credit crunch,' Citigroup analysts say in a note.

[queeny2] 18/11/2008 09:04

beau - emerging market exposure. market hates all companies with it. could take a while imo.

[beaudelaire] 17/11/2008 19:16

Recent Citi Upgrade -

Shares in Aggreko rise 3.2 percent, extending Thursday's gains, as Citigroup upgrades its forecasts following the temporary power provider's bullish trading update yesterday.

'We think Aggreko will be a credit crunch beneficiary as funding for new power plants in emerging markets will be negatively impacted by the credit crunch,' Citigroup analysts say in a note.

As a result, the broker ups its 2008 and 2009 estimated pretax profit before amortisation to 191 million pounds and 204 million pounds respectively, from 171 million and 180 million previously.

Citigroup also retains its 'buy' recommendation and 780 pence target price.

[beaudelaire] 17/11/2008 18:45

Fallen with market.
Nothing specific. AGK is saying it will beat market expectations
which is a rarity nowdays ! (Read Last paragraph)
In fact AGK is going to be upgraded
by many brokers after its recent
bullish Trading Update below -
Watch out for upgrades (Also in Investor Chronicles and Shares Mag)

Outlook for 2008

In our interim results announcement on 26th August we stated that we expected
our North American and European businesses to trade at similar levels to last
year in the second half, with no storm revenue assumed in our forecasts at that
time. Since then, in North America, storm-related revenues have been strong and
underlying demand is currently holding up better than we expected. In Europe,
we expect revenues in the second half to be similar to last year in constant
currency. Accordingly, we now anticipate that constant currency profits in
Europe will be similar to the second half last year, and North America's profits
will be well ahead.

Momentum remains very strong in Aggreko International, with our Local businesses
in the Middle East, Asia, and Central & South America all expected to make
further strong progress throughout the remainder of the second half, helped in
part by a very rapid redeployment of the fleet used to support the Beijing
Olympics. In International Power Projects, margins and revenues are likely to be
stronger than we expected at the time of the last statement, in part because of
a high rate of project extensions and expansions.

Overall, we now anticipate that Aggreko's performance for the year will exceed
current market expectations with profit before tax likely to be at least 50%
higher than last year.

[davocon] 17/11/2008 15:13

Does anyone have any company specific news, giving cause to the large fall today?

[beaudelaire] 10/11/2008 12:06

This should close above or at 500p.
We seem to have a bit of resistance at 500p.

[beaudelaire] 06/11/2008 12:35

AGK reacted positively to this huge interest rate cut.
It will benefit a lot.

[beaudelaire] 06/11/2008 08:39

Chart shows inverted head and shoulders.
Should fly soon to £5.50+.

[bountyhunter] 17/10/2008 17:15

A potential "credit crunch beneficiary"! That's got to be a first!

Shares in Aggreko rise 3.2 percent, extending Thursday's gains, as
Citigroup upgrades its forecasts following the temporary power provider's
bullish trading update yesterday.
"We think Aggreko will be a credit crunch beneficiary as funding for new
power plants in emerging markets will be negatively impacted by the credit
crunch," Citigroup analysts say in a note.
As a result, the broker ups its 2008 and 2009 estimated pretax profit
before amortisation to 191 million pounds and 204 million pounds respectively,
from 171 million and 180 million previously.
Citigroup also retains its "buy" recommendation and 780 pence target
price.

[omalaha] 08/10/2008 19:28

blimey - reached that rather quickly...wish i'd bought before the close..if the DOW is blue for the FTSE open then this could bounce some imo.

[omalaha] 06/10/2008 07:52

futures down 4.5% on IG so today should be interesting - hold on to your hats.

[bountyhunter] 05/10/2008 22:10

good point omalaha

[omalaha] 05/10/2008 21:00

bounty - AGK is actually up from the start of the year and there's not many large cap stocks outside of some miners and oilers that you can say that about.
I'm keeping an eye on that support around 530p: it's a long way to the next one.

[bountyhunter] 04/10/2008 09:10

when will the markets (generally) start to recover? - this is getting tedious with good companies across the board having been hammered indescriminately!

[ccnp] 03/9/2008 11:12

Just about the only blot on the longer term landscape that I can see for AGK is the near certainty, no - make that absolute bloody certainty, that it won't get the 2012 Olympic contract.

It may be the best, the most capable, the best accredited, the most experienced, the best positioned, the one and the only firm to provide temporary power to previous Olympics but sure as eggs are eggs, Patel's power and Light will win the contract on grounds of cost.

And that will hit the numbers hard

[bountyhunter] 31/8/2008 20:49

Yes higher volatility for sure; don't get me wrong I'm holding on to what I've got as the chances are that some will recover from the current atrocious levels, it's just a question of if conditions will improve before they need to raise capital or go bust for one or two! (not GFM though imho). However I do not intend to buy any more AIM listed shares. I'm far more confident with AGK however which has performed very well compared to most throughout the recent dire market conditions.

[silverthread] 31/8/2008 19:18

I hear what you say about small cap/AIM stocks, bounty.

However, my thinking is different. Small caps and AIM stocks were doing better than large cos about a couple of years ago, but they have been hammered much more heavily in the recent market decline.

Having failed to get out in time, my strategy is now to take a fresh look at the small cap/AIM stocks I have, and if I am still a believer, I'm sticking with them. I think they will recover and rise much more steeply in the coming year.

As evidence, I cite Petra Diamonds (which I hold physically & in Chip's competition). PDL was slaughtered down from 160 down to 75p - for no apparent reason other than general market malaise. I decided to buy more at 78p.

In the past couple of weeks it has risen some 40% to 115, again for apparently no reason.

I think shares like GFM and RCG will also recover and outperform in the next year or so.

Good luck whatever your strategy!

[bountyhunter] 31/8/2008 11:13

Thanks for locating that Silverthread. The choice was between this and Wood Group, but that has already picked up very strongly recently. Pity about my virtual pf in Chip's competition but fortunately I'm doing much better with my shareholdings in the real world, probably because I hold a far lower proportion of small cap/risky stocks in reality (I keep telling myself to never buy any more AIM stocks and intend to stick to that in future!!).

[silverthread] 31/8/2008 10:50

Well remembered, Bounty.

This from November 2005:

Aggreko raises FY pretax forecast, NAmerica sales boosted by storms UPDATE

Aggreko PLC said it is raising its forecast for full year pretax profit to around 55 mln stg, from at least 50 mln seen previously. The specialist supplier of temporary power, temperature control and oil-freeair solutions said trading in North America has been exceptionally strong. The strong hurricane season has meant that storm-related revenues will exceed materially the historic range of 6-13 mln usd a year, it said.

[bountyhunter] 29/8/2008 14:50

bought back in here - AGK is a true growth story despite the global economic downturn and also I recall that Aggreko's services were in strong demand after the last major US hurricanes of 3 years ago

[silverthread] 10/7/2008 13:56

Thanks, eipgam. Not tried that before.

[eipgam] 09/7/2008 17:02

He probably typed Aggreko into Google News. Theres an update to the story today...

"Despite the attorney general's assertions, he noted, CUC had to get a host of government approvals for the Aggreko deal to move forward."