Ashtead Share Discussion Threads

[bracke] 30/10/2019 10:26

ian

You haven't posted for some time are you still with us?

[bracke] 29/10/2019 12:44

The market appears to consider the rate reduction outweighs the associated costs.

The ascent is continuing and 2358 expecting a visit. Then a retrace or punch on towards 2400?

[hydrogen economy] 29/10/2019 12:22

A more immediate question is whether share price can push through the looming 52 week high of 2358? I'm tempted to take a little profit.

[hydrogen economy] 29/10/2019 12:18

Today's RNS shows 4% and 4.25% to replace existing 5.625% notes


29 October 2019 Further to yesterday's announcement regarding the notes offering, Ashtead Group plc ("Ashtead" or the "Company") announces the pricing of the offering of $600 million aggregate principal amount of 4.000% second priority senior secured notes due 2028 (the "2028 Notes") and $600 million aggregate principal amount of 4.250% second priority senior secured notes due 2029 (the "2029 Notes" and, together with the 2028 Notes, the "Notes") by Ashtead Capital, Inc. ("Ashtead Capital"), an indirect wholly owned subsidiary of Ashtead. The issue prices are 100% of the principal amount of the 2028 Notes and 100% of the principal amount of the 2029 Notes, respectively.

28 October 2019 ASHTEAD ANNOUNCES COMMENCEMENT OF CASH TENDER OFFER FOR ANY AND ALL OF ASHTEAD CAPITAL'S OUTSTANDING 5.625% NOTES DUE 2024

[bracke] 29/10/2019 10:59

Good day fenners

Thank you for posts. I did note that the interest on the new notes was not stated which seems odd to me. Surely when the notes are offered buyers will want to know the rate?

Whatever we think about it the market appears to love it. The share price had a couple of small retraces at the major high level of 2316 but then continued up. Next target 2357.

[fenners66] 29/10/2019 08:56

Has anyone got access to Alliance news who can add any more of the meat to that headline?

[2flatpack] 29/10/2019 07:57

bracke /fenners
Thanks.

[fenners66] 29/10/2019 07:26

"A credit rating used by Moody's credit agency for long-term bonds and some other investments. A Baa3 rating represents a relatively low-risk bond or investment; banks are allowed to invest in Baa3 rated bonds. However, Baa3 is at the bottom of investment-grade bond ratings, being only one grade above junk bond ratings."


So how does the market react to that ?

[fenners66] 29/10/2019 07:24

"Moody's Assigns Baa3 Rating For USD1.00 Billion Ashtead Note Issue"

Funnily enough I caught up with the thread for Imperial Brands yesterday and noted (I believe) the same rating for them.

I wondered where AHT would be in comparison.

Seems to me that debt rating is worse than it should be, it was allocated to Imp on the basis they had a declining market and a balance sheet that needed fixing.

[fenners66] 28/10/2019 23:17

URI recently did a similar exercise.

Of course we cannot be surprised as ( if I remember correctly) none of the loans have run to term for the last decade or more.

No doubt we will be given the explanation that all the financing costs of redeeming early will be "exceptional" for the umpteenth time !

What definition of exceptional should apply to something that happens every time ?!?

Whilst I have no issue IF the interest cost and charges combined with a likely reduced interest cost are less than running the loans to term; and of course extending the term by 4 years; I do have an issue with the idea that they continue paying fees for stuff which from past experience never runs to term.

Their advisors are getting paid handsomely for not recommending longer term in the first place, why could that be(?), and then shunting the same old costs and fees below the line is dreadful. I have mentioned this many times before.

Of course none of this would be necessary without the £Bn spent on buybacks.

Since the market reaction appears to be favourable to the idea of extending the loan term and most likely reducing the cost ..... how much better would the reaction have been to the alternative news that the debt was repaid in full and there was to be zero future interest ?

[bracke] 28/10/2019 15:23

If I understand correctly AHT is issuing notes (debt) to the value of $1 Billion and using the proceeds to buy back other shorted dated notes.

fenners will be able to correct me if I'm wrong.

Whether that has contributed to the share price rise I don't know. It was rising before the announcement.

[2flatpack] 28/10/2019 15:02

Afternoon bracke
Already have ,that's the reason for my question.
Cheers

[bracke] 28/10/2019 14:24

Good day 2flat

Look at the latest two items under 'News'.

[bracke] 28/10/2019 12:02

Approaching last major high at 2316 and a possibility of a retrace. If it continues with the rise next target is the year high at 2357.

Very quiet on here especially considering the share price rise.

[bracke] 25/10/2019 15:26

Gap filled.

[bracke] 24/10/2019 13:07

At last. A break above 2200. If it can close above that level the target is to fill the gap at 2249 but I suppose that depends on the £/$ and Deal or No Deal, not to mention a General Election.

[bracke] 17/10/2019 14:50

Well done 2flat. A good entry.

[2flatpack] 17/10/2019 14:39

As you say Bracke, how can you let a drop to the 200 day go by.
Jumped in with all of my trading pot @2085.
Cheers

[bracke] 17/10/2019 13:13

Following the URI Results AHT share price may have been expected to rise, but no.
My conclusion is that the fall in the share price is due to the rise of the £:$ following the 'Deal'.

The share price has dropped below 2100 and approaching the recent low at 2075 and following is 2064. There is always the probability of a visit to the August low at 2000.

This begs the question 'what happens if the deal is rejected by parliament'.It is reasonable to assume that the £:$ will fall, the share price will rise and all will be right with the world......or at least with AHT shareholders.

Sooooo which of you intrepid investors/ traders are considering purchases based on the scenario above?

[riley109] 17/10/2019 09:56

Additionally, the company announced that it will resume its $1.25 billion share repurchase program this month. The program was initiated in July 2018, with approximately $210 million of shares purchased through September 30, 2018. The Company subsequently paused the program on November 1, 2018 to focus on the integration of the BlueLine acquisition. The company intends to complete the program by the end of 2019.🤐

[fenners66] 16/10/2019 21:19

I guess they had acquisitions in there to boost the numbers - but EPS is well up..... so looks good first glance.

[fenners66] 16/10/2019 21:18

United Rentals, Inc. (NYSE: URI) today announced financial results for the third quarter of 20191.

Total revenue increased 17.6% to $2.488 billion and rental revenue increased 15.4% to $2.147 billion. On a GAAP basis, the company reported third quarter net income of $391 million, or $5.08 per diluted share ("EPS"), compared with $333 million, or $4.01 per diluted share, for the same period in 2018. Diluted EPS for the quarter increased 26.7% year-over-year. Adjusted EPS2 for the quarter increased 25.7% year-over-year to $5.96.

Adjusted EBITDA2 increased 14.0% year-over-year to $1.207 billion, while adjusted EBITDA margin decreased 150 basis points to 48.5%. On a pro forma basis, year-over-year, net income increased 42.7%, adjusted EBITDA increased 4.4% and adjusted EBITDA margin decreased 40 basis points.

Matthew Flannery, chief executive officer of United Rentals, said, “In the third quarter, we delivered solid revenue growth driven primarily by strength across our core construction markets, partially offset by slower industrial growth. Operating costs were higher than expected as we repaired and repositioned fleet. Our updated guidance reflects these dynamics, as well as our expectation for higher free cash flow generation.”

Flannery continued, “Looking ahead, our customers remain upbeat about their business prospects well into next year. At the same time, we know that lingering economic uncertainty could impact construction and industrial activity. As we complete our planning for 2020, we’re focused on delivering returns in any operating environment, while balancing growth, margins and free cash flow.”

[bracke] 16/10/2019 14:21

URI report earnings to-day after the market closes.

The estimated eps is 5.6.

[bracke] 16/10/2019 10:48

Thanks demo.

Over the years this share has become my bugbear. It's become personal!

[demo trader] 16/10/2019 10:43

Party at bracke's house, well done.