Ashtead Share Discussion Threads

[kooba] 16/6/2016 15:55

Anyone know why so weak today?

[bracke] 16/6/2016 14:59

SP just about holding at 960. The end of day volume will be interesting.

[kilgallp] 16/6/2016 10:37

Ian, I too am happy to hold. It's by far my best performing share over the years. I very much liked the delivery of the 4th qtr results.

[bracke] 15/6/2016 17:29

Good day uppompeii

I am! Iam!

[ianwwwhite] 15/6/2016 17:23

kilgallp

Interesting indeed, thank you, I have now read the Questor piece and I am not really impressed.

I am puzzled by the statement for example "We think it prudent to look at earnings per share during the past ten years, which seeks to smooth out construction cycle. On that basis the shares are trading on 38 times average earnings, and that looks expensive when compared to the 11 times forecast earnings" seems to miss the point.

Ashtead is a growth company and has grown exponentially over the intervening years between year 1 and year 10 in reach, number of outlets, turnover and profit. Ten year old data seems largely irrelevant when forecasting future trends in my view, and ignores contextual issues like the financial crisis etc.

However to each his own, but personally I am happy to hold and anticipate a satisfactory return. DYOR

[kilgallp] 15/6/2016 17:15

Interesting though Ian, the article commends Ashtead, but Questor says Avid.

[uppompeii] 15/6/2016 16:59

Oh come come. You're not surprised at all.

[bracke] 15/6/2016 16:34

and back to 1000. There's a surprise......

[room_101] 15/6/2016 16:07

We can only hope..

[ianwwwhite] 15/6/2016 15:49

Telegraph Business report commends Ashtead:

Ashtead launches £200m share buyback as profits jump 24%:



"...........................Mr Drabble added that the group’s profit margins, which were a record 46pc, were “particularly encouraging”.

Shares in Ashtead have struggled in recent months, dropping to a low of 749p in February, as investors expressed concern over the outlook for the US economy.

But analysts this morning have suggested that those fears look overplayed, and that Ashtead’s performance should mean that shares recover some lost ground."

[ianwwwhite] 15/6/2016 13:23

Broker view:

15-Jun-16 JP Morgan Cazenove Overweight 989.00p - TP: 1,140.00p

(JPM were in yesterdays AHT results briefing/presentation I believe)

[ianwwwhite] 15/6/2016 11:49

broadwood

Yes strange indeed.

I wonder whether if you were one of his banks clients and acted on his analysis whether you would consider that you had cause for complaint?

It will be interesting to see whether the guidance is updated in the light of the latest results.

[bracke] 15/6/2016 11:41

Yes I agree masterly inactivity is the option until the dust settles.

[broadwood] 15/6/2016 11:39

ian - its very strange. He's maintained his TP at £6.60 for a long while but each time the results confound him.

I can only assume they are anxious to hold the price down - but nothing on the horizon suggests any weakness.

[ianwwwhite] 15/6/2016 11:37

Good morning bracke,

Thanks for sharing your views.

As usual when faced with uncertainty, my plan is one of 'masterly inactivity' until its safe to come back from behind the sofa!

As Dilbert said 'do nothing, avoid criticism!'

[bracke] 15/6/2016 11:21

Thanks for your reply ian

Given the results yesterday I would have expected a rise and hold above 1000 but it appears the possibility of a 'Brexit' weighs heavy on the market.

If the vote is 'Remain' there would be no excuse for the share price not to rise above 1000 and on to 1060 where resistance may be met.

If the vote is to leave I know not but I am busily laying in a store of various tinned goods and other essentials especially as Mr Osborne said to-day that if the Electorate have the temerity to vote 'Leave' he will 'Screw Us', or words to that affect.

[ianwwwhite] 15/6/2016 11:05

broadwood

I would recommend the Deutsche guy listen to the excellent webcast on AHT's Investor Relations website, and then revise his forecast.

AHT's outlook is very positive, and the biggest 'problem' that they seem to have is that they are becoming highly 'cash generative' - hence the dividend hike and mooted share buyback....
I'm not complaining!

[broadwood] 15/6/2016 08:05

Analyst at Deutsche still expecting the world to end.

[1leigh] 14/6/2016 23:59

wah-hay results day, nice one AHT, rock on!

[ianwwwhite] 14/6/2016 20:23

bracke

As a guideline, I would be a seller at 1210 or above, say within the next 12 months. In the price range of 900 to 1200 I am content to hold. Below 900 I tend to panic, or buy a few more!

[bracke] 14/6/2016 15:55

ian

Define "coming good". ie. what share price

[ianwwwhite] 14/6/2016 15:35

Bracke

Given the current market, AHT has done well to rise <>5%, but I imagine that it will slip back over the next few days as we all get more and more excited about 'brexit', notwithstanding AHTs perceived value as a hedge against a fall in sterling.

Nevertheless I still see it coming good eventually, and as a long term hold until the current cycle ends.

[bracke] 14/6/2016 15:14

ian

About time. The US must be buying. Will it hold?

[ianwwwhite] 14/6/2016 15:08

Bracke

Re 52334

Oh ye of little faith, currently 1005.

Yeee Haaaa!