Ashtead Share Discussion Threads

[ianwwwhite] 27/7/2016 21:45

bracke

Thanks again for sharing your views, much appreciated!

[bracke] 27/7/2016 18:57

ian

Yes.

The congestion before the gap and the heavy volume which occurred was typical of a breakaway gap. There has been no attempt to fill the gap and the share price has moved above 1200.

Providing nothing unpleasant emerges from the undergrowth the probability is for an attempt at the all time high of 1234.

EDIT

All time high shown above is incorrect see post below.

[ianwwwhite] 27/7/2016 18:11

Thanks bracke.

Are you now thinking that the earlier substantial July gap is a 'breakaway'?

[bracke] 27/7/2016 17:53

A close above 1200 and an intraday retest.

[bracke] 27/7/2016 11:09

ian

Due to delayed announcement the true volume is not known until the close.

[ianwwwhite] 27/7/2016 11:01

bracke

Guilty as charged!

Meanwhile, looks like AHT is on the cusp, but reported volume seems quite low so far...

[bracke] 27/7/2016 10:51

Disco

Yes it's squeezing ever tighter. From what I read the focus is on what the Japanese do on Friday in the way of 'Easing'. If as expected it's 'money galore' the markets will love it and AHT powers through 1200.

ian

That's not nice. Your schadenfreude is showing.

[ianwwwhite] 27/7/2016 10:06

Shares in Deutsche Bank have fallen by more than 5pc this morning after the German lender reported net profit of €20m in the second quarter, down from €796m ​a year ago...... I wonder whether their analysts saw that one coming???

[discodave4] 27/7/2016 09:58

Bracke, It's trying, slowly, to get to and beyond your £12 resistance.Aunty Janet may help later....then again who knows!.DD

[ianwwwhite] 27/7/2016 09:14

Disclosed shorts are down from 4.04% to 3.63%:

Fund manager........% short....Changed....Date changed/created
AQR Capital..........0.69%...... -0.02% 2016-07-18
Blue Ridge Capital,..0.71%͛5;... -0.19% 2016-07-22
CPMG, In................1.54%....↑ 0.12% 2016-05-18
Eminence Capital,....0.69%..↓ -0.04% 2016-06-22
Total 3.63%

[ianwwwhite] 22/7/2016 16:28

Yeterday's Market Report:

Positive read across lifts Ashtead to a one-year high
Equipment rental group Ashtead climbed to its highest level in more than a year after its larger US rival United Rentals posted better-than-expected second quarter results.

On Wednesday night, United Rentals reported earnings before interest, tax, depreciation of $679m, more than 1pc ahead of consensus forecasts. The trading update also showed the first month-on-month rental rate rise in 16 months. In its wake, the US-listed stock rallied and triggered positive read across for Ashtead.

Analysts at Stifel said the key takeaway from the United Rentals trading update is “improved confidence” in the direction of rental rates in the US market. Hector Forsythe, of Stifel, said: “This has been a bear concern covering both United Rentals and Ashtead".

Meanwhile, after speaking to Ashtead, US investment bank Jefferies said the group North American brand Sunbelt remains on track to deliver its volume growth target of 10 to 15pc in 2017 thanks to US macroeconomic data supporting “continued non-residential growth” in 2016 and 2017.

The share prices of United Rentals and Ashtead are very highly correlated. In April, when United Rental lowered its revenue outlook for the year, it weighed heavily on Ashtead, despite its own positive trading update.

The FTSE 100 stock jumped to the top of the blue chip index, up 57p, or 5.1pc, to £11.85. (21/07/16)

[ianwwwhite] 22/7/2016 16:20

Quite agree bracke, although disclosed shorts remain unchanged at 4.04% at present. I would have though it was long past time for shorters to bale out!

In the meantime, from the Tele-graph: "The key takeaway from the [United Rentals] release is improved confidence in the direction of rental rates in the US market."
Hector Forsythe, of Stifel, comments as shares in Ashtead jump to their highest level in over a year on the back of a positive read across from its larger peer United Rentals.

(see post 52457 below)

[bracke] 22/7/2016 10:20

This "old dog" can be very vicious. Yesterday shorters were well and truly mauled. If they are still holding they will be praying for a gap fill.

[ianwwwhite] 21/7/2016 18:37

UK equipment rental company Ashtead was the biggest riser on the FTSE 100 after a positive read-across from major US rival United Rentals which reported slightly improved quarterly results overnight.

Ashtead Group (AHT) 1,185.00p 5.05%
Glencore (GLEN) 183.65p 4.23%
Antofagasta (ANTO) 495.20p 2.55%
Burberry Group (BRBY) 1,316.00p 1.86%

..... still life in the old dog yet!

[bracke] 21/7/2016 17:23

Good day Disco

Although AHT appear to draw the line at £11 to-day's price action shows that others do not. Nice to have a safety net at £11.

"Poor old Deutsche !!."
=======================

Indeed. They obviously don't know that AHT likes to make shorters and naysayers look silly. I have previous personal experience of that!

[discodave4] 21/7/2016 17:12

Hello bracke,Will have the latter please.Does look like the share buyback was limited to £11, so end of?.Noticed that URI was up about 15% earlier, not far off matching their underlying eps beat against forecast.Poor old Deutsche !!.DD

[bracke] 21/7/2016 16:42

1200 provided resistance....nice round figure.

What next? Retrace to test 1155 or push on to the all time high at 1234.

[broadwood] 21/7/2016 13:40

Shares in Ashtead topped the FTSE 100 on Thursday morning as investors read across from the results of US-based sector peer United Rentals, which reported slightly improved quarterly results overnight.


With Ashtead's US-focused Sunbelt providing the bulk of group sales, it was significant that Connecticut-headquartered United Rentals retained its full year outlook, with management reaffirming revenue, operating profit, capital spending and free cash flow guidance for 2016.

Market leader United also said it was solid growth on both the east and west Coasts of the US, though conditions remain challenging in Canada.

"Based on what we saw through the mid-year, and what we hear from the field, we continue to expect our business to improve both seasonally and cyclically," United chief executive Michael Kneeland said, although acknowledging the "elevated uncertainty" about the global economy.

Analysts at Peel Hunt in London said the key observation for Ashtead was the continued momentum in its key US regions, with demand for speciality and improved rental rate guidance.

The broker confidently retained its 2017 pre-tax profit forecast of £750m, ahead of consensus £720m to reflect currency moves, with earnings per share of 97.1p.

JP Morgan Cazenove also commented on the impact for the UK group: "We would expect the commentary on the sequentially improving rental rate to be taken positively by Ashtead, reinforcing some of the more positive data points seen in recent months."

At 0945 BST Ashtead shares were up 3.9% at 1,172p, close to last year's all-time high

[bracke] 21/7/2016 10:00

Todays rise takes the share price above the last major swing high of 1155 reached on 17/12/15.

The probability is for a retrace back to test 1155.

[nrc] 21/7/2016 08:24

Tks.... JC

[mjcferguson] 21/7/2016 08:23

United rentals quarterly figures a bit better than expected?

[nrc] 21/7/2016 08:11

Any ideas on what caused that big jump at open???

[deadcatbounce] 20/7/2016 17:32

Thank you.

[bracke] 20/7/2016 11:36

Yes.

It will be interesting to see how long the coil continues for. The buybacks help to limit the probability of the share price dropping very far.

[deadcatbounce] 19/7/2016 19:10

bracke, Could the break be in either direction?