Ashtead Share Discussion Threads

[ianwwwhite] 14/12/2017 17:07

Another testing day, closed -27p @ 1922p

Looking forward to discovering what the intervention level is for the Barclays share buybacks. This might underpin any P.I. top-ups which I imagine are beginning to look tempting at these prices?

[bracke] 14/12/2017 15:13

"We'll make a quant analyst of you yet!"
=======================================

Heaven forefend!

[ianwwwhite] 14/12/2017 15:09

Good afternoon bracke,

Excellent research on Blueline thanks. much appreciated!

We'll make a quant analyst of you yet!

[ianwwwhite] 14/12/2017 15:01

2flatpack,

Re post 55809: subtle, very subtle 😀 :-)

Re RNS post 54808: there is a part (b) to it, something like 'ongoing purchases after the existing authority has expired, until 17th June 2019 and limited to 15% of share capital, subject to further authorisation being granted.' See RNS for exact wording, I'm doing this from memory!

[bracke] 14/12/2017 13:32

Ref BlueLine Rental.

[2flatpack] 14/12/2017 12:32

0 0 0
Ian
Tend to agree but I think there is some thing in the wind ,possible a large acquisition they have seen on the horizon.
Cheers
.
___________________________________________________________________________
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BLUELINE
.Cheers

[2flatpack] 14/12/2017 12:23

.14/12/2017 10:18am
UK Regulatory (RNS & others)

ASHTEAD GROUP PLC - PURCHASES OF SHARES

Ashtead Group plc (the "Company") announces that it has entered into an
arrangement with Barclays Bank PLC, acting through its Investment Bank ("
Barclays"). The arrangement allows Barclays to purchase, together with any
other ordinary shares in the Company (the "Shares") purchased on the Company's
behalf pursuant to its buyback programme, up to: (a) prior to the expiration of
the Company's current buyback authority granted by shareholder resolution dated
12 September 2017, 74,833,934 Shares;
Cheers

[bracke] 14/12/2017 12:03

It isn't too difficult to see that 1900 is a support zone but viewing the chart shows that there is the probability of an overshoot to 1880/1870.

A fall below 1870 would be a little concerning but a close below 1870 would be alarming. Given the strength of AHT I would expect 1870 to support.

As I type the share price is resting on the SMA 50. The SMA 100 is at 1800 and the SMA 200 is at 1700.

[fenners66] 14/12/2017 11:46

Maybe it's we have a read across to a company that you have not heard of that could do an Ashtead....

What it definitely will NOT be , because of Chinese walls and rules , is that they or any of their customers had any interest in the other company.

[2flatpack] 14/12/2017 11:41

Thanks Ian
Still doesn't make seance to me . beat + beat = down grade .
Sounds about right.
Cheers

[ianwwwhite] 14/12/2017 11:06

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Sorry about the duplicated posts folks, now removed. ADVFN had a funny turn! :-)

[ianwwwhite] 14/12/2017 11:06

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[ianwwwhite] 14/12/2017 11:05

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[ianwwwhite] 14/12/2017 11:05

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[ianwwwhite] 14/12/2017 11:05

Hi 2flatpack

I think something got lost in translation :-)

The summary from DD's earlier link says Citi actually said:

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
13/12/17 AHT shares dropped after Citigroup downgraded the stock to ‘neutral’; from ‘buy’ on valuation grounds.

Citi said the equipment rental group’s second quarter revenue and adjusted underlying earnings (EBITDA) were comfortably ahead of its expectations, driven by improvements in end markets and hurricane clean-up efforts in the US.

Ashtead also expects earnings growth and free cash flow generation for “a number of years” and raised its net capital expenditure guidance for the year, Citi noted.

However, Citi said it prefers construction equipment rental company, BlueLine, on relative value.

Shares fell 3.40% to 1,990p in morning trading.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

[2flatpack] 14/12/2017 10:56

.
Citi downgrades equipment rental company Ashtead to "neutral", citing stock valuation ,
Stock valuation?
What stock are they valuing?
Where are these buy backs when you want them.
You may have guessed I switched from short to long far too early.
Cheers

[ianwwwhite] 14/12/2017 10:43

Recent Broker forecasts are interesting:

14 December 2017
Peel Hunt 14/12 Retains Buy 2,200.00p
Liberum Capital 14/12 Reiterates Buy 2,140.00p
Numis 13/12 Reiterates Buy 2,500.00p
Liberum Capital 13/12 Reiterates Buy 2,030.00p
JP Morgan Cazen 13/12 Reiterates Overweight
Deutsche Bank 13/12 Retains Hold 1,800.00p
Citigroup 13/12 Downgrade Neutral
Barclays 13/12 Retains Overweight 2263p

Pretty positive.... and yet Citigroup's downgrade from Buy to Neutral yesterday was quoted by some broker(s) as the reason for the fall!

[mjcferguson] 14/12/2017 10:16

Looks like a lot of small trades,profit taking and a bit of panic selling after Director sales.Time for a cool nerve.Six month figures are excellent and more to come!

[ianwwwhite] 14/12/2017 10:08

Hi fenners

I agree, we are handicapped by lack of detailed insight into AHT's actual strategic intent.

If anyone does write to GD and get a reply I hope that they will share it with this board.

In the meantime I share the views expressed by others here that the management have done an amazing job turning AHT into a well run growth business, <> 45th in the FTSE100 and extremely cash generative.

Personally I am happy to rely on this long standing management team's judgement for the time being. When the facts change, I'll change my opinion!

[fenners66] 14/12/2017 09:37

Share price can always rise or fall regardless of results - but I think this time the headline of buybacks has spooked the market.

[fenners66] 14/12/2017 09:36

When I think about it - there is no business case for the share buybacks -

and at the end of the day they are paid to improve the business.

If they do that year over year then the share price will follow.

Not withstanding given the nature of the business this will always have hi borrowings and a valuation of the business where the Enterprise Value matters taking into account debt and equity, QED reduce debt and improve business and at the same time equity value should rise.

[mjcferguson] 14/12/2017 09:25

Many UK investors now also pay a higher rate of tax on dividends than capital gains.

[ianwwwhite] 14/12/2017 09:16

2flatpack

Thanks. We're on the same page ...

[fenners66] 14/12/2017 09:11

Well that list of priorities adds some comfort that they may have just been playing with eye catching headlines.

All the same its a B/S headline to play with and like I said yesterday it was obvious that there were plenty BETTER places to use the cash.

I see the explanation that yanks pay less CGT
so what % of the register is held by yanks ?

My assumption here is that any investment company gains will be subject to CT not CGT, whether they are US or UK

[2flatpack] 14/12/2017 09:07

Ian
Tend to agree but I think there is some thing in the wind ,possible a large acquisition they have seen on the horizon.
Cheers