Ashtead Share Discussion Threads

[bracke] 07/8/2018 11:07

Are we posting about buyback again?

[discodave4] 07/8/2018 09:06

Morning Ian, no problem.

[ianwwwhite] 07/8/2018 01:40

fenners

Lol!

[fenners66] 06/8/2018 22:56

Don't mention the buyback. I mentioned it once but I think I got away with it...

[ianwwwhite] 06/8/2018 22:01

Thanks DD,

Nice to see something informative posted here, rather than bluster and conjecture about the buyback...

[bracke] 03/8/2018 15:49

It didn't quite reach 2200. Has moved back up to retake 2300.

I still think it is not yet done with 2200.

[fenners66] 02/8/2018 21:02

£ hiccupped up and then down again - looks like that fall added a few pence here.

[bracke] 02/8/2018 12:37

"The question now is will 2300 hold."
======================================

No.

I did post a couple of weeks ago that 2200 was a fair probability and so it seems. Will that level tempt buyers?

To-days interest rate rise should strengthen the £/$ but if the FED increase their interest rate that will likely weaken the £/$ and then of course there's BREXIT how could we ever forget that!!

[bracke] 01/8/2018 10:52

fenners

Although the closing price may have been positive it was the closing auction that probably sent in down. End of month book balancing etc which has continued today.

I posted the buyback information for information. I thought the article gave a good explanation as to the reasoning.

As I posted last week we each have our view on buybacks....each to his own.

Those who have been around the markets for some time know that when as now there has been a long bull market, interest rates are very low and there is plenty of money to 'play with' the money is not always used to the best affect. In some cases it is used to bad affect but is not shown as such until the 'tide goes out'.

The question now is will 2300 hold.

[fenners66] 01/8/2018 10:31

Yesterdays price action and chart up until the close was positive - then the last trade price was down 12

Seems to have been a harbinger for today.

I notice you have still been posting articles about buybacks........

I don't look at the daily announcements of the buys but since they have continued recently I can only assume there has been a pile of shares bought recently that are "out of the money".

If debt had been reduced instead then arguably the reduced costs / leverage and whilst not reducing enterprise value (arguably with lower costs increased enterprise value) should have filtered through to hold up the share price.

[bracke] 01/8/2018 10:24

Good day fenners

What was wrong with it? It was only a small decline from the previous day.

[fenners66] 31/7/2018 21:46

Where did that closing price come from ? !

[2flatpack] 31/7/2018 19:39

Thanks bracke.
Looks as clear as mud ,but then I have only read it half a dozen times.
Cheers

[bracke] 31/7/2018 10:31

"Under the new law, qualified dividends are taxed at the same rate as long-term capital gains, which is 15 percent for most individual taxpayers. Qualified dividends received by individuals in the 10% and 15% income tax brackets were taxed at 5% from 2003 to 2007."

[2flatpack] 31/7/2018 09:21

Morning All
I am looking at adding.
With EX on 16.08.18 I am caught in two minds.
Any pullback is normally short and sweet, but the share price is near the top of my long term channel, and I suspect the pullback could be greater than normal.
I am leaning towards waiting until after the pull back .
As always I live in hope.
I have always understood the US prefer buy backs ,but I cannot remember any evidence on which I have base my thinking.
Does the US have income tax on divi, but no capital gains tax ?
Cheers

[discodave4] 27/7/2018 17:18

Ian, no problem, agree with 2flats post.

[ianwwwhite] 27/7/2018 16:43

Hi bracke,

Welcome back.

Whether you are for or agin, the question of buybacks needs to be considered in the context of the stated Capital Allocation Framework, as set out in the 2018 Annual Accounts, page 46 which prioritises:

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
- organic fleet growth
- same stores
- greenfields
- bolt on acquisitions
- progressive dividend with consideration to both profitability and cash generation that is sustainable through the cycle.
- share buyback programme

Additionally, we consider further returns to shareholders, balancing capital efficiency and security with financial flexibility in a cyclical business and an assessment of whether it would be accretive to shareholder value. In this regard, we assess continuously our medium term plans which take account of investment in the business, growth prospects, cash generation, net debt and leverage.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Full version worth a read if you haven't already done so.

55555? It fell into my lap by accident, guv, honestly!

[bracke] 27/7/2018 16:03

I have been out today so missed 55555......thought you may have waited for my return so I could have it but the debate became 'hot'.

I think we will agree that there are times when buybacks are suitable and times when they are not. We will have to disagree when each applies. In the meantime......


It was interesting that the 'agreement' between Trump and Junker pushed up the US indices but had little affect on the FTSE or AHT share price

I note that on a yearly comparison chart AHT is ahead of URI. URI was back to 145 support for the third time in as many months. AHT has today been back to just short of 2400..... the ranging continues.

[ianwwwhite] 27/7/2018 14:18

2fp

Thanks for your comments, I think everyone who posts here these days make a valuable contribution, not least yourself, which is what makes the thread worthwhile. Long may it continue.

55555 .... I had no idea (smirk!)

[2flatpack] 27/7/2018 13:21

Ian
Congratulations on your 55555 post.
The first significant number bracke has missed.
Sorry you have curtailed the debate .
As two posters I respect, it is good to hear your differing views.
Cheers

[ianwwwhite] 27/7/2018 12:58

DD

Many thanks for your post 55554

[fenners66] 27/7/2018 12:04

no problem

[ianwwwhite] 27/7/2018 10:01

Good morning fenners,

It appears one man's debate is another man's rant. I suspected it would be when I endeavoured to recluse myself when it kicked off.

When it appeared that there seemed to be a lack of basic understanding in a lot of the subsequent posts, I posted a link to an admittedly old B of E document which 'examines the rationale for share repurchases and the legal and taxation framework which governs them in the United Kingdom.', thinking this would be helpful.... apparently not.

You and I have both been holders for more years than I care to remember, and therefore I think that it is right that we set an example, go with DD's suggestion, and now let the matter rest. I won't be commenting further.

Best wishes,

IW