Ashtead Share Discussion Threads

[ianwwwhite] 20/12/2018 20:47

uppompeii

Lol!

No worries, it's only bracke's inheritance that's at stake.... :-)

[uppompeii] 20/12/2018 20:44

bracke, i hope mater doesn't ask to see her portfolio this side of Christmas.

[ianwwwhite] 20/12/2018 20:40

fenners

Capital Gains Tax in 2018/19

Annual exemption amount £11,700 for individuals
Standard CGT rate 18% on residential property, 10% on other assets
Higher CGT rate 28% on residential property, 20% on other assets

hxxps://www.moneysavingexpert.com/banking/tax-rates/#cgt

.... better off than you thought!

[fenners66] 20/12/2018 20:27

28% I believe so there is not much in it - taking everything else into account I would be worse off....

[bracke] 20/12/2018 20:20

Happy Christmas & A Prosperous New Year

[ianwwwhite] 20/12/2018 20:16

bracke

Yes

[bracke] 20/12/2018 20:11

LOL!!!! I knew you would be unable to stay away. I'm sat here laughing like a drain!

Trying to be serious....do you really think the buyback has assisted the company finances, share price or dividend?

We are very unlikely to agree at this time. At some point in the future hopefully we will be able to come to a conclusion.

[ianwwwhite] 20/12/2018 19:51

HERE! HERE! I'm in total agreement fenners.
++++++++++++++++++++++++++++++++++++++++++++

Bracke, you sycophant, I think I can see where you are going wrong….. lack of objectivity!

The share buytback was in being when you bought your Mum's shares, and instead of bleating about the share buyback, you should be asking yourself, why did all your technical analysis skills fail to spot that you were buying the venerable Mrs B’s shares at <>2000p before a precipitous fall to 1617p per share as of today? Not the first time you have misread AHT!

As for fenners he claims he saw the fall coming, but still prefers to see a share price hit of 33% today, rather than pay CGT of 10/20% if he had sold. It wouldn't be an issue if he had 'bed and ISAed' his holding before, but that is another matter.

The mind boggles!

In the meantime, the lower the price dips, the more shares the buyback is garnering, and of course the average cost per share continues to fall..

Interestingly awaiting the reply to fenners letter to Geoff Drabble and his successor when/if he gets it, no reason to delay..

[dcarn] 20/12/2018 16:57

Including todays RNS

Bought back - 21406519
Cost - £444,216,284.87
Average cost per share - £20.7514
Average daily purchase - 86666

[dcarn] 20/12/2018 16:51

Fenners,

Since this second buyback started on 15th Dec 17:

Bought back - 21256519
Cost - £441,787,351.82
Average cost per share - £20.7836
Average daily purchase - 86408

[bracke] 20/12/2018 12:46

HERE! HERE! I'm in total agreement fenners.

In the meantime the share price is testing 1600 again.

[fenners66] 20/12/2018 09:11

I would like to know what has been spent on buybacks at what price vs. the current share price.
This is not hindsight - I was against buybacks vs. paying down debt from the start but with the share price down 33% and presumably debt up rather than down this was a predictable outcome.

We all know that markets cannot go up for ever and we all knew that the US would raise rates and also cannot be expected to grow add infinitum.

So for me it may have been a long time since the board made a mistake - but I do believe this was a big one

Again if the board do read this - please think again.

Invest in the business , cut debt , reduce the interest cost and use that saving to boost sustainable dividends.
Better cash paid to share holders than paid out in interest cost to the banks.

I don't care if debt interest is more "tax efficient" I would rather the business made more profit than worried about the tax bill.

[mfhmfh] 19/12/2018 08:40

hxxps://citywire.co.uk/funds-insider/news/david-kempton-4-stocks-im-buying-as-grim-2019-looms/a1185934?ref=citywire-money-latest-news-list

[discodave4] 18/12/2018 18:41

Well done mtsblogs.Mind your rather large head on the way out!.

[mtsblogs] 18/12/2018 12:39

Two months ago, on 9 Oct when AHT was at 2193, I wrote: "Sold two weeks ago at 2370 as felt the company was not ready for high wages and/or recession in US. AHT is very high on price to book value at x4 with low-ish p/e at 11, suggesting all earnings are distributed to shareholders and, if hard times come, AHT may need to borrow heavily. With 10year climbing higher, future profits would suffer from borrowings. Sorry to say, but this is likely to drop much further despite good dividends, I'd speculate it'd reach 1800 and lower if pound recovers, but as I am out, I would not be studying reports further."

To this, 2flatpack replied:
RECESSION !
What recession?
With S/P in a long term up trend ,I always buy at the 200 day.
Can't see any reason not to.
Happy to hold and add .
---
2flatpack - is this a down trend and are you selling? 1200 seems to be a good re-entry point when reached...

[bracke] 18/12/2018 10:53

Unable to hold onto 1700. Perhaps Mr Powell will assist tomorrow.

[bracke] 14/12/2018 15:11

Tested 1700 which held but not a resounding bounce so far.

[bracke] 13/12/2018 13:54

I note the opening gap from 4/5 December at 1776 has been filled today. Now needs to push on above 1800 but it may drop back to test 1700.

[bracke] 13/12/2018 11:09

Good day fenners

Orange squiggle is the S&P 500.

[palwing32] 12/12/2018 20:05

Apologies if this is old news. Just spotted it was yesterday!

[palwing32] 12/12/2018 20:03

Courtesy of the Motley Fool today.The company in question is FTSE 100 support services specialist Ashtead (LSE: AHT). Its first-half results showed a rise in rental revenue of 18% on an underlying basis, with pre-tax profit increasing by 19% to £633.4m. During the period, it invested £1,063m in capital and a further Positive performanceThe company in question is FTSE 100 support services specialist Ashtead (LSE: AHT). Its first-half results showed a rise in rental revenue of 18% on an underlying basis, with pre-tax profit increasing by 19% to £633.4m. During the period, it invested £1,063m in capital and a further £362m in bolt-on acquisitions. This has added 80 locations to its business and contributed to a rental fleet growth of 15%.It continues to see a structural growth opportunity as it seeks to broaden its product offering and geographic reach. It now expects full-year results ahead of previous forecasts, with earnings due to rise by 28% in the current year, followed by growth of 13% next year.Having fallen by 34% since the start of October, Ashtead's shares appear to offer a margin of safety. They have a price-to-earnings growth (PEG) ratio of 0.6, which suggests they may offer recovery potential 80 locations to its business and contributed to a rental fleet growth of 15%.It continues to see a structural growth opportunity as it seeks to broaden its product offering and geographic reach. It now expects full-year results ahead of previous forecasts, with earnings due to rise by 28% in the current year, followed by growth of 13% next year.Having fallen by 34% since the start of October, Ashtead's shares appear to offer a margin of safety. They have a price-to-earnings growth (PEG) ratio of 0.6, which suggests they may offer recovery potential

[fenners66] 12/12/2018 18:40

What's the orange squiggle ?

[bracke] 12/12/2018 17:06

The chart below compares AHT with the S&P 500.

The vertical dashed red line at the left of the chart shows where the buybacks commenced (14 December 2017).

AHT/S&P500 DAILY Comparison

[smcni1968] 12/12/2018 16:36

https://www.cnbc.com/2018/12/11/investors-should-be-furious-3-stock-buybacks-that-went-horribly-wrong.html