Ashtead Share Discussion Threads

[discodave4] 04/3/2019 21:12

From Sharecast:Among the corporate names scheduled to update markets is US-exposed Ashtead, which is due to publish its third quarter financials. Steve Woolf at Numis estimates the equipment rental company will post a 22% jump in pre-tax profits to reach £250m, alongside a "modest" improvement in operating (EBITDA) margins, although the latter will be limited by the company's continued expansion and investmens in infrastructure. Significantly, Woolf did not anticipate that the company would flag any change in trading conditions in the US construction space, highlighting how the company's business was now more cyclical than during the previous downturn. Long-term infrastructure now accounted for roughly a third of its end-market exposure, up from about 15% at the peak of the last cycle. "We remain positive on the shares, which we believe look oversold."

[connorcampbell] 04/3/2019 13:10

Will Ashtead Group get a (fork)lift following Tuesday’s third quarter trading statement?

While it might have come during a tough December, there was a lot to recommend in the month’s half year results. Revenue rose 19% to £2.25 billion, with a 25% surge in pre-tax profit to £610 million, and a stonking 42% jump in underlying earnings to 98.8p per share.

If Ashtead is to continue its 2019 recovery, then Tuesday’s Q3 results need to maintain that double-digit growth posted in the first and second quarters. The performance of its US division, which makes up something like 85% of its total revenue, will be key, with the company susceptible to any stateside economic slowdown.

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here:

[connorcampbell] 04/3/2019 13:09

Will Ashtead Group get a (fork)lift following Tuesday’s third quarter trading statement?

While it might have come during a tough December, there was a lot to recommend in the month’s half year results. Revenue rose 19% to £2.25 billion, with a 25% surge in pre-tax profit to £610 million, and a stonking 42% jump in underlying earnings to 98.8p per share.

If Ashtead is to continue its 2019 recovery, then Tuesday’s Q3 results need to maintain that double-digit growth posted in the first and second quarters. The performance of its US division, which makes up something like 85% of its total revenue, will be key, with the company susceptible to any stateside economic slowdown.

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here: hxxps://spreadex.com/?tid=387817

[bracke] 04/3/2019 12:44

£:$ falling since Thursday has assisted the 'cause'.

Good results tomorrow could give another gap to the upside.......but beware a Brexit Deal which is very likely to send the £:$ up and the share price down.

[bracke] 04/3/2019 10:37

It's filled the 'down' gaps but created 'up' gaps.

[ianwwwhite] 04/3/2019 10:01

Bigbigdave

Thanks for The Times link.

An interesting read, although I would question the 'Surrey based' and 'American Rentals' references. Nevertheless as they say any publicity is good publicity....

[discodave4] 03/3/2019 19:19

No problem Ian.

[bigbigdave] 03/3/2019 16:15

Ashtead builds on booming America

[ianwwwhite] 03/3/2019 16:02

Great link DD, thanks for posting

[discodave4] 03/3/2019 14:29

Q3 Tuesday will hopefully reaffirm above expectations for the year.From AJ Bell, Ashtead results "could really cause a fuss", whatever that means!. From 4m35s onwards: HTTPS://www.youinvest.co.uk/video/breaking-mould-ashtead

[fenners66] 27/2/2019 16:21

Bring it on !

[bracke] 27/2/2019 13:15

The rising £:$ is not doing the share price any favours.

I trust none of you are hoping for a 'No Deal Exit' to restore the SP!!

[discodave4] 26/2/2019 20:23

HD currently down only 1.1%Sorry for off topic everyone.

[discodave4] 26/2/2019 20:06

Who knows what it would have fallen to if there was no buyback......it would still have fallen IMO.Think you are obsessed with buybacks :)

[fenners66] 26/2/2019 12:59

So does it signal a company that has failed its aims and run out of ideas - Home Depot that is.....

[discodave4] 26/2/2019 12:38

Hi fennersTut tut!Guess it's more to do with Home Depot poor Q4 numbers and earnings miss than the buyback.

[fenners66] 26/2/2019 12:21

To be fair they missed their sales target and have increased dividends by 32%

However what it does highlight is that a buyback is NOT a one way bet for the share price - but we know that anyway....

As opposed to removing debt and interest and increasing profit over time - which generally does increase share prices...

[fenners66] 26/2/2019 12:19

Home Depot just announced a $15bn share buyback and the shares are down pre-market.

[bracke] 26/2/2019 11:38

An opening gap down likely caused by a £:$ rise.

If a Brexit deal is concluded the likely reaction is a further rise in the £:$. How would the share price react? I suppose the rate of share buyback could be increased if the share price declined.

[bracke] 20/2/2019 10:25

Perhaps the 3rd qtr results on 5th March will provide the impetus to take the share price up a leg to £21

[smcni1968] 19/2/2019 21:19

gap up was on a Morgan Stanley buy recommendation

[bracke] 19/2/2019 10:31

And quickly filled.

Worth noting that the Daily SMA 200 is just above £21.00.

[fenners66] 19/2/2019 08:04

Opening gap up?

[ianwwwhite] 17/2/2019 18:10

Good day bracke

I sensed when I posted that there is a fundamental difference in my approach, and that of most 'traders' who post on ADVFN, and in my mind each approach is equally valid.

However we do share a common goal of making money and hopefully growing our capital.

As to the method, I do agree, to each his own.

[bracke] 17/2/2019 11:56

good day ian

When I make a purchase/trade and it goes 'wrong' I review it to ascertain if my analysis was wrong or if other events took over.

I purchased on 11 October following several days fall from £24.50 to £20 which had been a previous support zone. It had gapped down from the 10th and did move back up to close the gap at £20.50 it then dropped back to £20 (first warning). It then continued down to £17.68 before pulling back up to the previous gap close level before closing at £20. (second warning) It then continued down to £18.85 when it was supported for a period before going lower.

I failed to give the share price time to 'base' and 'jumed in' too early which would have been ok for a 50 point gap fill but not for a decent retrace back up.

Fortunately the share price has pulled back up and is now showing Mater a small profit but it was a poor initial purchase.

"My approach honed after a great number of years and crises is to stay fully invested in quality funds, not try to time the market and even add when the doom and gloom is at at its worst, remembering that most bear markets last only about two years or less."
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I appreciate this approach especially in you are invested for income. My approach is different in that I do not want to stay invested in companies that take a big hit during bear markets. I prefer to sell as near to the top as I can and buy later when they have fallen to low levels. IE Sell at the top of the cycle and buy at the bottom of the cycle.

Each to their own.