Ashtead Share Discussion Threads

[discodave4] 19/3/2019 22:02

.....and my stalker appears!Can't see what it says as have it on filter.Sorry guys, I'm sure it will disappear. There are some strange people on ADVFN. :)

[nortic 007] 19/3/2019 21:18

Not me DD I'll take that down now and they'll be one.Please behave

[discodave4] 19/3/2019 20:00

Cheers bracke.....mines a pint! :)

[bracke] 19/3/2019 17:48

The share price is making 'hard going' of moving back to £20. Looking at the above average volume for Friday and Monday and the corresponding small price range suggests that buyers and sellers were about even.

I note there is a gap between the two large black candles. It is hoped that upon filling the gap the share price doesn't think it's done enough and decides to retreat.

[fenners66] 13/3/2019 22:22

Thanks from me too

[discodave4] 13/3/2019 20:55

Yep thanks.

[glawsiain] 13/3/2019 17:34

No problem. Have enjoyed this thread for some time, so happy to provide something for once.

[ianwwwhite] 13/3/2019 16:41

glawsiain,

Many thanks for your post, most encouraging

[glawsiain] 13/3/2019 14:59

Sunbelt gives investors in Ashtead a warm glow
It takes more than a subordinate clause inserted after its name to explain what Ashtead does. While it is known as a tool hire business for the trades, this company actually does an awful lot more — and almost all of it in America.
Ashtead’s roots lie in Britain and in tools. Founded in 1947 in the Surrey town that gave it its name, it started out as Ashtead Plant Hire, supplying local builders and farmers with diggers, cement mixers and other kit needed to carry out smaller building jobs.
After listing in 1986, it made its big move into the United States in 1990, buying Sunbelt Rentals. Boosted by two subsequent acqusitions, Ashtead has grown to be the second largest player in the market, behind United Rentals. It operates in the UK under the A-Plant brand, the largest tool hire company over here but accounting for a little more than 10 per cent of group revenues. The rest comes from Ashtead’s activities through Sunbelt, predominantly in the US but also in Canada.

Ashtead is a constituent of the FTSE 100 with a market value of just over £9 billion. It has resisted moving its listing to the US, in part because of the associated costs, although it does issue bonds to dollar buyers and its share register in London increasingly has attracted the interest of American institutions.
The group’s activities in the US, though still pegged to the rentals markets, are truly wide-ranging. It works in disaster recovery, hiring out its fleets of cranes and diggers to contend with hurricane damage. It is involved in temporary power, renting generators to events. It rents out the boards laid on the ground at festivals, as well as the lights, barriers and rigs. And, as well as fitting out office blocks, it has moved into building temporary bridges and trenches for building sites.
This diversity, which is steadily growing through small bolt-on acquisitions, means that while Ashtead is exposed to the cyclicalities of the American construction market, it has made itself a wider play. Meanwhile, of course, under President Trump, US construction remains on a roll, albeit against the backdrop of an economy showing signs of coming off the boil.
Nevertheless, overall rental revenues in the US are forecast to grow by 5 per cent a year between now and 2022, according to IHS Markit, the data provider, with Ashtead locked into an increasing trend among American businesses to hire rather than buy the equipment they require.
Not only is the group benefiting from the president’s tax-cutting drive, but the additional wealth that this is creating for American industry as a whole is further bolstering orders. Revenues at Sunbelt US grew by just under 22 per cent over the nine months to the end of January against the same period the previous year and its margin is a very healthy 49.9 per cent.
There is a minor uncertainty in that Geoff Drabble, 59, is leaving the chief executive’s job that he has held for just over 12 years, although his replacement, Brendan Horgan, 45, has been chief operating officer for a year and is the boss of Sunbelt US. It’s hard to fault that for succession planning.
Ashtead’s shares were pummelled in the stock market sell-off late last year, shedding just under 35 per cent of their value between a peak of £24.37 in late September and the end of December, when they touched £15.86½. The stock has since come back somewhat since then, although the shares closed 30p, or 1.6 per cent, down at £18.91½.
Trading at only 9.5 times JP Morgan Cazenove’s forecast earnings for next year and for a likely yield of 2.3 per cent, the shares look like a bargain.

Advice Buy

Why Highly diverse business locked in to US growth whose shares look very good value

[ianwwwhite] 13/3/2019 14:41

Thanks mjcf,

I see the article under the Tempus byline today is entitled 'Sunbelt gives investors in Ashtead a warm glow' but the rest unfortunately is behind a paywall.

Still nice to see a favourable recommendation as you say, but far from feeling a warm glow, we seems to be experiencing a child wind at present!

[mjcferguson] 13/3/2019 10:22

Nice to see a good buy recommendation in the Times today,albeit they spelt the Company name wrongly.

[discodave4] 08/3/2019 19:06

We just issued a profit warning and I missed it!Oh well, another go at £20 and a pint off bracke......hic hic

[bracke] 08/3/2019 11:25

Good day ian

It was probably as many people voting against Clinton as voted for Trump that brought him in to office. If by hook or by crook he manages to fulfil his electioneering promises he may be returned. Also depends who the Democrats run against him.

Good day fenners

Don't put ideas in his head! I suppose a diplomatic role would suit him best.....


And on to the share price The support I referred to in post 56561 failed to hold and so far 1900 has supported but previously 1855 has given stronger support.

I haven't informed Mater of current events......don't want my ears boxed!

[fenners66] 07/3/2019 22:07

Take a leaf out of Putin's book and change the constitution so he can be elected again ?

[bracke] 07/3/2019 18:07

Good day ian

"The Wall Street Journal on Sunday reported that Trump and Chinese leader President Xi Jinping are working on a summit that would take place in Mar-a-Lago, Trump’s club in Florida, at the end of this month that might constitute a final stage of trade discussions."
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Mr Trump needs a good result, if it isn't he will say it is!

The Presidential Election is 3 Nov 2020. That's 20 months away, a long time to keep the stock market buoyant. Perhaps he will have to accept a retrace and then 'pump it' nearer the election date.

It might be better to let the economy ease off for a while to avoid the FED increasing interest rates.

If he is successful at the election what will he do given he will not face another election and has nothing to loose.

[ianwwwhite] 07/3/2019 17:50

Good afternoon bracke,

Thanks for your views.

It would seem DD's 'Tango Man' needs to pull something out of a hat, if he is relying on a buoyant stock market to secure his re-election...

It appears so far that his North Korea 'deal' has floundered, the China Tariff skirmish is far from settled, and 'The Wall' project looks like it is unlikely to get finished. And now the U.S. trade deficit has unsettled the markets.

Looking forward to Big T's next proud boasts of his achievements in office! Make America what?

[bracke] 07/3/2019 16:54

If support at to-days close fails it brings 1885 into view.

[fenners66] 07/3/2019 10:50

Why not just tick the link above...?

[riley109] 07/3/2019 09:58

Turn on TV select Brussells 1 and scroll to text business news, shares.If screen goes black press Brussells 231 and select business news,shares and top 350. Sea of red due to Trumps massive trade deficit.

[discodave4] 06/3/2019 23:13

IanWho could that be I wonder?Two pints and counting! ?

[ianwwwhite] 06/3/2019 11:12

Seems to be a lot of red generally on my screen, AHT seems to be manfully trying to swim against the tide.

Looking at the bigger picture, we seem to have been in an uptrend recently, higher highs and higher lows if I'm not mistaken.

If only we knew someone who could tell us what it all means from a 'technical analysis' viewpoint... :-)

[bracke] 05/3/2019 15:41

Winnie refuses to comment about fake news.