Ashtead Share Discussion Threads

[fenners66] 16/10/2019 21:19

I guess they had acquisitions in there to boost the numbers - but EPS is well up..... so looks good first glance.

[fenners66] 16/10/2019 21:18

United Rentals, Inc. (NYSE: URI) today announced financial results for the third quarter of 20191.

Total revenue increased 17.6% to $2.488 billion and rental revenue increased 15.4% to $2.147 billion. On a GAAP basis, the company reported third quarter net income of $391 million, or $5.08 per diluted share ("EPS"), compared with $333 million, or $4.01 per diluted share, for the same period in 2018. Diluted EPS for the quarter increased 26.7% year-over-year. Adjusted EPS2 for the quarter increased 25.7% year-over-year to $5.96.

Adjusted EBITDA2 increased 14.0% year-over-year to $1.207 billion, while adjusted EBITDA margin decreased 150 basis points to 48.5%. On a pro forma basis, year-over-year, net income increased 42.7%, adjusted EBITDA increased 4.4% and adjusted EBITDA margin decreased 40 basis points.

Matthew Flannery, chief executive officer of United Rentals, said, “In the third quarter, we delivered solid revenue growth driven primarily by strength across our core construction markets, partially offset by slower industrial growth. Operating costs were higher than expected as we repaired and repositioned fleet. Our updated guidance reflects these dynamics, as well as our expectation for higher free cash flow generation.”

Flannery continued, “Looking ahead, our customers remain upbeat about their business prospects well into next year. At the same time, we know that lingering economic uncertainty could impact construction and industrial activity. As we complete our planning for 2020, we’re focused on delivering returns in any operating environment, while balancing growth, margins and free cash flow.”

[bracke] 16/10/2019 14:21

URI report earnings to-day after the market closes.

The estimated eps is 5.6.

[bracke] 16/10/2019 10:48

Thanks demo.

Over the years this share has become my bugbear. It's become personal!

[demo trader] 16/10/2019 10:43

Party at bracke's house, well done.

[bracke] 16/10/2019 10:33

Thank you fenners. It took me long enough.

It's my intention that a few more wins will come my way. It owes me!

[fenners66] 15/10/2019 17:52

Hurrah , you joined the club !

[bracke] 15/10/2019 15:41

Closed at 2159.93.

About time I made some money out of this share.

[bracke] 15/10/2019 14:05

Long trade taken at 2121.06. Stop moved to b/even.

[fenners66] 04/10/2019 11:36

A good question would be what % of the share register is owned by US institutions ?
However as we can see - the act of BB does not guarantee a rise or Capital gain for anyone.

Higher dividend income and a lower debt should deliver both a higher dividend valuation model , a higher profit (lower interest rate cost and less frequent refinancing costs) , therefore a higher enterprise value which should lead to a higher share value given shares would then get a higher % of that enterprise value vs lower debt.

Also lower debt de-risks the shares when the cycle turns.

After all periodically we are told that "exceptional" refinancing costs have occurred but hey they are a "good thing" because interest rates have reduced and debt terms have been extended ....

So I say reduce the interest cost permanently and reduce gearing to ensure access to lower interest rates and even longer terms.

Then higher dividends add certainty to returns - not the hope that engineered EPS changes might lead to higher capital gains - which are wiped out in an instant by an ill timed /informed trump tweet.

After all capital gains are NOT based upon the performance or profitability of the company - they are solely based upon whether anyone wants to buy your shares from you at more than you paid for them on the day you want to sell them.

And if you believe in the company - you don't want to sell !

[hydrogen economy] 04/10/2019 03:11

Fenners

I think these examples prove that buy-backs can't fix a bad Company, BODs know when they are in trouble so should know not to throw money on cosmetic improvement, but self interest too frequently trumps fiduciary duties.

Should a good company buy-back if the BOD feels share price is undervalued? In principle that can enhance shareholder value (higher future EPS etc), but only if the impact on debt position does not negate that benefit by pushing up default risks and borrowing costs. Lower interest rate environments make the buy-backs cheaper to fund, BODs have to judge the risk of future interest rate rises, business environment etc.

Paying higher dividends lets shareholder decide if he wants to reinvest, but the tax efficiency is generally worse than the buy-back option, especially in the US where many institutions are able to structure to minimal capital gain tax but will be hit by dividend tax. I have the impression that this is a big driver for prevelance of US buy-backs (and the lower US dividend rates Vs FTSE) but it is becoming more common in UK also.

I don't have a strong view on whether BBs are good or bad, both can be bad if they over-stretch the balance sheet. For many UK Companies, I see more discussion of the topic than of the quality of business and management which is the real driver of profit or loss. BB Vs divis is just a debate about how one's preferred way to take pain or gain.

I remain cautiously positive on AHT although the recession talk increases, at least that would discourage the Fed and other from interest rate rises. I took a little profit above 2300p and will add back if share price dips much further

OK back to lurking. H2

[fenners66] 03/10/2019 23:26

From a discussion about Imperial Brands share buybacks....

"loganair
27 Sep '19 - 11:11 - 2837 of 2991

Many companies who buy back their own shares see their share price fall...look at the old BwinParty. Started buying back their shares at 170p, most of the buy backs done above 140p, to only see there share price fall to below 100p before being taken over by GVC for around 130p per share.

All that money BwinParty wasted, just went into the pockets of the bankers and institutional traders."

[bracke] 03/10/2019 12:10

At 2100 support. If this fails next is at another round figure 2000.

Come on Mr Trump lets have a Tweet!

[bracke] 02/10/2019 12:03

It's broken out of the 2200-2300 range but the wrong way for holders. 2100 is next support.

Following yesterdays US ISM Manufacturing Report the upcoming US/China Trade Talks are maybe the best chance of moving the market back up. Unless something positive comes from the talks the Santa Rally maybe curtailed this year.

I should not discount the possibility of a market retrace back up bearing in mind there will be those who were 'trapped' yesterday following the fast fall. If there is a retrace it will do well to recover 50% of the fall.

[bracke] 01/10/2019 18:00

Good day fenners

The DOW gapped down from 27,000 and the S$P 500 from 2990.

I suspect it's going to require a Tweet or two from Mr Trump to fill the gap. A China Tariff deal would do it but I'm not holding my breath. Poor chap has got Impeachment to deal with, all the fault of those pesky Democrats and their fake news.

[fenners66] 01/10/2019 17:31

Thanks Bracke

[bracke] 27/9/2019 14:41

The two gaps filled just 2338 remains. Currently in the 2200-2300 range as it did in July

[bracke] 26/9/2019 12:56

£/$ and Mr Trump's tweet send the markets up....so much for probability.

There are three gaps to the upside. If the share price can rise to 2306 it will fill two of them. The third is at 2338.

[bracke] 25/9/2019 17:52

On the plus side it filled the opening gap, closed higher than yesterday and closed above 2220 support. On the minus side it continues to make lower intra day lows and highs.

It's just about at the point where either buyers or sellers will take control. The probability leans to sellers but this is no ordinary share, this is AHT and we know what it can do....I've got the scars to prove it!

[bracke] 24/9/2019 11:10

Another 'look' at 2220.

[bracke] 23/9/2019 14:06

From Post 57258

"The chart suggests that the share price needs to be supported at 2220, failure to hold this level is likely to lead to a drop to next support at 2120."
===============================================================================

Holds again at 2220.

[jackdaw4243] 20/9/2019 18:08

Slogsweep

Ask Paul Walker if your at Newcastle watching foot ball tomorrow.

G E is a classic of when it goes wrong "General Electric". Bought back at $140 share price now $8.00 approx.

[bracke] 20/9/2019 15:09

Slogsweep

If I understand it correctly buying back the shares and cancelling them helps to increase the dividend because the profit isn't spread over so many shares and thus helps to increases the share price.

Of course there may be more devious reasons but I will avoid that particular subject.

[smcni1968] 20/9/2019 13:40

GS upgrades URI to buy- they see less new equipment leading to better rental rates