Ashtead Share Discussion Threads

[blackhorse23] 14/7/2022 20:23

How much their revenue?

[disc0dave45] 14/7/2022 20:22

PerfidoI just used the prices from the link below, it also gives the dividends on ex div day (didn't use the adjusted closing price as believe this also takes into account the dividend).So in answer to your question.....I don't know!, I'm assuming it's been converted.HTTPS://uk.finance.yahoo.com/quote/AHT.L/history/

[perfido] 14/7/2022 20:08

Hi discO,

Just a thought, in your investigation did you discover what date the dollar/pound conversion rate is struck - clearly the rate has improved appreciably since the original announcement?
.

[disc0dave45] 14/7/2022 19:46

Good day Mr b

‘Which suggests you invest not for divi income but for share price increase income.’

Generally yes, div yield is not a key investment criteria for me. If I did have a specific income PF then I would probably also check to see what the true historic yield is likely to be (not just ignore capital depreciation on ex div days - or not as the case may be!). But then wtfdik, superior analysts and number crunchers probably (definitely) know better :)

[bracke] 14/7/2022 19:15

Good day disc0

"I was simply curious as always felt that divs are akin to a placebo :)"
==========================================================================

Which suggests you invest not for divi income but for share price increase income.

[disc0dave45] 14/7/2022 19:02

Hi Perfido It was good news! lol, In as much that divs were not eradicated by the supposed equivalent drop on ex div days. Whether that's true of other stocks is another question.I was simply curious as always felt that divs are akin to a placebo :)No comment on peeps investment strategies, each to their own.

[perfido] 14/7/2022 18:00

discO,

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
.. Clearly in AHT’s case it’s capital appreciation (multi bagger) not income (net circa 0.6% yield) that’s the attraction here
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Nice work but there are more subtle ways of breaking bad news .... fenners still thinks its an income share !!
:-)
.

[disc0dave45] 14/7/2022 12:08

Realistic Div Yield AHT:Have now done the same calcs (only just within my mathematical capabilities!) to determine whether or not you do actually have a net gain from the dividends when taking onboard ex div day share price change.Could only do the dividend history from Feb 2002 from the Ashtead website, but twenty years should be more than reasonable from a statistical view point.In short total divs to date is 270p, ex div day net cumulative change minus 108p.So about 40% of div yield is lost, but I'm still surprised there's a net 60% gain (the ex div day theory isn't 100%!). Clearly in AHT's case it's capital appreciation (multi bagger) not income (net circa 0.6% yield) that's the attraction here.Ps would probably do similar if I had an income PF but I haven't!

[fenners66] 13/7/2022 14:06

and £ tumbles vs $

[bracke] 13/7/2022 13:41

CPI Data worse than expected at 9.1%.

[bracke] 13/7/2022 13:39

I'd forgotten about that one...but yes. OK it's taken a few years to add to the Canadian purchase but what with Covid and all, these things can't be rushed.

[disc0dave45] 13/7/2022 12:01

"Another thought....is this to be the first acquisition in the entertainment hire business with more to come?"You mean like William F White that they bought in 2019 :)

[bracke] 13/7/2022 11:41

Good day disc0

My thought was 'why bother'. I presume the intention is to considerably expand the business otherwise it's a distraction from where the bulk of the profits come from.

Another thought....is this to be the first acquisition in the entertainment hire business with more to come?

[disc0dave45] 13/7/2022 11:16

Thanks Mr bOnly a tiddler with a net book value of £12m (from their latest balance sheet - if I've got the numbers right as no accountant and simple sums are beyond me), only 35 employees.....not too significant in the scheme of things confirmed by zero RNS.Have a good day :)

[disc0dave45] 13/7/2022 09:43

In the times:"Sunbelt Rentals UK, a trading division of Ashtead, the FTSE 100 equipment hire group, has acquired the Greater Manchester-based PKE Lighting, whose credits include Doctor Who, Sherlock and Wolf Hall."

[disc0dave45] 12/7/2022 17:05

I've always felt that dividends are a false income in as much that in theory the capital value of the stock in question falls to the value of the dividend on ex day, thus as a holder is there truly a net gain or is it eradicated by capital reductions equal to the dividend amount. Difficult to prove as can't determine how the stock would perform with no dividends v with dividends.However, as a quick analysis (simple sums so within my capability with the help of my pooch and a calculator) I checked the change in share price on ex div days here at AHT, going back to 2018, and compared the net cumulative change to date versus the total dividend value, basically there was a net gain of 80%, in other words only 20% of the total dividends were in effect lost due to share price reductions on the ex div days - in truth that surprised me. Will look further back to see if it still holds true that you do indeed gain with dividends - just killing time until this market has bottomed lol.

[disc0dave45] 11/7/2022 20:22

Thanks Perfido.Agree and there are more "bargains" appearing IMO but being patient this time (normally go straight in!).The boards have gone very quiet but surely now is the time to be planning when to buy, more opportunities to make decent profits during such downturns IMO, but hey wtfdik.

[perfido] 11/7/2022 19:27

Thanks discO,

It’s a question of perspective imho, volatility can be a friend or a nightmare depending on your perception.

In my view, AHT may be oversold at present, and the appreciating dollar ($1.1899) gives a boost to current earnings and valuation after translation.

However, I think patience will be needed before the rewards are fully realised, so I am content to continue stake building gradually. NAI

Good luck with your own targeted opportunities :-)

[disc0dave45] 11/7/2022 19:11

Good luck perfido.Have been doing similar with initial tranches in other stocks but waiting again for this weeks US CPI data before doing more. Market seems very volatile atm.....even on relatively known news.

[perfido] 11/7/2022 18:07

As I anticipated above, in a lacklustre market AHT regained some earlier losses to finish just a little down, with a better looking candle at the finish, and good volume.

I bought a few more today for my pound cost averaging gambit, who dares wins….. eventually?
.

[fenners66] 11/7/2022 14:48

£ still falling

[perfido] 08/7/2022 20:02

FTSE 100 - Risers 8/07/22

Centrica (CNA) 80.08p 3.12%
Ashtead Group (AHT) 3,828.00p 2.85%
Coca-Cola HBC AG (CDI) (CCH) 1,848.00p 2.58%
Smurfit Kappa Group (CDI) (SKG) 2,780.00p 2.46%
St James's Place (STJ) 1,149.00p 2.46%
CRH (CDI) (CRH) 2,913.00p 2.45%
Airtel Africa (AAF) 147.70p 2.29%
JD Sports Fashion (JD.) 125.25p 2.21%
Rolls-Royce Holdings (RR.) 87.13p 2.19%
Pearson (PSON) 776.60p 2.16%

Has the pendulum swung? 3 days of gains, AHT plus 234p between 6-8th July to close 3828p today and daily volumes above 1m plus seems pretty encouraging to me...

However todays candle looks a bit weak, let’s see what Monday brings.
.

[bracke] 08/7/2022 14:33

disc0

My thought was as your post 60986.

As I type the 'good' job numbers are 'bad'. The thought being that the FED will increase the next rate hike by 0.75% rather than 0.5% to reduce the number of job vacancies.....but the market may decide otherwise.

The moral is 'trade what you see not what you think'.

[disc0dave45] 08/7/2022 13:49

Jobs added came in above forecasts.
But perhaps bad news is actually now good news!
I give up tbh lol……time to chase squirrels