Ashtead Share Discussion Threads

[bracke] 15/9/2023 16:11

Good day fenners

"You know too much bracke - I assumed everyone had to look on autotrader...."
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It's only the shareholders with a few shares who look on autotrader hoping to find a bargain Fiesta.

Those with multi thousand shares will be beside themselves with great expectations as they peruse the luxuries to come their way.

Websites do not offer the satisfaction given by the feel of silky thick glossy paper and the vibrancy of superb photos. The act of telephoning the car/yacht showroom and haughtily requesting a brochure from a showroom minion is one not to be missed.

[fenners66] 15/9/2023 13:48

Brochures ?

You know too much bracke - I assumed everyone had to look on autotrader....

[bracke] 15/9/2023 13:46

Good day demo

7200 that's a large increase from the current price. Needless to say such forecasts are never accompanied by a target date.

I suppose there's no harm in shareholders looking through the luxury car and yacht brochures.

[demo trader] 15/9/2023 07:35

g.m.

Info. only.........GS raises target to 7200p

[bracke] 08/9/2023 11:41

Good day disc0

Nice weather for the time of year.

The share price dipped a toe below support this morning but quickly drew back.

[disc0dave46] 08/9/2023 10:33

Thanks Mr b :)

[bracke] 07/9/2023 17:35

The share price is being supported at a previous s/r zone plus the Daily SMA 200... but only just.

The RSI is indicating it is at, or very close to oversold.

Todays US data has not assisted the positive view and maybe put in doubt an interest rate pause.

AHT DAILY

[bracke] 06/9/2023 12:07

A 100 point drop on opening but interesting to see the way it was bought back.

AHT 1 MINUTE

[riley109] 05/9/2023 16:33

Where else do you think they're going to hire /borrow the tools needed to enhance their Caribbean retreats ?

[bracke] 05/9/2023 14:44

fenners

I did note your slightly cynical view of the acquisition.

I presume the Directors would say it was just one of a number of acquisitions that add to the company coverage and profile.

Obviously it will be necessary for Directors and Senior Managers to visit the site to fully assess the situation preferably during the GB and US winter months.

Visits to the Canadian sites have been postponed due to the bear situation.

[fenners66] 05/9/2023 13:23

Thanks bracke - what do you make of the new Bahamas acquisition ?

[bracke] 05/9/2023 12:17

Good day fenners

As always nice to read your comments.

"Makes you wonder what some thought they knew yesterday afternoon ?"
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Thought they knew or did know? Not the first time and will not be the last....of course it could be sheer coincidence.


"On a brighter note there is a new gap to fill...."
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We like a chunky gap don't we and it was a very chunky one at the open which provided a buying opportunity if you were quick or 'prepared'.


Buybacks or pay off debt? No discussion but consideration.


My post 62118

Lo it came to pass that it was drawn to 5300 and verily did succumb to temptation and was seduced by the blandishments of 5150 and there was much wailing and gnashing of teeth.

The market doth move in mysterious ways and the strength of the Daily SMA200 brought forth sweetness and light and it did rise forth out of the pit of despondence and grief. All praise the almighty Daily SMA200!

[fenners66] 05/9/2023 11:32

Just WTF !!

"On 25 August 2023, Sunbelt US acquired the business and assets of Caribbean Rentals & Sales Ltd and International Rental Services, Inc. (together 'CRS'). CRS is a general tool business operating in the Bahamas. "


Why ?
How is that going to benefit "clusters" ?

Is there a queue to go and visit ? How about internal audit .... every quarter perhaps for 13 weeks ?
Working from the "New office" nudge nudge wink wink....

[fenners66] 05/9/2023 11:21

So we have a table of debt outstanding by amount year and interest rate.
However at the top of that table there is

" First priority senior secured bank debt" - with NO interest rate quoted next to it ...
I wondered why not ?

So given "The weighted average interest cost of these facilities ...is 5%"

A quick spreadsheet can tell us the cost of the secured bank debt.

And the reason why they did not tell us the cost ?


Calcs done previously about how much the share buyback were going to cost in extra interest
and whether its worth it in terms of EPS or DPS , were assuming that interest rates were going to rise
and so they have.


My calc (feel free to correct if I have something wrong)

First priority senior secured bank debt $1892.4m at 6.98%

So already just about 7%

[fenners66] 05/9/2023 11:05

Happier at this decrease from last year of "own by co"

Purchase of own shares by the ESOT (29.8) (12.5)
Purchase of own shares by the Company (21.7) (118.6)

But I am surprised that the ESOT purchases have grown so much now exceeding other buybacks ...

I guess that is tied in to the massive increases in Staff costs

"Staff costs (618.2) (520.0) " so about 19% increase that's a lot and answers some of why that increase in revenue has not resulted in a more economic pass through to profit - margins are flat overall.

[riley109] 05/9/2023 09:24

And on an even brighter note once the financial institutions have gorged themselves on the cheap shares they've manipulated the price should go up which will satisfy the day traders,me I think will hang onto mine and take advantage of the dividend,after all a share purchased 20 years ago for 34p must have been one of the most sensible things I ever did.

[disc0dave46] 05/9/2023 09:24

Market focussing as ever on the slight negative, namely softening in the UK market, which has been softening for some time now so no surprise. Ignoring the record quarter and in-line forecast.Yes it's me a year (digit) older! lol

[fenners66] 05/9/2023 08:10

On a brighter note there is a new gap to fill....

[fenners66] 05/9/2023 08:09

No doubt there will be a view that debt is still in the range 1.6 x EBITDA

I think the market reaction is , so what ?

Using a ratio to attempt to mask that in a rising interest environment the net debt has shot up - does not help.

The interest cost on the debt is rising rapidly

[fenners66] 05/9/2023 08:06

Net debt at 31 July 2023 was $9,679m (2022: $7,716m).
Excluding the effect of IFRS 16, net debt at 31 July 2023 was $7,200m (2022: $5,630m)

Just looking through the details as the share price updates..... OUCH ...

[fenners66] 05/9/2023 07:57

Bloomberg just said figures have missed analysts estimates.


and ...

"This lower rate of growth in adjusted profit before tax reflects an increased net financing cost due to increased average debt levels and the higher interest rate environment. "

Really ? Shock...- pay down the debt then.

Good news on EPS though - just need to feed all that through to the dividends.

[fenners66] 05/9/2023 07:37

Makes you wonder what some thought they knew yesterday afternoon ?

[bigbigdave] 05/9/2023 07:25

Very decent numbers

[perfido] 31/8/2023 19:45

Thanks dcarn,

RNS above today gives forthcoming dividend sterling exchange rate:

Dividend 85.0 US cents per share or in real money 67.25 pence per share sterling payable on 12/09/23!
.