Assetco Share Discussion Threads

[treacle32] 29/7/2011 18:13

5-10p soon possibly imo. Chart looking good for a big upsurge towards 10p imo.

[tez123] 29/7/2011 16:41

Closed at 2.75p

Roll on monday.

[baldeagle5] 29/7/2011 16:20

Looks like 4-6p is whats been offered judging by the shareprice. Be interesting to see if that prompts a rival to Arcapita to enter the fray...? I expect we'll find out over the weekend - the closing auction will be interesting.

[baldeagle5] 29/7/2011 16:13

Lots of RNS come after 4:30pm

[greedfear] 29/7/2011 16:10

Boy would that make my weekend lol! A 10p take over.

[greedfear] 29/7/2011 16:09

Someone tried to keep share price down today offering 4.x million at 2.5p. Very suspicious...

[intouch] 29/7/2011 16:08

yes its cut and paste put the twitter link in your browser

[greedfear] 29/7/2011 16:07

Why wouldn't 10-12p be possible if there's a bidding war? Higher offers have been rejected before.

[greedfear] 29/7/2011 16:06

rns when market is closed?

[caledoniaman1] 29/7/2011 16:05

intouch - 29 Jul'11 - 16:00 - 1589 of 1590


Talk is mangement want nearer 20p but 10-12p offered


Stay off the drugs sonny boy !

[microscope] 29/7/2011 16:02

Did you cut and paste that from twitter intouch?



'intouch - 29 Jul'11 - 15:48 - 1584 of 1590
@evilknivel1
evil knievel
#ASSETCO LONDON FIREBRIGADE CHIEFS SAYS JOBS SECURED NOW ASSETCO HAVE RECIEVED 4 TAKE-OVER BIDS
https://twitter.com/#!/'

Shame 'whoever' misspelt evil's name.

Salt pinch and of come to mind. No price is mentioned IF it is genuine.

Am awaiting actual RNS developments! I still hope they can be rescued but at what price (if atall) remains anyone's guess imho.

[intouch] 29/7/2011 16:00

Talk is mangement want nearer 20p but 10-12p offered

[baldeagle5] 29/7/2011 16:00

News after the close per usual?

[baldeagle5] 29/7/2011 15:56

4 bidders?! Let the games begin.

[intouch] 29/7/2011 15:56

TOLD you would you listen even the famous shorter evil knievel has posted it all over twitter 4 bidders at war 10-12p

[caledoniaman1] 29/7/2011 15:51

Ready to PING !

[intouch] 29/7/2011 15:48

@evilknivel1
evil knievel
#ASSETCO LONDON FIREBRIGADE CHIEFS SAYS JOBS SECURED NOW ASSETCO HAVE RECIEVED 4 TAKE-OVER BIDS

https://twitter.com/#!/

[baldeagle5] 29/7/2011 15:48

Someone is clearly trying to buy these and knows something....
If Arcpital want them then nows the time to strike before the new placing. 8-10p should do it

[intouch] 29/7/2011 11:22

mms covering this up well imho news could be here later and murmerings on all the forums 1 tiny sell the rest buys lse/plus.
Yet mms marked it down from 1.9 to 1.5 on open.

[intouch] 29/7/2011 08:03

huge spread i wonder why,news on the way and mms have zero stock

[intouch] 28/7/2011 16:06

July 25, 2011 7:40 pm
Gold Oil in demand on earnings forecast
By Neil Hume and Bryce Elder

Assetco, the support services group that supplies engines to the London Fire Brigade, jumped 113 per cent to 2.47p after its major shareholders said they were prepared to inject £10m as part of a refinancing plan that would see the company keep its listing on Aim. Separately, Assetco said takeover talks had reached an advanced stage but an agreement needed the blessing of its lenders.

[intouch] 28/7/2011 15:18

AssetCo set to spark

BULL POINTS:
■ Long-term contracts underpin forecasts
■ Leaner following disposals
■ Prospect of further outsourcing in UK and Gulf
BEAR POINTS:
■ High debt levels
■ Sale of unwanted businesses not certain
AssetCo has transformed its business in the past year, stripping out capital-intensive low-profit operations to become a leaner supplier of services to emergency services. And recent contract wins both in the UK and abroad bode well for the future.
The company's core business is based around two long-term contracts, a 20-year deal with the London Fire Brigade, which is in its 10th year, and a 20-year partnership with Lincolnshire Fire and Rescue, which is in its fifth year. Under both these contracts AssetCo supplies support services to the fire authorities, including providing appliances and equipment and their maintenance.
So far, London and Lincolnshire are the only two UK fire authorities to outsource the supply of equipment and maintenance services. But the likelihood is that, as the government frames its comprehensive spending review in the autumn, pressure will grow on other fire authorities to squeeze more efficiencies from their operations. That would leave AssetCo well placed to pick up similar contracts.
IC TIP RATING
Tip style Growth
Risk rating Medium
Timescale Long term
What do these mean? Find out in our guide to tip ratings
Both these two contracts have been expanded since their inception and, thanks to the London deal, AssetCo was in a strong position to win a five-year contract last year to provide an Emergency Fire Crew Capability Service for the capital. Under this contract, AssetCo has trained 700 reserve fire fighters, who are available to London in the event of an emergency, replacing the need to bring in the Army and its Green Goddess fire engines as in the past.
AssetCo's management has refocused the business over the past year. After an acquisitive period, it owned several capital-intensive operations, including the manufacture of emergency services vehicles and equipment. The unwanted businesses are in the process of being sold, with two remaining on the books. While disposals can't be guaranteed, AssetCo's bosses are offering the prospect of an extra 1p dividend if and when they are completed. That will leave a leaner business, with continuing operations that turned all their operating profits and more into cash in the year to March.
AssetCo's high level of debt - still 113 per cent of shareholders' funds - has been a concern, although much of the borrowings are non-recourse, linked to its service contracts. Indeed debt directly attributable to the company was slashed by £16.8m to £18.9m in the past financial year.
ASSETCO (ASTO)
NET ASSET VALUE: 67p NET DEBT: 113%
Year to 31 Mar Turnover (£m) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p)
2008 64.6 9.0 11.8 1.0
2009 34.1 1.3 1.9 1.3
2010 45.2 12.1 8.9 1.5
2011* 48.8 11.0 9.7 2.0
2012* 50.3 12.9 11.2 2.2
% change +3 +17 +15 +10
Normal market size: 3,500
Matched bargain trading
Beta: 0.9
*Fairfax estimates
With the UK contracts continuing to underpin the business, and the prospect of more to come as public spending cuts bite, AssetCo has also made strides in the Middle East over the past year. First, it signed a 10-year joint venture with the Abu Dhabi government for the construction of its Disaster City Training Facility, a 100-acre emergency services training ground. Then, in March, it won a three-year contract worth £40m with the United Arab Emirates to provide a fire fighting service - a contract the company hopes to replicate elsewhere in the region.
SHARE TIP SUMMARY:
Buy
As a result of the deals already signed, AssetCo has secured 100 per cent of its forecast revenues for 2010-11. So any new deals will put the company in a stronger position. Yet its shares sell on just five times forecast earnings for 2011-12. That's miles below the average for the support services sector and another reason the shares are a buy.