Babcock Share Discussion Threads

[minerve 2] 18/1/2021 10:45

Anyway, those following Minerve will remember he posted saying he would sit on the sidelines for a while - and provided the rationale - many months back.

[maverick081267] 18/1/2021 10:38

How many you get in here net did you have a small nibble?

[netcurtains] 18/1/2021 09:37

LOL - this share is going all over the place.
Its like rock and roll.
Gawd knows where it will finish up!

[netcurtains] 18/1/2021 09:02

!FOLLOWFEED

[netcurtains] 17/1/2021 20:16

1spotter: That bit of the jigsaw added to the independent review implies BABs might be putting itself up for sale as a whole or for key parts. There are lots of angles here. Its going to be interesting to see how this all pans out.

[essentialinvestor] 17/1/2021 19:34

The key comment..."We have recently started a detailed review of our balance sheet and contract profitability. Early indications suggest that there may be negative impacts on the balance sheet and/or income statement for current and/or future years...".

A well trodden road for this sector, a sector that has been an absolute
mine field for PI's.

[netcurtains] 17/1/2021 19:06

Thanks ptonks, always nice to have the reverse view. There would be no market if everyone agreed.

[poikka] 17/1/2021 17:16

Who's recommending looking for a short-term gain, Minnie?

[minerve 2] 17/1/2021 15:34

Let's hope PE don't get it at all. There will be nothing left in the UK and for shareholders if PE keep on buying everything worth considering and of value.

I don't see why numpties start spaffing all over the place for a short-term gain on the share price when in reality they are selling off all their future return for next to nothing.

[poikka] 17/1/2021 15:28

Right with you there, Net, was just about to post similar, although not the rights issue bit as I don't see the need.

It's only the possible write-downs that might be holding back private equity from snapping it up and flogging-off bits.

[netcurtains] 17/1/2021 09:48

Traditionally (normal-ish years) BABs makes annual AFTER TAX profits of £200m to £350m
Currently BABs has a market cap of: £1,100m (Its now valued at just 3 years annual profits rather than a more normal 10 years).

Data from Wall Street Journal.
(over 5 years)




Over 5 year period average share price for BAB is 600p - its now 220p

There is a possibility that shareholders, if lucky, might be able to get some cheap shares via a rights issue (although that is just speculation at present).

[misca2] 16/1/2021 15:25

Review of contract profitability and balance sheet

We have recently started a detailed review of our balance sheet and contract profitability. Early indications suggest that there may be negative impacts on the balance sheet and/or income statement for current and/or future years. This review is being supported by an independent accounting firm and the outputs will be reviewed by our auditor (PWC), Audit Committee and Board prior to the publication of our audited results for the year ending 31 March 2021 expected in May.

Outlook

Uncertainty remains around the outturn for this financial year, especially given that our fourth quarter is historically our strongest and that the COVID-19 situation has worsened in most of our markets. Given this uncertainty, and the start of our review of contract profitability and balance sheet, we continue not to provide financial guidance for this financial year.

[pugugly] 15/1/2021 18:37

Marker to watch at 220 Close

[netcurtains] 15/1/2021 17:56

If we get the free or cheap shares (as the press seem to be saying)
will these shares be like the ones
Rolls Royce gave out a month or two back?

Those shares made the price of Rolls go up quite a lot
as people bought to get hold of the cheap shares.

I have no idea if BAB shares will be the
same but I'm holding to find out.

Cheers Net!

[minerve 2] 15/1/2021 16:41

seriously net, go and read this:




He was blessed by being in the US at the right time but if you find the right growth stocks you need not be worried about 'missing the boat'. If you want to cut corners chpt 13 is the best chapter to read.


Enjoy your weekend and stay safe. :)

[netcurtains] 15/1/2021 16:38

Thanks Min2: Have a good weekend!

[netcurtains] 15/1/2021 16:28

Min2: Normally in my case its: he who waits misses the boat OR avoids a crash:
One or the other, there rarely, if ever is there a third option ....
Waiting never really works.