Babcock Share Discussion Threads

[pepepepe73] 20/1/2021 13:24

Current CEO has not skin in the game yet and he always can blame his predecessor as he is the new guy in the block.

That's it.

Old management styles but very trendy nowadays. Bad practice

[schroedar] 20/1/2021 13:22

Charlie360

I think the point is no shareholder value has been destroyed if a shareholder doesn't sell

[charlie360] 20/1/2021 13:14

Yes, I noticed that although the short position rose a little on last week's news, from 3.08 to 3.62, but still nothing like it was throughout most of 18, 19 and 20. Shouldn't CEOs also be terrified of needlessly destroying shareholder value with negative comments?

[schroedar] 20/1/2021 13:01

All CEOs are terrified of misleading the market under MARs and as such their lawyers will be telling them to manage expectations to the downside. They also care very little for short term share price movements, however infuriating it is for retail punters

Most telling is no new shorts are being opened and volume has tailed off to very little. £6m today for a £1bn company.

[charlie360] 20/1/2021 12:35

@pepepepe73 hhhmmmm, is he just being honest, or as you say is there something more nefarious to it, I just don't know. Perhaps he just wants to get all of the bad news out of the way while he can still blame his predecessor who was frankly useless in my opinion

[pepepepe73] 20/1/2021 12:30

@charlie360, our comments regarding the orderbook where related to Buy/sell stock orders, not related to BAB business orderbook.

Regarding business profitability, this business is not a good business. You can have a delay (or increase manpower needed) in your contract performance and you evaporates your contract profitability.

Anyway, I think BAB stock price is very cheap at these levels of trading. My concern / opportunity is why CEO has been so harmful with current shareholders in latest trading update.

To be honest, Is him the CEO or the enemy?

[charlie360] 20/1/2021 12:16

@pepepep73 I'm a long time shareholder, back to Vosper Thornycroft days and have a number of thoughts on this, in no particular order. As has already been stated on this thread, Bab are a pretty large business with still a significant order book, I cannot believe that every one of their multitude of contracts won't be profitable and therefore within reason why wouldn't we expect them to show an underlying profit this year even withstanding covid challenges and the profit not being the fairly consistent numbers of the previous decade. With that in mind, it's market cap is only a quarter's T/O currently or based on previous underlying profits as little as 2 years worth. The other aspect is that 90% of their shareholder base are institutional, so any significant shareholder shift will involve them and I guess they'll be after a return to dividends in the near term?

[pepepepe73] 20/1/2021 12:04

@schroedar, but order book is very volatile and manipulable.

[devilliers] 20/1/2021 11:58

Excellent news. Thank you.

[devilliers] 20/1/2021 11:17

All the buyers suddenly ran away . 200p support looks like quicksand now

[pepepepe73] 20/1/2021 11:17

@charlie360, I think this do not happen when the CEO has a lot of skin in the game. This is not the case.

In this case, seems clear Mr Lockwood is interested in very bad results to have more room for improvement over the next years.

So we can expect huge writedowns by 26 May. In the meanwhile , uncertainty is not friend of good performance.

[charlie360] 20/1/2021 10:34

The thing is could David Lockwood have another agenda? Is it even legal to purposely depress shareholder value. Given he has got a reasonable holding surely his interests are broadly aligned with other shareholders?

[sooty snipes] 20/1/2021 10:16

"I'm amazed as this guy did not act as you can expect from a CEO"
===========================

I think we'll all agree with you there Pepe

[pepepepe73] 20/1/2021 09:20

jotoha2, for sure.

Very short term it's pretty oversold and should rebound. I think this is clear.

Some weeks ahead, more pain is expected as Tom Lockwood did an amazing job for the shorters' benefit.

I'm amazed as this guy did not act as you can expect from a CEO.

[jotoha2] 20/1/2021 08:58

Profit warnings with these sort of companies come in threes , so more damage to follow in due course , dead cat bounce maybe at some stage 170/180 region if you are lucky.

[pepepepe73] 20/1/2021 08:30

stock should rebound here.

-25% in just 3 days is too much.

[devilliers] 20/1/2021 08:29

This is gonna be another horrible day.

[jotoha2] 20/1/2021 08:17

schrodar , I like your style , hope you have a 20% stop loss in place !

[porsche1945] 19/1/2021 22:03

Another Woodford winner. Just avoid anything that idiot was ever involved in. Can see this sub 1.50, needs a complete restructuring, terminal at the moment, a bit like brexit/covid basket case U.K. in general.

[pepepepe73] 19/1/2021 18:35

BAB market cap dropped 240m£ just due to CEO remarks.

Crystal clear is communication mismanagement

[pepepepe73] 19/1/2021 18:30

Seems is gonna rebound towards 2.25£

[rogerrail] 19/1/2021 15:57

Looks like the rate of new COVID cases will be coming down as sharply as they went up no doubt helped by the vaccination programme added to the high number who have already caught it, estimated at 12% last month probably between 15% and 20% currently.