Babcock Share Discussion Threads

[jelfsie] 21/6/2003 14:37

I have bought in with an average 111p. IMO BAB has good management who have been hampered in the speed of their restructuring by the difficult markets of the past 3 years. The sky is now rapidly clearing, and EPS of 11p is already "in the bag" for this year. They are preferred bidder on a number of large contracts and bringing these into the revenue pipeline will provide the shares with continued support over the next three years. My only concern is the absence of director buys, hopefully this will change over the summer. IMO BAB is a solid portfolio buy but DYOR as usual.

[bones] 20/6/2003 18:54

boadicea - fair summary. I think a run-up is imminent so long as the world doesn't fall apart......

[master rsi] 20/6/2003 16:59

A rather good day again 116-119p +1.50p, with almost all buys, apart from the last one getting an extra penny

[boadicea] 19/6/2003 23:33

I agree, bones. But until the break through 110p it was in no position to attack the 125/130 position. Now, given an item or two of good news (eg new or extended contracts) that level should at least be tested.
I don't think this share is heavily loaded with short term holders and most of the weaker long-termers have probably already given up in disgust - so perhaps we shall get a pleasant surprise. The company is so different from when it first formed a 125p resistance area that it warrants a completely fresh view imho.

[bones] 19/6/2003 09:50

The real test is 125p - 130p. This has been resistance for years. Break out of that range and BAB will be running.

[master rsi] 18/6/2003 14:53

Yes is going places today, with not much volume 115-118 +3.5p

[boadicea] 18/6/2003 13:20

We appear to have breakout - well justified imho.

[swiftnick] 12/6/2003 21:53

Nice set of figures today. I particularly liked this bit in the accompanying report:

"The group is well placed to take advantage of secure long-term contracts which
should see earnings grow consistently over the foreseeable future."

About time the market re-rated these.

[billdun] 23/4/2003 10:40

I got `em

BDN

[hectorp] 14/4/2003 07:55

and one more today 120M Rand contract.
worth a punt .

[boadicea] 01/12/2002 23:54

Thanks Ashton - Seems to confirm that things are looking up for BAB. May need a year or two before investors really begin to trust it after the long time it has taken in realigning its business and the dreadful share performance ever since the early 90's. However, having waited patiently this long I'll continue to hang on with expectation beginning to reinforce hope!
Chartwise, it will be very interesting if it breaks through the mid 120's. It's chances may not be that bad as I don't think the stock is likely to be very heavy in stale bulls looking to get out.

Boad

[ashtongray] 30/11/2002 17:11

Hi boad

Thanks for that. Interesting that I put CHG on my "look at over the w/e" list last night - will definitely follow up now.

Re BAB, gist is IC sees it as achieving its objective of becoming a focussed military support services group. Rosyth potentially has a workload shortfall between 2004-06, after Illustious refit and before CVF work kicks in, but otherwise group has good order books. Caz estimates full year ptp 18m, eps 8.9p. This is undemanding rating, verdict: good value.

Hope that helps!

[boadicea] 30/11/2002 09:48

Hi Ashton,
Yes, I'm watching it but haven't found any specific reason for the rise over the last few days. Possibly just a delayed reaction to moderately encouraging H1 results last week or the IC article. No reason to think that steady progress will not continue and quality of earnings improve - i.e. become more predictable. Seems relatively safe at current level so I will continue to hold but not expecting any fireworks. (For fireworks, try CHG) A bit of ballast in the portfolio is not entirely unwelcome in the present volatile climate. Can only hope for an eventual re-rating.
I don't subscribe to IC - What was the gist of their comments?
Boad.

[ashtongray] 29/11/2002 19:06

Anybody else following this one at the moment? Positive write up in IC today: in addition to contracts mentioned above, the Clyde naval base deal has been upgraded, and its now looking pretty certain that BAB will get a chunk of the CVF deal whoever wins the prime role.

I know that pork barrel politics are unknown in the UK ;o) but being in Rosyth is not exactly a disadvantage at this time?