Babcock Share Discussion Threads

[smcni1968] 21/11/2017 21:22

2014 was the helicopter acquisition, it's been pretty much downhill since then.

[dogwalker] 21/11/2017 21:03

The value's been dropping since 2014, & long before CorbynMcdonnel was a contender.
The reduction in value over that time can plausibly be attributed to our results simply being viewed as too good to be true under the circumstances. Now that we have, today, some admission of negative circumstances, & nothing more startling,I expect a share price recovery.

[smcni1968] 21/11/2017 20:47

A perplexing stock! I suppose the cash flow conversion was the negative catalyst as it's a big warning sign of problems with long term contracts- even though management had a good explanation.

[dogwalker] 21/11/2017 18:31

No it isn't.

[ianood] 21/11/2017 17:46

Isn't this another Corbyn McDonnell fear stock?

[suetballs] 21/11/2017 16:14

uncle - nice to see your confidence!
Suet

[unclelen] 21/11/2017 15:37

Thanx for that, hopefully IC has more rigorous research than most of the published brokers projections which, thankfully, are 'buys' but at anywhere between £10 to nearly £14, which invites scepticism at the very least. No skeletons tho' it seems; we'll all be ok in a couple of years. Won't we.

[alter ego] 21/11/2017 15:01

IC have published a buy rec online. They explain the extra working capital requirement of £44m is due to aircraft and other assets acquired for the french air force training contract and changes in the program. They say it will reverse when the leases are signed.
In summary they say

"However, there is excellent revenue visibility, the workload is heavily weighted towards non-discretionary spending, and there remain high barriers to entry. Buy."

[salpara111] 21/11/2017 11:55

Well, after reading the results this morning I was certain I would be buying but have to confess to being somewhat mystified at the reaction.

[minerve] 21/11/2017 11:50

bend1pa

OK. But they expect that will even out as a 1st half/second half issue on working capital requirements???

[bend1pa] 21/11/2017 11:39

Big drop in yoy operating cash flow, £81 (£181). For free cash flow after pension contributions, £33m (£127.5m). Seems that is what spooked the market. Nothing like enough cash made in period to cover divs £112.8m. They had to raise a loan of £121m mainly to pay it. So not so great.

[penycae] 21/11/2017 10:03

I think the fall here might just be due to short positions taken on low volume. From a chart perspective that intraday June low just had to be taken out. If they did it once they could do it again. This time they've put in a lower low on the spike down. If that's not the floor, we could be in trouble.

[yump] 21/11/2017 09:53

I wonder if this is just heading for the 700p round number on a purely technical basis, powered by automatic selling. 700p ish is the support on the long term chart.

[unclelen] 21/11/2017 08:55

Me too. Very relieved & validated to read the overview of the half-year figures n then checked live price. I realise I understand nothing about the market these days. I did well last year ducking n diving with lightweight speccy shares and in January thought I'd better settle with a couple of non-volatile solid divi payers, inc BAB at £9, and hold - both have tanked, for no discernable, to me, reason. I give up.

[unclelen] 21/11/2017 08:54

Me too. Very relieved & validated to read the overview of the half-year figures n then checked live price. I realise I understand nothing about the market these days. I did well last year ducking n diving with lightweight speccy shares and in January thought I'd better settle with a couple of non-volatile solid divi payers, inc BAB at £9, and hold - both have tanked, for no discernable, to me, reason. I give up.

[richard98765] 21/11/2017 08:36

The drop could only be done to order book reduction. However the bid pipeline is higher so this could convert to on par orders. Good results I'll add today

[suetballs] 21/11/2017 08:35

I give up.
Suet