Babcock Share Discussion Threads

[rdh21] 08/7/2020 18:37

Prokart, why do you think an impairment write down is more indicative of a company's future performance than underlying profit?

[ian1967] 08/7/2020 18:34

lets have some grown up behaviour on this board not childish bickering. its a waste of all our time to see your posts.
all we want is to share and learn with factual information so that we can all make more money.

[minerve 2] 08/7/2020 18:28

Don’t know how you think you will be 15% better off because I’m still building a position here. I bought some more today.

I’ve been investing for almost 30 years, lost lots, made millions.

When you have reached a total return of over 48,000% and can talk investing and accounts properly I may listen to you a little more.

You are still in your nappies.

[prokartace] 08/7/2020 17:53

I certainly will, hell if I bought now I would already be 15% better off than you. Incidentally you seem to ignore what you don't want to see.

[ptonks] 08/7/2020 17:34

Very sure, IDIOT.

[minerve 2] 08/7/2020 17:24

pro kart ace

Wait until everything is perfect and then buy in. See if you get better value. :)

[minerve 2] 08/7/2020 17:21

“Your way too easy, idiot.”

Are you sure I am the idiot?

LOL!

[prokartace] 08/7/2020 17:12

Minerve, based on the fact that the same report that you got the record order book also showed the fact that the company lost money. This was pre-covid so it is also based on the fact that the impairment was from the aviation business which would clearly have declined since. Thats what its based on

[ptonks] 08/7/2020 17:11

Minerve 2 TRIGGERED! Your way too easy, idiot.

LOL

[ptonks] 08/7/2020 16:32

Minerve 2 Glad you picked up on that you are one of the die hard fools.
When exactly have you been right on anything?
When exactly have I been wrong?
I get it Minerve 2, your butt hurt right now. You need to put you big boy pants on boy.

[minerve 2] 08/7/2020 16:23

But the order book is fact and your view on profitability is just an opinion based on what exactly?

[prokartace] 08/7/2020 16:20

Minerve, the size of the the order book bares no relation to the profitability of the company.

[minerve 2] 08/7/2020 16:03

Declining business on record order book and pipeline?

LOL

[prokartace] 08/7/2020 16:01

I have seen this scenario many times before and there are many clues to the eventual outcome. First is the exponential growth seen in the 10 years between 2005 and 2015. Management have not taken into account that life isn't just a gravy train and instead of paying down debt in the good years they in fact increased debt in the forlorn hope that future growth in earnings would pay for it. In reality the business is cyclical so they would have been better off taking a conservative approach instead of looking around for expensive addons.
It then all becomes a slippery slope in earnings and shareprice as institutions lose confidence. Don't hold out for a takeover. The only bits that will disappear are the good bits picked up by astute investors and the only bits left are the loss making debt riddled parts of the business. Anyone wanting a bite will wait for the company to reach the point when they have to sell of bits and cherrypick what they want.
The company may eventually recover but not without more impairments and declines in earnings and I would not want to pick the bottom. Better to wait and see the germs of new trees and miss the bottom to invest in a reviving business rather than the current declining business

[fitton] 08/7/2020 15:52

Can't buy anymore today but will be back in tomorrow if there is more weakness

[minerve 2] 08/7/2020 15:45

Algorithms just taking this down on fear and no news.

Enjoy.

[salpara111] 08/7/2020 08:49

I have had BAB on my watch list for a long time but never taken a stake.
For me I am going to wait until the new guy has had his opportunity to do his "kitchen sink" exercise, there are some pretty decent bits to the business so I do expect a decent recovery down the line.

[billzj] 07/7/2020 22:14

Concern about the extent of pension liabilities would generally be a concern only to the extent that they weren't covered - ie where a deficit existed and, as noted by others, - your focus on a limited subset of Bab's activities in pulling together some rather grand sounding thoughts on company valuation is.....er extremely odd.

[1spotter] 07/7/2020 22:02

blitzj.I understand completely the difference between pensions liabilities, pension fund deficits, pension fund assets under management relative to shareholders funds/equity. In my career I have bought and disposed of bigger companies than this. I also understand the fundamental issue of competence in a company and what that means for its stakeholders. Good night and good luck, all the best.

[rdh21] 07/7/2020 21:55

Spotter, so DST that services the ministry tanks and training generates no income? What about T31 Frigates, a 1.5bn contract happening in Rosyth? Not to mention the successor programme that just got renewed their for 10 years. Or the £1bn NTSP framework Cavendish just signed to look after Clyde and other nuclear plants around the UK. Aviation wasnt only Avincis, they're doing plenty more than that. So ignoring 70% of the business made you sound silly right off the bat.

Then I see a 17% discount rate? 6% margin? Lol, get it together.

Your amateur analysis needs alot of work.