Balfour Beatty Share Discussion Threads

[nw99] 27/11/2014 14:09

Bought back in for the bid speculation

[silver tortoise] 26/11/2014 11:56

I've been in BBY a couple of times over the past 5 years I've made a bit but was always alarmed at how the share would yo-yo despite winning large orders etc It just seemed a share un loved by the City,hopefully they have sorted themselves out,with this in mind I have invested here again at 172&182 maybe in 12 months I'll be glad I did.Does anyone know if the div will be maintained or is it too early to say.

[mike740] 26/11/2014 09:34

Balfour Beatty boosted by hopes of revival or new bid, while FTSE drifts higher
Troubled construction group could be on road to recovery, say Merrill Lynch analysts 26/11/2014



Balfour Beatty has been through the mire recently, with several profit warnings, changes of top executives and a failed bid from Carillion.

But it looked brighter after a positive note from Bank of America Merrill Lynch, which moved from neutral to buy albeit with a target price cut from 250p to 230p, based on a recovery at the business and the prospect of Carillion taking another tilt at the company come next February. Merrill analyst Marcin Wojtal said:

Five profit warnings in UK construction in the past two years have led to significant underperformance versus the sector and the stock is down 50% from its highs in February 2014. However, the balance sheet is now solid (£200m estimated net cash in December 2014) post the sale of Parsons Brinckerhoff, and most businesses (notably public private partnerships and US construction) are performing well. KPMG’s review of contracts in UK construction is due by year-end and creates certain overhang. However, this looks priced in, as to justify the current share price based on a sum of the price, we would have to assume UK construction is worth a negative £500m.

We think [Balfour] retains significant M&A appeal for a player looking for a back door to its portfolio of PPP assets and willing to take a 2-3 year view, before potential UK restructuring starts bearing fruit.

Under UK takeover rules, Carillion cannot make a hostile bid for Balfour Beatty for six months, ie, until February 2015. Both companies could also hypothetically re- engage in tie-up talks (ie after expiry of three months lock-up post the rejection in 19 August 2014).

Its shares closed 13.7p or more than 8% higher at 176.8p.

[mike740] 26/11/2014 09:04

26 Nov 2014 Balfour Beatty PLC BBY Liberum Capital Buy 178.25 176.80 250.00 250.00 Reiterates

SP Target 250p

[neilyb675] 25/11/2014 18:18

yep, well undervalued

[dealy] 25/11/2014 17:57

free money last month at 150p. even after banking 750m quid the stock was at an all time low. London market never ceases to provide unbelievable bargains.

[mike740] 25/11/2014 09:40

25 Nov 2014 Balfour Beatty PLC BBY Canaccord Genuity Hold 170.20 163.10 - 185.00 Initiates/Starts

[mike740] 25/11/2014 09:07

BBY Balfour Beatty looks to have formed a base on the chart. Last results last week had no nasties 190p then 220p aim share price targets on chart.

[colonelgrim] 18/11/2014 08:07

Much obliged Mr Burn, you've probably saved me a long slow lingering death, I shall delete this immediately.

[dealy] 16/11/2014 14:31

The remaining business is still 8 billion GBP and there is no reason why they cannot get market level Ebit margins on this. A lot has been kitchen sinked prior to the arrival of the new CEO. No reason for this to be trading at half the level it was at in the financial crisis.

[grahamburn] 14/11/2014 14:46

Because that's the historic yield. The prospective yield is..... well, anyone's guess now that 75% of their profits have been "disposed of" (see2351 above).

[colonelgrim] 14/11/2014 13:54

Why's this one coming back with a yield of 9%?

[smurfy2001] 03/11/2014 12:51

Added another slice today.

@grahamburn - share buy back will increase EPS and hopefully compensate the loss of the business.

It's not officially announced but will stagnate the share price IMHO until it's complete.

Reckon there's plenty opportunity to buy at a lower price.

[grahamburn] 03/11/2014 11:55

The City is probably remembering that this "massive disposal" has also "disposed" of an even more massive proportion of the company's current steam of profits and that it will be quite some time before those profits are replaced, if they ever are.

PS No longer have any interest in this business myself as it was clear to me back in May that it would be a long long haul. Just popped by as a spare minute or two.

[dealy] 03/11/2014 11:43

The City has forgotten about this stock and its massive disposal. When it wakes up again in a couple of days these shares will be back at 180p.

[james190] 03/11/2014 09:21

Gone long at 155 with a stop at 140

[anony mous] 02/11/2014 21:20

Thanks for the info.Seems a steep drop since the bids ended.Not sure where support is but will look.

[haywards26] 02/11/2014 20:21

There are still several bad contracts and operational issues being worked on, so expect more poor results yet. But agree the new CEO has a great chance to drive the company forward leaner and fitter than of late.

[dealy] 02/11/2014 19:17

the company just made a disposal at 11 times Ebitda. It's sitting on net cash of 500m pounds. it is in a very strong financial position. apart from some poor management in it's UK business the company is very well positioned. It is certainly worth more than the current 600m GBP enterprise value.

[haywards26] 02/11/2014 18:28

From the next divi paid or most certainly the interim if not the next final divi I would say. All depends how the business is performing.

[anony mous] 02/11/2014 11:28

Thanks hayw.Any time frame ?

[haywards26] 31/10/2014 20:40

The divi will be cut in future after the share buy backs take place.

[anony mous] 31/10/2014 19:45

HelloThis shows 9% dividend yield at todays price £1.52Seems very good.Does anybody know if the dividend is being held or cut ?Thanks.

[rburtn] 31/10/2014 15:58

I never follow the narrative claiming it is returning money to shareholders - it isn't, it's relieving those who want to sell by giving them a better price. Why don't they return money to shareholders with a capital distribution - or if they think it's a good buy say they have decided to profit from a low share price on behalf of all shareholders? This way, it just makes one suspicious of backroom deals.