Cape PLC Share Discussion Threads

[wynmck] 15/3/2017 16:26

thanks Flagon.
IC upgrade to Buy.
link on.....legalsettlementandordersbreedcape'soptimism if you google

[flagon] 15/3/2017 11:09

Results read well IMHO. Record order book with confident outlook for 2017 and litigation issues increasingly in the rear view mirror. All for a PE of 6 ...

Here's what Canaccord had to say -

Canaccord upgrades Cape to 'buy'

By Michele Maatouk

Date: Wednesday 15 Mar 2017

LONDON (ShareCast) - (ShareCast News) - Canaccord Genuity has upgraded Cape to 'buy' from 'speculative buy' and bumped up the price target to 250p from 230p given the reduction in the litigation risk and following the company's full-year 2016 results on Wednesday.
The brokerage said the numbers were better than both its and consensus expectations, with FY earnings before interest, taxes and amortisation of £55.4m, some 4% ahead.

In addition, it noted cash flow has been robust, with a substantial 2H working capital inflow and a lower-than-expected capital spend. The outlook into 2017 is also robust, with a significant increase in the order book and an anticipated improvement in trading in the UK.

Canaccord said the fly in the ointment is the decision to address the long-standing over-distribution by Cape. It pointed out the halving of the dividend to 7p per share and said it expects it to stay at that level at least for the next two years.

"The principal reason is the outflow associated with the settlement of the PL litigation announced earlier this week, but we believe the reduction also reflects a desire to continue to grow the business in attractive and robust end markets."

Earlier this week, Cape shares rallied after it reached agreement to settle the insurer product-liability claims, allowing the matter to be resolved outside the court process.

The settlement agreement provided that an upfront payment of £18m, inclusive of substantial legal costs, would be paid to the insurer litigants immediately, with a deferred payment of up to £34.5m payable to the insurer litigants in the period 2018-2023.

Link ->

[ilovefrogs] 13/3/2017 11:36

Yep - hold onto your hats folks!

[wynmck] 13/3/2017 10:51

settlement announced today....results weds

[pj fozzie] 01/2/2017 10:32

Anyone got any idea why the uptick today? I can't find any news relating to Cape?

Cheers,
PJ

[king kong dong] 17/1/2017 07:19

great contract news - this is a company on top of its game.

[meijiman] 11/1/2017 08:46

Possibly -but the main thing likely to drag it down is the legal situation.Without resolution that will act as a bit of a dampener. Otherwise it looks in fine shape.

[wooluf] 11/1/2017 08:30

Can this do a FENR and climb 100p from here

[skinny] 06/1/2017 08:21

Canaccord Genuity Speculative Buy 179.00 220.00 230.00 Retains

Numis Buy 174.50 270.00 270.00 Reiterates

[master rsi] 05/1/2017 22:24

Malc's has a Positive posting today after the news.........

The Oil Man: Oil price -By Malcolm Graham-Wood | 5th January 2017 - 12:20

Cape (CIU) clearly put the burners on at the end of November, I have just re-read the trading statement of 18 November in which trading was described as being "slightly ahead of expectations". According to today's update trading is now expected to be "materially ahead of expectations" due to "Additional work scope awarded at the Chevron-operated Wheatstone natural gas project" and to be fair a strong performance in Asia-Pacific.

The company has also felt able to say that: "This improvement in performance is supported by strong cash generation with a consequent positive impact on net debt". Only the good lord knows what might have happened by the time of the results which are coming out during the Cheltenham Festival.

Cape remains one of my top picks, like most followers I was rather put off by the announcement about the insurer PL industrial disease claims situation, which appeared to worsen last year and the company had to admit that the worst case scenario might threaten the divi - there is nothing in today's release about this.

If one can put that to one side it is clear that the excellent management team continues to deliver and then some and in what has been a difficult environment has come through with flying colours.

[ilovefrogs] 05/1/2017 10:11

Yep - still less than 6x earnings by my reckoning, with new contracts meaning better growth prospects. Aviva court case begins this month I think, so hopefully more visibility there as well soon.

[master rsi] 05/1/2017 09:21

There was a reason for the breakout and large trading yesterday, news were around of today's delivery of such a good news.

On the chart now the next target is 220p and still will be very cheap

[qs99] 05/1/2017 08:54

great update IMO have bought in on the back of it....

[master rsi] 04/1/2017 11:23

BREAKOUT

151.75p +2p

A couple of large trades at 150p resistance point has finally done the job and share price has moved forward

[master rsi] 12/12/2016 23:35

With today's rise the candlestick chart has signal a BULLISH ENGULFING
and this is an important bottom reversal signal.

[master rsi] 12/12/2016 17:28

Manipulation by the end of the day, wonder by who, the order book went very weak all of the sudden despite good size buys and even later once again shortly before the close there was some good size buying all paying premium to offer price, so at the end of the day was not strange, the UT was 1p higher than the closing spread.

6.5K @ 143.50 UT

[loveandmoney1] 06/12/2016 15:32

if oil services tickle your fancy

try NBI

now that's a company going places.....

[bulltradept] 06/12/2016 15:28

Are we all still waiting....

[bulltradept] 21/11/2016 07:52

He who dares Rodney....

[martinc] 18/11/2016 12:51

Buying into a share with potentially large legal claims of unknown size seems quite brave to me..

[eddie1980] 18/11/2016 11:59

£10m is only one claim. I'm reading there's two claims - £10m provided for is re Industrial 'EL' claims. the second - Industrial 'PL' claims (Product liability) is the other that they cannot accurately estimate, and it is this one that leads them to say it may impact strategic plans and ability to pay dividend - which i guess reads potentially very big!!!

I suspect its going lower before it bounces back....

[hybrasil] 18/11/2016 11:53

With that litigation the sensible thing is get out

[ilovefrogs] 18/11/2016 09:38

How much could they actually stand to pay out if they lose. Article suggests £10m,but £30m wiped off the mkt cap today alone!!! Even if worse than £10m, it does look like a lot of this is now in the price.

[ilovefrogs] 18/11/2016 09:35

I think I'll hold on at this level. Fortunately I reduced at about £2 in September, but feel like this might be a bit overdone.