Carillion Share Discussion Threads

[w1ndjammer] 01/3/2017 10:45

volume up 4x normal level so something happening, lets wait and see.....

WJ.

[zcaprd7] 01/3/2017 10:36

Err, your investment trust will be investing in other companies that carry debt... Always a risk here, but at these levels and dividend maintained, you'll get decent cash whilst you wait for any modest recovery.

[kcsham] 01/3/2017 10:35

I will see this as 2 steps forward and now 1 step backward, the share price is back to two days ago. What make it worth such a loud barking. I would like to see how the share price settle down at the end of today. Don't you worry, I have never lost any sleep at night due to my share dealing. Will the share price keep falling? It has to "wait and see", barking will not have any effect on it

[123trev] 01/3/2017 10:31

The shorters aren't even blinking here and the level even at this price should tell you the story moving forward.Kiwi the debt has to be paid now in a meaningful way at least £50mill a year and that's coming from the future dividends.

[orinocor] 01/3/2017 10:23

I can get over 5% in an investment trust and a discount to NAV, or I can buy CLLN with its massive debt, and negative tangible assets, and get 8%. I don't think its worth the risk for an extra 3% return per year. The risk is profits take a big dive at some point and the share price really tanks.

[kcsham] 01/3/2017 10:15

Just came back from outside business and read the final result but not all of those chats. Pretty noise out there and the shorters and their dogs are barking loudly. As far I am concerned, it is a turn from yesterday but not the end of the world. We holders continue to collect our juicy dividends. What dogs are getting? I don't know and I don't need to know.

[zcaprd7] 01/3/2017 10:14

Debt is the main problem here. They say they are going to reduce it, we shall see. There's not much point paying dividends out of debt (they claim its currency movements)...

[kiwihope] 01/3/2017 10:11

As expected not much has changed with these results. As others have mentioned, the results are a mixed bag. No surprises so it can only be traders/shorters who are controlling the share price The only significant change really is the large drop in net assets, as far as I can see due to the increased pension deficit.

I welcome the more forceful commitment to reducing average debt. Management have obviously realised that debt is becoming an issue for investors. Contrary to some others I don't think they will have to reduce the dividend to achieve this. Debt doesn't have to reduce by much each year - I think just the direction of travel will raise investor confidence.

Stagnant profits are a concern but I think the share price reaction is an over-reaction. The P/E ratio is around 7 so the company is not expensive to buy. Of course it may get even cheaper, and probably will, but there is nothing in these results that would make me sell. But I will also not be buying anymore until I see the debt start to reduce.

[123trev] 01/3/2017 10:03

A bounce will come here but it will be short lived,personally I think the aim of the shorters is to get this to £1.50 or below to still offer a good yield to new investors for the risks when this dividend is slashed which it most certainly will be.

[essentialinvestor] 01/3/2017 09:58

The MTO share price resilience is quite something, did not expect that.

[spoole5] 01/3/2017 09:56

Meanwhile mitie after 3 profit warnings is almost back to the level before the first one! Because the market sees it's sorting out it's problems.

[edmundshaw] 01/3/2017 09:51

Well, every dog has its day. And right now the shorters are barking... :)

[jaf1948] 01/3/2017 09:42

As I have previously pointed out, the shorters don't hate it !

[hiddendepths] 01/3/2017 09:29

And of course Carillion is the most hated stock in the market and over 20% of the shares are being shorted at present. This might sound bad but I regard it as a positive because most of the negatives are in the market already AND the shorters will have to buy back at some point. That is over 20% of the shares which will have to be bought in the market. One can only guess on the uplift that will give the share price - eventually.

[jaf1948] 01/3/2017 09:21

RCT, that is most appreciated.

[rcturner2] 01/3/2017 09:20

JAF, a fair post and I agree with your sentiment.

[jaf1948] 01/3/2017 09:17

Business prospects always have been and always will be uncertain. If it's not Brexit, then it's the EU. If it's not the EU, then it's the Cold War. If it's not the Cold war etc etc.

Carillion is no better and no worse than many other companies out there. If you look at the results today, I could tell you 10 good things about them and recommend buying it, and I could also tell you 10 bad things about them and recommend selling.

I like the dividend and I can wait long enough for the share price to recover. If it does not, then at least I have pocketed the dividend in the meantime.

[chris1604] 01/3/2017 09:11

Should support the debt and pension deficit edmund

[utyinv] 01/3/2017 09:10

Chris, looks like mgt are sticking their heads on the sand. As soon as Brexit starts foreign contracts will be a hard deal. It won't just apply to EU contracts, many countries round the world will use the Brexit sentiment to strike hard deals. When you are in a service industry and potential customers know your predicament they are in prime position to put you against the 'ropes of the ring' and give you ultimatums of take it or leave it, expecting big discounts.

[edmundshaw] 01/3/2017 09:06

How about retained earnings? That usually supports a dividend level...

[chris1604] 01/3/2017 08:57

I appreciate your point of view but you have lost 4 percent of your capital at present. I cannot see institutional investors putting up with the erosion of their capital for much longer.
I know many on this board are income investors, but I have yet to hear anyone putting forward a sound case for the dividend amount,certainly there is nothing in today's results to support the dividend level

[utyinv] 01/3/2017 08:57

Markets in general strong this morning. Carillion in free fall. Doesn't look good. When Brexit kicks off (we haven't had any effect from Brexit yet) and markets fall etc etc ..........Let's hope I am wrong but the trend is confirming my concern.

[rcturner2] 01/3/2017 08:56

On the upside, revenue and dividend are up, but on the downside, margin is down and debt and pension deficit are up.

It's still a no for me.

[garycook] 01/3/2017 08:49

If any CLLN investors are showing big losses purchasing in the high 2,s then double your holding if the share price drop,s to £2.Cost pound averaging !!!