Carillion Share Discussion Threads

[edmundshaw] 25/4/2017 21:53

A target price of 292p for Carillion sounds sweet to me! Thanks GC.

[garycook] 25/4/2017 09:52

Carillion boosted by upgrades to 'overweight' at JP Morgan Cazenove.TP 292p.Lifted from 231p

[luckymouse] 25/4/2017 09:25

free stock charts from uk.advfn.com

[jaf1948] 25/4/2017 09:01

CWA, It is simply an aberration in the space-time continuum - it's life, Jim, but not as we know it.

[cwa1] 25/4/2017 08:49

Damn it, something seriously wrong with my computer. Showing the Carillion share price in BLUE. Wonder if it can be fixed or if it is terminally goosed........

[m4rtinu] 25/4/2017 08:43

I'm sure you are aware Blackrock, themselves have largest short position(s).

Blackrock IM UK Ltd 3.42%; and Blackrock Inst Trust 0.45%. And for the former, the the last noted transaction on was an increase on 19/4.

But presumably they have to buy to return borrowed stock?

Anyway, that 3.5% rise has got me out of bed! :)

[hiddendepths] 25/4/2017 08:14

If Blackrock are buying this is now a dangerous short! I would expect a LOT of short closing from now on.

[ny boy] 25/4/2017 08:10

Mad not to have bought for the 8.5% divi alone..0.5% or less on el banco deposit, err. No brainer.

[garycook] 25/4/2017 08:04

Must be the BR increase has moved the price up 3%.

[hiddendepths] 25/4/2017 07:19

Blackrock increasing then. Bodes well.

[w1ndjammer] 24/4/2017 13:11

hope a few of you guys took advantage



W1NDJAMMER20 Apr '17 - 08:51 - 4455 of 4475 0 0 Edit
add BON to the divi list 8.6% bought a few last week.

WJ.

[garycook] 24/4/2017 10:26

JAF,Totally agree.Even with the current Debt level,and Pension issue,s,with the current yield CLLN are excellent value for money longer term.

[jaf1948] 24/4/2017 10:22

Gary,

I too have exchanged a few emails with John Denning and have always found him helpful and informative (within the legal limitations of what he can say). I am always reassured by his replies which, to me, show that the BoD are fairly switched on to the current travails of the share price.

[garycook] 24/4/2017 10:07

It cost nothing to write an email,and very impressed with the quick reply and comments from John Denning.I am happy that I invested in CLLN last week at 2.1366,with the May 11 dividend CLLN will only owe me 201.I also purchased for my son,s ISA which I manage.Happy with the purchase,and the company.Very cheap IMHO.

[m4rtinu] 24/4/2017 08:57

Gary - thanks for posting your e-mail to CLLN and reply. I agree with posters that reducing debt and pension deficit would be as good for share price as anything. The former being my priority, as has also been said, the pension deficit situation might improve with bond yields.

If anyone is like me and not too au fait with why pension deficits change with discount rate, I found the following article useful.

[rcturner2] 24/4/2017 08:31

Gary, good email and also a good response from the company.

[garycook] 24/4/2017 04:27

Dear Mr Cook,

Thank you for your email.

The Carillion Board is, of course, focused on acting in the best interests of shareholders and is extremely mindful of the large short position. As you will no doubt have seen from our 2016 results announcement and Annual Report and Accounts, the Board has acknowledged the need to address certain balance sheet issues, notably the need to reduce the Group’s average net debt, that are thought to be the main reasons for the high level of shorting and has set out a number of measures to deal with these issues. However, the Board fully understands that other options remain open, including further changes to capital allocation of the kind you mention, if the measures it has announced are unsuccessful.

Kind regards

John Denning

[thorpematt] 24/4/2017 00:09

Well I think pension trustees might have a problem too. The defecit jumped significantly this last set of results. In fact significant is an understatement. It more than doubled to in excess of £800m.

The reason was almost all down to the change in discount rate which dropped significantly to 2.7% from 3.95% in the UK.

Of course the bet here is that the rate could reverse. At circa £60m per every 0.1% we could easily see that unwind.

[grahamburn] 23/4/2017 15:49

garycook

IMO there is not much sense in a share buyback when the company could use the same money to reduce debt. The latter is one of the factors which is holding back the share price (and encouraging the shorters).

[jaf1948] 23/4/2017 15:28

Garycook,

I would but I've run out of money ! But I shall be reinvesting the dividend back into CLLN when it gets paid.

[garycook] 23/4/2017 15:18

BKG,had a lot of shorter,s,so decided to implement buy backs reducing the divi from 8% to around 6%.But the share price has risen from around £24 a share to £32,a 33% increase in the share price If CLLN management could do the same that would take the share price to around 285,and squeezing all the Shorter,s out of CLLN on the share price rising ?

[macthepak] 23/4/2017 15:17

According to the Money Observer magazine this month page 24

"investers however seem unconvinced. Carillion is today the most heavily shorted uk listed stock and this has been the case for a couple of years. Various hedge managers are betting that the company's indebtedness will weigh on margins. More generally there are concerns about the outlook for the property market post-Brexit. Indeed Carillion is not alone; 3 housebuilders also now also yield around 7% ie Barrett Developments, Taylor Wimpey and Berkeley Homes"

[11_percent] 23/4/2017 14:50

Gary, my worry with that strategy is that the dii gets cut.

I would not buy any more here, till I understood why it was being shorted so aggressively.

[garycook] 23/4/2017 14:44

JAF,Understand.So why do you not average down and buy some more CLLN at 214. Therefore increasing your yield,and your stand in price ?