Another shareholder sold the shares not Costain....
I would suspect the company are bounded by listing rules not to buy a particular shareholder's holding and in any case it would require a resolution in order to do so.
Also, it's in Costain's interests to have other institutions on-board. You never know if they might be needed for a capital raise in the future. |
Bought a while back but happy to bank profits. Still has some mileage but don’t mind leaving some for the next person, one of my best trades.
Seems illogical to me for the company to buy their shares on the market at 104p but sell 41.7 million at 91p. Edit: long day, meant their largest holder happy to sell at a discount. |
IC today on COST.
If you believe in the sustainability of those structurally higher margins as they deliver them and a less risky balance sheet, then [Costain] looks very, very cheap,” he said. [But] they’ve got to convince the market the improvements they’re making are sustainable.” |
Let's get an answer from Costain IR on this valid point. |
Business valuation and fundamentals haven't changed here, this is just an insti swapping/selling out for satisfying an original commitment. |
Added some more |
Were any shares shorted in advance? |
I did say we are likely to see a retarce back to around 90p before we get the next move up |
Then that leaves us time to buy more at a lower price. I'm not in any particular hurry. |
Also ex div tomorrow |
Bit optimistic sasbod assuming they sell more like 1-2 months |
These shares will be done in 1-2 days, demand is so strong. |
We now have a number of institutions who bought at 91p and can now sell at least part of their holding for a quick profit reducing the effective cost of the rest even further. This could easily hold back the share price for some time. |
At least this seller is now out of the way, onwards and upwards |
Shares were placed at 91p so why were COST buying back shares at over £1 when they sould have bought £10 million worth (the total buy back programme) at 91p? |
Stronger hands will form shareholder base |
Decent chart, good volume as well. |
On the front page of today’s Telegraph , the main article is titled “ Sewage leak water bosses to face two years in jail : tougher fines and moves to block bonuses under new Bill to tackle pollution “ . That certainly should drive business to Costain . |
Hmm... looks like the sellers are drying up and are being replaced by the £2 pt club. |
Net cash of 198m, I dont think so.
Cash is in the region of 160m, EV roughly 120m, cash ratio approx 54%.
Volume was quite high today though. |
I realise that the Questor investment tip column in the Daily Telegraph has , according to some , a chequered history , but it tips Costain today as a “ buy “ with , if all goes according to plan , a £ 2 price target . At £ 1.04 a share , Questor points out that Costain is valued at £ 290 million but it has net cash of £ 198 million , meaning Costain is only valued in effect at £ 92 million . |
I'm sittin and waitin for £2.
It would be great if they announced another £10m share buyback when this one is spent.
Surely there can only be so many short term holders that do not see the big picture? |
Would think 135p TP would be easily achievable bearing in mind the cash generation here alone based on those consensus figures. |
On the latest results webcast, Costain's PR guy said he'd put the latest analyst figures on the Costain website, below are the consensus views -
"Date: August 2024
Consensus based on average of research from the sell-side analysts who cover Costain."
......................FY 2024E FY 2025E FY 2026E
Revenue (£m)............ 1260.3 - 1238.3 - 1271.3
Adjusted operating...... 42.3 - - 46.6 -- 50.1
profit (£m)
EPS adjusted (p)........ 12.3 -13.5 -14.6
Net cash at
period end (£m)......... 160.3 - 182.7 - 204.2 |
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