I live in a world of possibilities........ like we all do. |
Fear you live in a world of hope and make believe.
But if your wish/hope does happen due to buybacks, then the above words would have to be eaten. |
If COST bought and cancelled £100m shares at 100p, where would the share price go?
Also, bringing the EPS up = fat dividend, then the dividend chasers would come?
I think they might extend the buyback but not £100m...
Potentially, over next few years, 5%+ of T/O to go on BB or DIVS = interesting times. |
strong dividend record is more likely to attract new buyers, whereas buybacks encourage people to leave the share register; i prefer the former scenario. |
Buy backs rarely work for PIs.
It's better to give shareholders the divi, cash in hand and let them decide how they wish to spend the money. |
Very rarely found that buy backs push price up significantly, though they do tend to support the price (ie stop it drifting downwrds). Indeed, buy backs are oftene favoured by executives as they boost earnings per share which is great for bonuses/share awards! |
Personal preference I suppose, I want the share price at £2, and reckon that will happen quicker if weak holders sell up and shares cancelled big time.
..rather than share price being pushed up by dividend chasing buyers.
But, obviously a guess..........
GLA |
Why is that better than putting surplus cash into dividends, greg? |
It would be great if they continued to put profits into share buybacks for cancellation. £30m a year would be a good start. |
 The shares are cheaper now than they were 2-3 years ago, on valuation basis. Per recent results, the order book went up 7.5%, but the sales invoiced, were down 3%, despite that operating profit rose 1.6x, they have 4.3bn order bank so know already operating margin will rise and said so. So on prospective earnings, trading at an all time low, with cash in bank, covering half the valuation, seems a rather extremely bearish sentiment towards the stock which is facing clear strong growth in orders, margin and sales.
AMP8 has been and will continue be a material segment for Costain, the water industry is doubling it's investment to over 90bn, so will need Costain and similarly placed businesses to execute this over 2025 to 2030. I can only see that order book growing a lot, and with it operating margin and sales, so seems attractively priced to me, so jackdaw's shares have a new home at least.
Wonder when they can stop paying pension as it must be in surplus by closer to 100m by now (allowing for change in market since last report), once fully funded, any spare cash can be pulled back to Costain and or at least no more cash to push over/restriction on dividends.... |
I've had a good run so I am banking a 90% of my holding . |
Galliford Try released full-year figures this morning , which were very good , as underlined by upward share price movement . Galliford Try operates in similar markets to Costain , so GT’s figures might imply a positive market for Costain . |
CB- please would you mind elaborating why you think upside is limited? Thanks |
The upside here is a lot less than it was so I am mostly out. It still represents a good risk reward but it is no longer an outstanding one. I still own some shares and reckon there is 30 to 60% upside in the next 12 to 24 months. Good luck to everyone! |
Competitor Galliford Try is due to announce full-year results tomorrow , and they are predicted to be good . This might give an insight into the market for Costain holders ( I hold both companies ) . |
After the shock of the major shareholder selling out for whatever reasons a trading update would be welcome to reassure other shareholders that nothing has changed and that the shareholder had no info that other shareholders didn’t have |
I don't know who they are using to buy back shares but their implementation of the programme is quite absurd. Looking at the table on some days thay have bought packets of as few as 17 shares at 100p. Do they think they are being clever or something? Because if they were really clever they would have bought 41 million shares on offer from Redburn at 91p. |
Kier and MGNS up today too so could just be the sector being in the blue |
More than sentiment moving these upwards, what is it ?? |
Costain doing well buying their own shares back on the cheap, good bang for buck. |
101.5 on the ask, demand is strong for this company, what a pull back after 45m shares were off loaded at 91p. |
I wonder if we will get a mea culpa from the Kier bull? Costain has outperformed it on a YTD, 1yr and 2yr basis. |
I do wonder if PE/VC have been sniffing around and some have caught wind.
Get a loan to buy COST, use the COST cash in the bank to finance the loan, sit back for 5% of T/O, pay off debt quickly = get a free cash cow company. |
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