One day this share might go up, performance has been poor against similar companies and against the market but I am hopeful that someone (please) will bid at this level. If another company bids say £325m they would get £160m back on their balance sheet immediately so in effect they are paying £165m for a company that makes £35m a year so in 5 years they will be quids in. I know this is just a hope but why is this company such a poor performer. |
I would like to think so but doubt it information is important to shareholders, the company doesn’t need to go into a lot of detail just little bits of info it gives reassurance that all is going as previously indicated why is share price down 15% compared to other stocks like Kier or Galliford that gives shareholders doubts about the future hopefully I’m wrong |
A positive update from Kier might just encourage Costain to do similar soon. |
Now down 14.5% since 6th Jan |
Now down 14.5% since 6th Jan |
I’ve been asking that for some time perhaps Kier can bid for costain after their update suggested possible bids that’s probably the best hope for this share information to shareholders is vital for good companies |
Where's the update? |
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Since 6th Jan Galliford up slightly following trading update Morgan Sindall down 4% Kier down 9% Costain down 13% (interesting) |
Worth a trade here, tight stop |
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Bloomberg
10-Year Yields Hit Highest Since 2008 as Bond Rout Deepens.
Costain's PF's substantial exposure to LDI was supposed to reduce the volatility of its Surplus/Deficit. Ever since Truss gave a real world example of what could go wrong there has been a rush to sell the equities of companies with large LDI exposures
in their PF's when Gilt yields headed for recent highs. |
Last year
Costain Group PLC
10 January 2024
Costain AMP8 Framework Agreement with Northumbrian Water Group and Trading Update
Appointment adds to Costain's wins in the new water regulatory cycle.
I can't see any Trading Update in Jan 2023.
We certainly aren't overwhelmed by company communications. |
Now 10% decrease in 3 days because IMO no date for trading update |
The issue is whether pension fund in surplus you need to ignore the figures in statutory accounts and get the true actuarial valuation only when that is in surplus can Company pay Dividend without matching amount with pension scheme. Could do with an update on whether this is likely anytime soon otherwise share buybacks may continue. |
If Costain reaches or exceeds its targets for Operating Margin the shares will continue to appreciate. IMO the only thing preventing the shares reaching a sensible EV/EBITDA multiple over the next 15 months (to 2025's earnings announcement) is the company's paltry dividend which itself reflects the very small (so I read) Pension Fund surplus. Buying £10 mil of its equity isn't compensating. Perhaps, buying 10% of its equity might. That, of course, requires the maintenance of the PF's surplus. |
I just don't trust these markets. Why buy today when in a few weeks may be cheaper |
So many shares looking weak |
I agree about the markets London really is poor but when you look at Galliford and Morgan Sindall two companies who make regular updates they sell on greater earnings than Costain shareholders need these updates if the news is good then shares will respond |
It’s maybe recent media coverage of that it took 23 years to build the Heads of the Valley road in Wales, which Costain were involved with from 2015. The media coverage hasn’t mention Costain as far as I can see, but it gives the market an excuse to drop the share price I’m sure it’s a temporary blip. |
Maybe just markets are not great? |
No trading update announcement last year was 10th January shares down 7% in 2 days company is poor in keeping shareholders informed perhaps bad news is coming? |
Although you could say its been in a range for about 3 months. |
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