Costain Share Discussion Threads

[jaf111] 27/2/2014 09:50

Looks like a narrow escape for me since had been contemplating a purchase....

[ayl30] 27/2/2014 09:44

Just shows how imperfect the market can be at times. I thought this was a good long term hold and a solid company, obviously I was wrong!Really surprised that the market analysts did not see this coming - I thought that was what they were paid to do, poor marks to the company as well for getting themselves into this position, time for a new FD perhaps

[spob] 27/2/2014 09:05

Wasn't expecting that

Sold the lot

[rogerrail] 27/2/2014 08:59

Re placing, why do COST have the habit of upsetting the apple cart just when things are going so well? Same thing happend with the failed MAYG merger.

With regards to results, a solid performance if you make allowances for the exceptional costs, but would have liked to see more progress on improving margins. Order book and prospects look good though.

[jaf111] 27/2/2014 07:40

mmmmm not sure what to make of results / capital raising.....BUT more importantly had the £18m exceptional costs / write-downs previously been flagged up????

[hastings] 15/2/2014 17:17

Still looking good value this one,largely passed over perhaps for Historical reasons. I do like the balance sheet!

[optomistic] 05/2/2014 19:35

RR, I hope it does prove to be high margin, looking at the bottom line it is what Costain needs. Get more net profit and we have a chance of moving ahead.

[optomistic] 05/2/2014 18:30

Roger Rail,
Once again good contract news for Costain but 'high margin work' hope it is, not been much of that in the near past.
ps where did you get the 'high margin work' from?

[valedo] 08/1/2014 08:57

Analysts are a funny bunch. Costain served up a perfectly acceptable end-of-year trading statement, and still they had concerns.

This is thought of by many as a civil engineer, but nowadays it offers the ability to fulfill entire large engineering and infrastructure contracts, rather than merely the bits requiring large amounts of concrete. For example, Costain has just won the eleventh contract to work on Crossrail. It will work on the huge super-sewer in London for Thames Water, too, and for Severn Trent on the next round of investment there. It is also working on all ten of the ageing Magnox nuclear reactors.

This sort of contract is quite different from straightforward civil engineering. It does not hand the company large amounts of cash upfront. Costain probably saw its cash balances fall by about £70 million to £50 million in 2013 and this drain will continue until, eventually, it turns positive.

The company gets very little work from overseas these days. Andrew Wyllie, the chief executive, says that there are far too many opportunities in Britain already. The total order book ended the year at £3 billion, up 25 per cent, with more than 90 per cent repeat orders from existing clients. The final concern is its acquisition policy. Costain mercifully failed to buy Mouchel and lost out on May Gurney to Kier. Mr Wyllie says that plenty of other opportunities are out there, although the timing is unclear. The concentration on infrastructure and a few blue-chip customers is a plus. The days when decent margins could be made on bog standard building projects are over. That cash outflow should not be a problem.

The shares have traded between 250p and 300p over the past year. At 296p, up 12p, they are at the top of that range and on about ten times earnings, which does not suggest any reason to chase now. But the long-term story is there; buy on weakness.
Tempus in todays TIMES

[rogerrail] 07/1/2014 15:19

With the order book in place this is a solid and somewhat undervalued defensive stock with reasonable growth prospects considering the expected pick up in infrastructure spend, provided of course they don't do anything stupid such as the failed t/o of May Gurney! Definetely one to have in the ISA portfolio.

[joe say] 07/1/2014 07:16

Lovely - an increased order book and what I particularly like is 90% + repeat orders - imo good to work with clients you've sold to in the past as both parties tend to form an understanding of each other making the day to days that much more efficient.

[madprofessor44] 27/12/2013 11:47

This seems so undervalued It must catch up at some point in 2014 so I am holding on to these shares. They have a very good order book and I anticipate that this will grow further during the next few years.
I had an uncle who used to work for costain andhe reckoned they were the best employer he had ever worked with.
Happy new year to all
Mad

[optomistic] 17/12/2013 19:15

I don't understand this...Costain announce a contract win and the price goes up.
Unreal!

[optomistic] 13/12/2013 16:53

Down again...is 260 to be the next support?

[optomistic] 10/12/2013 18:21

Should have sold out completely!
Still not bought back in..looks like there is more to go on the downside....no doubt be wrong again :-/

edit...nah, still got the downside pulling.

edit edit...going up...I think they read my posts then go the opposite way1 LOL

[optomistic] 28/11/2013 12:45

Took some off the table this morning, interesting that my sale was recorded as a buy...it was close to the offer.
Covered both ways now, share price falls, buy back, share price rises, still got a holding.

[wsm812] 28/11/2013 11:21

I didn't realise I was being condescending, I never meant to be EJ - I simply asked a question.

Most people become emotional about their trades.....which is exactly why technical analysis works.

I hope you are wrong in your interpretation of the chart, but only for my gain.

Thanks for the support Opto :)

[optomistic] 28/11/2013 08:51

Erogenous Jones
28 Nov'13 - 08:23 - 5526 of 5526 0 0

Ws, please do not be so condescending. Charts tell part of the story. My interpretation is that the share price is rangebound in MY reading of the chart.

I will never trouble this thread again.

====================================================================

EJ, don't get upset so easily..it's discussion and opinions on here. Views have to conflict on the 'odd occasion'

Keep smiling
opto :-))

[wsm812] 28/11/2013 08:16

You won't see 260 again, unless something extreme and untoward occurs.

Can you read charts EJ? 270+ and rising is the support level at the moment, with 360 being the next resistance level.

Good Luck