Costain Share Discussion Threads

[optomistic] 08/1/2020 10:44

I think we heard enough of George Osborne's theories whilst the was chancellor. Don't want any more of him now he is a newspaper 'person'... they have less credibility than MP's in my mind!

[nw99] 08/1/2020 09:42

George Osborne tells @BBCr4today that HS2 is "absolutely essential" to boosting the economy of the north & it's an embarrassment Britain doesn't have high speed rail

[nw99] 08/1/2020 05:53

The Times today the review on Spending to go ahead Hs2 expected to go ahead but with cuts to the budget

[ptgint] 07/1/2020 16:08

I think your probably right , bogdan b ,about Hs2 and the North, and cancellation of Hs2 but reallocate the funds in the North is a likely solution.

[spooky] 07/1/2020 12:49

It would help if one or more of the directors could take it upon themselves to buy some stock after the fall from £5. The fact that they haven't isn't exactly inspiring.

[zeek] 07/1/2020 00:21

A cancellation would surely hit the price short term. I personally dont think it will be cancelled. As above poster says read some of the quality comments earlier on this board as it covers this scenario.

[ptgint] 06/1/2020 12:07

I'm already invested and ready to top up at this sort of price but, like you bubloo, concerned about the possible H2s cancellation. Whilst I could understand the reason for a cancellation (cost) it would also be a black mark against BJ so soon after his statement of supporting the North more. Think I'll watch and wait.

[bubloo] 06/1/2020 11:11

not invested here
appears very interesting, bit concerned that it may drop with any h2s announcement if at all. may be i will invest some and may be dip in if any fall for long term. many thx

[nw99] 06/1/2020 10:51

Read Bogdans excellent piece

[nw99] 06/1/2020 10:39

No All in the price

[bubloo] 06/1/2020 10:35

article in daily telegraph over weekend. likely h2s ? cancellation. Would it impact share price as I remember reading that it is 20% of annual revenues contracted for the next few years. How will it play out if contract cancelled

[zeek] 02/1/2020 17:39

£4.00 is achievable for longer term holders. If you are good at timing it as well there will be opportunities to trade in and out as well as well but I always find that a bit risky.

[w1ndjammer] 02/1/2020 16:03

400p my target sticking with it for a couple of years if they keep paying a divi

WJ.

[albanyvillas] 02/1/2020 15:46

190p my target

[nw99] 02/1/2020 14:31

Looking good

[albanyvillas] 02/1/2020 14:14

COOKING ON GAS

[bogdan branislov] 30/12/2019 10:56

I do actually wonder about the downside risk if HS2 is cancelled or significantly delayed. There has been an unjustified nervousness around the sector since 2016. Costain has announced to profit reductions accompanied by remarkable price falls. If HS2 is cancelled you would need a lot Costain shareholders with the view of 'holding Costain for a 2 way bet on HS2 going ahead and on schedule'. Such skittish shareholders have long gone. Consider the emphasis of the comment now. I would say that 90% of the current Costain shareholders have consistent long term investment records of outperforming the market, you can tell from the comment. Profit forecast falls combined with sector anxiety when linked to the long term underlying strength of the business and the improving sector outlook has distilled down the shareholders to those who look for value in areas where the market has clearly over reacted. HS2 cancellation could result in some of our recovery gains being briefly eroded, but I suspect that it will not result in the share price falling below the recent lows.

[value hound] 30/12/2019 09:07

I agree it's undervalued, and I also agree with bogdan branislov that it's undervalued notwithstanding HS2 news - so bought some both before and after the recent TU.

At the same time, I think HS2 will be at least modified / scaled back in some way / deferred (if not cancelled) to enable Boris to spend his planned feel-good billions. If that happens (though I hope it won't) the COST share price will surely give us another chance to buy lower.

[nw99] 30/12/2019 08:59

It's very cheap and unloved time to add if you don't own it already

[karv1] 29/12/2019 10:24

I believe/hope we have a good future. even after 2 horrid write-downs, we still going to get between 17-19 million profit on a company valued at 170 million. with net cash still.
Most companies in the 170 million value range would just dream of making 19 million profit with money in the bank not counting possible profits going back to 40+ million in 2020.
On another note the pension pot of 815 million with current obligations of 810 million has been closed for 14 years with 7000 members this is going to peak at some point in the future between the last retired person to the death rate. Last year it paid out 36.2 million so far this year it has paid out 17.2 million. The pension could need a lot of extra funds as time goes on, on the other hand, costain could be able to get 1 billion+ back if the pension fund does extremely well over the nest 20 30 40 years and stay ahead of payout and the fund keep growing.

[bogdan branislov] 28/12/2019 18:26

I have effectively removed HS2 revenue and profits when evaluating Costain. Costain still looks very cheap without HS2. Costain is a long way from any kind of financial distress and is already picking up additional work. Costain's financial strength is such that they are still one of the safest companies in the sector to award a contract to. Many of their competitors are showing varying degrees of financial distress, which Costain is not, even without HS2.