Costain Share Discussion Threads

[imastu pidgitaswell] 29/6/2020 07:29

This is often down to bad tendering in the first place, and poor contract terms negotiation - it can be from anything up to five years ago, and there might well be more legacy issues to come. I also have a sense that the market was anticipating (it was previously disclosed...), with the recent price weakness. But no, not good, and no quantification.

[owenski] 29/6/2020 07:19

Well, they do seem to screw up a few contracts, I'm hoping this becomes a thing of the past.

[davwal] 28/6/2020 12:39

A bullish announcement by BJ regarding infrastructure projects should put a bit of a shine back on the currently lacklustre share price . The talk then needs to become action, but Costain is clearly well set to benefit. I expect the share price to have at least doubled by Christmas.

[owenski] 28/6/2020 10:54

Looking like an increase in infrastructure projects coming, Cost's improved financial position would make it a beneficiary of this IMO.



Forward order book +4bn, M.cap; 186m, cash 100m, relatively new CEO with experience in driving growth.

Bit of a pricing anomaly IMO.

[imastu pidgitaswell] 23/6/2020 12:29

Seems to gone into hibernation for the Summer - trading update if anything triggered a fall. Added back some sales in the 80s, but not expecting anything soon.

Quite enjoying the KIE thread - 6 months of snarling on a daily basis, but with nothing but anger and transmitting going on. Not understanding the necessity to prove others wrong and yourself right - naive maybe, but I thought the idea was to share information and do better as a result, not to shout down people you have never and will never meet. Ah well, only when we see some numbers will it change.

[w1ndjammer] 12/6/2020 15:21

bought a few more today, dragging behind Kier now, ground to make up........

WJ.

[sphere25] 12/6/2020 13:52

:-D

What a superb player he was - technical wizard!

Pugugly,

COST is moving with the market like the majority of stocks. If we look back from today to a couple of months back, the beta here has settled down compared to the past. The moves aren't enormous and quite timid in the grand scheme of things - some bonkers moves out there. Historically, this stock had a tendency to move incredible amounts above and beyond the wider market on relatively little volume.

Long term aside, we are at the mercy of how the US moves and the yes the big question now is minor blip or start of a bigger move down. Impossible to call this of course, but in the short term there was far too much euphoria and overbought conditions to not at least have some form of pull back.

It's not just the technicals, it's folk bidding up distressed bankruptcy shares to the tune of 500% and Dave Portnoy setting up a live trading chat room proclaiming that he has no idea what he's doing but hey what the hell let's have a go (or that a girl he was dating gave him a tip and he made $100k ha), that put out a sense of the market surely not being too far away from a correction.

Depending on how you draw the technical lines, there is an argument for the bull trend to be in tact, but clearly it is all news dependent. The multiples are incredibly expensive if we look at the forecasts in the US. Surely the market is pricing in some form of cure as well as a near trouble free return to earnings restoration and growth from 2022.

Folk keep going on about MAGA this and MAGA that and keep buying those. That looks a very crowded trade too and the multiples are hardly cheap. That crowded trade will burst soon too imo. It's all very excitable in the near term and how the likes of TESLA are trading where they are is almost beyond belief, not that beyond belief means anything in a stock like that.

Overall, a support level at just under 25300 has held on the DOW and there are stronger support levels just above 23000. I'd say it would take a significant deterioration in the news on infections to fall under there. A fall back into a sideways range to allow a sensible digestion of the gains and take out the froth would be ideal (greater euphoria clearly risks even bigger moves than the one yesterday), but plotting these key levels helps prepare for all eventualities and how we approach the markets.

If you look out far enough surely there is a case for optimism but in the near term where a 500-1000 point move on the DOW is nothing (look at the number of such moves already this year), caution has to be taken. The market has been taking all bad news as good news (e.g. recent unemployment data) which has fueled this run and we have seen that translate into the likes of COST and other shares here in the UK.

I don't know how the likes of TRN or even GAW can have recovered so much relative to the uncertainty out there. If you look at the results being released of late, stocks were hardly cheap on pre-Covid numbers and with guidance being pulled, some of the recoveries are almost miraculous.

Despite the wider market nervousness and sell off, stocks are still reacting with bullish moves on stock specific news. IQE (the perennial jam giver with zero free cash flow) moving higher today on what appears to be a positive update but still carries no confidence on forward guidance.

MAB and INF are other similar examples today and another jam stock WAND somehow able to get another placing away at a bonkers valuation (comments posted on that board).

Something more related to COST in NEXS have confidence in their order book, have net cash but still have had to conduct a placing to be absolutely sure of matters so it's all abit swings and roundabouts at times.

Ultimately, I'll be watching for those key levels in the US and where the big buyers come in on stocks like COST. At some point, regardless of how the market moves, these stocks find levels where there is too much value to ignore. With the FED in the background providing a floor to just how far stocks are allowed to fall, the party won't stop despite any near term swings.

Blooming hek, that's ended up a much bigger post than intended ha

Good luck folks!

[dennisbergkamp] 11/6/2020 23:45

Sphere,

Haha 😂 absolutely right, I’ll be driving back

D

[pugugly] 11/6/2020 20:37

The retreat begins – Sector specific problem (building & construction) or part of the general fall back from the ramp up caused by central banks printing too much money - Remember inflation caused by too much money chasing too few goods - and thanks to general high level of shares across many companies too few equities available to soak up the surplus cash (imo) $64K question - a minor blip or the start of the 2nd down wave?

[sphere25] 11/6/2020 14:07

Hey dennisbergkamp

No flights.

Who cares!

Happy days!

[sphere25] 11/6/2020 13:46

Timberrrr!!

It didn't take long to clear the buyers out. Getting ugly out there, but I'm sure folk saw all the extended exuberance and risk of this type of correction.

I'd love to be able to add in bigger size here in the 60's or even near the placing price. Note that I am also a dreamer at times so averaging back in on big beat down days will be the plan across the board.

Let's hope there are some real good clobberings out there, at least to take some of the froth out the market, provide better entry points and generally just make it more sensible and sustainable.

That said, markets aren't allowed to fall alot. They will never be allowed to fall alot. Hell, push a few buttons and pump a few more trillion into the system - happy days!

[imastu pidgitaswell] 11/6/2020 09:33

I'd snort some if I were you - either that or English lessons :-)

Thought we might be up and away, but yesterday and today have put a lid on that. Traded a few and bought them back, but not for a lot of difference - now have half of the peak holding including the 60p free money ones. They would need to drop to under 70 to make it worth adding more, or exceed 90 to make it worth selling more. Into the drawer for now until some news.

[faza3] 10/6/2020 16:55

Sitting tight l have some dry powder waiting for little more drop fingers cross

[sphere25] 10/6/2020 16:30

Have a hunch that's Ennismore adding. The movements on the book remind me of the way they used to short stocks.

Watch out for the holding rns in due course.

[sphere25] 10/6/2020 14:04

Buyers in size at 84 yesterday and 85 today - something of note in more skittish markets. They have been mopping up all the sells, which could set the stock up for a move higher.

NOTE: Everything is wider market dependent, even more so now that key support levels are being tested in the US.

[faza3] 09/6/2020 17:24

Technical indicators turning green and bullish here as well let's see on beginning of July half year report and treding rns but before l am adding Dubai fund have seen books already and they are happy to invest her so l am

[sphere25] 09/6/2020 09:16

Nibbled a few on that plunge down from 94p to 84p. I can see these testing £1, but it's a more conservative approach shorter term, as the wider market is experiencing levels of euphoria and excitement that normally suggest a short term correction isn't a million miles away.

Ultimately, happy to let these push on with the current bullishness and trend, but add in bigger size when the shorter term plunges come.

[faza3] 08/6/2020 18:03

500000 buy good sign for tomorrow well done to buyer good purchase smart money coming

[faza3] 08/6/2020 17:07

They will massively benefit from coming budgets and new green economy they just they are spot on with products and time big winner most of fund manager will soon look her big winer shere price 10£ in two three years very possible big Arab money backing this company well done to costain management well done shortly half year report 2.50 very possible

[imastu pidgitaswell] 08/6/2020 07:59

It's pretty small generally, not sure why it needs an RNS. Still, doesn't hurt.

[owenski] 08/6/2020 07:25

posting headline figures is misleading, it works out at only 43m PA and that's as part of a consortium, so what Cost actually is in line for is anybody's guess.

[bossonmad] 07/6/2020 15:11

with the olacing whats the new upside share price target

[vas007] 05/6/2020 14:30

Looks like 90p a steep climb. Any positive news.?