Costain Share Discussion Threads

[babbler] 03/9/2020 12:21

Does £45m justify this mcap fall?

[imastu pidgitaswell] 03/9/2020 12:03

You might be being a little harsh - he wasn't there when someone took on this contract, nor when it all went pear-shaped.

He is just the one in charge while they try to sort it.

Love and kisses,


Alex



:-)

[nick rubens] 03/9/2020 11:59

I remember the Thomas Cook Boss (on the news TV) apologizing to everyone except the shareholders as he presided over it's collapse.

[nick rubens] 03/9/2020 11:55

I don't think it will affect director salaries and pensions.

Isn't that what listed PLC's are run for primarily and the shares merely a trading provision for gamblers and addicts?

[farrugia] 03/9/2020 10:51

How much is Alex Vaughan's salary? 24% wiped out of the market capitalization in a single day, what a disgrace!

[sirrux] 03/9/2020 10:47

You say that but lots of money flowing about, someone's doing alright.

[imastu pidgitaswell] 03/9/2020 10:22

I think it's a difficult business to be in - low margins, cut-throat competition, all the risk is on the contractor, procurement people looking to screw their suppliers...

So many of them have gone under with one or two others possibly to follow (mentioning no names, erm, LIE or something like that...)

It's really about contract selection (don't do any more of these), pricing, and most of all project management. Consultancy and higher tech is probably the way to go, as they say they are doing.

I would also say it's not doing much for my view of the Welsh Government, but that's just me...

[sirrux] 03/9/2020 10:18

I sort of read it that way too Ima, it will just be a factor in the recovery but enough to make the accountants do a complete backtrack. The accounting has nothing to do with the economics. Still it's a sorry state of business affairs, is this another business led along by calamity advisors?

[sirrux] 03/9/2020 09:58

Who's the arbitrator in this case? I presume no one is to blame so the shareholders get to pay. By non-appealable does that just mean the arbitrators decision is final so that there is still the possibility of litigation? I have no idea what's going on from the RNS other than they lost, but not sure about the Welsh Government's finances - I presume they are blowing their budgets as it is, so it's a sorry case from the start if Costain are looking to make a claim on a purse loaded with debt.

[imastu pidgitaswell] 03/9/2020 09:38

I wonder how many fund managers subscribed at 60p and are now dumping for 40p. Yet the rationale for the drop from 70 to 40 is a legacy contract. Somebody else's money, so doesn't really matter.

[volsung] 03/9/2020 09:31

I disagree EI
Roads themselves are an environmental issue.

[smithless] 03/9/2020 09:27

Keir Group is the one you should be most worried about. Debt is way too high and a cash call has to happen at some point. Re Costain, today's announcement was baked into price as a risk, but hey reality hurts. Raised £100m back in May at 60p and today's market cap £110m!!

[maxplus2] 03/9/2020 09:15

This needs to be taken over

[essentialinvestor] 03/9/2020 09:12

Bought a small amount of BBY this morning but this is not
a sector I would ever recommend to either family or friends.

My first job was in construction and the same problems still plague
much of the sector 35 years later. Projects too optimistically costed (often as a
result of pressure to win bids) which subsequently requires regular write downs
every few years - when additional costs 'suddenly' appear.

[ch1ck] 03/9/2020 09:05

This is a big hit for the company as profits were around 5mil excluding this announcement.With 2 billion in the pipeline for next year and a change of direction to de risk this could be a good entry point.I have taken the decision to buy this morning as I see this hitting their lows over the next few days

[essentialinvestor] 03/9/2020 09:01

Notice they did not include the... smart infrastructure company...tag line
in today's statement ).

Perhaps put a ...not so, in front of that, eh.

[owenski] 03/9/2020 09:00

Christ, who do they employ to do their surveying and contracting work, school leavers.

Hope Costain get their act together going forward, and I agree with Buywell, I certainly wouldn't buy this on HS2 contract appeal.

[essentialinvestor] 03/9/2020 08:57

Roads are not an environmental issue, the fuel that powers most vehicles is.
Which will change, we are at the beginning of that transaction.

Guildford up the road from me now runs electric buses.

[smithless] 03/9/2020 08:54

Liberum today cut Costain price target to 80p from 100p has buy rating.

[volsung] 03/9/2020 08:51

Must admit I hate HS2 with a passion

[salpara111] 03/9/2020 08:42

Well, that was the news I was waiting for.
Had been looking at taking a stake but I simply cant work out what the business is worth.....if anything.