Costain Share Discussion Threads

[cleverinvester] 16/3/2021 12:31

FJGOON now opened a short on SAGA at 3.00, Shoe at 50p and Costain at 50p.See SHOE and SAGA BB

[imastu pidgitaswell] 16/3/2021 12:04

Everything has its price though.

I feel for holders from just over 12 months ago with this at 200p. But at 30p and trading below net cash balances, and below the rights issue money raised a few months before, the price was pretty damned good. So I bought a lot (having bought a lot at higher prices on the way down.)

I've since sold a lot - 100%+ not to be sniffed at. But still holding a lot. And if it goes lower will buy those sales back.

It's never a binary thing - buy at one price and sell at one price. Price, exposure, risk.

[zicopele] 16/3/2021 11:53

Every job I ever worked on looked ok at the start. The unknown unknowns are what kills the job.

Costain had a deep relationship in Wales and with Welsh Assenbly for highways work and took on the Heads of the Valleys against what would have been stiff opposition.

I doubt any money was left on the table. Everybody was happy until.the extent of the unknown unknowns became known.

That is construction. Design risk is dangerous and process risk is lethal.

The industry sucks.

[greg the grinch] 16/3/2021 10:28

Buyers want clarity going forward with known downside.

Looking forward I see no reason why COST wont become very profitable again - general infrastructure and 'build, build, build' should mean good times are ahead. The construction companies have realised the stupidity of bidding for contracts with too low a margin - implied better margins.

They may get a legal kick in the nuts or give one but they can ride that out.

Expect to see great numbers in 12-18 months time. That is why I reckon the big buyers will come in and push up the share price

GLA

I'll be sittin and waitin.

[imastu pidgitaswell] 16/3/2021 10:06

Well, 125 to start with...

Maybe by the end of the year?

😎

[skinny] 16/3/2021 10:00

Nothing to see here - to 204p and beyond.

[grupo guitarlumber] 16/3/2021 09:58

Dividend

The Group does not recommend a dividend for 2020. The Board recognises the importance of dividends to shareholders and will continue to review the timing of the reinstatement of future dividends in the light of the Group's performance, cash flow requirements and the importance of maintaining a strong balance sheet.

Outlook

Looking ahead, while mindful of the macro-economic uncertainties, we are confident in delivering growth in profits and margins this year. Costain is in a strong position with a high volume of secured long-term programmes and a positive market outlook, in particular the UK Government's commitment to invest in infrastructure to support the levelling up of our economic activity and decarbonisation of our environment.

[farrugia] 16/3/2021 09:37

yes given the way these things move - it will be rapid and i don't want to be out.

[blackbear] 16/3/2021 09:36

All good going forward could spike to 100p quite quickly IMHO..

[farrugia] 16/3/2021 09:27

i don't think price will pull back - i think it will go up now that the uncertainty has been removed. picked up another 10,000 shares to my core holding to play the recovery.

[wiganer] 16/3/2021 09:12

Took profits this morning. Still bullish for long term but think price may pull back after recent run now results are out. Happy to be proven wrong and good luck to all.

[cleverinvester] 16/3/2021 09:01

The Group does not recommend a dividend for 2020. The Board recognises the importance of dividends to shareholders and will continue to review the timing of the reinstatement of future dividends in the light of the Group's performance, cash flow requirements and the importance of maintaining a strong balance sheet.

[imastu pidgitaswell] 16/3/2021 08:56

As far as I recall, that is the only contribution you have made on this share - why so?

[hooley] 16/3/2021 08:51

So confident is the board about the future that it passed the final dividend. Good luck everyone - I took a nice profit, having bought in the thirties last autumn.

[cleverinvester] 16/3/2021 08:16

Nice results , happy days

[hamhamham1] 16/3/2021 08:09

Oh, the markets reaction is wrong and you are right, ok :)

[ammu12] 16/3/2021 08:06

Nah I focus on important bits ;)

[hamhamham1] 16/3/2021 08:05

Maybe you should have cut and pasted the good bits as well as the bad here then?

[ammu12] 16/3/2021 08:04

Welll it's up :)

[hamhamham1] 16/3/2021 07:52

Clay, am fine, I got an average of 38p here and aim to keep until 300p.
Am happy and relaxed with this and many others in my portfolio.

[imastu pidgitaswell] 16/3/2021 07:37

Very similar to the trading statement in January - reassuringly dull.

As per many previous comments the investment case there is nothing to do with 2020 results, it’s all about 2021 and also 2022, multi year orderbooks + cash balances + future margins.

There is one piece of information relating to the scenarios on the Peterborough and Huntingdon contract - while they expect things to be broadly neutral (“strongly believe”) the scenarios range from receipt of a further £50m to a payment of £57m. While there was always a range of scenarios I think this is the first time I’ve seen them quantified.

“Under the terms of the Agreement, the cumulative outcome for Costain of these adjudications could range from an additional cash receipt of up to a maximum of GBP50.0m to a cash payment (which would not affect Costain's banking arrangements) of up to a maximum of GBP57.3m. Any such cash adjustments would be made in the first quarter of 2022.”

Analysts call at 9 am - I suspect they will try and get more information about this but none will be forthcoming.

Otherwise I don’t see anything new in this at all so it’s as you were.

I’ve no idea how the market will react but as per yesterday not fussed if it’s up or down.

[claymagnet] 16/3/2021 07:34

U feeling tense ham old bean? Ammu it's OK mate we all know your a COST man.

[pinemartin9] 16/3/2021 07:28

Dip at first and end at about 5 % down. Then we continue upwards!