Costain Share Discussion Threads

[greg the grinch] 17/3/2021 13:18

I virtually always buy shares looking forward on a risk to reward ratio and a 1-3+ year hold.

What is the downside share price and upside SP?

Considering the above this is a buy and hold share.

What we are seeing is normal market action considering COST's share price has risen dramatically - some taking profit - if shares moved in a straight line we would all be millionaires.

GLA

[imastu pidgitaswell] 17/3/2021 12:57

Maybe a little negative there dasty?

The Welsh one is done - true, there is a completion process which could in theory go wrong, but it's just standard stuff, not the early stage geological screw-up that caused the problem in the first place.

The Huntingdon one is also agreed as COST are pulling out - with a bigger execution risk between now and the end, and also the range of scenarios that are possible. Being audited,they have to be relatively cautious, they have to take a prudent view. It could be worse than that, as they state, but it could also be a lot better, cash-wise. Track record is one thing, but given that all of the people involved with the original contract have been shipped out (expensively in some cases), is it really right to assume the worst?

I can't say you're wrong - except for the statement at cash being zero in a year which is just plain wrong - and it's a possible view, but having just reported and told us what they have, and having listened to the Q&A yesterday, I'm perfectly happy, and happier than I was pre-results that this will be much higher in the not too distant future.

At some point, they will resume dividends - and then the income funds will come on board. Not any time soon - but it will happen.

[ttny2004] 17/3/2021 12:40

No. Great buying opportunity. Will add some more shares in my pension.

[knowing] 17/3/2021 12:39

Probably just the sell the news brigade moving on

[dasty1] 17/3/2021 12:39

I think the picture is a bit cleaner now. The RI was to create a cash balance to pay off two awful contracts (Wales and Peterborough). Peterborough may still have £50m outflow (market has to assume worst, esp on COST track record of disputes). Wales is uncertain losses still being racked up. The cash position could be wiped out by year end. Or worse. Prior to results, this wasn’t clear. It is now. And, COST underlying profits have to be achieved for five years without any more ‘exceptionals’ just to break even for 2020. Let’s be honest, do we really believe there will be no new exceptionals for five years? I’m a very nervous holder right now. I can see why it is falling. We need closure on Wales and Peterborough and then see what the cash balance, if any, then is. 12 months without knowing the answer. Do I bail out until that clarity is given? Or do we trust management comments of being very confident of a positive outcome? I can’t say I have huge confidence!

[thags] 17/3/2021 12:38

any reason this has lost nearly 10% this week, the results didnt really contain anything the market wasn't aware of already?

[blackbear] 17/3/2021 11:44

added again saving some ammo for 60 though cant see it there tbh

[waldron] 17/3/2021 11:09

Not sure about 60p but some seem to be saying 62.50p for strong support at present

[imastu pidgitaswell] 17/3/2021 11:00

Bring it on - I'll have plenty more at 60p

[qsmeily456] 17/3/2021 10:44

60p written all over this....🎋
27795;🌲796;🎄㉊5;💥

[ttny2004] 16/3/2021 17:37

On 17th Feb broker notes from Peel Hunt LLP BUY 75pLiberium Capital BUY 80pBe interesting to see any new broker forecasts from analysts after results today.My summary is with forward looking information this is a buy for future at current prices on a medium to long term basis.Worth looking at the fy results slides and webcast woth slide explanation and Q&A.

[skinny] 16/3/2021 16:32

Yes annoying in this day and age.

[imastu pidgitaswell] 16/3/2021 16:00

But it took place at 9.00am this morning, and we, as mere shareholders (owners of the business), weren't allowed in.

Hence my grumpiness.

[skinny] 16/3/2021 15:28

Yes - the Q&A started @2:30 ish..

[imastu pidgitaswell] 16/3/2021 15:27

Just listened to the presentation, with the Q&A.

Only the 5 hours after the fact...

No issues as far as I'm concerned. Clear handle on the P&H position, margins going forward a focus, particularly consultancy - sounds very positive from management, the number of questions in this area suggests some scepticism from the analysts. Which may or may not be misplaced. And which may explain today's price movement - up then down. Many thanks for that chaps, gave me the chance to add back...

I'm happy to carry on doing what I do - buy low sell high.

[imastu pidgitaswell] 16/3/2021 14:58

10k again...

[blackbear] 16/3/2021 14:58

Fill the boots time.

[maxplus2] 16/3/2021 14:56

Cannot buy or sell. Negotiated trade

[dealy] 16/3/2021 14:53

what the hell is wrong now?

[skinny] 16/3/2021 14:10

The webcast is now available - you have to register.

[imastu pidgitaswell] 16/3/2021 13:37

I certainly wouldn't rule that out.

[dealy] 16/3/2021 13:35

Had a look. Looks good. Surely an easy takeover by a bigger play?

[imastu pidgitaswell] 16/3/2021 13:27

Ta - now included direct link to that in the header

[ttny2004] 16/3/2021 13:22

Presentation to analysts now available to us mere shareholders in case you haven't seen or read.https://www.costain.com/investors/results-reports-presentations-and-webcasts/