Costain Share Discussion Threads

[roguemale1] 04/9/2023 07:55

hxxps://www.constructionenquirer.com/2023/09/04/jobs-to-go-as-costain-winds-down-tech-centre/


As per what was trailed in the HY words....

[boonkoh] 01/9/2023 21:59

Wonder if any public sector buildings will need extensive remediation or rebuilding due to RAAC. And maybe Costain will be appointed as umbrella contractor to inspect, design, and manage the construction nationally....?

[casholaa] 01/9/2023 13:24

I agree with that article. But there again, I'm pretty sure that many of us have suspected as much for the last two years or so.

[roguemale1] 01/9/2023 12:16

Couldn't agree more...had a top up yesterday to get up to a nice round number so I don't need a calculator when the divi drops!

[catabrit] 01/9/2023 11:24

Yep. Big technical test at 60p odd and I think we’ll smash straight through it because bar a few ST traders (nothing wrong with that FWIW) who’s selling? Are you? Am I? Are the big funds who have held this through thick and thin? Is The Count selling? Nope. So up the bid must go until we get adequately compensated.

What’s interesting is how the optionality around the net cash is being valued. We can see the impact in real time. In the past it was there for protection and thus ignored as the market worried about future claims against it etc. It was also getting a paltry interest rate. Now, since the market is less concerned about claims against it and the rate of interest is solid, we’re seeing it mentioned / rated / viewed in a more attacking / positive mindset.

[pinemartin9] 01/9/2023 08:59

Yes, more positivity here and value investors coming in. Needs to break and hold 60 to then really start the re-rate. Would be a great time for some juicy contract wins.

Great to see the increase in volume in the last 7 or so trading sessions. Been a long time since we've seen such stead and consistent buying.

[the count] 31/8/2023 13:49

--->ALL

We are picking up a head of steam.

People waking up to the real value in this stock perhaps?

:-)

Regards,

TC!

[catabrit] 31/8/2023 13:39

Bid has woken up.

[someuwin] 31/8/2023 13:36

100p looks easy from here.

[dickbush] 31/8/2023 13:01

Knowing, Many thanks for that link.

[someuwin] 31/8/2023 12:18

Tipped in Shares Mag today.

[dickbush] 31/8/2023 11:35

"We’re trending in the right direction and we should all be delighted. The valuation will take care of itself. I think a lot of investors can forget how long it takes to rebuild reputation."

FWIW, I totally agree.

[casholaa] 31/8/2023 10:57

WB Imatsu. Good to see you're still around. GL to you buddy.

[knowing] 31/8/2023 10:53

Should bring in some more profitable work

[someuwin] 31/8/2023 09:49

Bought in - looks tremendous value here.

[catabrit] 30/8/2023 17:35

I’d say a thumping 38 percent return YTD when the FTSE all share is flat, a number of small caps are down and a load of active U.K. small cap funds have seen significant redemptions, is the market acting quite rationally, actually. We’d all love this to double over night but just like former stock market duds M&S and Rolls Royce (I own neither and just mention them for context) we’re on the path to redemption. I’m extremely happy with the market’s reaction and I think there’s more to come as Costain confirms the dividend, announces more work and produces a second year of clean results with no major contract issues.

I mean you never know but I’d be disappointed if we see sub 50p ever again. And if we do, it will likely be macro driven with the bursting of the US markets spreading to the U.K. and elsewhere and causing all stocks to sell off indiscriminately.

We’re trending in the right direction and we should all be delighted. The valuation will take care of itself. I think a lot of investors can forget how long it takes to rebuild reputation.

[ttny2004] 30/8/2023 16:45

Yes, but although some of us can see a bargain seems like the general market doesn't lol

[the count] 30/8/2023 10:36

--->ALL

I am always staggered at all this talk of low PE ratios to illustrate how cheap the company already is, certainly in comparison to peers, yet nobody takes into consideration the cash in bank (whether it is all company cash or not, certainly much of it is), the year on year cash generation (so that very cash balance will go on growing from here), when valuing the company.

If we are not burning that cash up, then surely to value the company on a profits multiple, as is the case, the cash, or certainly a substantial amount of that cash, has to be deducted from the market cap first of all.

I guess I am talking enterprise value of a company here, yet brokers and many investors, or wannabe ones, don't seem capable of taking that into full consideration.

We seem to always mention the cash as an aside to the PER, when it is surely a very fundamental part of it all.

On that basis, this company needs to go up a few multiples from here, IMHO.

Regards,

TC!

[catabrit] 30/8/2023 09:27

If margin targets are met, this will more than double. I’d be disappointed if we’re not at £450m market cap leaving 2025 if targets are being hit.

[dickbush] 30/8/2023 08:58

Costain heading for circa 11p (adjusted) in 2023 v 9.9p (adjusted) in 2022. So, prospective p/e of 5. If management can match words with deeds re Operating Margins and avoid anymore SNAFU's, the shares can double over the next couple of years.

For patient, optimistic investors.

[ttny2004] 29/8/2023 21:30

Kiel P/E 16, and Costain P/E 7. So comparatively shows how much Costain is undervalued compared to its peers.On my opinion Costain should be 80p plus for starters.

[sikhthetech] 28/8/2023 20:15

Grahamburn,

Thanks for the article.
I think they need to sort out their statements re dividend. Doesn't match with what should normally happen.
The articles and brokers point to hope of a turnaround.
On my watchlist


hamhamham
re Imastu.

I had several similar exchanges with Imastu on TW thread. He got TW completely wrong. He was posting sector and economic newsflow which would impact HBs whilst he was ramping all the way down.
He also claimed to have made £60k on these even though the share price was lower than when he started ramping!!

[hamhamham1] 25/8/2023 17:17

Shame imastu not still here, I enjoyed arguing that investing in both Costain and Kier was a good idea, whereas he was firmly just Costain, but also he was in Polymetal, and that shows the perils of... events dear boy, events.