Costain Share Discussion Threads

[harry3021] 14/2/2020 10:52

so we have both Galliford and Kier flying...

[harry3021] 13/2/2020 15:31

seems like kier group and galliford are showing quite markable strength - do they really stand to benefit more from the HS2 project?

[zeek] 12/2/2020 23:06

The dividend is linked to underlying earnings so will be held. If the next few updates are in line with expectations with nothing suddenly coming out of the woodwork then it should recover nicely. Even if there are a few bumps along the way
, it's a strong company with no debt or pension problems. Really not wanting to ramp too much, but I also hold in the hope that someone comes in with a bid however its probably unlikely in the current climate with debt frowned on so much.

[trcml] 12/2/2020 17:10

Costain had already accounted for (included0 HS2 in its order book. The share price has been going up in anticipation and has simply responded politely to the positive news. I should think the market is more interested in the results, due in March, and whether the divi is to be held.

[harry3021] 12/2/2020 14:50

so when is the next trading update? I don't understand how this is trading so low especially now that the HS2 project has been confirmed!

[cheshire man] 12/2/2020 10:22

Even happier now having took full advantage of the lows :-)



Cheshire Man
21 Aug '19 - 07:21 - 5907 of 6047 Edit
0 1 0
Happy to have held onto COST very pleased with results and a good reaction with the sp

[elpirata] 12/2/2020 09:15

somewhat delayed reaction to HS2 but uptrend establishing

[bookbroker] 12/2/2020 08:52

Just this headache with the Heads of the Valley road, not due for completion until 2021, even though things accounted for, always the unforeseen and it’s proving to be a very difficult project!

[w1ndjammer] 11/2/2020 10:52

yep under the radar this one most peeps missing out,
chasing oil stocks that keep falling.......

WJ.

[zeek] 11/2/2020 10:05

I've bought 3 times over the last 6 months on each dip. Not sure I'm going to get a 4th chance! Nice divi and plenty of share price upside.

[zeek] 11/2/2020 10:03

I think the penny might be dropping here.

[davwal] 11/2/2020 08:41

SP not exactly taking the fast line yet, but there has to be a significant uprate before long.

[nw99] 11/2/2020 06:57

BBC HS2 looks done deal

[knowing] 10/2/2020 13:06

Maidenhead-based construction firm Costain Group PLC (LON:COST) is set to be the prime beneficiary of what seems to be imminent government approval of the High Speed 2 (HS2) railway connecting London with the North of England.

That’s according to analysts at Liberum, who said in a note on Monday that the rail line, which is planned to run from London to Birmingham and then towards cities such as Manchester and Leeds, could increase Costain’s fully diluted earnings per share (EPS) by 34% in its 2021 financial year.

Another potential beneficiary is FTSE 250 group Balfour Beatty plc (LON:BBY), which has two contracts related to HS2 worth around £2.5bn through a joint venture that are yet to be added to its order book, as well as 42% of another £1bn contract relating to the construction of the planned Old Oak Common station in West London.

The approval of HS2 could also provide some positive news for troubled contractor Kier Group PLC (LON:KIE), which over the last year has seen its share price plunge 78% following a string of profit warnings.

[nw99] 10/2/2020 09:03

HS2 outcome shortly

[bogdan branislov] 05/2/2020 11:23

The facts are this. Costain has hit a few bumps in the road, but most of this was due to contract delays resulting from the uncertainty of recent years. The Welsh contract hit was unfortunate, but the underlying business is far from in distress, this is no Kier Group scenario. The construction sector outlook is now significantly improved. If Costain's earnings return to above 30 pence per share over the next year or two, which I expect, then Costain, even without cash adjustment will be sitting on a PE ratio which is only about one third of the current mid cap average (yes, Costain is a small cap, but earnings ratios are similar). The likely gains over the next 2 to 3 years are considerable.

[zeek] 30/1/2020 09:14

Think the current price reflects the issues over the last year rather than anything to do with HS2. Of course HS2 will be good for Constains, but they also need to have a year where there are no major slip ups with late contract awards and one off hits due to contract issues. A year of steady delivery, hitting their forecasts will work wonders and show the market that the underlying bussiness is very sound.

[bookbroker] 30/1/2020 08:50

HS2 will never be the backbone, the existing rail infrastructure is and that is why investment needs to be made there first and foremost, we are talking one line to B’ham and then the links between Leeds and Manchester. The North should have priority, but transport policy in this country is chaos, smart motorways, death traps, overcrowded rail network due to poor investment, and now the bail out of Flybe, an airline that has never made a profit in its lifetime!

[bookbroker] 30/1/2020 08:47

Agree Roger, that’s why NHS should no longer be FOC., politically impossible, but appointments and babies should be paid for, why do you think gippo’s have so many kids, because it’s free!

[nw99] 30/1/2020 08:43

HS2 here we come

[rogerrail] 30/1/2020 08:10

HS2 nailed on. Cost/yr is peanuts compared to the cost of inefficiency and waste in the NHS and other public bodiea over the same timeframe.Far from being an alternative, the other local infrastructure investments should all proceed, but the HS2 is required as the foundation and backbone for an integrated national transport policy.

[bookbroker] 30/1/2020 06:23

Ridiculous that HS2 going ahead, the Govt. is slowly nationalising the rail service as the franchise system screwed, they should focus on the now and upgrade the existing infrastructure. The network is overloaded, outdated and not capable of running the current timetables. So you will see services cut, resulting in more overcrowding. The HS2 budget should be allocated to the existing railway. I would say £100bln. conservative, more like £150bln. by the time of completion, and maybe counting. Crossrail just an example!

[sanmiguel1] 30/1/2020 03:44

HS2 now likely to get green light, with right wing media reporting Javid will support it. This is huge for Costain, as it’s currently priced for HS2 to be cancelled, as several previous posters have mentioned.

[rogerrail] 28/1/2020 12:57

Costain HS2 contracts are mainly on southern section where most of the £12billion HS2 expenditure already commited is allocated and hence this section is less likely to be cancelled.

[epistrophy] 28/1/2020 12:10

Shhh, you'll jinx it!

Some promising noises on the HS2 front...