Costain Share Discussion Threads

[big brother8] 16/4/2020 08:06

I AM BUYING ALL THE WAY TO 150P TODAY.

BB8

[gooner1886] 16/4/2020 08:05

I wont sell a share till the end of 2021

[imastu pidgitaswell] 16/4/2020 08:04

Just hold tight. And why not?

This is a company with billions in revenue valued at, even now, £100m. 'Normal' earnings per share of 38p in 2018 - which should be easily achievable again with decent contract management.

It's mad.

[big brother8] 16/4/2020 08:02

MY BABY GOING ORBITAL

WE ARE OFF TO THE MOON

[ammu12] 16/4/2020 08:01

Bloody hell

[big brother8] 15/4/2020 17:15

Costain Group
Costain steams higher on green light for HS2 Euston tunnels contract
The new contract marks the point where the work transitions from design and preparatory work to full detailed design and construction

Costain Group -
The JV has already prepared the site of the approach tunnels to Euston station
Costain Group PLC (LON:COST) shares rocketed as the construction group’s next contract for work on the HS2 rail project was given a green signal.

Costain's joint venture company, Skanska Costain Strabag, won a £3.298bn contract to design and build the tunnels coming into the Euston station terminus.

As the coronavirus lockdown means there is no construction on-site “apart from safety-critical works”, the contract is not expected to make a significant contribution to the group's profitability until the 2021 financial year.

Costain is likely to have a 33% share of the JV, analysts suggested, meaning an estimated contract value of £1.1bn will have formed a large part of the group's £4.2bn order book at December's year end.

With the contract lasting for six or seven years, revenues are forecast to amount to around £50mln this year and ramp up to around £200mln of revenues by 2021, analysts at Liberym calculated.

Following Boris Johnson’s approval of HS2 on 11 February and the award of this contract from the government, the “marks the point where the work transitions from scheme design and preparatory work to full detailed design and construction”, Costain said, building on initial design and site preparation work carried out so far.

The High Speed 2 rail line, which has attracted criticism over the destruction of ancient woodland and over whether the massive spending will produce worthwhile benefits, is due to begin running trains in 2028-2031 depending on the construction timetable

Separately, Costain said it has won a £210mln contract by Highways England to design and build an upgrade to a section of the A30 north of Truro in Cornwall due to be complete by the end of 2023.

The work includes upgrading an 8.7-mile section between Chiverton Cross and Carland Cross from a single carriageway to a dual carriageway, together with the construction of new junctions, slip roads and bridges.

Costain said detailed design work will begin in April with works starting in the coming months once lockdown is lifted.

Shares in the company surged 33% to 73.14p on Wednesday morning, though they are still down more than 50% so far this year.

“The JV has been awarded the contract despite concerns about its financial strength, noting concerns also about the financial strength of other suppliers like Kier,” analysts at Liberum said. “The stand-by under-writing may have helped.”

With profit recognition expected to be cautious and, given the delayed start due to Covid-19, the analysts forecast zero profit contribution in the current financial year, rising to £160mln and £200mln of additional revenues, and £4mln and £7mln of additional underlying profit in the 2021 and 2022 financial years.

“We have heard elsewhere in the industry that the terms of the contracts are attractive with caps and collars limiting the risk of the supply chain, and limiting the cost to HS2. We assume neutral working capital as it uses a project bank account and therefore the increased profit should flow directly to the financial position, resulting in expected broadly neutral net cash in FY 2021,” the analysts noted.

As Costain has a £99m actuarial pension deficit, Liberum still believes the company needs to raise up to £100mln.

[big brother8] 15/4/2020 15:59

HERE COMES THE SURGE.

CLOSING AUCTION COULD BE 120P. WHO KNOWS.


BB8

[npp62] 15/4/2020 15:31

FORT will also work out well.

[cyberbub] 15/4/2020 15:29

Thanks Roger rail... XAR looks interesting, and doing a bit more research.Thanks also to others for your ideas, I'm looking into them. Keep em coming LOL. I'm sure others on this board will be interested too.DYOR as always,

[rogerrail] 15/4/2020 15:04

MRO too risky at momennt ( high exposure to Auto and Aero sectors) Recommend after todays falls you should look at BAB ( minimal impact on business which is classed as essential) and Xaar which has cash equal to mkt cap albeit some is ringfenced for 3D printing development.DYOR

[imastu pidgitaswell] 15/4/2020 14:16

Nothing this good.

KIE is a similar business, large cap and liquid, and has not come back from its lows, but it reached its lows before the CV19 mess - it has much more debt problems, and not for me.

Other businesses in recruitment may still have recovery to make, but timing difficult. RWA is an example of how quickly it can happen.

Manufacturers in China maybe another area - again timing difficult and each company has its own issues. I have been in heavy to VLX which was recovering nicely before being hammered by CV19. Not invested there myself, but some believe it will be over 200 in due course.

If I am being honest. I still can't see why this shouldn't, even now, be capable of doubling from here. And it's liquid.

[big brother8] 15/4/2020 14:10

BB WILL CONTINUE TO BUY ALL THE WAY TO 120P CLOSE TODAY.

BB IS IN BIG BIG PROFIT HERE, BUT BB IS VERY GREEDY TODAY. HAVE LOADS OF EXPENSES. DRUGS DEALERS WANT THEIR MONEY, WORKING LADIES WANT THEIR MONEY.

I HAVE TO REPAY BACK MY GRAN, I USED HER AMEX PLATINUM TO BUY A ROMANIAN WORKING LADY A LOUIS VUITTON BACK. SHE NEVER CHECKS HER AMEX STATEMENT BUT SHE DID LAST MONTH. DON'T KNOQ WHAT'S HER PROBLEM. SHE WHACKED ME ON THE HEAD LAST THURSDAY WITH HER WALKING STICK, I WAS PASSED OUT AND HAD 12 STITCHES. I HAD TO LIE IN THE BUPA CLINIC, OTHERWISE COPS WOULD LOOK FOR HER. I SAID I WALKED ON A BANANA SKIN AND CRASHED DOWN!!!!

SHE'S CAROLINE FLACK ON STEROID & CRACK. PROPER PSYCHO MY GRAN.


SHOULD SPIKE TO 120P AND RALLY TO 150P TOMORROW MORNING.


HOPE THIS HELPS


BB8
IN BB8 WE TRUST

[cyberbub] 15/4/2020 13:43

Well done to people who spotted this one...Any of you got any ideas for a similar corona-oversold but basically good-quality company? (serious question, I have a little cash looking for a home and will DMOR don't worry).Thanks.

[npp62] 15/4/2020 13:32

Stick with it. Less stress. In and out trading isn't good for the blood pressure :-)

[ammu12] 15/4/2020 13:07

Yeah could easily go to 1+ today...

[babbler] 15/4/2020 13:02

Likewise but it's a beast to predict.

[ammu12] 15/4/2020 12:58

Will be buying back.Waiting for the volatility to reduce....

[orchestralis] 15/4/2020 12:58

I'm only up 103%, so going to hold for now.

[orchestralis] 15/4/2020 12:57

Well done Babs. Good strategy.

[imastu pidgitaswell] 15/4/2020 12:56

Well that was an expensive lunch break...

(wouldn't have sold anyway - a rare 'investment' as opposed to short term trade gone wrong....)