Costain Share Discussion Threads

[ammu12] 10/7/2020 19:26

Galliford dropped 1.5%. This dropped 7%....Something doesn't feel right....I have a feeling it's one of their contracts.....

[npp62] 10/7/2020 16:39

Something smells bad

[sirrux] 10/7/2020 16:25

Which is better for equity value in this business, higher turnover / lower margin or lower turnover / higher margin? They seem to be shedding some unprofitable contracts but what percent of the 4 billion in the pipe could turn out unprofitable when there doesn't seem to be an easy way of reducing ever rising costs? They went through this sort of pain before and recovered from it, but it was a close call. The Government needs to get a proper grip on the infrastructure crisis rather than just cheering "Build, build, build" from the sidelines because it would appear that's what Costain are responding to but it's driving them to the wall if the markets are correct.

[farrugia] 10/7/2020 16:23

well Galliford is also down - it seems sentiment driven but I don't understand. Isn't the government supposed to be boosting infrastructure spending?

[ammu12] 10/7/2020 15:09

This drop doesn't seem normal.I hope they haven't messed up one of their contracts in immingham....

[imastu pidgitaswell] 10/7/2020 14:42

Maybe go back to why it is worth investing -£1bn turnover (low estimate), 7% target margin (although they have to do it, not target it) = £70m pre tax, £50m post tax, 270m shares = 18p per share earnings. Something like that.

I would reckon 150p or thereabouts in under 2 years. Sometimes you have to be an investor, i.e. patient. Add more if it is bothering you.

[ammu12] 10/7/2020 14:30

Wow sub 60...Didn't expect that.I reckon it's the margin which investors don't like in the construction industries...Kier, galliford, costain all work on low margins 2%

[npp62] 10/7/2020 13:22

Can't be far from the floor.

[barnesian] 10/7/2020 11:30

The placing at 60p was over-subscribed so I am assuming that there is unsatisfied demand at 60p and that this will provide a floor. I am not aware of any material change in prospects since the placing.

[npp62] 10/7/2020 10:52

60p this week!

[farrugia] 08/7/2020 11:05

i also bought some more but i don't understand why its so weak. Won't the government's infrastructure spend support the likes of Costain?

[anaautoslimited] 08/7/2020 10:16

i'm in for another big buy when this hits 50p

[imastu pidgitaswell] 07/7/2020 16:02

Bought some more on the dip - very illiquid though, wouldn't let me buy even 6,000, was a delayed limit.

[outfly] 07/7/2020 15:14

60p next week.

[dancing piranha] 03/7/2020 15:55

So the question is whether this has to test the placing price before moving up, or is it heading back to the 40s?!!

[imastu pidgitaswell] 01/7/2020 11:23

Kier's abysmal, nay, disastrous update not helping matters...

(I can be honest on here - if I say what I really think on the KIE thread they get very upset)

[imastu pidgitaswell] 30/6/2020 09:03

From my HL round-up of yesterday's broker stuff:

Costain: Liberum reiterates buy with a target price of 100.0p.

[aquaesulis01] 30/6/2020 08:41

Importance of professionally trained and qualified Project Managers in senior positions one of the reasons some of the top Civil Servants are being cleared out by the Government. Utilising Earned Value Management for major projects provides a means of recognising the impact of future variance against the baseline plan and take early remedial action

[imastu pidgitaswell] 30/6/2020 08:24

Thanks for that, interesting. It's an issue endemic in the industry, it seems - contract negotiation, management and execution. Nobody appears to have a great record, many have gone bust, most others have plunged in value, including this and Kier. I guess it is related to how change is managed and paid for - inevitably it's the lawyers who win.

At some point, when there are few enough survivors capable of delivering the large scale projects that the government are about to (re)announce, there will be money to be made...

[aquaesulis01] 30/6/2020 07:56

Verdict on yesterday's National Grid Contract cancellation
hxxps://www.building.co.uk/news/costain-clears-out-another-problem-job/5106726.article

[owenski] 29/6/2020 09:08

They have said they're targeting improving margins, divi resumption mentioned for later this year (Oct) New management teams in place. End of day as said before, this is well capitalised 185m cap with 100m of cash. I'd argue downside is looking more limited here than upside.

[babbler] 29/6/2020 08:11

Kie flying.

[imastu pidgitaswell] 29/6/2020 08:09

Yeah, all good it seems. Perhaps I am a brilliant investor, after all, despite plenty of evidence to the contrary...

:-)

[babbler] 29/6/2020 08:04

Above ask paid...

[babbler] 29/6/2020 08:00

They said refer to previous rns.