Fountains Share Discussion Threads

[bbbbb] 20/4/2004 22:11

TD, it wasn't 'selling to meet institutional demand' in so far as the institutions wanted to buy more (though perhaps they did).

The pressure was put on the director (may even have been the one you refer too...as i think the holding was in the region of 15%) to reduce the size of his holding, clearly they felt he wielded too much power in any upcoming vote.

The shares have gone down today, some news about to break, a tree shake or teh shares being placed for sale ?, Any ideas...

[azalea] 20/4/2004 21:59

Gateside
I guess a number of us are watching FNT and equally surprised at the fall. If as you say there is no bad news (in the public domain) or big sellers, then the fall must be MM driven. However, MM do not in my experience mark down a share this far for no reason, lest someone leaps in and buys a whole wad. Which in turn must suggest that they know something appropriately significant that most of us punters do not. With the results in June the year end must now be up with the accountants looking over the books, perhaps they do not like what they see.

Having been recently tipped by the IC the price should be rising as we approach the results. My instincts are that I should not touch them and certainly not until they settle, even though they appear very tempting.

[gateside] 20/4/2004 21:16

Very supprised at the fall in FNT on no bad news or any big sellers, reckon today a lot of peoples stop losses were being hit today.

Have not bought in yet, but this is beginning to look very attractive at this price.

Results are due in June.

[tday] 20/4/2004 16:42

I don't necessarily buy the "selling to meet institutional demand" reason given.

450,000 shares is nothing to an institution. Besides, isn't there an ex director who owns 15% or so of the company, who would probably be delighted to off load some or all of his holding.

Either way, the shares are drifting downwards - at least for the time being.

[gateside] 26/3/2004 12:19

My initial interest in this company was the their timber operations, as timber in th UK has not risen as rapidly as the US and thought that we are due a correction.

However, you can claerly see that it is from its Utility Services section, where the growth in Fountains is coming from.

Anyone else out there with any thoughts on Fountains?

[bbbbb] 08/3/2004 08:35

UP 7% this morning, after director forced to reduce his holding by the institutions....something going on here thgough i'n not sure what. Big contract win, stake building by institutions,or bid....anyone following/ideas?

[artful dodger] 08/3/2004 07:59

and here's the push! All in one go-160p.



LONDON (AFX) - fountains PLC said chairman Barry Gamble sold 450,000 shares,
or 4.3 pct of the stock, at 130 pence per share, bringing his stake to 12.8 pct.
A statement said the sale was made to meet institutional demand.
rn

a great start to the year for fountains.

[artful dodger] 02/3/2004 22:12

price building nicely above 140p
push to 160p soon imo

[artful dodger] 10/2/2004 14:08

LONDON (AFX) - Environmental support services company Fountains PLC said it
has made a good start to the year, with current trading in line with
expectations.
It said it "continues to be encouraged" byopportunities available in its
markets and is actively pursuing ways to extend the service offering to its
customers.
"Our overall order book continues to strengthen and we now have contracts
which extend out to 2010. For the current financial year we have already secured
over four fifths of planned turnover," chairman Barry Gamble said, speaking at
the company's AGM.
He announced a number of orders, comprising: an initial one year vegetation
management contract for Yorkshire Electricity with a value of 1.2 mln stg and
the renewal of a 500,000 stg five year management contract for some 6,000 acres
of woodland owned by Southern Water.
It has won a number of grounds maintenance and substation contracts for
local authorities and utility companies with a value of 2 mln stg and further
forest management mandates in the USA which increase its managed acreage there
to 440,000 acres.
"I am confident we shall continue to grow and develop the business in the
future and, withcurrent trading in line with our expectations, I believe that
we will achieve further solid progress in 2004."
Gamble added that 2003 marked the fourth year of good progress in profits
and cash generation.
"In particular, our focus on cash has contributed to our balance sheet
strength and now allows us to be ambitious to exploit further opportunities for
growth."

[bbbbb] 16/1/2004 22:49

Thanks whynot...nice rise today...

[artful dodger] 16/1/2004 14:04

ic tip explains the price action -nice of them to tip it on the verge of a breakout.

126p - aim: support services - fountains may just be a minnow on the Aim market, but it is the largest supplier of vegetation control services in the UK. And utility companies increasingly need its services - falling trees were partly to blame for the recent power cuts in the US and Italy. So Fountains is benefiting from outsourcing by major utilities and looks well-placed for further growth.

Its work spans the management of open spaces, streets, parks and highways for local authorities. Fountains is also involved in tree-surgery and hard/soft landscaping. But it's worth noting that landscaping is falling as a percentage of total sales, as Fountains scales back its efforts in this area. The US is a key market for Fountains, where it manages over 425,000 acres of naturally regenerating hardwood forests (a 60 per cent increase in two years).

Fountains has a UK network of 12 offices, enabling it to service over 50,000km of rail and electricity and distribution lines. Major customers include National Grid, Network Rail and Scottish Power. Utility services and grounds maintenance comprise almost 80 per cent of total sales, and contracts are typically for 2-4 years.

Although it's difficult to estimate the size of Fountains' total market, the utility sector is providing the greatest growth opportunity. Regulatory approval, together with 24-hour response times and specialist equipment, provide Fountains with an edge over the competition.

Indeed, to maintain its edge, it has extended its range of services over recent years. One addition is an emergency-response operation to cope with a surge in demand for out-of-hours work - call volumes doubled last year.

But Fountains' core services are electrical maintenance and surveys of railway tracks and power lines. It has responsibility for over 25,000 electrical substations and undertakes vegetation management on more than 1,000 miles of track. The company is confident that recent plans by Network Rail to take track maintenance in-house will not effect it unduly.

Fountains also has a strategic alliance with Asplundh, which is also a 5.6 per cent shareholder, and the world's largest vegetation management company. Asplundh has no operating activities in the UK, so tends to refer business to Fountains. It may even consider a bid for its UK partner.

In its own US operations, Fountains seen activity levels increase in recent years, with work stretching from Maine to Tennessee. US timber continues to be accepted as an alternative asset class, and quality hardwood has risen in value, generating interest from a number of European institutions.

Fountains' order book - unveiled for the first time - is valued at £70m and stretches out until 2007. The bidding pipeline is estimated at well over £10m. Recent contract wins include a three-year deal with Aquila, to provide vegetation management over 300km of a distribution network in the Midlands.

A tight focus on working capital has helped Fountains generate increasing cash inflows. Estimates point to a current-year net cash balance of £2m by September. The utilisation of past tax losses mean it is now paying a normal tax charge.

So-called 'green investors' may also be attracted to Fountains - last year it planted 750,000 new trees.

This is a solid business with a reasonable yield and is trading on 13 times current-year earnings, falling to 10 in 2005. With a strong order book and plenty of scope to win new contracts, the shares are attractive. Buy.

[artful dodger] 16/1/2004 14:01

into new price territory now with good momentum.

good point, mw, you can't isa an aim stock, so it's a sipp stock then.

that's sorted.
I'm 40% up on this one this year, and its supposed to be one of my steady-eddies!

[whynot] 16/1/2004 11:34

Here it is:
126p - aim: support services - fountains may just be a minnow on the Aim market, but it is the largest supplier of vegetation control services in the UK. And utility companies increasingly need its services - falling trees were partly to blame for the recent power cuts in the US and Italy. So Fountains is benefiting from outsourcing by major utilities and looks well-placed for further growth.

Its work spans the management of open spaces, streets, parks and highways for local authorities. Fountains is also involved in tree-surgery and hard/soft landscaping. But it's worth noting that landscaping is falling as a percentage of total sales, as Fountains scales back its efforts in this area. The US is a key market for Fountains, where it manages over 425,000 acres of naturally regenerating hardwood forests (a 60 per cent increase in two years).

Fountains has a UK network of 12 offices, enabling it to service over 50,000km of rail and electricity and distribution lines. Major customers include National Grid, Network Rail and Scottish Power. Utility services and grounds maintenance comprise almost 80 per cent of total sales, and contracts are typically for 2-4 years.

Although it's difficult to estimate the size of Fountains' total market, the utility sector is providing the greatest growth opportunity. Regulatory approval, together with 24-hour response times and specialist equipment, provide Fountains with an edge over the competition.

Indeed, to maintain its edge, it has extended its range of services over recent years. One addition is an emergency-response operation to cope with a surge in demand for out-of-hours work - call volumes doubled last year.

But Fountains' core services are electrical maintenance and surveys of railway tracks and power lines. It has responsibility for over 25,000 electrical substations and undertakes vegetation management on more than 1,000 miles of track. The company is confident that recent plans by Network Rail to take track maintenance in-house will not effect it unduly.

Fountains also has a strategic alliance with Asplundh, which is also a 5.6 per cent shareholder, and the world's largest vegetation management company. Asplundh has no operating activities in the UK, so tends to refer business to Fountains. It may even consider a bid for its UK partner.

In its own US operations, Fountains seen activity levels increase in recent years, with work stretching from Maine to Tennessee. US timber continues to be accepted as an alternative asset class, and quality hardwood has risen in value, generating interest from a number of European institutions.

Fountains' order book - unveiled for the first time - is valued at £70m and stretches out until 2007. The bidding pipeline is estimated at well over £10m. Recent contract wins include a three-year deal with Aquila, to provide vegetation management over 300km of a distribution network in the Midlands.

A tight focus on working capital has helped Fountains generate increasing cash inflows. Estimates point to a current-year net cash balance of £2m by September. The utilisation of past tax losses mean it is now paying a normal tax charge.

So-called 'green investors' may also be attracted to Fountains - last year it planted 750,000 new trees.

This is a solid business with a reasonable yield and is trading on 13 times current-year earnings, falling to 10 in 2005. With a strong order book and plenty of scope to win new contracts, the shares are attractive. Buy.

[bbbbb] 16/1/2004 10:06

dont have the article...just read it had been tipped. Anyone with the article ?

[flesh] 16/1/2004 08:42

Did IC have target price?

[bbbbb] 16/1/2004 08:37

Results and divi due in the next few weeks also I think.

[flesh] 16/1/2004 08:16

Yes 5b I'm in. Got in at 112p mark a couple of months back.
Steady rise as thread header suggests.
Nice mm buy

[bbbbb] 16/1/2004 08:11

Well, this has continued its steady climb and there have been a couple of developments in the past two days. Yesterday the FNT pension fund bought 40k of its shares and today Investors Chronicle has come out with a 'BUY' on it.

Anyone following ?

[robink] 15/1/2004 21:04

Excellent company, well managed, no dept, dividend growth, growth in eraning, director purchases indicate they consider undervalued. John Lee (of the FT) is also a holder.

[mw8156] 13/1/2004 19:35

Can you put FNT an AIM stock in an ISA?

[artful dodger] 13/1/2004 12:28

another of my 'F'-stocks for 2004

pushing all time highs now/ chart in solid uptrend

fundamentals are sound

dividend to support price

good choice for a sipp/isa

a great buy and tuck away stock.

other holders out there?

[geraldus] 20/10/2003 18:48

Must be time to sell then. Network Rail also taking its maintenance contracts back.