Fountains Share Discussion Threads

[getscenic] 08/3/2005 20:31

a good couple of days, Mr Lee may have just got afew more on board.

[artful dodger] 06/3/2005 22:48

this share price is reallytrying to break over 150p
lovely wedge forming, should break up in the next month or so
Strong temptationto add if it does
seems a very safe and fairly priced investment

bear case anyone?

[mw8156] 06/3/2005 12:57

A mention in the FT today from veteran investor and former MP John Lee.

[tday] 18/2/2005 11:44

Good AGM yesterday.

[gateside] 17/2/2005 14:59

AGM Statement

'committed to accelerate our growth rate'

At today's AGM of fountains plc ('fountains'), the environmental services
company, the six ordinary and two special resolutions put to shareholders were
duly passed. Chairman Barry Gamble also made the following statement:

'2004 marked a further year of good progress in terms of profit, cash generation
and dividend payments to shareholders. This has mostly been achieved by organic
development.

We remain focused on continuing organic growth but are also committed to
accelerating our growth rate through earnings enhancing acquisitions. We have
been actively considering a number of target companies. We are clear that we
should only proceed when we are fully satisfied that any transactions under
consideration will increase shareholder value and contribute to our overall
strategic objectives.

We are now organising the whole business by customer facing divisions which
recognise distinct safety and delivery protocols. The overall service range of
these divisions shows our ability to combine a range of consultancy, project
management and technical delivery skills.

The demand for our services in the rail and electrical utility sectors continues
to develop. These customers recognise the importance of timely vegetation
management in maintaining power supplies and ensuring trains operate safely. In
my 2004 preliminary statement, I informed shareholders that one customer had
suspended a significant volume of work which was being called off under a
framework agreement. We were invited to resubmit our bid and I am pleased to
announce that our proposal was successful.

Following the recent appointment of a new divisional director, grounds
maintenance services are now provided through a separate division. This
appointment will further increase our capability in these markets. Other
maintenance activities are now the responsibility of the landscape & highway
division which has just secured a further specialist landscaping project in
Scotland.

Our forest management base, now 750,000 acres, has grown significantly in the
USA. The recently announced proposal to build a new wood processing plant, near
Inverness in 2008 should increase demand for Sitka Spruce in an area of the UK
where we manage a significant forest acreage.

For the current financial year we have already secured some 80% of our
anticipated turnover. We are actively bidding for a wide range of work and have
a good near term pipeline of further business opportunities. Current trading is
in line with our expectations and I am confident we are well positioned to make
further progress this year and in the longer term'.

[jangaman] 06/2/2005 13:25

Strip out the cash and these are on a forward p/e of 8.2.

The company is conservative financed and well posed to make an acquisition to grow the business - which I think it needs to do to keep the confidence of the institutions that bought its shares in the July fundraising exercise.

On the down side, not sure how much of an impact their will be if Network rail stop outsourcing and the order book is much less than last year. Organic growth looks quite tough but they seem to have a good management in place, but as mentioned above I think future growth is likely to be driven more by acquisition.

I can’t see these doubling in price as things stand but I can see them at 160p in the not to distant future, not including any acquisition they make.

(Then again, maybe the current price reflects them losing the network rail contract in which case these are already fair value).

[one for the money] 04/2/2005 08:39

I'm out there!

...and looking forward to the divi. :)

Cheers
john

[artful dodger] 03/2/2005 22:52

all quiet here
divi soon
any other holders out there?
I can'tbelieve this one willend the year in this same trading range
good for 150-200 is my target for this time next year.

[artful dodger] 12/1/2005 15:02

false breakout, as it happens!

divi coming up early feb
trading range 120-150p
steady as she goes!

[tday] 06/12/2004 19:24

The chairman sold a fair slug of shares in the summer. The reasons were probably quite genuine but, why sell a share unless you believe it will drop?

[tday] 06/12/2004 19:20

And another point. These shares need to bounce back through the 200 day MA pretty soon otherwise, it is bearish,

[tday] 06/12/2004 19:18

mw8156

Good points. However most of these were there at the results stage.,

Also,it hardly matters what the reasons are for the recent drop. The fact is, the shares have come back 15% in a short space of time.

I like the company but, I won't buy more shares until they come back another 20p or so. And if they don't, there are other - better - shares in which to invest IMHO.

[mw8156] 04/12/2004 13:46

Pretty good results but the order book has dropped and margins are thin, the dollar is in decline and it hasnt yet announced the deals expected so there are a few negatives as well.

[one for the money] 30/11/2004 19:42

Gateside - my sentiments exactly!

Cheers
john

[gateside] 30/11/2004 17:48

TDay... not sure what you are suggesting by your comment?!?

If you are suggesting that I have a positive outlook towards FNT... Of course i do, I have shares in them!!! If i thought their future was negative I would sell.

I was simply expressing supprise at the mark down, because I thought their results were pretty good.

[tday] 30/11/2004 15:54

Confirmation bias is very seductive.

[gateside] 30/11/2004 14:17

With the current oder book strong, and a lot of cash in the bank ready for the an acquisition, for the company to expand. I still see the future for Fountains as being bright.... So I am supprised that it has dropped as far as it has. Most of the recent sells have not been for any significant amounts.

[tday] 26/11/2004 10:29

The problem with this business is its low margins. Consequently, it has to run fast to virtually stand still.

[one for the money] 26/11/2004 09:43

Were close to that recent support line, so I've topped up with another 1000 - live dangerously!

Cheers
john

[one for the money] 26/11/2004 09:26

I'm happy to lose a few weak sellers.

I still think the $ could plummet and cause us a bit of grief here. Nothing has changed otherwise so I will continue to hold.

Cheers
john

[gateside] 26/11/2004 09:23

Growth might be struggling a little, but on a positive note, as the article mentions they have one third of their Market Cap as cash in the bank, so just need to be patient and wait for the right aquisition oppurtunity to come along.

In my opinion future prospects in the long term are still very bright for the company.

[gateside] 26/11/2004 09:20

hosede... Many thanks for that ;-)

With all the small retail sells I assumed it must have been tipped as a sell somewhere... It also allows the mm's to make some money by marking it down suddenly and thus scaring more people into selling.

[hosede] 26/11/2004 09:13

RHPS said "sell" in last night's E-mail - on similar grounds to the above - I regard this as a defensive rather than a growth share - so I'm quite happy to stay in.