Galliford Try Share Discussion Threads

[valuehunter1] 14/2/2018 12:04

eeza, well I'm buying some more at 800p, they still turned a decent profit and debt is well controlled too. On financial metrics this is the cheapest stock in the market! Yes, agree that confidence in BoD and Mgmnt needs to be gained but over time the numbers will talk. Divi extremely strong too. Will be interesting to see if PI's get a chance to take part in the raising at a discounted price as that would be great for existing holders, if not then the result of all this is short term pain, but longer term the company is put on solid foundations.

[eeza] 14/2/2018 11:59

You need to have 'no brain' to invest in GFRD at the moment. It's un-investible imo until the BOD can show that they have a proper grip on Costings & Estimations.

And the recurring annual 'exeptionals' prove that they haven't yet.

[puffintickler] 14/2/2018 11:48

I think a rights issue is extremely unlikely.

More usual would be a placing with selected large shareholders and an open offer for private investors, probably proportionally less than their shareholdings warrant.

That said I doubt that the PIs will be completely shafted as in general GFRD has been a good company for all investors. In any case they have obviously NOT already earmarked all the shares they intend to offer, if they have the offer would not be underwritten.

In any case at 800p a purchase is now a bit of a no-brainer for anyone.

[valuehunter1] 14/2/2018 11:42

Ever wondered why the investment banks/ hedge funds always report a profit regardless of bull or bear markets/ rallies or corrections, its because they know exactly how the story will play out because of inside info. Sickening but its fine, I'll still beat the market come year end as at the end of the day value has to out and it will.

[careful] 14/2/2018 11:42

Today this is a false market for the shares.
What are the rules for this placing?

Could they raise £150m by issuing 150m shares at £1 for the selected few.
That would cost us dearly.
I estimate the price with (now) 182m shares, and an extra £150m,
the share ppricewould fall to £4.82.


The details and price of this placing is critical, we are flying blind if it is not a rights issue.

[eeza] 14/2/2018 11:42

Re Dividend

The interim dividend for 2018 of 28.0p per share was approved by the board on 14 February 2018 and has not been included as a liability as at 31 December 2017. This interim dividend will be paid on 6 April 2018 to shareholders who are on the register at the close of business on 16 March 2018.

[valuehunter1] 14/2/2018 11:39

I'm telling you guys, I'm just fed up with the City shafting me. Time and time again, there is just pure disregard for PI's. Across all my holdings I'm seeing a similar story play out where the City is 5 steps ahead but nothing PI's can do :-(

[eeza] 14/2/2018 11:35

Bovis must be laughing.

[eeza] 14/2/2018 11:32

"Also, want to add the City is full of crooks as clearly the players were aware of this coming and must have been shorting the share. Trends everywhere of insider info being used and being rampant."

Yes, II's must have been in the know because placing just announced today but already been u/written & obviously pre-agreed with the II's.
That would make them insiders so of course they wouldn't be dealing.

Lol !!!

[nigelpm] 14/2/2018 11:30

Was expected a 10-15% fall on the news - quite surprised it has fallen 20%.

[careful] 14/2/2018 11:21

Good news for them this price collapse then.
we get shafted, not invited to the party although we can buy today if we have the courage.
It means that todays dramatic fall is probably manipulated.

Amazed it is legal.

[valuehunter1] 14/2/2018 11:18

Also expecting some Director buys too.

[careful] 14/2/2018 11:04

They did refer to 'shareholders'.
Can they legally offer one special group of shareholders a discounted rights issue at the expense of the others?. seems unlikely, it is just inviting market manipulation.

They did refer to the quality of the £3.5bn order book.
plus some other comforting weasel words.

The problem here is lack of trust. Not only CCLN, but many other examples.
The big accountancy firms are not trusted, and neither are the directors.
We do not believe that the published results are a 'true and fair' record.
A principle of prudence should apply.

No accountant/auditor ever gets jailed, even after the bank collapses during the financial crisis.

[eeza] 14/2/2018 10:57

From today's report - see 2nd para

" The business continues to maintain a high quality order book of GBP3.5bn (H1 2017: GBP3.4bn) comprising 12% in the regulated sector, 73% in the public sector and 15% in the private sector. The business has secured 99% of projected revenue for the current financial year and 61% for the next financial year (H1 2017: 94% and 62% respectively). Construction also has over GBP225m of future work at preferred bidder stage.

The business has implemented rigorous processes around project selection as well as stricter risk management so as to ensure that projects that are pursued have reasonable contract terms and an acceptable risk profile. "


Agree entirely about 'exceptionals' being the norm.

Dishonest imo.

[shanklin] 14/2/2018 10:47

Either the board is incompetent in not RNS'ing that its a right issue, when it is one. Or some existing shareholders are being stitched up by the fact that it isn't a rights issue. Unfortunately I have no idea which of these is the case.

Some evidence (as opposed to just words) that management are actually not taking on work at zero or negative margins would also be helpful... ...as would assurance GFRD will not be affected beyond current provisions by the work they currently have.

Ironic with exceptional items appearing to be the norm that GFRD are allowed to refer to them as "exceptional". Usual or typical might be more accurate

[rick138] 14/2/2018 10:33

Prudent measures to shore up confidence - get some cash in and trim the dividend (it was far too generous last time - cover was only 1.6). The uncertainty is in the legacy contracts.

[dvb99] 14/2/2018 10:28

the BoD should take part in any fundraising - by reducing their salaries!

[rat attack] 14/2/2018 10:16

says equity! = dilution if not pro rata to all shareholders!!

[dr_smith] 14/2/2018 10:13

Shanklin.
RNS re £150m capital raising here:


Doesn't say "rights", don't know how relavent that is, but pleasingly says from s/h's so hopefully no dilution.

[dr_smith] 14/2/2018 10:07

Thank-you gp1948 for your salient spot. :-)
Dave (middle name Russell - not a Doc. )

Essentialinvestor. Implicitly with CRLN hindsight - not accepting Joint and several liability for co-contractors, which means they are acting as surety for weakest party.
Maybe also fairer agreed process for dealing with any unforesenn costs/time over-runs.

[shanklin] 14/2/2018 10:05

marksp2011

They have not RNS'd that its a rights issue have they?

[eeza] 14/2/2018 09:44

Badly.


BBY also took a £40m hit - but share price only slightly dented.

[essentialinvestor] 14/2/2018 09:42

How exactly has it improved it's tendering and selection process?.

[gp1948] 14/2/2018 09:39

On your last point Dr Smith:

" The Group no longer undertakes fixed price, all risk major projects of this nature, and has improved its tendering and project selection processes."

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