Galliford Try Share Discussion Threads

[swinsco] 26/8/2020 15:28

Looking grim. It's going to tank soon. I'm out, small loss from 91p but this stock is a nightmare.

[mark1000] 26/8/2020 13:32

Bookbroker you are right the market is ultra competitive and Covid has increased costs on projects won on ultra thin margins pre Covid probably rendering even what were profitable contracts loss making. For me Morgan Sindell is the pick of the bunch I have a soft spot for Galliford and hope my concerns over the quality of Management proove to be wide of the mark.

[bookbroker] 26/8/2020 09:33

Problem is that management do not seem to care if the projects lose money, they are getting paid even if bonuses are thin on the ground. But it is the crazy nature of tendering with minute margin for error on the basis of clear blue sky, simply not worth it. The only beneficiaries are the staff, not the shareholders, so quoted civil engineering companies are a no-no for investment. Until there is a shakeout, and the weak ones go to the wall, then you may see an improvement in returns.

[cc2014] 26/8/2020 09:16

Well Kier has fallen 96% in 3 years and that doesn't include the rights issue with dilutes a position even more making the percentage fall even bigger.

That's the challenge with this sector.

[careful] 26/8/2020 08:18

this share has more than halved since jan 1st.
and you say there is much further to go.
you are a very funny man.

[cl0ckw0rk0range] 26/8/2020 07:54

Seen this getting banded about on twitter as a buy however it could very well have MUCH further to drop.DYOR.

[ammu12] 26/8/2020 07:45

Winning work by under pricing ?No point winning work if you are not going to make profits...

[careful] 25/8/2020 13:43

Yes, the Aberdeen bye pass was a financial disaster.
After CLLN went bust GFRD was left holding the can on that contract.
That wss the joint responsibly agreement they signed.
GFRD suffered from CLLN ineptitude.

Hopefully the chances of that happening again are slim.

p.s. I watched the televised grilling of CLLN directors by MP's after the bankruptcy.
Despite being responsible for a catastrophic miss-managed company that has gone bust, they were justifying their fat bonuses and salaries 'because they had met their targets'.

It was obvious that they were a bunch of incompetent lightweights.
Frightening that such people could get to such lofty positions with such huge salaries.

[cc2014] 25/8/2020 13:23

GFRD annual accounts for 2019 reveal a loss of £154m on the Aberdeen by-pass. Not sure if that's just one year or whether that's it.

It was hopelessly late, bid wrong and required a rights issue to stabilise the balance sheet.

And that's the issue with this sector.

[ammu12] 25/8/2020 12:59

The positives for gfrd is no debt and decent cash pile however the current projects must be eating into the cash...

[careful] 25/8/2020 12:20

A dangerous sector in the past, the CLLN disaster (and others) scare us off, we wonder if this sector is un-investable.

But a contrarian view must be that lessons have be learned.
Project management, the bidding process etc.

GFRD must stand a chance of prospering.
The Forth Bridge, Wimbledon Roof, Flood defences, even the Aberdeen bye pass show that this company has the skills and know how.

If HMG are serious about infrastructure spending, then GFRD must be in the right place at the right time.
The pressure on wages and recruitment will ease as unemployment rises.

Todays share price seems well oversold on a risk/reward basis.

[ammu12] 25/8/2020 12:10

It's crazy. Have a look at some of the presentations and margins aspirations lol.1-2% objective for 2021.You can see why companies like kier, costain and gfrd are struggling.

[careful] 25/8/2020 11:57

I presume if they could finish a contract on time and under budget the margins are ok.

'aiming for 1%' seems crazy, have they actually said that?

[ammu12] 25/8/2020 11:51

Normally barons tips are good.I think he didn't researched enough on gfrd.The margins are crazy.You know there is a problem when they are aiming for 1% margins lol.

[careful] 25/8/2020 09:43

The trading volumes are pitiful. Hardly any shares being traded.
If the only reason this share is depressed are the antics of a small number of PI's, then that does not bother me.

Todays share price implication is that this construction company, with so many prestige projects completed in the past, cannot manage to ever achieve £30m pre tax profit.

I do not believe that, so I have topped up this morning.

[swinsco] 25/8/2020 09:26

Though that baron is bloody good. Lol

[swinsco] 25/8/2020 09:22

Yep! Baron and Doc the main culprits.. huge amount of followers and many left holding the losses as they move on to the next.

[cc2014] 25/8/2020 09:19

#6267

Covid. As I've written before. After the current workload has expired:

How many new hotels are going to get built? None
How many new shopping centres? None
How many office blocks? None
How many new restaurants? None
How many new sports stadia? None
How many leisure facilities? Some
How many airport expansions? None


On top of that this stock has been ramped into orbit on Twitter. As PIs leave for the next most exciting thing there are no buyers to support the share price.

Also after the huge influx of PI's into the market in general over the last 3 months, most of them are fully invested or are sitting on losses not knowing what to do with them.

So, we reach the point that if an institution wants to offload and a few bored PI's as well, the shares have to go to another institution and they aren't buying as they see the future is bleak.

[bookbroker] 25/8/2020 08:46

Probably already burnt through that cash, or still issues relating to previous projects.

[careful] 25/8/2020 08:44

what is wrong with this share.
does anyone know something.

A market cap of £195m.

[oakville] 24/8/2020 20:30

Surely cheap in the 80p's

[jock3636] 24/8/2020 17:47

Blackbear GDR genedrive is the cheapest on the marketThis company run on paper thin margins so don't be misleading anybody with that nonsense

[swinsco] 24/8/2020 15:54

What surprises is the lack of buying. Now into the 80s and still no response from traders. I finally bought ack in again at 91p but that appears too early..

[blackbear] 24/8/2020 15:14

One of the cheapest stocks on the market.