Hargreaves Services Share Discussion Threads

[meijiman] 14/4/2022 11:45

Capital Markets Day?

[harrogate] 14/4/2022 10:24

So we seem to be settled in our new home of 600p. Given the current commodity price levels and an increase in demand in Germany for coal ( I would have thought ) there must be a decent shout of a further profit upgrade in next few weeks - maybe before the CMD. Just musing away to myself

[castleford tiger] 04/4/2022 11:10

The 600,s have arrived
I have reviewed and will next discuss at 700.
I think ST target looks low at 650 as I feel 750 is fair.

Sitting tight

[smithie6] 01/4/2022 13:20

Well, it might even be today !

Share price up again today.

[smithie6] 01/4/2022 11:02

2 buys gone thru today at 595p

Looks likely to go thru £6 in the coming days imo

[the big fella] 28/3/2022 16:27

Fingers crossed. If only one of our other shared investments could show some life. In effect they announced today 35 mil sales contract today over say 5 year term (with likely uplift) with no cost of sales, no cost to develop the product, and once developed they can sell it to whoever they like. And yet the share price hardly blinks :(

[harrogate] 28/3/2022 15:29

Pretty strong at the moment. Great to see a 6 at the start of the share price. Can't see it being long

[harrogate] 25/3/2022 06:44

Retipped by ST with a £6.50 price target.

[red ninja] 18/3/2022 08:45

Shares mag update :-

HARGREAVES SERVICES
(HSP:AIM) 550p

Gain to date: 71.9%
Original entry point:
Buy at 320p, 25 February 2021

PROPERTY AND INDUSTRIAL services firm
Hargreaves Services (HSP:AIM) is the gift that
keeps on giving for shareholders.
First half results for the period to November
blew away estimates thanks to major strategic
progress in both the land and industrial businesses.
There was also a strong contribution from
the German operation HRMS, which trades raw
materials, and its DK recycling subsidiary.
Now the firm believes its second half results
will be even stronger than the first half thanks to
the continuing strong performance of HRMS and
the recycling business. On top of higher levels of
activity, surging prices for pig iron and zinc are
driving a an increase in operating profits.
Analysts are currently forecasting full year pretax
earnings of £20 million after the firm posted a
profit of £10.4 million in the first half. Therefore,
they will need to upgrade their estimates on the
back of the 15 March announcement.
Moreover, they will need to raise their 2023
forecasts as well as the firm expects strong
market conditions to continue until at least the
end of this year.
Even if commodity prices fall back, Hargreaves
believes operational improvements at DK will
lead to HMRS profits exceeding market forecasts
by at least 30% in coming years.

SHARES SAYS: 
Stick with this great investment. [IC]

[castleford tiger] 17/3/2022 13:07

Well I went in just under 200 and I am not tempted at all.
there is 20/25% upside to brokers targets which only give a p/e of 10.
A dividend of 4% on todays price and the possibility of further upgrades.

I will buy any weakness and review past the £6 mark.

Great business that has no debt.

Tiger

[tole] 16/3/2022 18:20

https://masterinvestor.co.uk/equities/taking-a-small-cap-look-at-hsp-rcn-epwn-and-fnx/Hargreaves Services (LON:HSP) – Trading Update boosts share priceThe Trading Update from this 'brownfield' developer seemed to give the market a bit of a boost in the group's share price, lifting it some 12.5% to 534p.It gave the market guidance that its results, to end May this year, will be better than expectations.The strong performance of its joint venture interest in Germany, Hargreaves Raw Materials Services, benefitted from currently firm prices in certain of the commodities, like pig iron and zinc, on its recycling side.In reaction, analyst James Tetley, at brokers Singer Capital Markets, based upon his 'sum of the parts valuation', upped his price objective for the group's shares from 620p to 690p.For the current year he sees £166m revenues, £24.4m profits, 71.5p earnings and the ability to pay a 20.4p dividend per share.Readers who went into the stock on the initial Profile will have already seen a clear doubling of their money inside the last fifteen Covid-19 impacted months.It must be tempting for holders to sell half now and ride the balance for free.

[smithie6] 15/3/2022 19:09

Well done Castelford, Highgate & any others that have been in for ages from below 250p.

(Me from 270p
But I then sold at 315p to back another horse...!
...then back in at ~410p.
I did not expect the chance to get back in so cheap. :-)
That was an easy buy. Cheap & a sizeable director's buy to use as a trigger/motivation.

[smithie6] 15/3/2022 19:06

Scobak

Ah, ok. My mistake.

(Just that everyone was posting that I was way too optimistic, I had assumed you were one more).

[castleford tiger] 15/3/2022 18:10

Agree and expect ST to give a target of 750p

[harrogate] 15/3/2022 18:03

I think the market has not yet appreciated that our earnings have had a major step change ( beyond the commodity driven one offs) and that we are now a 70p + EPS business. Surely we should be on 10 times that ? And if there was to be any sign of further / increased cash inflows from the JV this could be higher. I see this going towards £7 as this is properly understood.

[castleford tiger] 15/3/2022 17:31

km18

Thank you.

Who the hell wrote that pile of rubbish?

Top line revenues have fallen!!!!!!
Do they know what this business was and how its changed?

They cannot get the EPS right as its forecast at 70p not 60p.

Very poor reporting by someone who does not understand the business at all

Tiger

[scobak] 15/3/2022 17:24

Hi Smithie,
Nothing to apologise for. I was agreeing with you.

Brokers estimate was wrong.. Like a broken bell.

[km18] 15/3/2022 17:18

Hargreaves Services issued a trading update this morning indicating further improvements to its expected trading results for the current financial year ending 31 May 2022. The main driver of the improvement is the continuing strong performance of its German Joint Venture, Hargreaves Raw Materials Services GmbH. Results within both the HRMS materials trading business and its subsidiary DK Recycling und Roheisen GmbH are exceeding expectations, their contribution to Hargreaves' results in the second half will exceed that recorded in the first half. Future profitability from HRMS is expected to be at least 30% greater than current market expectations, even if current levels of commodity pricing are not sustained. Valuation is reasonable, share price has spiked today and looks set to test 12 month highs. Top-line performance has been perhaps the main cloud over the past few years, with revenues shrinking over most of the past decade. It remains to be seen whether that process has now run its course, consensus estimates suggest not yet. The share price may have some near term upside, but looks to be one to monitor for the time being...

...from WealthOracleAM

[castleford tiger] 15/3/2022 10:41

So we have 2 brokers between 662 and 690p
AND THE SHARES ARE 520P OFFERING 25 % AND 32% UPSIDE
And reading the small print possible further upgrades to come.

The shares trading at 10x eps of 70p are cheap with no debt

i remain a buyer.

I THINK ST Will touch on these again and go £7.50 target

tiger

[smithie6] 15/3/2022 08:45

Hey scobak

Wanna apologise ?

;-)

& accept that my numerous posts were bang on correct.

I have been posting today's RNS info for many weeks.

[netcurtains] 15/3/2022 08:32

well done lads, I didn't stick it out long enough!

[rimau1] 15/3/2022 07:33

Indeed! Well done to Management for deciding to retain HRMS. I previously valued it at €70-80m last year but in the current environment its an absolute cash cow. I would be tempted to spin it off at an eye watering valuation but thats just me as a less patient medium term investor! Plenty of value still here at these levels.

[harrogate] 15/3/2022 07:14

I think that is the least surprising trading update in the history of the stock market. !! If only the current situation everywhere hadn't scared me out of buying more 10 days ago.

[scobak] 24/2/2022 19:56

Like a broken bell - not ringing true.