Hargreaves Services Share Discussion Threads

[gargoyle2] 28/8/2014 08:46

Looks like we could be trying to get past that 800p resistance
here. There was a flurry of buys yesterday afternoon, even as high
as 815. FY results due out on 9 September, should show how cheap
this share is imo.

[gargoyle2] 23/7/2014 20:08

I'm a happy holder here. Not sure about the long term future of the business (domestically, at least) but, notwithstanding that, it's good value imo on a forward PE of just 5.45, PEG of 0.41 and yield of almost 4% (all rolling 12 months numbers, courtesy of Stock -o- pedia).

[meijiman] 22/7/2014 17:23

Thanks for that -good to see these jobs being created. This board has become rather quiet but there has not been much new news for a while. Its interesting that there is decent offtake for the coal -assume for power station usage.
Not sure what is going to get the share price motoring back north of £10. Rating is very modest and yield is half decent.

[meijiman] 19/6/2014 12:46

I'm beginning to lose faith here. Probably because I can readily come up with 6 good reasons why these are cheap and 6 to the contrary.
I'm well up overall mostly buying in the 500s and 600s.
It looks very cheap which is one of the pluses but it looks rangebound. Can it ever get back over £10?
Banham is a talented man and still has plenty of skin in the game. He has though made mistakes and the Belgian episode shows that proper controls were not in place.

[spooky] 01/6/2014 11:03

As far as i am concerned all belief in Banham went out the window when he sold 880,000 share in October 2013, the shares were very cheap by more or less all valuation metrics. Experience has taught me that directors do not sell significant numbers of share when the shares are cheap.

[checkers2] 01/6/2014 08:52

Thanks for that Simon, much clearer :)

I suppose MRW and HSBC would be good defensive shares, and HSP would offer more growth, and with Banham we have someone we have someone with a vital interest in growing the business. I see HSP a little more decoupled from macro environement and consumer trends ecc which also gives it place in my portfolio.

The art of picking stocks, eh?

[checkers2] 31/5/2014 11:36

Hi Simon,

What I find interesting about Hargreaves is the CEO, Gordan Banham, I like his story, and he has a significant interest in making sure the business is aligned with shareholder interests. He seems an "empire builder" and will be looking to devlop the business further I think through opportunistic deals in the future. He seems to have a sensible view on acquisitions too, and this interview I found interesting :

hxxp://www.growthbusiness.co.uk/the-entrepreneur/lessons-from-an-entrepreneur/1087602/hargreaves-coalfired-ambition.thtml

Could he develop the business with a stronger monopoly/oligopoly position in their respective markets?

On the negative side I agree with you, there will often be some bad news in the air with such a company, and excellent execution in all divisions with all the variables present in their markets almost impossibile, but this is the reason they are so cheap.

On another note, you made a rather cryptic post on another thread about a light brigade with regard to a small bank note authentication/security company I am rather interested in. Care to elaborate?

[droid] 30/5/2014 14:35

haven't they started operations in the Far East / China ?

[simon gordon] 30/5/2014 14:30

Just seems stuck as a zombie: low growth, lowish dividend yield, mines unreliable due to weather and headwinds at Monckton.

What's going to get it re-rated?

[thorpematt] 30/5/2014 14:00

Yes undeniably cheap but the 800p support having gone, rather insinuates that it may get cheaper still.

Great track record of true growth and owners earnings but what does the future hold?

[castleford tiger] 30/5/2014 13:51

I get p/e of 6

eps 125p minimum.

far too cheap. A BILLION POUND t/o company.

I expect EPS circa 160p for 2014/15 year starting 01.06.14

Tiger is buying

[jamielein] 30/5/2014 09:45

These are still cheap based on the forecast PE ratio of approx. 7, but for good reasons. They're in a declining market, and they've had several problems over the last few years.

It's also worth noting that Fenner's (FENR) trading update today mentions:
"In the USA, trading conditions and the cautious sentiment in the coal industry previously noted at the interim results have deteriorated and are showing no prospects for imminent improvement."

I'm not sure whether this will have a negative read-across for HSP.

I think the worst is behind them, however I decided to sell out today because I think it's more likely the chart will break down rather than up based on that trading statement. There needs to be some positive sentiment to drive the price higher.

I may re-visit in the future, when the chart looks more positive.

[gargoyle2] 14/5/2014 16:32

Looking strong today. Anyone know what's behind today's rise?

[castleford tiger] 11/4/2014 09:31

they will buy uk surface mines.
tiger

[meijiman] 02/4/2014 10:36

Tks. Think HSP should stay away from deep mines as it seems to bring nothing but bother. On the other hand they have some good experience in surface mining.

[gargoyle2] 02/4/2014 10:03

Here's an extract from a report in today's FT:

UK Coal is appealing for government support to stave off a collapse that would cost 2,000 jobs.

The largest coal miner in Britain was rescued last year by the Pension Protection Fund, which preserves the pensions of employees whose companies go bust. But it is on the brink of insolvency again.

Hargreaves Services, the only other domestic large scale miner, is also in talks to invest in the business, according to people familiar with the situation. Its proposal to buy UK Coal for £20m was rejected by administrators last year in favour of the PPF rescue.

Hargreaves could not be reached for comment.

In case that bid fails, UK Coal is asking for £10m of government funding to close two of the past three deep pits in Britain and sell off its surface mines. The business, which is burning cash reserves because of the low price of coal internationally, could otherwise become insolvent.

[meijiman] 02/4/2014 09:44

report in a freebie newspaper that UK coal is close to collapse and is appealing to government for help.It goes on to say that HSP is in talks to invest in the business.......

[gargoyle2] 01/4/2014 05:59

Thanks chrisb1103.

[gargoyle2] 31/3/2014 15:01

Looking at the 12 month chart.. time to buy again at around 800p?

[beeks of arabia] 28/3/2014 09:51

Sharesave scheme letter has arrived. 7.33 a share.I will be purchasing them this year. Seems a good price and well below the current trend line.

[ginna117] 21/3/2014 09:14

SSI are looking for a 200 million investor , I wonder who that could be .
Ginna