Hss Hire Share Discussion Threads

[sphere25] 13/1/2022 10:19

Taken a few. Might be early but let's see.

Hi Rumbers2,

I am not playing the takeover angle here. Just a short term possible overhang play where true price discovery could have been distorted by Tosca. If we look at where the price has traded earlier, it has tested 20p a few times, but with such a large holder at work selling aggressively into the market, it couldn't break through so maybe a retest of at least 20p when Tosca get cleared.

I am assuming trading is going well. The sector appears to be doing ok.

It looks like there is a floor at 15p for now where these buyers are coming in to try and clear out Tosca.

Let's wait for the holding RNS.

All imo
DYOR

Added a few more on that break of 16p. Book is building well here. Abit of a queue on the book so maybe they are close to being cleared? I don't know exactly how many are left to be sold of course.

[rumbers2] 13/1/2022 10:10

Even if Tosca do lob the lot, with Exponent still owning 33.8% and Ravensworth 27.5% (unreliable data) would you say the likelihood of this becoming a takeover target is less or more likely Sphere?

[hybrasil] 13/1/2022 10:00

Whats that 8% of the company changed hands today?

[sphere25] 13/1/2022 09:50

They're still at work selling in the market.

3 x 12.32m blocks have hit at 15p

That is a single 12.32m sold, not three lots of 12.32m sold as there is a correction in there. ADVFN need to flag those.

Further blocks hitting of 10m, 4m, 12.8m, 2.2m.

It looks like Tosca who have more than halved their stake which was about 26% toward the end of 2020. They have been selling down since the back end of 2020 with an acceleration in more recent months.

Surely an RNS to show their holding to follow.

Might be getting close to being cleared if more whoppers hit.

All imo
DYOR

EDIT 09:58

Further blocks hitting of 8.5m and 5.1m. Getting a little interesting.

EDIT 10:05

2x26.2m prints hitting. IF they get cleared today, 16p will be key to any upside move.

[baddeal] 12/1/2022 17:44

Don't see how they're out given the last tr1

[tomtum1] 12/1/2022 17:25

Tosca must be out at last

[philmac56] 12/1/2022 17:00

Well we should see a TR 1 in the next few days.

We will learn more then.

Gla

[sphere25] 12/1/2022 16:10

Wonder if Tosca want to lob the lot.

Another 10m and 5m lobbed here just now at 15p.

They had 83.5m as at the 24th Dec.

Maybe a little trading bounce opportunity when they are cleared?

It is HSS though! But hey have to push the boat out now and again.

Stick it on the list.

All imo
DYOR

[tole] 11/1/2022 21:51

https://www.fool.co.uk/2022/01/11/3-cheap-penny-shares-to-buy/Construction sector growthThe final company I am highlighting is tool and equipment hire business HSS (LSE: HSS). There are two reasons why I like this business right now. First, the construction sector in the UK is booming, which could provide a solid tailwind to support the group's growth in the years ahead. At the same time, the company is starting to reap the benefits of a multi-year transformation plan. City analysts believe the firm could report a net profit of £4m for the 2021 financial year, thanks to these twin tail winds. To put this into perspective, over the past six years, the corporation has lost a total of £130m. Based on analysts projections, the shares are trading at a 2022 P/E of 6.2.The most significant danger here is the risk the company could go back to its old ways. If costs rise significantly and the construction market starts to stagnate, losses could return.

[slicethepie] 11/1/2022 08:29

I have been adding on 0.25p falls. I am attracted by the significant decline in share price as a result of Tosca halving their position against improving fundamentals particularly the substantial reduction in debt / interest charge. We must be getting close to the level ( price and size) at which there are inst / hnw willing to take the remaining Tosca holding in a clear up.

[cb7] 10/1/2022 08:58

salpara - I would suggest that the company now is a different beast to when you wrongly invested before. From my viewpoint the management have done an excellent job to keep the ship afloat and turn it round. I can fully understand investors being wary of companies that have built up a bad reputation over several years, but the fault here seems to be previous owners who loaded the company with debt, no doubt for their own benefit. The present valuation does not reflect the progress made and it may take until the interims in late september before the market realises that this ship has finally changed course. So patience may be required, and a further decline to support around 12 - 12.5p is possible.

[tomtum1] 09/1/2022 16:10

Would the big boys exit at a loss? My guess is a takeover. It's very cheap with the turnaround on track.

[lord gnome] 09/1/2022 12:35

That's the way I see it, Salpara11. Either a strong recovery or a trade sale. Problem is that liquidity in small caps and AIM is next to nothing at present so anything more than a small stake could become a lobster pot.
IC postulated that private capital might just want to buy it back again at these distressed levels. Do it all again? It wouldn't be the first time.

[salpara111] 09/1/2022 11:02

I keep coming back to the big question.

What is the exit strategy for the three investors who together own over 70% of the business? Tosca are clearly reducing their position but it is still substantial.
I'm guessing that there will either be a trade sale or takeover in the future.
The stock does look cheap at present but what happens if one of the big boys decides to exit?
I got heavily burnt here when I took part in the original IPO and as a result I'm loathe to get involved again however after the recent refinancing I do feel that this is now substantially derisked/undervalued....however I'm nervous of the ownership structure and the fact that they are now on AIM which is somewhat more of a "wild west" when it comes to regulation.
Having said all that, I've taken a modest stake at 15p and will wait to see what the next 6 months holds!

[lord gnome] 05/1/2022 17:38

A very badly programmed trading bot more like. Somebody must have asked the new intern to set it.

[tomtum1] 05/1/2022 15:57

Yep it's the MMs checking the price. Seems to be common practice

[diku] 05/1/2022 14:46

Anybody make a head or a tail of those single/double digit shares going through...

[tomtum1] 05/1/2022 14:10

Managed to load up yesterday. Have a target so hopefully Tosca keep the price like this for a few weeks

[dealy] 05/1/2022 10:57

agreed. Tosca dumping about 10% of the company in recent weeks hasn't helped

[my retirement fund] 05/1/2022 09:15

This is looking silly cheap

[baddeal] 04/1/2022 15:44

Good to see tosca still reducing

[baddeal] 23/12/2021 12:54

All stems from the private equity buy out days.The intangibles are irrelevant to the business imo. The key is what revenue, earnings the tangible (fleet) assets generate and what is the required capex on an annual basis to support that rental fleet. This drives the FCF and therefore ultimately value.

[actscap] 23/12/2021 08:39

Wonder if BDO will finally propose an intangible asset impairment here...? Does anyone know why HSS is carrying such a hefty intangible asset value, relative to almost all comparators. Feels like a red flag

[baddeal] 23/12/2021 00:27

EV of c 150m, crazy imo.

[tole] 22/12/2021 14:08

Recovered well so far from hitting 13.4 on the offer earlier.