Hyder Consulting Share Discussion Threads

[cockneyrebel] 05/7/2010 12:03

Cheers Rivaldo - just picked up a few more.

CR

[rivaldo] 04/7/2010 17:16

From Friday's Times FYI:



"After one British engineering consultancy agreed to a generous takeover offer this week, another - Hyder Consulting - was chased 38p higher to 338p on hopes that it, too, may soon catch the eye of a rich American predator. Brewin Dolphin, the broker, reckoned the shares to be far too cheap compared with rivals and rated them a "conviction buy"."

[wcjan26] 02/7/2010 16:57

qs-- just backtesting the breakout. should consolidate now and then head higher


edit: great in copenhagen!

[qs9] 02/7/2010 16:55

An odd fall when everything seems so +ve. nice broker upgrade on TP.

[deadly] 02/7/2010 16:39

Nice fall against the market at the end, for topping up.

[rivaldo] 02/7/2010 14:09

Thx CR, excellent news. 418p is more like it based on trading prospects and fundamentals alone, even without any bid prospects.

[cockneyrebel] 02/7/2010 10:20

0912 GMT [Dow Jones] Panmure Gordon raises Hyder Consulting (HYC.LN) price target to 418p from 313p. In the context of some industry consolidation following the approaches for Scott Wilson (SWG.LN), reckons there is strong potential for a rerating as we move into the next growth cycle. Sees Hyder as being in a sweet spot at present, with the quality of its earnings continuing to improve coupled with acquisitions potentially coming on to the agenda. Keeps the stock at buy. Shares -4.1% at 324p.

[grigor] 01/7/2010 19:27

Bucking the rest of the market

[rivaldo] 01/7/2010 13:30

Thx to SoundBuy for the Alphaville comments. The lack of UK public sector exposure in particular is one of the reasons I bought in here.

Looks like value is being outed now - time for CH2M to do the honourable thing and bid :o))

[jong] 01/7/2010 12:51

Sounds like a good possibility.

HYC are a very similar size (market cap and employee numbers) to SWG and would probably have been in the initial "sifting" list of possible acquistions IMHO.

Having acquired nearly 12% of SWG shares last Monday at less than £2.45 per share, CH2M are now sitting on a few £M profit from URS's knock out bid for SWG at £2.90.

CH2M are clearly looking for an aquisition and offered cash for SWG.

Another possible target could be MCHL perhaps

[cockneyrebel] 01/7/2010 12:31

CH2M HILL Companies - dropped their bid for SWG today having been outbid. Does that mean they might go for HYC perhaps?

CR

[soundbuy] 01/7/2010 12:14

Fron FT AV this am.

NH a few people tipping Hyder Consulting as the next takeover target post Scott Wilson which eventually went out for 290p
NH a 211% premium to its pre-bid price
NH biggest premium of company above £100m in the past 10 years apparently
BE Hyder is, on paper, quite similar. Multinational specialist involved in some quite tricksy projects.
BE Sydney Harbour Bridge, for instance.
NH and one of the bidders
NH the oddly named
NH CH2HILL
NH is obviously on the lookout for deals
NH but Scott Wilson is an interesting case
NH how can something be so badly mispriced?
NH lack of interest?
NH research?
NH PR?
NH dunno
BE And there is undobutedly consolidation in the sector
BE As well as the US buys, Aecom and Grontmij have been buying
BE Here's a bit of work from last month via Brewin Dolphin
BE It's post results, so old, but bears repeating.
BE Awareness of geographical differentiation – Hyder's valuation is closely
correlated to that of more UK centric engineering consultants and at the
current price Hyder actually trades at a discount to the sector average
valuation. However the key reason that valuations in this sub-sector are so low
i.e. exposure to UK public sector capital expenditure cuts, is not particularly
relevant in the case of Hyder as the UK public sector only accounted for c5%
of 2010 profits. In total the UK accounted for just 15% of 2010 profits. In our
view the rating of the shares should increase over time as Hyder continues to
produce results which demonstrate this important differentiator.
Sector corporate activity – Sector M&A activity has increased in recent
weeks. Overseas peers Aecom and Grontmij have both announced
acquisitions. Although Hyder has clear growth aspirations we believe the
Group would be an attractive bid target for a larger international consultant
looking to expand in Asia Pacific and Europe. At the very least this should
provide underpinning to the current valuation.
As a result of the above, we believe Hyder is well positioned to
outperform. We increase our 12m PT to 383p (366p) and add Hyder to
our Conviction Buy List (previously Buy).
BE Reiterate - that's from June 29.
NH right
NH thank you for that

[25babies] 01/7/2010 11:59

Thanks for your comments re. spread. Played up some of my (unrealised) SWG gains and bought at 325p.

[rivaldo] 01/7/2010 11:50

Yep :o)) Decent volumes too...it all bodes well.

[cockneyrebel] 01/7/2010 11:38

looks like I timed that well Rivaldo :-)

Was due a breakout imo and I dare say there's also those comparing SWG with HYC. HYC taken out at nearly twice the rating of HYC and HYC has a far stronger growth forecast.

A lot more to come imo - wouldn't mind HYC's chart emulating SWG :-)

CR

[spot1034] 01/7/2010 11:33

HYC is normally traded very little and it doesn't take much activity to move it significantly either way!

[greenroom78] 01/7/2010 11:28

25babies, in my limited experience here the spread is usually higher 1st thing and narrows as the day goes on.

Looks like it is being rerated on the back of the M&A at SWG, current P/E looks a little mean particularly with the forecasted figures. I sold SWG last November at 125p for a tidy profit, looking like a big mistake now!

[royaloak] 01/7/2010 11:25

SETS stock, low liquidity, perhaps your broker may be able to put an order on the bid for you? I use idealing.com for direct market access for shares, and IGLevel2 dma for cfd's.

[rivaldo] 01/7/2010 11:22

Crikey :o))

[25babies] 01/7/2010 11:03

Just having benefited from the SWG take over I am looking at HYC. Can anyone help - is it usual that this share has a 8p spread? Just noticed spread gone to 20p!

[wcjan26] 01/7/2010 10:26

qs9- i was looking more on a revenue multiple basis

[qs9] 01/7/2010 09:26

thanks wcjan26.....that would imply 11 p/e would it not for next year. Me thinks this will be valued more on EV/EBITDA basis due to large cash position being build IMO.....lets see

[wcjan26] 01/7/2010 09:13

QS9 - i have £4.50 price in mind for a bid

[rivaldo] 01/7/2010 09:07

Excellent start this morning on a down day for the markets.

[qs9] 30/6/2010 23:02

Agreed. Read across here iMO suggests takeover price at or over £5 if anyone wants to bid. Better cash position as well no?

SWG statement IMO suggests markets are "ok" so hopefully HYC also making hay. Next RNS should hopefully see this move higher, but may need to wait for definitive closure on SWG bid before that money starts moving elsewhere in sector.