Kier Share Discussion Threads

[undervaluedassets] 13/9/2024 13:11

What are they talking about...Has always been low margin.

The sector is low margin.. always has been.

But given that we have always known that .. the results were very good indeed. Best for years .

[chriss911911] 13/9/2024 07:52

I will keep buying Kier if it's all the same, as Labour will spend for sure, ECB cut rates yesterday, and Fed will follow, and per usual BMP, will follow suit which will attract more buyers to this space. My take on the price action is short term blip, and triggered sellers of stock because of target price hit, so chance for me to add more not sell, no chance of that any time soon, a stock to lock away for a few years for sure and look forward to income growth.

Alot, of volume so quickly, so price falls, it's normal, more fool them, for taking profits, but then everyone has their price right. And for others, buying opportunity as this will rise back strongly and retest highs in next weeks/months years, don't see much changing anytime in near future and with AMP8 program, will help fuel the growth in years to come, the risk reward is highly attractive, not too many stocks offering such balance of income/growth and will be staying on my books for years to come.

[dope007] 12/9/2024 15:03

Have these on my radar but margins are wafer thin

[xamf] 12/9/2024 14:10

Just doubled my holding on the back of great results and positive outlook. At a loss to why these are down.

[louis brandeis] 12/9/2024 14:03

Now with my serious hat on.......

I suspect what has happened is all to do with projected growth. If the results show a slowing in projected growth this will have a significant effect on analysts' discounted cashflow projections. Other opportunities may become attractive all of a sudden. It could also be related to the OBR's news release on UK unsustainable finances. Bad finances = less schools and hospitals built.

I suspect, like others have done, this is just the behaviour 'of the day' and provides a top-up opportunity as there does seem plenty of upside potential left with regards to uses of forward cashflows.

[jason29] 12/9/2024 13:52

Had to top up. Probably too early I expect, but happy to wait it out if needs be.

[welsheagle] 12/9/2024 13:43

Why such a drop with such good results

[johnsoho] 12/9/2024 13:17

Well this completely stupid fall has enabled me to make a lovely top up, very pleased.

[babbler] 12/9/2024 13:05

Did they announce a loss? Were the results that bad? Or is it the management change marker doesn't like. That wasn't too major so... Who knows.

[no24rton] 12/9/2024 13:04

market is after stop loss traders now

[liam1om] 12/9/2024 13:03

Anyone manage to grab some there at 134?

[liam1om] 12/9/2024 13:01

Looking back at the chart, I make this one of the biggest one day falls in the last few years. Have to go back to covid days to see such a negative reaction from the days high to low.

Something obviously upset the market big time.

[itisonlymoney] 12/9/2024 12:55

Wise words UVAssets. i agree and have followed suit.

[undervaluedassets] 12/9/2024 12:48

Well this is my view.

If results are good and the share price falls on that day you get a double gift.

You get the good results and the chance to buy more at a cheaper price... which is what I have done.

As has been said .. The "it is better to travel than arrive" are selling today. We do not have to join them .. but can take advantage if we want to.

You do not need intelligence to invest in the market.. what you really need is a strong stomach

[stdyeddy] 12/9/2024 12:13

That's a fair comment, but for a first year of dividends, Davies and Kesterton's judgement on the dividend level is completely reasonable and fits with their cautious approach.

If you know the history here, you'll know that excessive dividend payments and a single minded focus on paying out without having strong profits underpinning the business, is what got Kier into difficulty 6 years ago.

The important thing to know about the current management team is that they will protect the business and grow the scale and quality of earnings.

[mr thompson1] 12/9/2024 12:08

The reason for the fall is quite simple- trust. Throughout the medium term plan Mr Davies and co assured the markets that dividends would be paid covered by 3x earnings. We see today’s divided is covered by 4x earnings. Had they stayed with 3x earnings full dividend would be 6.9p 4.5 % yield not 5.15 p 3.5 % yield. Markets now realise there are much better yields elsewhere and have sold off as a consequence to not honor statements made in the medium term plan

[stdyeddy] 12/9/2024 11:45

Incredibly, from the high this morning to right now is a 10% fall, on a day when Kier releases the best results in years. The market cap is only a little more than twice Costain's value, while Kier makes 5 times more profits and has a margin which is about 50% bigger. In terms of the sector right now, Kier is a massive bargain.

Davis and Kesterton must be scratching their heads right now. What an amazing movement on the share price It's as though they've announced a loss, instead of big profits and positive increases on practically every measure. I am expecting a huge bounce.

[marksp2011] 12/9/2024 11:33

Stutes HMG are moving away from Fixed Price
It doesn't get them best value. It has taken 20 years for them to understand but that isn't cabinet Office guidance any longer

[stdyeddy] 12/9/2024 11:23

A perverse market reaction by any measure. Hard to know who would be selling since the shares were not 'overbought'. Dividend is due in about six weeks and the final divi on its own is worth 2.5% of today's shareprice. My guess is that overcommitted traders have had stops triggered. What today's results show is that Kier is no longer a distressed business and is making solid profits and is a clear sector leader.

[weemonkey] 12/9/2024 11:13

YupDoes not negate the fact that operating profits are best for 15 years..