Kier Share Discussion Threads

[imastu pidgitaswell] 26/2/2021 11:43

Fair point - should have said 'at least twice'. A lot depends on the issue price - I've seen rights issues issued at a premium (ASOS) and others issued close to current price (TW.) and obviously most at significant discounts. All depends on existing (and maybe new) institutional shareholder appetite.

I then come back to the sectoral view - guaranteed income for several years, pandemic proof (ish), but regular contract balls-ups (to continue?) and predatory pricing - and where best to take the risk (if to take the risk at all).

Everyone has a different (but legitimate) view - my view of KIE is it's too high risk for me, certainly until I can see what the true position is and I'd rather invest in a safer company in the sector - but that view can change. And it doesn't have to be either/or as I keep trying to say.

Objectivity, yer see...

[zicopele] 26/2/2021 11:35

The rights issue will be at a significant discount to the current price so more than twice the shares in issue

EPS will fall by more than half but...as Kier has lost money for years it is the loss per share that falls

Share may increase because the loss per share is falling. Haha

At say 25p per share issue price, expect 900m shares to be issued.

[imastu pidgitaswell] 26/2/2021 11:25

Thanks sparty - it is just an opinion, although based on facts; always a good idea. People tend to focus solely on a share price - when the true valuation of the business is both equity and debt.

More interesting, if true, is that Sky news story. You have to assume it is true, as it has been planted by KIE themselves. Combining the sale of Kier Living, an equity raise, and (possibly - although it may follow later) a refinancing of their debt, it would make a dent in the debt levels, albeit at the expense of the existing equity holders.

That doesn't necessarily mean a reduction in share price - if the perception is that things are (broadly) fixed, then the share price could do better, despite the rights issue being undertaken (almost certainly) at a discount to the current price. That is a big 'if' though and it won't be clear what the reaction is (which is unlikely to be 'no reaction') until it happens.

You do have to consider the impact on forward earnings per share though - whatever the future profitability is, it will be diluted across twice the number of shares. As it stands, I don't know what the future steady state profitability will be. They might even try to give some guidance on that when they do report. Or they might not...

Interesting times - still thinking about it.

[davwal] 26/2/2021 11:21

The Sky report looks too specific to be far off correct. Looks like a £150m placing and Guy Hands buying KL, with all becoming clear in April. Kier declined to comment too, so it ain’t a load of cobblers.

[zicopele] 26/2/2021 11:15

Ah yes....sky news again. Results must be out next week.

£150m will pay the outstanding tax, overdue pension and maybe £40m for working capital.

Kier needs a lot more than that.

Do they mention Guy Hands in the article?

[sparty1] 26/2/2021 11:07

davwal, yes holding up well!There was a time....
I see less doomomgering on LSE. The naysayers have largely shut up. No choice really.
Right Sun is out and so am I .
GL all

[tonysss13] 26/2/2021 11:05

Kier Group, the listed construction company, is putting the finishing touches to a comprehensive plan to fix its balance sheet with a major share sale and the disposal of one of its biggest divisions.

Sky News has learnt that Kier is in detailed talks about an equity-raising that could generate close to its existing market capitalisation of £150m.


hxxps://news.sky.com/story/construction-group-kier-closes-in-on-equity-raise-and-housebuilding-sale-12229454

[sparty1] 26/2/2021 11:03

whole sector taking a step back this morning.. Hopefully normal service will be resumed with 3 working day to Budget.

[sparty1] 26/2/2021 10:15

interesting stuff pidgy.. it is an opinion.. I`m more interested in "opportunity cost"
To use another economic term than enterprise value. In terms of where I put a few quid
kier always looked a good turnround prospect once AD was in the chair.

Looking at BBY 1 month chart ..just steady, cost and kie rose well (kier more of course)Henry boot seems to have dropped down. I thought their recent statement was ok!
Not invested there but know someone on here who is.

Local sites close to me producing large and small developments have accelerated. More people on site etc.. Probably the stamp duty thing? Plenty of sales down here in south west still ,stamp duty rise or not.

[davwal] 26/2/2021 10:07

Pleasing to see KIE holding up reasonably, so far at least. Had thought we might be spending the day back in the eighties with the negative market sentiment.

[sparty1] 26/2/2021 09:30

you must be joking ,he like the worminator will be back...

[stdyeddy] 26/2/2021 08:52

Ding dong, the witch is dead! That must've been a harsh blow for wallzy; 30% down on eight times his original 50p short, if any of it was true. As far as he is concerned, the war is over for him; submission due to the price rising inexorably. After almost two years of bitter argument, I'm sure he'll understand why we celebrate his demise, though as fellow investors, if he genuinely took a big loss, I'm sure we all feel a tiny twinge of sympathy. If there hadn't been constant lies and misrepresentations from him, it'd be more than tiny.

So now we wait for the next Kier development, and perhaps in the meantime, a positive arc on a recovering shareprice. GLA.

[ant_eater] 26/2/2021 08:52

DONT EJACULATE JUST YET LITTLE ANTS.....LONG WAY TO GO

[johnbuythedips] 26/2/2021 07:18

I just had a quick look at my Kier P+L. Then I smiled.
How are you, Wally? - What did the bailiffs take? Or did you sell your significant stake in the building supplies company you 'run' to pay IG off? Indeed it is a relief for the minority holders if now you have gone. Back to trading with one of the UK's largest construction companies and, of course, the office is smelling 'normal' again.
The indexes look sick this morning, and the rise in bond yields looks like a shift in money? Not a concern for me - I'm sticking with Kier and a sector that's going to be underpinned by a record government infrastructure spend for the foreseeable. If there is any weakness, there will be no shortage of takers.
Dyor: Have a fantastic day all.

[kierculpa] 25/2/2021 17:44

Kier doing us proud. Ftse as a whole is a pants index though, it really is.

[davwal] 25/2/2021 17:17

Market down, Kier well up. All grist to the mill of momentum... looking good and it’s time for interested investors to jump on the miller’s wagon!

[stdyeddy] 25/2/2021 17:01

Another brilliant day! The one-month chart looks dramatic. I don't know when it's going to happen, but after that push through £1 occurs, any positive news will see us off to the races. GLA.

[imastu pidgitaswell] 25/2/2021 15:54

sparty:



No pictures, but happy to clarify any questions.

[davwal] 25/2/2021 15:50

Personally don’t expect a quid this week, but would be pretty pleased to see a Friday closing bid price of 95p. Next week, however, there should be added traction and momentum.

[stdyeddy] 25/2/2021 15:30

We are going to do double our daily volume here. Rising price AND rising volume AND price break-out. I think we will see £1 tomorrow and maybe even tonight.

[cleverinvester] 25/2/2021 15:22

Ammu12: Costain a great stock

[johnbuythedips] 25/2/2021 15:14

Your cabbage soup is getting cold Ammu!

[ammu12] 25/2/2021 14:51

Let's see which one reaches 100p first!!

[sparty1] 25/2/2021 14:30

Lockdown drinking.. but not wobbly ,that`s the missus. She cannot hold it.Hic!

Ammu12 So why is not rising as fast? Doh!I mean do explain..All ears..?

93p live..yawn..

[ammu12] 25/2/2021 14:11

Costain is undervalued compare to kier