Kier Share Discussion Threads

[glawsiain] 17/5/2017 08:59

Sorry to hear that Stewart. I'm eyeing a top up, probably around the 1200 level. Good divi and good chance of recovery.

[ed 123] 17/5/2017 08:59

The start of the fall coincided with the release of the interims. So, possibly, the answer lies in that document? On page 10 it states,

We continue to progress with a challenging project which has necessitated an additional provision of £33m.

Besides the obvious loss of £33m of shareholders' funds, there's the concern as to how this arose. There ought to have been careful scrutiny to get a full understanding at the tender stage. Too much local autonomy at tendering and staff trying to meet the Chief Exec's double digit annual growth target? Possibly? Have to say, I don't know how they operate, though.

Anyway, WorldQuant have recently declared a 0.5% short position. Their selling would have helped take the share price down.

There's a trading update due on 28 June - a chance to calm nerves.

[stewart64] 16/5/2017 16:49

Well sold out at 12.74 this morning, should have operated a stop sooner. I don't try and catch falling knives and shouldn't have ridden one for so long.

I also cashed out TUI at a profit this morning.

Both talk good games through recent trading losses. But where there is loss and a tiny ROCE there is risk. Only myself to blame.

Probably turn a corner now and be back over thirteen quid tomorrow.

[shauney2] 12/5/2017 10:40

My apologies stewart re the dividend.

Construction output fell 3 months to march is probably the reason for the fall.Still up year on year.

[stewart64] 12/5/2017 10:03

Probably right, very unusual for such a precipitous fall in a share price with so much broker backing and only positive news coming out. At some stage there will be no sellers left, fairly soon I would have thought.

[glawsiain] 12/5/2017 09:54

Buying opportunity? As this price the divi is over 5%

[stewart64] 12/5/2017 09:42

The slide continues now almost 15% down in a few weeks off no obvious bad news and still heavily backed by the brokers. Should have probably operated a stop loss on this one but that might just be compounding the error of owning this stock these last few weeks in the first place lest it finaaly turns.

[stewart64] 26/4/2017 20:21

Well 22.5p Shauney (30/3/17 ex div).

Nothing wrong with the stock Shauney, just my lousy timing at £14.78....only myself to blame buying when toppy and now my worst performing stock of fifteen.

A long term buy for me so I expect to see a profit in the distant future.

[shauney2] 26/4/2017 14:25

Well that crash did include the 43p dividend.I have had worse crashes.

‘accelerates the re-deployment of capital into affordable housing’

Good to see them growing their affordable and PRS division.

[stewart64] 25/4/2017 18:17

Yep the brokers are just lining up to laud their favourite stock Kier.

One thing for sure it's a hell of a lot better value at £13.33 than £15.02 whence it has collapsed in a flash.

As a share holder it will be interesting to see if the brokers' pleas for their favourite stock continues to fall on deaf ears. Today's rally was a big disappointment with Peel Hunt bringing out his big guns for the stock.

[speedsgh] 25/4/2017 11:49

Buy cheap Kier, says Peel Hunt -

Recent share price weakness at construction and property group Kier (KIE) has created a buying opportunity, according to Peel Hunt.

Analyst Andrew Nussey reiterated his ‘buy’ recommendation and target price of £16.00 on the stock after in line first half results, which included a new residential joint venture that ‘accelerates the re-deployment of capital into affordable housing’.

Nussey added that despite management remaining ‘confident in the delivery of the Vision 2020 objectives’ to grow earnings and dividends per share, the shares have ‘drifted lower’ by c.10%.

‘This appears unwarranted and with the shares trading on 11.3x June 2018, offering a 5% yield – 1.6x covered – we reiterated our “buy”,’ he said. ‘The Kier model is straightforward and working well…we are confident that the Vision 2020 will support rerating as the value drivers become better understood.’

At the time of writing, the shares were trading flat at £13.17.

[spoole5] 08/4/2017 22:38

Buy stocks that the brokers hate!! Usually that's when they are about to turn!!

[stewart64] 08/4/2017 20:39

Well done, that was entry point. I'm seeing it as a long term hold but it is my biggest loser. But I guess the moral of the story is don't follow broker tips. I guess there must be something in this one hundred percent broker enthusiasm, possibily a bumper forward order book. But nevertheless a huge disappointment this last month.

[spoole5] 08/4/2017 20:30

Sold out at 1460 after picking them up post brexit. Pretty pricey now on 14 times in a sector with low margins and where one big project going wrong can mean big problems.

[stewart64] 08/4/2017 20:27

I've been guilty of following the broker's strong buy ratings too. Tbh the stats don't look great, just average. Yet it is probably the number one stock pick in the FTSE 350 scoring a mighty 9.58 out of ten in the share centre rating system by broker sentiment....5 is neutral.

Well if it was a screaming buy at £15 we must need a scale up to the moon and back now it has sunk like a stone.

[grahamburn] 24/3/2017 08:59

Yet in the same paper their Tempus column headlines as "A reliable pick that looks up to the task" and concludes with:

"As ever with such businesses, the key is the forward visibility of work. In construction and services this year’s revenues are already secured, along with 70 per cent of next year’s.

The shares suffered the inevitable post-referendum dip. This column recommended them at £12.89 in September. They gained another 50p to £15.03 on the halfway figures. They sell on 14 times earnings, though this does not necessarily reflect the value of those property assets, and should have further to go.

My advice Buy
Kier has set itself ambitious targets but has the benefit of two good acquisitions and a healthy order book."

[speedsgh] 24/3/2017 07:08

Brexit doubt is threat to big projects, Kier warns -

Uncertainties over Brexit and the return of inflation could mean delays on big infrastructure projects, the head of one of Britain’s biggest building and construction operators has warned.

Haydn Mursell, chief executive of Kier, warned that the flow of business, from building tower blocks and power stations to roads and rail lines, could be affected by the looming uncertainty. “I think Brexit has created a distraction for government,” he said. “As a consequence, the focus on deployment of capital for large infrastructure jobs will not be as high as it would have been.”

At the same time, large private developers were having to consider future work in the light of rising inflation. “Brexit has introduced uncertainty over labour availability,” Mr Mursell said. “Labour inflation will creep up over the next two years. Large capital value projects will be slower to market because they will cost more.”...

[shauney2] 16/1/2017 11:39

‘Buy’ Kier Group (target price £16)

Kier (KIE) is a property, residential, construction and services company.

‘Kier already pays an attractive yield, but it is the dividend growth potential that stands out,’ writes Peel Hunt analyst Andrew Nussey.

‘Kier’s exposure to more resilient growth markets (eg, infrastructure at 40% FY17E EBITA) is yet to be fully understood. However, we are particularly excited by the potential to invest the predictable and attractive cash flows from services (52% FY17 EBITA) and construction (24% EBITA) into the complementary property (12% EBITA) and residential (12% EBITA) activities.

‘Our “base case” analysis indicates the potential to deliver 165p of earnings in 2020, implying a potential organic CAGR [compound annual growth rate] of 12% (8% CAGR in dividend as cover rebuilds to 2x). Despite the recent share price performance, there is still scope for re-rating as well as earning upside for continued strong execution.’

[davr0s] 21/12/2016 12:01

That's me stopped out. Will sit on sidelines now as all momentum gone despite yesterday's RNS

[davr0s] 20/12/2016 18:50

Yes quite LOL

[cwa1] 20/12/2016 17:23

Let's hope they don't put out too much decent news in the future then......

[davr0s] 20/12/2016 12:09

Oh well - nice while the rise lasted but normal service now resumed

[cwa1] 20/12/2016 07:37

Every little helps:-

For release on Tuesday 20 December 2016

KIER GROUP PLC

Kier awarded new Highways England contract worth cGBP140m and negotiations underway to finalise new Areas 6 and 8 contracts

Kier Group plc ("Kier"), the leading property, residential, construction and services group, confirms that it has been awarded a 15-year contract, valued at cGBP140m, for repair and maintenance services on Area 13 of the Highways England network.

The new Area 13 contract, which commences on 1 April 2017, will see Kier provide routine and cyclic maintenance, defect repairs, emergency incident response, traffic management and severe weather services. Kier is currently the incumbent operator on Area 13, which covers Cumbria and north Lancashire, and this award builds on its excellent track record in the region, which includes repairs to the flood damaged A591 in December 2015.

In addition, final negotiations are underway to secure a two-year contract to provide maintenance services on Areas 6 and 8, covering East Anglia and the East of England. This new two-year contract is expected to commence on 1 April 2017.

These awards will further build on Kier's market leading position in the strategic highways maintenance sector.

Kier Group's Chief Executive, Haydn Mursell, commented: "We are pleased to have secured the Area 13 contract and look forward to the completion of the negotiations around Areas 6 and 8. These awards reflect Kier's ability to tailor its services to Highways England's evolving delivery model, as well as maintain the Group's leadership in the growing UK highways management and maintenance market. We look forward to working with the Highways England team."

[wipo1] 13/10/2016 08:55

Shauney £13.50 seems resistance level if kie can break that then there could be more upside