Kier Share Discussion Threads

[ygor705] 16/8/2018 10:29

In construction (as in any other business) there is always risk Z but I suspect that the recent hiring of the ex MD of Carillion by Kier suggests that they have assumed a significant number of contracts from that source. We are not looking at a jobbing builder here: the universe of contractors capable of assuming abortive Carillion work is limited - particularly if Kier was already heavily involved. Too easy to be pessimistic when the price of a share falls. All to often in modern markets predators pick up companies at an artificially low price and enjoy the recovery when it comes. With BREXIT on the horizon I'm afraid that we are likely to see a lot more of this kind of rape and pillage from overseas entities. It's done with shares rather than an axe and sword these days!

[zicopele] 16/8/2018 09:40

Carillon demise does not give Kier pricing power. The construction industry routinely underprices all work.

I doubt if Balfour Beatty, the biggest player in market has more 5 percent of the UK construction market.

Competitors come and go but there is always pricing risk.

[ygor705] 16/8/2018 08:59

Based on fundamentals, I'm having difficulty in understanding why the share price is so weak here.......particularly given that an underpricing competitor (ie Carillion) is no longer in the market. Unless we are dealing with a Board who are deliberately misleading investors, and there are hints of this on this BB, my own view is that an outside bid of some kind will soon be on the agenda.

[eriktherock] 16/8/2018 08:15

This is an information exchange so >
eriktherock - 24 Jul 2018 - 06:08:50 - 919 of 945 Kier Group 2005 - The Building Business - KIE
mark, the turning point was at the end of march last year and Kier have been in a downward trend since. There is support (yes, historic) around 920 which is clearly evidenced from the Weekly chart. If an Hourly candle is formed below this level(921) then there is sound technical reasons, based on past share price values, to indicate the levels referred to above e g 732p. There are no technical reasons
to support the targets you mention.

[nomdeplume] 15/8/2018 16:55

No it's not - it's just been dropping in line with the FTSI.

[zicopele] 15/8/2018 16:19

Winning work is easy. Price lower than the opposition and you are almost guaranteed to win the job.

I wonder why they even bother announcing new projject wins. Winning work is buying risk and Kier has enough risk.

We have now broken through 900p. This is very significant.

[f15jcm] 15/8/2018 12:53

Not for lack of business:

hxxps://www.insidermedia.com/insider/yorkshire/kier-wins-30m-of-work-with-yorkshire-councils

hxxps://www.constructionenquirer.com/2018/08/15/kier-confirmed-for-london-27m-biomedical-labs-job/

[zicopele] 14/8/2018 15:29

All...get your crash helmets on..we are.probing the downside of multi year lows ....so let it begin

[eriktherock] 13/8/2018 09:20

Nigel Brook (Executive Director - Construction and Infrastructure Services) and Nigel Turner (Executive Director - Developments and Property Services) will stand down from the Board and leave the business with immediate effect. 1.8.18

[salpara111] 10/8/2018 10:26

No private equity business would touch them with a barge pole due to the state of their balance sheet.

[zicopele] 09/8/2018 15:32

Why would Jura do that? Kier is sitting on a bundle of provisions which they call work in progress and keep on their books.

They then go through the motions of initiating legal action against clients for the most spurious claims in order to justify their positions.

[snakeoilsalesman] 08/8/2018 20:33

Rumours that Jura Acquisition who have just bid for JLIF are eyeing up Kier with a view to splitting and divesting the 3 main divisions.

[eriktherock] 08/8/2018 17:42

eriktherock - 23 Jul 2018 - 13:04:04 - 917 of 936 Kier Group 2005 - The Building Business - KIE
I've decided to scale in short @ 940p.
We shouldn't need 'vision 2020' to see where this is heading.
921p > 732p > 418p

[eriktherock] 08/8/2018 17:41

Well, we're at support and I've finished scaling-in short. Any way the wind blows !

[zicopele] 08/8/2018 11:56

The future of the CEO is inextricably linked to the current dividend.

Therefore dividend will be maintained at all costs.

[salpara111] 05/8/2018 10:59

The elephant in the room is exactly the same as Carillion, their real debt level.They are doing exactly what Carillion did to try and hide it by manipulating it to show an acceptable level at the year end but looking at the average net debt level and it is pretty ugly.
Personally I feel they should slash the divi by at least 50% and focus on reducing their debt level. carillion maintained their unsustainable divi until the end.
I am not saying they will end up with the same fate as Carillion but the market is not willing to give them the benefit of the doubt at present.

[zicopele] 02/8/2018 09:30

COO has been appointed with no real construction experience. But he will cut costs. I reckon the market is reacting negatively because this appointment demonstrates just how badly the company is performing.

Interestingly, the Chairman, Chief Executive and COO all come from a background which is not construction. They come from accountancy and finance backgrounds. This is a very different model to Costain and Balfour Beatty where the top guys are engineers.

Directors have been leading a gilded life in head office for years. Any of you guys ever go there? The place is palatial and totally inappropriate for a modern construction company.

Kier will continue to fall.

[marksp2011] 01/8/2018 07:40

Good progress has been made to date in identifying potential cost savings; further information about the programme will be provided when Kier announces its 2018 financial year results on 20 September 2018................"Nigel Brook and Nigel Turner will be leaving the Board after, respectively, 10 and 21 years' service with Kier. Each has made a significant contribution to the business and the Board.

That will have been an interesting conversation

COO appointed so we don't need Exec Directors. This is a structure I prefer as it gives sacred cows less places to hide and, gets the board doing strategy rather than being filled up with Ops guys defending their pitch

i don't think they can really claim that the board has been a success either so a clean out is good

[mmlakhani1] 26/7/2018 15:11

this is on the up today? why?

[eriktherock] 25/7/2018 18:40

Here's another one > If you don't think the stock represents good value at this level and therefore wouldn't buy it @ 940p, then you should sell it.

[grahamburn] 25/7/2018 17:12

Sensible last comment.

[eriktherock] 25/7/2018 15:58

I'll let the share price do the talking.

[8w] 24/7/2018 19:55

Erik, i do not profess to know the future for Kier but it does seem you are seeking conspiracy. If you are trying to to say there was not disruptive weather this winter you were clearly living in a biome.
It is normal in a Company for assets that were once important to become non-core. The business planning process is focussed on the fact that there is a dynamic environment and companies must adapt to survive perhaps increasing investment in one area and reducing (or selling) another.
I like to hear comment on companies I am interested in and can appreciate technical analysis, but not conspiracy theories

[eriktherock] 24/7/2018 13:11

nomdeplume, I'm wondering why a Construction Company blames the British weather for poor performance when we all know what the British weather is like. In regards to non-core assets, I'm interested to know what these are and why they have become non-core ?
Do you know ?