Kier Share Discussion Threads

[minerve] 30/11/2018 16:19

Craigy

If you are a current shareholder and believe in the recovery story you generally need to add before close for more rights.

[craigy] 30/11/2018 16:17

I know.... sickening isn't it to be at such a large discount

[minerve] 30/11/2018 16:09

Craigy

One should expect it to hang around 619p but it never seems to end-up that way. :(

[minerve] 30/11/2018 16:08

Added at c517p. Very volatile out there. Struggled to get a quote.

[craigy] 30/11/2018 16:02

619p anyone?

[bscuit] 30/11/2018 16:01

I had put it in wife's PF for income. Had been monitoring and swithering over sale, but it;s been going down further since the announcement , so now it's gone, with just divi to come on Monday. Luckily she has 2 300% increases elsewhere!

[azioni2] 30/11/2018 16:00

I don't suppose shares resulting from the forthcoming re-invested dividends(for those who opt for it) also qualify for the issue?

[8w] 30/11/2018 15:56

EI agreed it is a nonsense. Some sort of machismo, you can trust us on dividends. ooops perhaps not. Railtrack did the same, now thats a blast from the past

[minerve] 30/11/2018 15:55

Well, if you believe in the story and you are a current shareholder, you need to increase now before close and then buy your full rights. Takes some nerve, eh? LOL

[essentialinvestor] 30/11/2018 15:48

The final dividend paid next week, is costing over £40 Million?.

[minerve] 30/11/2018 15:40

No, I think you are right AlexisK. I suspect some large fund has been lending and this action - and the speed of it - is aimed at killing it off/punishing it amongst the other objectives of the issue.

[essentialinvestor] 30/11/2018 15:37

Matt, they could have still canceled the final.

So the RI is at least partly paying the dividend.

If that represents the quality of their decision making..

I'm trying to be polite.

[alexisk] 30/11/2018 15:34

Welsheagle: If you scroll down through the document several pages you will see that the issue price of new shares is 409p

Those who own shares at the Record Date, which is 6pm this evening, will be able to buy 33 shares new shares at 409p for every 50 shares they already own.

It seems to me that whoever has been lending out their shares to shorters in recent months will not be able to benefit from this right to buy new cheap shares -- which is obviously worth a lot -- unless they get their shares back fron the shorters by 6pm today. Shorters are therefore going to have to start buying before the end of business today (if they have not already) -- or the lenders of the shares are going to lose out big time.

If my reasoning on this is incorrect could someone tell me why?

[welsheagle] 30/11/2018 15:32

Just spotted where it says 409p

[mattjos] 30/11/2018 15:20

why the hell is this company paying a dividend when it is loaded with debt and now doing a Rights Issue?

It's completely non-sensical situation.

They should have totally cut the dividend last year and concentrated on debt reduction and BS strengthening with good old fashioned organic cashflow .. that they have not done so suggests to me that the divi is being at least partly funded by the debt itself.

[jonwig] 30/11/2018 15:19

Targeting dividend cover of 5x underlying earnings per Share in FY19 and, thereafter, dividend cover of approximately 2.5x. ... so forget decent dividends for a while.

Debt £537m, raising £264m. they must think that's enough - or were told that's as much as they can get away with.

[welsheagle] 30/11/2018 15:14

Where does it say that the price will be 409p per share.

[essentialinvestor] 30/11/2018 15:11

My first job was working for a construction company, Higgs and Hill in New Malden.

Very little has changed over the last 30 years, wafer thin margins, cost overruns etc.

[zicopele] 30/11/2018 15:10

Zicovirus...I like that..I may use it again.

[minerve] 30/11/2018 15:07

I'm actually more worried about the general market feedback that we have just heard from Kier rather than Kier per se.

[fitton] 30/11/2018 15:06

Zicovirus
I have no interest in Kier.Just my opinion on short selling to try to create a more orderly market to help PI's and not hedge funds.

[zicopele] 30/11/2018 15:06

They can sell.their rights...probably to the shorters who can close their positions.

[alexisk] 30/11/2018 15:05

also the reason for shorting -- the debt -- has gone

[alexisk] 30/11/2018 15:04

Won't those who have lent their shares to the shorters need to demand the shares back in order to benefit from the rights?