Petards Share Discussion Threads

[bones] 03/11/2016 18:03

Good pick up Interceptor. Will be interesting to see if this results in additional work for PEG.

[interceptor2] 03/11/2016 16:58

Petard often win contracts with Hitachi, perhaps more contract news to come?

[interceptor2] 02/11/2016 09:55

Worth posting a link to remind us of the huge investment news from Abellio (East Anglia Rail)



Which includes the £1.5 billion order for new carriages from Bombardier (665 carriages) and Stadler (378 carriages.) We know that Petards have a good history of contract work for Bombardier, so good prospects of significant contract wins over the next three years.

To try and work out the potential I have looked at the recent contract win worth £6.0m with Great Western Train which is to install the Petard eyetrain system in their Class 165 and class 166 trains. Great Western have 86 Class 165 carriages and 63 Class 166 carriages at present, a total of 149 carriages. Bombardier have an order from Abellio for 665 carriages!

[noujay] 01/11/2016 20:35

Fair enough, they'd need factoring in in the instance of a takeover at least.Nonetheless I don't see any sign of the main holders chopping them in so they aren't destabilising or hindering the share price.

[tiltonboy] 01/11/2016 19:56

Market cap is already over £10m. I do not subscribe to the theory that the Convertibles dont count.

[noujay] 01/11/2016 18:17

I think credit all round really, the fit for growth programme plus new appointments by the board obviously focussed minds and as a result the company is seeing better performance. It didn't happen without stimulus either way, this thing was toilet bound not so long ago!Daily Mail article today also good stuff, PEG on the radar.You might want to hang on - at this rate some more news could easily bring a market cap of £8-10m+GLA

[tiltonboy] 01/11/2016 17:41

Noujay,

Let's give the credit to the operational guys...and a bit to the Abdullah's.

I wish it was £60k at each level...I'm down to my last 250k now.

[noujay] 01/11/2016 17:34

I think the convertibles are fairly safe as they pay 6% coupon or something close to it. There have been few conversions over the past couple of years so presumably they are held by larger holders who aren't in a hurry to get out?Tilton, you must presumably have more confidence in the board now? I remember we discussed this at least two years ago and you were right to be critical, but as far as I can tell this is shaping up as a very decent turnaround story.Also, is that £60k each level or 60,000 shares?

[bones] 01/11/2016 15:27

Tiltonboy, well played when you are in at 8p!Holders are up against two overhangs, the 8p holders from Waterhall and the convertible loan notes also at 8p when converted to shares. Easy to see how many of them will take profits.

[tiltonboy] 01/11/2016 15:24

bp,

I had a large holding in a micro-cap, and with a board I didn't rate too highly. I watched them stay in a tight trading range 10-14p for three years, and when they got to the top end of that range there was no bid for any decent number of shares. If the shares continue to rise, I will end up with an average selling price of around 20p, which will represent a great result.

The question is, do I want to be invested in a niche micro-cap company, and to what level. I retain a decent-sized holding, but will continue to sell on decent rises. My largest holding, and one that I have added to on rises is JPEL.

[barnetpeter] 01/11/2016 15:07

Fair enough to take a profit if like me you are a waterhall holder in at 8 pence. I cannot see peg remaining independent myself for that long...the new rail contracts are in a couple of years and every train operator is going to be spending big on trying to retain or increase contracts. Southern will give up I guess and that means contracts galore to me. Why sell just as we are moving up is a moot point however tempting that is....could see 50 pence here with so many big contracts and the high speed links in London and to the north.

[tiltonboy] 01/11/2016 14:54

Bones,

I did 50k this time. Next level 22p.

[bones] 01/11/2016 13:58

Are you dropping another 60k on the market Tiltonboy?

[crazycoops] 01/11/2016 13:21

I take it all back Leeson!

[tiltonboy] 01/11/2016 13:18

My next level reached for a top-slice. Didn't think we would get here this quickly!

[leeson31] 01/11/2016 13:01

only a tick up riv :-) im told..

[rivaldo] 01/11/2016 12:52

New highs....

[crazycoops] 01/11/2016 11:57

LOL! Or just a tick up?

[leeson31] 01/11/2016 11:27

breakout afoot.... perhaps....

[effortless cool] 01/11/2016 07:12

For those (like me) who were not clear what was meant by a "call-off contract":

"A framework is an agreement with suppliers to establish terms governing contracts that may be awarded during the life of the agreement. In other words, it is a general term for agreements that set out terms and conditions for making specific purchases (call-offs)".

[bones] 31/10/2016 23:09

Information from Hitachi Europe website. Notice there is an option for 30 further trains on the GWR project:

[bones] 31/10/2016 22:46

I think the RNS wording is a little open to interpretation (albeit in a positive way whichever way it is sliced!). Essentially, I am wondering what exactly was won in value terms. This is what was written:

"....[Petards] has secured an additional framework contract and two "Call Off" contracts with Hitachi Rail Europe Limited (Hitachi) for Petards to supply Automatic Passenger Counting Systems.

The new "Call Off" contracts are for the East Coast Main Line as part of the Intercity Express Programme and the Great Western Railway West of England service, the value of which are in excess of €1.2m and will be supplied over the next 3 years.

Commenting on the award, Petards Chairman Raschid Abdullah said;

"The board of Petards is delighted that we continue to develop our long term relationship with Hitachi. These two exciting projects further enhance our position as a leading supplier to the rail industry and strengthen the Group's present order book for delivery in 2017, 2018 and into 2019."

I've highlighted some areas in bold. It initially seems we have a framework contract AND two call off contracts yet often call-offs are part of an overall framework agreement in general industry. The next paragraph though talks only of the "new call off contracts" while Mr Abdullah refers to the "two exciting projects".

However, maybe the framework agreement is a larger umbrella agreement in place allowing room for more call-off contracts to be agreed within its terms? Who else does Hitachi supply? Call-off contracts could arise for others?

Finally, the two contracts may be worth "in excess of €1.2M". So, this is in itself a bit open-ended. Maybe there is a minimum order value clause somewhere here? I guess, as the nature of call-off contracts can be uncertain (as they are dependent on needs on an ongoing basis), the actual value could substantially exceed €1.2M given that there seems to be certainty about making at least €1.2M!

All good progress whatever.

I notice one of the call-off contracts refers to the Great Western Railway. Is this a natural extension of the recent £6M contract with the GWR? Hitachi is building GWR's new fleet for London-Cornwall as shown here:



If so, this shows how PEG can generate more than one type of contract around the investment by a single operating company.

It rather whets the appetite to think what can therefore be obtained from Bombadier with their monster investment in East Anglia Railway! (someone on here mentioned that potential a few days ago).

[barnetpeter] 31/10/2016 11:22

must be a take over target for a larger engineering group......