Petrofac Share Discussion Threads

[cybernest53] 14/12/2017 13:28

Penycae and Woodhawk... I enjoyed your exchange (civil in the end)... and you both make very valid points, thank you! :)

[woodhawk] 14/12/2017 13:28

Just in case anyone is under any misapprehension - the SFO investigation will probably make no difference to the likliehood of a bid. Wood Group recently took over AMEC Foster Wheeler (both in the same sector) and BOTH of them are currently under the same kind of SFO possible bribary investigation. Business is business, SFO or not.

[penycae] 14/12/2017 13:14

Woodhawk - thank you for your views. A bid is a possibility, particularly at these prices. I have bought shares in this company, and one or two others which have been mauled by the likes of AQR. In the past I have done well out of "short squeezes",and this is one of the reasons I am holding here. I trade it by means of spread bets, and use profits to buy paper.
Good luck with your positions.

[woodhawk] 14/12/2017 13:00

The SFO investigation against Rolls Royce, with a string of charges, went on for more than 4 years. The outcome was a Deferred Prosecution Agreement and a charge of £497M.
The sale of PFC's North Sea operations would probably cover most of that. In any event there is no guarantee there will be any DPA in the case of PFC, but I don't consider perhaps £2billion off the market cap reasonable in case of "a (possible)fine". The fear was the investigation would cause a loss of business. Clearly this has not happened and, in fact, buisness is picking up due to the recovery in oil prices.

In any event I think most of this will be irrelevant. At this price, doing this much business, PFC will be taken out soon by Schlumberger, Halliburtons or a.n. other at 550p-650p, imo. If it's a hostile takeover, maybe they'll make their move over Xmas or in the New Year.

[penycae] 14/12/2017 12:20

Yes, I always write rubbish on these forums, as do the various Brokerages covering PFC. If it's all down to contracts, then the last couple of announcements should have returned the share price to somwewhere near to what it was before the SFO announcement. Until that happens, the only issue is the SFO.
I said in my last(albeit rubbish) post that I didn't think the SFO investigation would go the distance. What the involvement of the SFO does, however, is make this an easy target for shorters.
Total rubbish, I know. I really shouldn't post on these forums. My lack of intellect is matched only by your lack of civility. Between us, we couldn't make a decent human being.
How about that 10p rise? Pure luck I guess.

[woodhawk] 14/12/2017 12:04

Rubbish. A possible fine is not the core issue. It's is contracts, and there's no lack of them.

[penycae] 14/12/2017 11:21

Don't think 420 is on the cards. This dip (442/443) looks a good entry point. Shorters drove the price up last night. Closed some of their positions (still massively in profit) then re-shorted the high they created. Happens all the time. Whether this goes beyond a fiver will now depend on the SFO. Consensus is that the fine/investigation is such that £3.00 should be off the price. If that comes to nothing, then the increase in the share price will be sudden and dramatic. If it sticks, then the current share price is about right, even with the new order book.
Personally, I don't think it will go the distance. I sold yesterday's high on sb, but retain a paper holding which is going nowhere. I'll buy again on sb if the price dips. If it doesn't, I'm happy to let the paper holding realise the gains.
Trade well and prosper.........

[vk74] 14/12/2017 11:00

And as for your question 5% I am not Spanish neither Romanian. I am just very heavily dyslexic, can't spell, can't read or write, but I am good in maths and graphs so the stock market is a good place for me. I have made good money here.

[vk74] 14/12/2017 10:52

It looks like I am going to get my wish and see 420 again..

[scooper72] 14/12/2017 10:32

O/T yes. Have been in for a couple of months now. Taptica as well - also another good tech company. XLM seems to be doing something right to generate so much cash. Although what they do - essentially driving traffic to websites seems a bit boring. But that is fine with me.

[callmebwana] 14/12/2017 10:19

O/T.
Scooper72. I hope you have been in XLM for a while. It just keeps going up !
I just saw your post on there today. I have a fair sized holing in that one as well.
Apologies in advance for O/T.

[scooper72] 14/12/2017 09:50

I think Woodhawk has got it right. Thanks

[woodhawk] 14/12/2017 09:44

Went into auction briefly.

[bouleversee] 14/12/2017 09:41

scooper -

How can they say the market is closed? Do they mean trading suspended in that
particular share, though you proved that not to be the case? Very strange.

[bouleversee] 14/12/2017 09:38

Dr Smith -

I think you may be right. It has always been said that one should buy on the rumour and sell on the news. I should have thought that at this price people will stop selling and we will see the share price creep up again, or jump up on further good news. Fingers crossed.

[scooper72] 14/12/2017 09:36

Thnx bwana. On my IG account just now it said for PFC - market closed. But didn't stop me buying on Hargreaves

[dr_smith] 14/12/2017 09:32

Scooper72.
Maybe share price already anticipates the good news - as we have already seen the evidence of new contracts.
There are likely traders/PI's out there with strategy of buying shares shortly before expected anouncements and selling on news day that would have downward effect.

Or MM's/shorters doing their stuff for nefarious gain

IMO - Wild guesses on my part. :-)

[woodhawk] 14/12/2017 09:22

From the Daily Mail just now:

"Oilfield services company Petrofac Ltd said on Thursday it saw a recovery in new orders as an uptick in oil prices boosted project activity, and cut its full-year capital budget for the second time".

[callmebwana] 14/12/2017 09:20

Scooper72.
I think you are forgetting the Shorts.Also the little traders. Also on low volume !
From my point of view an RNS regarding the sale of North Sea assets,T/O Bid,
New Contract wins can land at any time.Basra contract was not even mentioned today !
If you are out then you lose. Like Mr VK74.
Like Mr Buffet says The Stock Market is a device for moving the wealth from the impatient ones to the ones with patience or words to that effect.
The fundamentals speak for themselves here.
I am biased because PFC is my largest holding in my portfolio.
Have a good day all.

[wallywoo] 14/12/2017 09:19

scooper: This still has a SFO investigation and potential large fine hanging over it.

IMO, that is what caused the share price to drop in the first place and keeping it down.

[debanville] 14/12/2017 09:14

What does rebasing mean?

[woodhawk] 14/12/2017 09:08

"A decent update" LOL. That's an understatement in the circumstances, isn't it? The share price is trashed on the basis that future contracts will be pitiful and it turns out that business is actually on track and even improving!!! Debt is reduced and the poss North Sea sale could reduce it further. On top of that there's a very large dividend.

I don't need to wait for other people to tell me what to think, I'm staggered this is still below 500p - so I'm taking advantage of this phoney war to ramp up my stake while the madness lasts.

[topazfrenzy] 14/12/2017 09:01

VK74, it does not need to do anything for you, if it goes down 30 points it'll be sheer luck!

[scooper72] 14/12/2017 09:01

I still don't get it why the price drops on a decent update. Can anyone enlighten me?

[fuji99] 14/12/2017 08:51

callmebwana - No prob at all mate. We are all here to exchange points of view that's all. Regarding the SP, those shorters are disappointed as they expected worse news thus why they increased their positions recently.
Now maybe they just want to close in an orderly manner.
IMO the share price should finish blue today.