Petrofac Share Discussion Threads

[garycook] 23/8/2018 02:39

CMB,There is also Fundamental Asset Management.Co run by Chris Boxall,which also specialise in AIM with No IHT to pay investments.FAM only charge 1% Octopus charges are very expensive around 5%,for doing the same product.Anyone interested in FAM I can highly recommend Chris Boxall,he can be contacted on [e-mail],

[callmebwana] 23/8/2018 01:24

O/T
I have some free time so I thought I will post something about IHT. There was £5.2 Billion collected by HMRC last year by IHT. By the not loved TAX Man.

We all should first of all make a Will for our loved ones in our lives.
A single person is allowed £325K IHT allowance, with the added allowance of £25K per year for a home that is also left to our family in our Will. By year 2020 the home allowance will be £175 K. In total £500 K for a single persons allowance by the year 2020.
The HMRC made an allowance a while back, that if a person invests in AIM Co's shares there would be no IHT on those investments. They have to hold these shares for over 2 years before they pass away.
That does not include all AIM Co's. Only 700 Co's are TAX exempt out of the 2K+ odd Co's in the AIM Market.
Witch Co's are the ones that are IHT TAX exempt?? HMRC does not tell you that !! The Co's have to be useful to the public of UK !! There is a fund called Octopus Investments that can be invested in for IHT. Apparently they know the Co's in AIM Market that meet the requirements needed by HMRC . They change the Co's if they don't meet the HMRC requirements. I think you can invest as much as you like in this fund.So no IHT to pay.
The rich ones have their accountants and financial advisors,the middle class get caught in the net. There is a different allowance for married couples.
DYOR etc. NAI. I just thought this information would be of some use to someone on this BB.
Two things are guaranteed in life,death and TAX's.
Good night.

[callmebwana] 23/8/2018 00:19

LOL :o) Pogue. We agree to disagree.
I am not the sort to gloat by saying told you so !! The cheap shares can always become expensive tomorrow. I wish you the best in your investments.I hope you bought some FRES or RRS.We never know when this world may change back to the Gold Standard currency again. The BRICS countries and Turkey joining them and the likes ?
What is cheap today can become expensive tomorrow.WDIK ? Only three or so posting on this thread so not a lot to go by.Ah, posting on ADVFN threads !!
I am retired so I have the time.
Best of luck to you in your life and your investing. :o)

[pogue] 22/8/2018 20:24

WG only have the problem at FW which is a small part of their empire plus they were held back by swallowing AmecFW recently. There maybe a surge at PFC but I still have decent holding but need the other cash to buy other low priced shares.
Not convinced Iran can block the straits of Homoz. I did think they could do so by sinking a couple of tankers in the channel but others elsewhere have convinced me the would clear that pretty quick they maybe wrong though. The Iranian navy wouldn't last more than a day then even the small boats would be matchsticks biggest threat is the land based rockets but I am assuming they will land marines and fly many sorties to take out that threat. Nobody is really talking about that scenario so I am guessing it is covered. Could be everyone underestimating it though.
Still bearish :0)

[callmebwana] 22/8/2018 18:57

Pogue,good post by you. Trump can only do so much,he has other problems coming up as you say. I agree with you about the PoO bouncing between $70/80 for the time being.
The PFC share price is going up.I think most share holders are happy holding it. I watched Wood Groups shares preforming well the other day after their results. I think the same will apply here. Good balance sheet,lower debit etc,etc. WG are also in the net with SFO same as PFC.
Straits of Harmuz blocked and we could have a very big problem. What PoO then? I am watching and waiting to see how far Trump is prepared to go with Iran.
Any share is a gamble to a certain degree.
My PFC share holding is a gamble I am prepared to take I also like the Divi.
In the end everyone to their own.
Barclays have gone overweight with PFC @ £8.50 share price target. I think most of the recent holders will be happy with £7.50. Time will tell.
GLA.

[pogue] 22/8/2018 16:50

There was a draw on the crude storage however there is an 11 million barrel sale of crude from the strategic reserve coming up now. Its only the 3rd time in history sales have been authorized from it. That is a strong signal from El Presidente that he is going to do what he can to stop rising oil prices. Basically Trump is determined to keep petrol prices low before the November midterm elections as petrol prices have a very negative effect on who ever is in power. After the confessions of a couple of his stooges he has more reason to be fearful of these elections as if the democrats get a majority they can vote to impeach him after the information from the confessions they now have. So the President of the US, the President of Russia and OPEC, minus Iran, all want to keep the oil price in the $70 to $80 range. Against that there is the sanctions on Iran and Venezuelan production falls but the former is looking like it will not achieve as much as hoped and the latter is quantifiable but definitely a major issue. So my money is on POO staying in the $70s too many powerful people with the ability to affect oil supply want it there currently, but as I keep saying right now its all a gamble.

[wolfhound1] 22/8/2018 14:00

Seems US crude reserves have fallen , here's to a nice run up in share price into results on 29th.

Will be good to get a snapshot of balanceshhet post all the RNS this year, should be looking strong

[callmebwana] 21/8/2018 17:59

Hi Pogue.
I wish you all of the best in your strategy and I am glad you are holding your core holding here. As you say Trump makes investing very difficult. We all have our own strategy in our investing in this Market. It sure is very difficult at the moment, Brexit also looming in the background next year. I will be holding quite a bit of dry powder myself.No one knows where things may end.
Good luck with your new job, when you get it and better wages as well.
GLA.

[callmebwana] 21/8/2018 11:16

Pogue, good morning.
You follow Wood Group, well their half year results have made their mark today. We can also hope for a decent update from PFC as well on the 29th.
Short position on PFC is @ 8.45% at the moment, plus the others not showing below 0.5%. I hope you have not been to hasty in taking profits ? Then again WDIK :o)
Gold is also going up. I read that GLEN and BHP say the PoO to bounce around the current price level for the foreseeable future.
Have a good day all.

[pogue] 20/8/2018 15:49

The problem is the $ is so high so $100 would decimate demand so cannot see it oil had a run at $80 already and dropped back if if it goes above that Trump will open the strategic reserve as voters in November in Amerca will not be happy with petrol at that price plus push OPEC hard via SA to pump more but they and the Russians seem to realise a high price will kill demand so are onside already.
Regards the projects in the pipeline I have worked on projects that were shelved even after starting when the oil price dropped significantly and winning an order is not when the money hits the bank its staged payment when milestones are complete. Yes there are costs on the oil company for halting jobs but it does not stop them doing it so they cannot be that penal.
As I say I am bearish I see the negatives just now I could have got this wrong or Trump may do something even more crazy and the world will change direction again it really is gambling just now.

[wolfhound1] 20/8/2018 15:18

Hi Pogue, I am not sure we have to worry about Oil being at $100 barrel, just at levels high enough to make projects worth doing... and hence pfc win out.

The same link you posted has a good article about there being a $80bn pipeline of oil mega-projects coming down the pipes..... if only half of that materialses and PFC wins its usual share - happy days.

Of course a profit is a profit but i think much of the twitter debate is just noise, markets are not really concerned for now , as witnessed by a Vix level that says it is risk on time !!

[garycook] 20/8/2018 15:08

Here’s why the Petrofac share price could be set to storm back against the FTSE 100

Peter Stephens | Monday, 20th August, 2018

The outlook for the resources sector continues to be relatively positive. World economic growth has been strong in recent quarters, with the US and China both delivering impressive performance. And while a stronger dollar may reduce demand for resources to some degree, buoyant commodity prices such as the oil price have caused valuations across the sector to generally improve.

One company, though, which has struggled in recent years versus the FTSE 100 is Petrofac (LSE: PFC). The support services company’s shares have increased in value recently, but still lag the wider index in the last five years. Here’s why that could be about to change.
Low valuation

While Petrofac has recorded a rise in its share price in recent months, it is still down by over 50% in the last five years. Some of this disappointing performance is down to difficulties in the energy sector during that time, while the SFO investigation has also caused investor sentiment to remain downbeat. However, the company has enjoyed improved performance regarding contract wins, and this could help to stabilise its bottom line over the long run.

Still, the company continues to face a disappointing near-term outlook. In the current year its bottom line is expected to fall by 18%, followed by a further decline of 6% next year. However, investors seem to have factored-in its uncertain outlook, with its shares trading on a forward price-to-earnings (P/E) ratio of around 10 at the present time. As such, and while it has endured a difficult period, the risk/reward ratio for the stock could be appealing from a long-term investment perspective. This could help it to beat the FTSE 100 in the coming years.

[pogue] 20/8/2018 13:21

Well the article below sums up my bearish thoughts and why I am looking at reducing here. If there is a world wide recession and oil prices fall I am pretty sure PFC is not going to rise there is a possible upside if I am wrong and oil prices do go up and we avoid emerging markets crash but I dont see oil going over $80 in that scenario so the downside is worse that the upside so I am considering taking profits and keeping a core holding. Off course I am not taking into account the size off the shorters holdings :0) Pays your money takes your chance.....

hxxps://oilprice.com/Energy/Crude-Oil/The-Weakest-EIA-Report-In-Years.html

[wolfhound1] 20/8/2018 10:57

Wonder do Barclays have an inside track on update on 29th ?

Time to load up if you haven't already done so IMHO

[garycook] 20/8/2018 08:22

20 Aug Petrofac Ltd Barclays Capital Overweight 609.70 800.00 850.00 Reiterates

[wolfhound1] 16/8/2018 16:04

...and on queue Dow jumps 350 points as China trade talks resume......

Filibustering by the Donald

[pogue] 16/8/2018 11:08

O/T
I have been looking at RRS, CEY and FRES but leaning towards the former as it pays a divi so AAZ with a divi sounds like its worth a look thanks for the heads up.

[dr_smith] 16/8/2018 11:05

Pogue. I share same view of Trump. Deals, be it heads of state or business, are always a compromise, so he starts at most contentious position (with oppo disadvantaged) so middle ground met at is better (for him) than middle ground of 2 reasonable people as you can semi-predict your opposing negotiators response when they (and/or their advisors) are sensible.

That always assumes other party is reasonable and sensible, so different rules apply with Kim Jong-un where each knows the other is a nutter and can very easily do the unexpected.

[callmebwana] 16/8/2018 10:59

O/T.
Pogue a cheap Gold Miner in AIM is AAZ, but some dodgy dealings going on there at the moment. They have announced a maiden Divi as well. I am a holder in AAZ. NAI.DYOR.
Apologies in advance re O/T.

[pogue] 16/8/2018 10:25

The rate Donald the lame duck is going at by November he will have invaded Iran and bombed Turkey! I have worked him out though what he does is ramp up everything to the highest danger level ASAP then tries to force a deal hoping the opposition are feeling desperate enough to give him concessions. He does the same in business waits till just before signing a deal then say he will only sign if he gets a sweetener of some sort. I don't think it is going to work with his latest targets though as Iran is not run by politicians its religious American hating nutters with not much of idea of giving in and Erdogan is scared of no one remember Turkey shooting down a Russian bomber not long ago that's balls the west haven't done that with all the Russian sorties over European airspace. Told you I was feeling bearish!
On an investment theme I am looking at gold miners have a look the charts they are precipitous so there must be a buying opportunity there soon. The strong $ is attracting all the money looking for a safe home that normally goes to gold so gold is dropping like a stone but there might be a change in sentiment if there is a large market crash or the $ goes too high and gold starts looking a cheaper option for preserving money. It reminds me of $40 oil when everyone said the world has changed and the price will be lower for longer that's when I started ramping up my oil stocks. No advice intended DYOR etc

[bouleversee] 16/8/2018 10:19

Thanks, Pangloss.

[wolfhound1] 16/8/2018 09:54

Much if this is filibustering by the Donald. Mid term elections in Nov could see an end to republican control of the upper houses and then Donald becomes a lame duck and Democrats will likely force a reversal of Donalds global stance..... and all will be well in the world for a while......

[callmebwana] 16/8/2018 08:46

Pogue, some very good points made in your above post.
The Chines and USA are going to have a meeting in a months time. See if they can come to some sort of an agreement. Otherwise I can see this Market taking a big dip.
There was a big fall in Copper price yesterday.Copper price is used to weigh up the World Economy. Donald Trump is causing big waves at the moment. Strange times to be invested in the Stock Market.It all looks very shaky to me at the moment.
The Shorts did not have much to do in yesterdays fall but I bet they are happy with the fall. Strong $ is not helping much. Gold has fallen as well.
GLA.

[pogue] 16/8/2018 07:43

Yes bad day for all commodities the outlook for the global economy is taking a negative turn just now due to Trump's sanctions causing havoc with Turkey and the high $ hitting a few emerging markets due to the fact their loans are mainly in $. If this goes badly wrong there could be a world wide recession which will hit commodities even more. I am beginning to feel bearish.