Petrofac Share Discussion Threads

[garycook] 30/9/2020 09:48

PFC starting to gain traction now with Buyers of 73,000 outnumbering sellers of only 15,000

[computercoders] 29/9/2020 23:30

NotKnowing aka PeakyTraders aka Rk23 aka Disney14 is part of an organised thread trashing deramp team who has decided to follow me around boards. Get a life.

[lowtrawler] 29/9/2020 14:11

For the last decade, monetary theory has been very simple. Pour money in through QE and instead of feeding inflation it inflates stock and bond prices. Companies expand using cheap credit and the economy booms.Applying the same logic, governments across the world have poured money in over the past year and so markets will continue to rise. Trouble is that even fools have started to notice the market over valuation and this will ultimately lead to a crash. The only question is when?

[topazfrenzy] 29/9/2020 13:33

Best time to buy these value stocks is now

[geckotheglorious] 29/9/2020 10:48

It's going to get a hell of alot worse dealy.
This is the calm before the storm.

[dealy] 29/9/2020 09:29

this has got to the worst period for investing in small and mid caps of all time. So many companies like this down 90% over the past 5 years

[garycook] 29/9/2020 02:28

Where is computercoders with is so called purchase of 35k,s worth of PFC at 106.70p,on Friday which do not exist ? Been caught out telling fibs !!!

[sbb1x] 28/9/2020 20:48

Dow Jones going from 26500 Friday to 27600 certainly helped here and the whole Fste.

[geckotheglorious] 28/9/2020 20:38

"No guarantees in life"

Death n taxes?

:)

[ny boy] 28/9/2020 18:36

No guarantees in life, just a gamble Here but could be a good one, always a risk when you are bottom fishing but better than buying market tops

[lowtrawler] 28/9/2020 14:04

Garycook. I agree with you, which is why I think investing at these levels will pay off. However, I have seen companies fail with similarly impressive shareholder lists and so there are no guarantees.

[garycook] 28/9/2020 11:38

Lowtrawler,Good sensible post and comment,s.But with the PFC share price dropping in 2 years from 660p,at which I sold 5,000 shares at 656p to today,s level,makes PFC worth the risk,s also Asfari with 18% of PFC would have sold out by now if PFC were going bust,also Blackrock,JP Morgan,Toscafund,Norges Bank,& J O Hambro.Also all the Shorts will start bailing as PFC rises from the all time lows !

[sbb1x] 28/9/2020 11:23

High of the day paid and moving higher......

[lowtrawler] 28/9/2020 10:11

dealy, the Fed and BoE have been ensuring businesses are propped up. Those businesses have been further supported by the furlough scheme and other government initiatives. As the props are taken away and the government support ends, we ae likely to see a lot of business failures. I don't expect PFC to be one of them but they do need to take action to avoid that eventuality.

[dealy] 28/9/2020 09:56

very few companies (apart from coffee shop chains or suit shops) have gone under during this crisis, least of all a company with 5 bill of revenue and no debt. That hysteria is probably why these shares have collapsed so much in recent months.

[lowtrawler] 28/9/2020 09:34

As I see it, this is an all or nothing play. Either it goes under or it doubles in price.

If the broker note is accurate, they have a liquidity squeeze which needs to be addressed or going under is a distinct possibility. The good news is that they have options on how to address the problem and so while some of those options might hurt, they should be able to avoid Armageddon.

It appears the services market is going to be subdued for the next few years and so PFC will need to restructure, make redundancies and write-down assets. The cost of redundancies and restructuring will further damage their liquidity.

The SFO investigation has been sitting over them for a long time and has the potential to further damage their liquidity. If that were to come out now, just when they are facing the squeeze, it COULD tip them over the edge.

It means that they have up to 3 significant liquidity issues to deal with. If successfully navigated, they will exit the other side with a much smaller business than they have today.

In my view, they are likely to successfully navigate their liquidity problems but it will need either expensive debt financing, a subsidiary fire-sale or an equity raise. They will eventually get clear but are likely to suffer fallout and under-performance for the next few years. Clearing any danger of going under will likely be enough to double the price but I think further improvements could be a long hard slog over several years.

At the current price, I do believe the risks have been overstated and the risk reward ratio is in favour of investment. However, the risk is a 100% loss and so make sure you only invest what you can afford to lose.

[ny boy] 28/9/2020 08:33

X2, x3 if SFO drop the case, lots of bargains about post Covid, too much fear about, bought all my holding here. Will check back from the beach on progress later in the year. Done the same with NEX

[topazfrenzy] 28/9/2020 08:29

These value stocks are all going to double in no time, PFC included


Get in or miss out I would say

[sbb1x] 28/9/2020 07:27

Dow futures closed up 360 points on Friday after uk close and are currently up another 260 points since open last night.. All UK stocks should be opening higher.Hsbc is up 8% in Asia

[mj19] 27/9/2020 09:47

Good readhttps://www.hl.co.uk/shares/share-research/202008/petrofac-covid-and-oil-crash-hit-revenue-and-profit-hard