Petrofac Share Discussion Threads

[fatgreek] 25/1/2021 08:59

Taken a punt worth a go at these levels.

[asa8] 25/1/2021 08:53

Halfpenny your like a long playing record

[dealy] 25/1/2021 08:46

I remember that. Although there was literally no stock to buy and a big short position

[leoneobull] 25/1/2021 08:28

VW Porsche squeeze coming?

[halfpenny] 25/1/2021 08:26

PFC Risky no Trust investigations not looking to favour management. 80p or below is my target. No Trust No Governance Risky be aware and careful. Lots to lose this week andd as judgement day in Feb. Too RISKY NO TRUST...so How Low!!!

[alanpro1] 24/1/2021 21:52

Wood group. Net debt £1bn, order book £6bn. market cap £2bn. Forecast net profit 2021: £250mPFC. Net debt £220m, order book £5bn. Market cap £350m. Forecast net profit 2021: £70m.PFC has added bonus of 8.5% already shorted, so will need to be bought back at some stage (to save loan fees, paying the future dividend etc.)

[dealy] 24/1/2021 20:34

Well that's always the question with long term holders happily lending their stock out to get extra money. But it increases volatility and leaves the shares vulnerable to a discounted placing if the business performs badly. So overall I don't think lending stock to shorts is a smart move. This assumes that these shorters even bothered to borrow the shares. A lot of naked shorting takes place in London

[bunlop] 24/1/2021 19:00

Should we all be worried about the 100% who have a long position in PFC. 8% of which have lent out their shares (but still expect them to be returned back to them by the shorters)to earn a fee from the shorters. If they were not happy to hold their PFC investment they would have sold them rather than lending them out.

[pepepepe73] 24/1/2021 13:36

This process always ends with a short squeeze.

[dino2021] 24/1/2021 13:29

Looking at the individual short positions sizes they are actually quite big in the major names, it’s starting to really become unviable in percentage terms for a Hedge fund to commit more cash.

[pepepepe73] 24/1/2021 13:25

@Ammu12, PFC has huge liquidity buffer to draw.

Of course, it will soften profits of next years but the point is that surelly PFC won't need to dilute current shareholders.

[dealy] 24/1/2021 13:23

2 factors that make it difficult for a large fine to be raised:a) employee to blame or company to blame?b) was it clear bribery or was it hidden bribery in the form of consulting or marketing?Based on the above the SFO will settle for a token sum

[ammu12] 24/1/2021 12:38

All depends on the fine.If it's substantial than they will have to raise some cash

[pepepepe73] 24/1/2021 11:35

Once SFO's sentence is in place by 11th Feb, there is not case for being short here.

Shorts take advantage of what they need: uncertainty which dries buys.

This name in a market driven by a normal momentun worths at least 180p - 200p

[m w] 24/1/2021 10:32

Broker Recommendations for Petrofac (PFC)
Date. 20 Nov 2020

JP Morgan Cazenove 250.00

[m w] 24/1/2021 10:26

Lots of people on here trying to talk this company down even at this level

[dealy] 24/1/2021 10:18

I believe we are talking about up to 30m in paid and planned payments over 6 years. For a company that won orders worth 40 billion in that period and for a company that paid probably 20 billion to external suppliers in that period, 30m booked via an array of marketing and consulting expenses is a very tiny sum of money. Think about it

[d1nga] 24/1/2021 10:10

Dealy where do you think lufkin got the millions from for the bribes?

It wasn't spare change in his back pocket.

Pfc procedures failed to stop it happening.. IF they didn't know it was happening (of course they were aware) they just got rumbled unfortunately.

[wardy333] 24/1/2021 10:04

dealy ,, Yes that is my feeling, depends how far the SFO want to take this, bankrupting the company would put thousands out of work, even a really heavy fine would be very damaging, not sure who the money laundering is aimed at whether its Lufkin or someone else, this needs to end soon , the longer it drags on , it hangs over PFC like a lead weight.

[dealy] 24/1/2021 09:39

A key question here: when is the employee responsible for crimes and when is the company responsible? The 1 billion pounds drop in market cap is based on the company being held responsible for the employee's actions and being fined 1 billion pounds. If the SFO /courts decide it is the employee's responsibility (he had a contract, he was highly paid, he was made aware of the requirement not to break the law etc) then Petrofac will only pay a small fine

[wardy333] 24/1/2021 09:22

Can also see one of the other charged with bribery in Iraq not from
PFC got 5 years, Lufkin must be a worried man , hoping the SFO wind up the case soon but it is still running according to their website.