Renew Share Discussion Threads

[igoe104] 02/6/2020 12:32

YEP, nearly back to PRE- virus levels now.

[rivaldo] 02/6/2020 12:27

500p being paid now by buyers.

[bluebelle] 01/6/2020 15:20

Stockopedia have increased their stock rank score from 83 to 92 - I can't remember seeing as big an adjustment as that for any stock before.

[rivaldo] 31/5/2020 07:46

New recent highs as per the chart and Friday's close, and great to see the bid price up in the 460p's. It looks like there's been a seller around recently selling into every rise, but perhaps Friday's late rise signals the end of the overhang.

And SCSW covered RNWH positively in yesterday's issue, concluding that RNWH "remain a strong hold/buy".

[rivaldo] 29/5/2020 11:57

Nice technical summary as to why RNWH is good value:



Extract:

"To find high ROE stocks whose fantastic business models are being rewarded by the market, you can create a stock screen that selects only stocks with both positive one-year relative strength and upgraded current year broker forecasts. The former ensures these shares have been outperforming the market and the latter suggests outperformance can continue.

One of the stocks that currently qualifies for this simple screen is Renew Holdings. The group has:

A trailing twelve month return on equity of 22.9%
An average current year EPS forecast upgrade of 1.94% from brokers, and
A one-year relative strength of 19.6%

Stocks exhibiting these traits are typically a solid mix of quality and momentum. Renew Holdings has a Quality Rank of 56 and a Momentum Rank of 94.

Studies indicate that combining factors such as Value, Quality and Momentum is a more effective way of outperforming the market over longer time frames. That's why we have constructed our StockReports to give an instant impression of how well exposed Renew Holdings (LON:RNWH) is to these three factors."

[wad collector] 28/5/2020 23:32

Subscription only that link I am afraid rivaldo but guess IC saying similar things as they have done for yrs.
As I have no intention of selling in the short to medium term it makes little difference to me what happens to the share price as a consequence of market views.Very important in the long run though!

[rivaldo] 27/5/2020 08:28

Good to see the IC's Buy tip for RNWH featured heavily in the FT - this brought in some attention yesterday judging by the O trade retail buying, and will hopefully continue for the rest of the week:

[rivaldo] 26/5/2020 10:14

Peel Hunt reiterate today their Buy and 575p target:

[rivaldo] 20/5/2020 07:06

Nice analyst commentary from Numis:



"Numis upgrades ‘impressive’ Renew

Numis has upgraded engineering services company Renew (RNWH) which has proved defensive during the Covid-19 crisis and is at the forefront of an expected pick-up in infrastructure spending.

Analyst Howard Seymour upgraded his recommendation from ‘add’ to ‘buy’ with a target price of 590p on the shares, which surged 11.5% to 466p yesterday.

‘It is very impressive that over the lockdown crisis to date, some 80% of Renew’s works have continued and only 13% of staff furloughed,’ he said.

Seymour said it was just as impressive that he was reinstating estimates so early. ‘Our assumption of c.15% disruptive impact on earnings in our view is prudent, but it is likely to be a major operational outperformer versus peers,’ he said.

‘Results to date and outlook in this crisis demonstrate the attributes of the Renew business model at an unprecedented time that provide both defensive qualities but also place the company at the forefront of expected acceleration of infrastructure spend.’"

[rivaldo] 19/5/2020 22:58

Very positive interview with the CEO - essentially the small parts of the business which weren't fully operational will be back in "weeks".

Interesting to see that RNWH were involved in setting up the 5G network at the new Nightingale hospital in London:



PS : I note that Paul Scott has once again called RNWH a "contracting" business, admittedly "very well managed" and a "bright spot" but in a "horrible" sector. As if the sector is relevant in the slightest. How many years will it take before he fully acknowledges that RNWH are completely different to those "contractors", and stops peddling this stuff and frightening Stockopedia investors away from this high quality, extremely defensive and secure company which happens to have huge growth prospects? I despair!

[rivaldo] 19/5/2020 14:16

Cheers rimau. Another key paragraph from the IC article - good to see that finally some are realising that RNWH are a very defensive operator and completely different to the other cyclical companies around in its sector:

"its focus on essential infrastructure maintenance activities means 80 per cent of its work has continued. Rail, highways, water and telecommunications have all been designated as ‘critical̵7; sectors. That is good news considering more than 90 per cent of sales and adjusted operating profit are derived from engineering services."

[rimau1] 19/5/2020 12:18

IC maintain its buy rating; “ Renew’s preferred non-discretionary infrastructure markets are underpinned by long-term regulated budgets. This should prove defensive in the face of a wider construction slowdown. With further work likely to arise from the government’s promised £640bn infrastructure revolution, the outlook beyond this crisis remains promising. Buy“

[rivaldo] 19/5/2020 09:44

Numis upgrade to Buy (from Add) with a 590p target.

Shore Capital reiterate their Buy and 570p target.

Peel Hunt also reiterate their Buy and 575p target.

Enough said :o))

[igoe104] 19/5/2020 09:09

Its nice to see a RNS- with (not)covid 19 in the update headline.

[wad collector] 19/5/2020 09:04

Nice to see a statement that does not include the words "But" and "caution" too many times.

[rivaldo] 19/5/2020 08:44

I suspect that's a £355,000 buy at 474p, which would be a prime reason for this morning's rise (ADVFN has it as a sell, which I believe is incorrect).

See you on the other thread royaloak :o))

[royaloak] 19/5/2020 08:30

Hi rivaldo

I was still asleep, I thought I was posting on the CT thread! As you will see on there, I got to thinking after I sold that I had made a mistake, especially seeing others thoughts, thanks, so bought back in, I was lucky this time!

[rivaldo] 19/5/2020 08:20

Good to see a buy just now at 459.23p, well above the published 457p offer price. Hopefully bodes well.

Nice to see you here royaloak :o))

EDIT - and now buying at 468p....

[cwa1] 19/5/2020 08:14

Satisfactory :-)

[royaloak] 19/5/2020 08:07

RNWH

Good Morning

Excellent results I thought.

[rimau1] 19/5/2020 07:47

One of the most reassuring post covid updates that I have read. The detailed commentary by sector is excellent, including the rationale for the differentiated business. Just one small point from me - specialist building managed to double its order book to £100m with continued margin improvement. I was never a fan of this business for renew as it has been a headwind on group performance and non core IMO but i hold my hands up!

[rivaldo] 19/5/2020 07:27

The H1 results look good to me - and most importantly, the outlook is rosy, with 80% of activities having continued as normal and the remaining 20% now coming back on stream.

20.1p EPS in H1 to 31/3 is up a very creditable (given the lockdown) 5% from last year, net debt is down - despite the Carnell acquisition - and Engineering order books are up a whopping 11% following "record trading" in the half year.

Prospects in Rail, Infrastructure, Nuclear, Environmental all look terrific given the huge budgets and spending increases allocated to them over the coming long-term spending programmes.

The Chairman's outlook commentary says it all:

" Our strong trading performance and cash generation in the first half of the year, is reflective of the reliable long-term nature of the UK infrastructure markets in which we operate, a strategy reinforced in the Government's latest Budget when they committed to investing GBP640bn in infrastructure over the next 5 years."

[harrogate] 19/5/2020 07:23

Not sure we could have expected much more than that - very resilient business and seems further framework wins in the period. If they get all units back to work and with Carnell they could finish the year well and maybe restore the dividend which would be a boost to the share price

[rimau1] 15/5/2020 08:17

Great spot rivaldo, results next week and with at least 80% of the business operating and the bulging order book i had another top up yesterday. For a defensive essential infrastructure contractor the valuation is disjointed to say the least