Renew Share Discussion Threads

[sharw] 26/11/2019 15:07

rivaldo - not so - the published figure is always the highest bid and lowest offer. However, as you point out, you can get a quote within the spread very often in small caps. This is voluntary for the RSPs - the formal quote is binding up to EMS, which is 750 for RNWH.

[rivaldo] 26/11/2019 14:36

The published figure is just an average of the MMs bid prices - but the actual trades show you what's really happening, i.e what buyers and sellers are really paying and receiving on the market.

[wfcreserves] 26/11/2019 13:55

@ rivaldo

Ok but what is the purpose of the published as opposed to the real spread?

[rivaldo] 26/11/2019 13:46

The price is already up 8% today - I suspect that once the institutions digest these results and provide some volume there's still a long way to go.

The real (not the published) spread is tiny. Buy are going through at near the full offer at 407p and above, whilst sells are now achieving 401p-402p. That's a big premium over the 396p bid price and suggests that there is a buyer or buyers picking up stock in the background.

EDIT - so much for that then :o))

Let's see if there's a quick bounce to prove the theory.

[wfcreserves] 26/11/2019 13:33

@grahamburn

Well to be fair I wouldn't trust Johson on anything that goes against his personal interest.

I take your point re Corbyn but it seems likely that the best he can hope for, without a very late surge in support,is another hung parliament.

Meanwhile the share price is struggling even after the good results to get near to the previous high (438p)reached at the end of May. Possibly having something to do with the large spread now about 12p?

[rivaldo] 26/11/2019 13:22

Numis are very positive and also say Buy with a 500p target:

"Renew Holdings' Organic Growth Benefits From Business Model: Numis

0959 GMT - The consistent organic growth of Renew Holdings' engineering services is a tribute to the quality of its business model, according to Numis. The company showed a steady 8% through-year organic growth in its engineering unit, the brokerage says. Furthermore, going forward there are signs of strong growth in rail especially, while energy and environmental markets should also not be underestimated, it added. "We retain the view that quality of management and business model are not reflected in the absolute or relative rating," Numis said. The brokerage has a buy rating on the stock with a target price of 500 pence."

[grahamburn] 26/11/2019 12:56

Think you're being a little bit optimistic about Johnson "abolishing inheritance tax".

He may have mentioned it in the past, but (a) it's not in the manifesto (so far as I'm aware) and (b) it wouldn't be an astute political move until such time as he deals with the other end of the tax scale (eg national insurance contributions and even the anomalies in universal credit.

Having said that, he still has to hold on to power!

Now... if Corbyn succeeds in his attempt all bets would off on IHT. Indeed, he'd probably increase the rates and take away allowances such as AIM relief.

[wfcreserves] 26/11/2019 11:59

Yes I remember Brian May being interviewed on results and his future plans for the company being shown on video available to all. The current CEO seems to want to maintain a low profile. I suppose it is just part of the general disconnect between directors and shareholders other than institutional ones?

I was informed some time ago by the company, when raising the issue of being on AIM, that the market, mainly the institutions, was generally not interested in companies below a capitalisation below a billion. Then as the share price went up so that figure was raised which led me to believe the goal posts were being moved, which may or may not be due the the prevailing view of the market at the time, to suit the board. It is not surprising that there is less interest with the lower visibility of AIM.

If Johnson does get in and abolishes inheritance tax as promised it will be interesting to hear from the company the raison d'etre for remaining on AIM and how the perceived benefits outweigh any disadvantages.

[davidosh] 26/11/2019 11:06

I have been trying to organise a results meeting with the directors but the company claim there is no interest from retail investors which is patently incorrect.

They need to engage more not come up with excuses and until a couple of years ago they were done regularly with Brian May as CEO.

I would be grateful if those interested would tell the PR company that private investors are important and you would like to meet the directors for the same results meeting given to institutions' Email to [e-mail]

[wfcreserves] 26/11/2019 10:08

Numis have had a 500p target since Jan 2018 so will be interesting to see what they come up with.

[harrogate] 26/11/2019 09:34

2012!!?? Newcomer !

[masurenguy] 26/11/2019 09:21

Peel Hunt also issued a Buy recommendation with a target price of 500p this morning. This is a long term hold for me (since 2012) and the current dividend now gives me a juicy yield of 14.5% !

[wad collector] 26/11/2019 08:37

Hard to see anything negative in the results. Suspect will be pinging up a few more brokers buy notes in next few days.
Although it seems like a big rise this morning,it was from a pretty low base. Hold and prosper.

[rivaldo] 26/11/2019 08:22

Finncap say Buy today with a 500p target.

Shore Capital also say Buy (no target price):

[pugugly] 26/11/2019 07:55

rivaldo - Thanks for summary - Agreed results impressive - The right way.

[harrogate] 26/11/2019 07:32

They look cracking to me. Outlook words sound great. What we need now is the broker notes to show more than 42p for 2020. Surely they will ??

[rivaldo] 26/11/2019 07:24

Yep, great results - well ahead of forecasts. And a strong, confident outlook.

Terrific EPS of 40.4p, which compares to consensus 38.89p expectations. And the 11.5p dividend is also ahead of the 11.25p forecast.

Every division is doing well, order books are well up, and prospects from the new regulatory frameworks in rail and water are great as they concentrate more on RNWH's specialisms.

The turnover increase is impressive considering Building turnover fell by £38m (and Building improved its operating profit even on this fall, which shows their strategy is working).

Net debt is down to levels where we can expect another acquisition.

RNWH are now on a single-figure P/E, but these results should impress the market.

[thecroots] 26/11/2019 07:12

Looks damn decent

[harrogate] 25/11/2019 17:35

Results tomorrow.

[rivaldo] 25/11/2019 16:24

400,000 shares through at 383p. Good to see the share price rising subsequently. Perhaps the closing of an overhang.

[wad collector] 22/11/2019 15:17

A minority tory govt handing out lots of cash to the provinces to keep the support of the regional parties and thwarted by a Lib Lab pact? Won't end well...

[sharw] 21/11/2019 16:44

Betfair at the moment:

Conservative Majority 1/2

No Overall Majority 7/4

Labour Majority 25/1

Liberal Democrat majority 250/1

Green majority 500/1

[harrogate] 21/11/2019 15:52

I gave convinced myself that the risk of a labour government and a potential nationalisation of rail has held this back. But if you have read the labour manifesto today all shares are toast! I actually think what we need is some evidence that these contracts and the supposed 25% increase in rail CP6 produces more than a 5% increase in EPS in 2020. Maybe this will come out after the finals are released later this month

[igoe104] 21/11/2019 15:14

Yep, a big conservative win, would do the trick.

[wad collector] 21/11/2019 14:10

Those contracts are not being matched by a share price increase. What we need is a general election result with a majority....