Renew Share Discussion Threads

[wad collector] 31/12/2020 13:35

Yes Rivaldo , you are a conscientious poster. Not quite a year end close at ATH but close enough.
What could possibly go wrong in 2021?

[igoe104] 31/12/2020 10:16

Happy New year to you also Rivaldo, and thank you for your contribution. Hopefully 2021 will be a more straightforward and less stressful year.

[rivaldo] 31/12/2020 10:02

Great to see buying coming in now at 558p (and earlier at 568p). Looking forward to another good year for RNWH.

Happy New Year to all here.

[wad collector] 29/12/2020 13:33

Are we going to end the year on an ATH? Wouldn't have guessed that in April.

[rivaldo] 28/12/2020 11:07

Additional work likely for RNWH from this weekend's flooding:



"And train operators reported delays across southern England.

South Western Railway said heavy rain had "flooded the railway" between Bournemouth and Southampton, meaning cancellations and delays were expected all day.

South Western, Southeastern Railway and the London Overground all reported fallen trees and other debris blocking lines and causing disruption in various locations.

National Rail advised anyone travelling by train to check their journey before setting off.

In York flood defences were put in place as River Ouse water levels are expected to rise to about four metres above normal early on Monday.

etc"

[igoe104] 27/12/2020 09:30

Also good to see Lewis Civil Engineering in partnership with this programme.


When COVID-19 restrictions are relaxed, Welsh Water will be working with Morrison Utility Services and Lewis Civil Engineering to deliver the second phase of the Programme which will provide the participants with a week’s on-site work experience at one of Welsh Water’s sites in south-east Wales.

[rivaldo] 23/12/2020 08:55

I came across this rather nice £100m water network maintenance contract award shared between RNWH's Lewis Civil Engineering plus two others from September which hasn't been posted before - more nice secure income via AMP7 through to 2025:

[wind dancer] 21/12/2020 21:51

Just had a scan of the VHE accounts......oh dear. It claims to be a leading contractor in its field, any analysis would suggest that’s not so. A declining business set for a negative impact on the group result, currently Healy neutral save for the grant.
Management need to toughen up here at at Lily.

Close em or flog em!!

[robow] 17/12/2020 16:14

thanks Rivaldo for highlighting that

[rivaldo] 17/12/2020 09:01

A couple more interesting extracts from Shore Capital's recent Buy note with the 700p target - I'm glad to see that RNWH are likely to stick to their knitting as regards any near-term acquisitions:

"We upgrade our DCF-based fair value by 17% to 700p(35% upside) on higher forecasts and highlight the increased scope for acquisitions of more businesses set to benefit from the UK Government's commitment to invest £640bn in infrastructure over the next five years."

"Management has notedan increased scope for M&A with some larger peers seeking to carve out assets and some small, privately-owned businesses seeking a sale following the difficulties of operating during the pandemic. Whilst still seeking to enter the energy transmission & distribution markets in the medium-term, near-term acquisitions are likely to involve businesses in markets the group currently operate in"

[wind dancer] 16/12/2020 17:17

Going forward not too enamoured with digging trenches for Fibre either. Seems to be far from “ engineering “ with a very low barrier for entry.

[igoe104] 16/12/2020 16:38

Yep, they need to keep away from gas companies 🤦‍a94;️

[wind dancer] 16/12/2020 16:36

Amco was the catylist for Renews recovery without doubt.The jewel in the crown to which similar businesses can bolted onto or indeed replicated.
There have been howlers on that journey though!

[rivaldo] 16/12/2020 11:46

Excellent news - RNWH's AmCo have today won a place as a supplier (one of twelve) on a £200m Southern Building and Civils Framework from Network Rail:

[wfcreserves] 16/12/2020 09:01

@Wind Dancer
Good post. And I would also guess it takes a lot more effort to watch all those spinning plates as more get added?

[dr biotech] 15/12/2020 19:00

The point about Renew getting clumped together with other large construction companies is a valid one. I bought in here on the back of tip without making any worthwhile research - I'm sure I'm not the only PI to do so (given I have shares in about 20 different companies within different sectors the amount I can know about any of them is going to be somewhat limited). I do wonder how much the same would apply to any institutional holder. I know they have access to resources and people that we don't, but in the past I've read brokers reports that completely fail to understand what a company does.

Quite how Renew can differentiate themselves from other similar but different companies to earn a rerating is quite a conundrum.

[rivaldo] 15/12/2020 12:40

Excellent - and quick - bounce back. Hopefully showing that the MMs were trying to get some cheap stock in from activating stop losses and that there's decent demand out there.

[wfcreserves] 15/12/2020 12:23

Some strange trades going through. Perhaps MMs trying to drop price for buyers? Who would actually buy one share @507.52?

[mattboxy] 15/12/2020 11:59

Why the drop?Buying op?

[cwa1] 15/12/2020 08:20

Being a fool to myself, they can have mine for 675p :-)

[rivaldo] 15/12/2020 08:17

Shore Capital have increased their valuation of RNWH to 700p (from 600p) in a new Buy note, and they conclude:

"Mispriced:

At 12x our conservative EPS forecast,Renew remains considerably undervalued, in our view, possibly due to its associations with peers that service larger, fixed contracts. Consistent with previous years, c.70% of our current year forecast is already in the order book, which comprises of a very high volume of small, low-risk, cost-plus contracts. We believe Renew’s ESG credentials (including being one of the 86 issuers that the London Stock Exchange recognises on its Green Economy Mark list) will support a share price rerating."

[wad collector] 14/12/2020 08:33

Looking very long term , the announcement about Sizewell C will be good for the decommissioning business. Gotta commission it first though!

[rivaldo] 11/12/2020 09:52

This new article out today reads rather well re "huge demand".....



"QTS in Penrith has hired seven recruits

National rail contractor, QTS Group, has recruited seven new employees at its Penrith office, bolstering its team across the UK to nearly 500.

The group has experienced huge demand for its specialist services in rail engineering, infrastructure and training throughout the pandemic.

The Penrith site has hired cover yard maintenance and plant operatives, as well as site managers and team leaders.

Since June, the firm has recruited 70 people across all its UK locations, including Nottingham, Leeds, Preston, Strathaven and Wiltshire....

.....Alan McLeish, managing director at QTS Group, said: “It has been really positive to see an increased demand nationally for our services in what could have been a challenging time. To meet this demand, we have made a significant number of hires at our UK locations which will support us across all areas of the business."