Severfield Share Discussion Threads

[owenski] 07/2/2013 09:38

A report on radio 4 a couple of weeks back featured SFR, and it was concerning to hear that bank lenders are taking a benign view of steel fabricators for whatever reason, what this means is that competition isn't dying out as it should, there are still functioning weak players out there who will continue to squeeze margins out of existing contract work in a depressed market. It does amaze me that SFR holds up as well as it does.

[spaceparallax] 07/2/2013 09:36

It is tough out there.

[maroni tony] 06/2/2013 20:36

SFR is doomed. There are no large stadiums to build, and other big projects i.e. larger heathrow, new nuclear power stations, etc (SFR's market) are at least a parliment away from being decided upon. The steel fabrication sector is over crowded and sector profits are typlically zero. With the price hovering around the NAV at 70p, I wouldn't touch the share unless the construction oulook strengthens or further cost cutting is implemented.

[jadeticl] 06/2/2013 19:44

I am in and will stay in. If this company survives during the "depression" it will do very well when we come out. However, as others have said, it may not survive. It is ok for Moneyweek to say it is worth a gamble--but with whose money?

At one time this was one of my most successful holdings. If the market leader goes out of business who will be there to satisfy the requirement when boom returns--as surely it must one day? meanwhile I am sitting on a sizeable loss here.

[waldron] 06/2/2013 13:28

Swiss Business Outlook Brightens as Global Economy Steadies
PrintAlert
By Neil MacLucas
ZURICH--Business and job prospects in the Switzerland's industrial and banking sectors are looking brighter for the coming months as signs of a recovery in the global economy are likely to buoy demand for Swiss goods and services, according to a survey released Wednesday.
The Swiss business situation indicator compiled by the KOF economic institute rose to the highest level since April, with most companies reporting a "substantial improvement in their situation" compared with the last survey in November, it said Wednesday.
"We can't yet talk about a turnaround in business sentiment, given the ongoing fragile state of the global economy, but we are moving in the right direction," said KOF director Klaus Abberger.
The index is derived from surveys of 6,000 Swiss companies in a majority of business sectors, and shows companies are increasingly confident on the business trend in the first half of 2013, and fewer firms plan to cut jobs, it said.
In the key industrial sector, sentiment has improved, with the central bank's floor of 1.20 Swiss francs per euro --imposed in September 2011 -- helping their planning and competitiveness in the eurozone, the biggest market for Swiss exports.
The recent easing of the franc, pushing it down to around CHF1.25 per euro last month, hasn't had a major impact on business sentiment, although fears the Swiss National Bank would be unable to defend its minimum exchange rate have now eased, KOF said.
"Machinery companies are planning to boost production and are less likely to cut staff, and the pessimism prevalent in the sector last year has largely disappeared," Mr. Abberger said.
In the Swiss financial sector, banks remain cautiously optimistic but are pursuing plans to cut workers, while insurers are more likely to add staff in the coming six months.
UBS AG (UBS), the country's biggest bank by market value, plans to trim about 10,000 jobs from its payroll as it restructures its business focus, while cross-town rival Credit Suisse Group AG (CS) said last year it will further cut costs, adding to the program announced in 2011, which includes the elimination of 3,500 jobs.
Write to Neil MacLucas at [e-mail]

[waldron] 05/2/2013 14:24

SNB's Zurbruegg: Little Upward Pressure On Global Rates, Prices
PrintAlert
ZURICH--There is currently little upward pressure on global inflation or interest rates, Swiss National Bank board member Fritz Zurbruegg said Tuesday.
"Interest rates have fallen due to the financial and banking crisis as well as the prolonged economic downturn, and this extraordinary situation has lasted for some time," Mr. Zurbruegg said at a conference here Tuesday.
Zurbruegg said interest rates will move higher, to more normal levels, without being more specific.
"Market interest rates show there is no expectation for any tightening of monetary policy in the Group of Seven industrial countries this year," Mr. Zurbruegg said.
The Swiss central bank pared its key interest rate to zero in August 2011 as it tried to stem global investor buying of the franc, seen as a haven from the unravelling debt crisis in the euro zone.
Mr. Zurbruegg said that while there is currently little near-term pressure on Swiss prices, the SNB "is absolutely committed to low and stable inflation."
As far as the outlook for interest rates is concerned, Mr. Zurbruegg said the SNB would make no forecast for when rates will rise, but "it will be a major challenge to decide when to move from the current expansionary stance."
Mr. Zurbruegg declined to comment on negative interest rates, but said that UBS AG and Credit Suisse Group AG's moves last year to charge fees on some franc deposit accounts "were logical business decisions."
Write to Neil MacLucas at [e-mail]

[cheiftown] 01/2/2013 12:03

According to MoneyWeek out today. They say this share is risky play but worth a gamble.

[waldron] 29/1/2013 09:09

CURRENCY WARS

[waldron] 29/1/2013 07:37

Monday, 28 January, 2013 Currency cap stays despite gaining euro
It appears confidence is still growing in the eurozone, resulting in a weakening of the Swiss franc to about 1.25 against the euro. Nobel economist Joseph Stiglitz told the newspaper Der Sonntag that it might be a good time for the Swiss National Bank to set a different minimum exchange rate to the euro, maybe of 1.25 or 1.30. However, Swiss analysts are less than convinced that is a good idea. WRS's Tony Ganzer reports:

[muffinhead] 26/1/2013 23:11

and if fund raising needed or restructuring and there is low growth...why bother with a stock market listing

could go private

[drewz] 25/1/2013 16:16

Bottom fishers and recovery play seekers shouldn't be too keen to dive in impetuously here, imho.

There will be more 'clearing of the decks' write downs to come before this bottoms out, I expect.

Construction is still in the doldrums and the UK economy still being mismanaged by the clowns in Downing Street.

Better to wait until there is a distinguishable change of sentiment towards the stock with the 50dy ma crossing through a risng 200dy ma, which looks some way off yet.

[alter ego] 25/1/2013 14:31

I thought Edison were paid by the companies they produce reports for. If so, not exactly impartial. Could be mistaken though.

[jadeticl] 25/1/2013 10:29

See Edison Investment's comment issued following the company announcement.

They seem a well-balanced outfit (Edison not the company!)

[edmundshaw] 24/1/2013 11:26

I am just going by some press articles (eg from the telegraph). Who knows what actual facts they have gleaned from insiders, and what they are making up/guessing? The press, eh... hence all calcs are very flaky. But if you are interested you have to try and make some kind of effort.

[jadeticl] 24/1/2013 11:16

The need to put out another statement following the dismal statement of 5th Nov almost certainly augers bad news. The fact that the CEO has gone immediately is almost certainly ominous. The disclosure that the cost overrun is on a major project is damaging for profits and reputation.

But what new hard cost information is given in this second update? How can posters write here about what is a reasonable share price now when we dont know what the impact of this announcement is in hard cost terms? Or have I missed some critical data?

[edmundshaw] 23/1/2013 23:24

Some analysts seem to be expecting a rights issue. That equates to dilution - and with a capitalisation of around £70m and £30m of debt (with some estimates of an £8 loss this year & a cheesegrater loss of c.£10m - so a £2m profit from other stuff), it will need to be a good one - if annual profits in the near future are going to be around £3m, I cannot see dilution being less than 30%; and ata a wild estimate a share price of 30p is looking not unlikely on that basis.

TBH my figures are extremely rough, shoddy even - I might be up to 50% out - but I would need to see sub 50p before I got out the calculator.

[itchycrack] 23/1/2013 23:21

SFR most definitely isn't going bust IMHO!
The Indian JV is gradually gathering steam and the UK construction/steel market is probably nearing the bottom of the cycle. Nothing is going to happen quickly, but I will be making small purchases during the summer or on any major construction project news from the government. Massive construction or infrastructure projects is just about the only weapon left open to the government to boost growth, so, depending on how the first 6 months of the year go, we could have some project announcements Q3 or Q4.
SFR is certainly down, but far from going out.

[jonntara] 23/1/2013 20:58

I think we can be pretty sure on which way the dividend is going to go. I was having thoughts about it being reinstated.

Until today I was regretting not going in more strongly when I dipped my toe at 85p in with gains of nearly 40% in a month.

Average down, hold or flee? I'll sleep on it, but I will probably hold.

Got the feeling this isn't going to settle down in a 42p trading range - it's either going to crash or soar.

[muffinhead] 23/1/2013 20:54

Burst bubble returning to its roots and sustainable demand unless some government green bank goes all infrastructure...entering old trading range with target 42p

I bought a new washing machine...BEKO, well made, lots of design and steel. Made in Turkey and the cheapest model in Currys. What is to stop SFR designing structural steel components, emailing the designs to Turkey and the finished components imported into the UK to build the next Cheesegrater.

Recovery may not happen the way one expects

[sanks] 23/1/2013 19:12

My level 4 shaggers alarm went off today...is it therefore fair to assume thius ones now heading towards that shaggers target of 11p?

Sensible replies would be appreciated
Sanksalot

[damanko] 23/1/2013 18:37

In for a penny.....

Contrary being that I am - I had already had a (SIPP) tax reclaim paid into SFR earlier this week. Despite this morning's awful news, I left it there - to my mind it's free money in any case, courtesy of HMG.

Some SFR shares were duly bought in my SIPP this afternoon, bringing my buying price down to 92p. This time yesterday that would have looked quite okay. As Esther Phillips once sang: "What a difference a day makes".

Time of course will tell. The company is definitely vulnerable right now, whether it comes though will depend on its staff, who (I maintain) are regarded as good at what they do. Whether screwing up big time on one contract destroys all shareholder value remains to be seen.

[simon gordon] 23/1/2013 18:16

Good company?

They expanded at the top of the property/construction market, got saddled with debt and now they've screwed up the Cheesegrater.

[sleveen] 23/1/2013 18:02

another good company hitting the buffers, profits warning tend to come in threes. Hence I would expect the contract review will not be good news. Cut a loss before the next PW....the choice is yours.

GLA