Severfield Share Discussion Threads

[skinny] 29/5/2013 11:03

I like gappy charts.

Rights issue completed, comparatively reasonable volume on the move in the past 3 trading sessions, RSI picking up.

I didn't buy it for the(lack of) dividend, but for the potential to fill the lower gap - anywhere near 70 and I'm out.

[jadeticl] 29/5/2013 10:55

Skinny, when you say the chart looks interesting, what does it say to you?

June 4th is not far away! Maybe the Indian JV will be upbeat???? Can't see too much else to cheer us just yet, although the rec.ent price movement is surprising.

[eswr] 28/5/2013 14:00

Make no mistake. This is a clear SELL. Price driven up on low trading volume. They are continuing to make further costs cuts - so clearly they are not in a demand upswing.

Here is an article from a trade publication 17 May 2013,

:

Britain's biggest steelwork contractor plans to axe around 10% of the workforce in a further restructuring round at the Severfield-Watson Structures business.

Senior managers at Severfield told workers they expected to make 93 job cuts at manufacturing facilities at Lostock, Lancashire, and at the commercial offices in South Normanton, Derbyshire.

The planned lay offs, after a process of formal consultation, will hit both factory and office based staff.

A Severfield-Rowen spokesman told the Enquirer: "It is a necessary step to address underlying operational inefficiencies within the business and allow the wider Severfield-Rowen Group to compete effectively in the challenging UK construction market."

He added that it marked the conclusion of the previously announced reorganisation process at the Severfield-Watson business and lowered operating capacity to prevailing market demand levels.

The shake-up comes as Peter Emerson, chief operating officer at Severfield, is due to retire next month after three decades with the steel firm. So far no successor has been named.

The Severfield-Watson Structures business was set up in January to consolidate Severfield-Rowen Structures, Watson Steel Structures and site erection firm Steelcraft Erection Services.

The move was billed as delivering overhead savings of around £2m a year and saw up to 50 redundancies.

But the whole group restructuring process was overshadowed by revelations that the firm had been hit by a £20 black hole in its accounts from several loss-making contracts in February.

The biggest of these was the Cheesgrater tower in London where Severfield said it would loose £10m and is still battling to get the steelwork finished.

The firm raised £48m in a writes issue earlier this year to cover outstanding debts and the forecast contract losses.

It also tightened up its construction estimating procedures and risk management.

But rival steelwork firms say the firm is as agressive in bidding as ever.

One said: "Severfield still seems to trying to price everybody out of the market which as a strategy has never worked in the past, so its unlikely to now."

Here is a link to the latest research from Canaccord - adjusted EPS for March 2015 of 2.3 pence - so a PE of nearly 20 x based on a forecast which is two years out. No dividend forecast at all.

https://dl.dropboxusercontent.com/u/35189573/CanaccordGenuity_Averylonghaul--reiterateSELLtarget37p_May_09_2013.pdf

[hyden] 28/5/2013 11:36

Gap to 70 and then a gap top 120p. It will be interesting to see if these get filled. :-)

[druinsky] 28/5/2013 11:26

dipped toes in

[skinny] 28/5/2013 10:07

The chart looks interesting.

Final Results - Tuesday 4 June 2013.

[waldron] 27/5/2013 08:36

http://www.bloomberg.com/news/2013-05-26/swiss-seen-immune-from-euro-recession-as-snb-holds-firm.html

[bluesbeater] 24/5/2013 16:34

well it is encouraging to me also having taken up the rights issue. Hope the rise continues to the results and of course beyond that. I imagine the underlying financial problem has been sorted and we are on our way back to trading profitably.

[jadeticl] 23/5/2013 18:36

bluesbeater, this may not be too significant but it certainly encourages me--and I need encouraging after spending considerable new money on the rights issue.

[bluesbeater] 23/5/2013 10:31

Upward move on a down day, I have noticed this before with Severfield.

[itchycrack] 23/4/2013 16:54

Yes, they did the centre court roof.

[k3ndo] 23/4/2013 16:45

Is it likely that the new roof on Wimbledon court 1 will put some business with Severfield ?

[4spiel] 16/4/2013 13:42

Pity about SFR -did not deserve what has happened but just bad times for what it does. But seriously might it go BUST before things turn round - like a big spending Labour Government -heaven forbid -but maybe this company would benefit. Or if even the present Government managed to engineer more infrastructure investmentlike issuing state backed bonds to raise capital for this type of investment rather than public spending ?

[jadeticl] 14/4/2013 21:05

How are we doing with our Rights Issue? Appears to be as good as we could have hoped for at this stage. A gentle move up to 45p over the next few weeks would satisfy me for now.

A

[bluesbeater] 05/4/2013 07:31

approximately 93.36 per cent take up sounds like very solid support.

[fangorn2] 05/4/2013 07:29

Results of rights issue.

[itchycrack] 03/4/2013 14:05

hvs - FILTERED!