Severfield Share Discussion Threads

[1nf3rn0] 09/7/2013 20:39

Got into this recently. Considering adding as it looks like a recovery is now well under way and there could be an easy 25-50% profit to be made.

[william russell flint] 09/7/2013 20:35

meijiman 9 Jul'13 - 16:40 - 3504 of 3505 0 0

who from? they are market leader in Uk, so unlikely from that source. Cant see an overseas company looking to get into UK structural steel products. Yes Im aware of the India angle.




India jv partner would be obvious bidder

[damanko] 09/7/2013 19:53

meijiman - I don't kid myself, though you're right. I could (and should) have sold at over £3.00 two years ago.

Though I'm so stubborn I annoy myself. I bought SFR as a long term investment, sit on an overall buying price of around eight shillings per share, so I'm content to wait a few years.

Unless the vultures pounce, as for the market leader it is incredibly cheap right now.

[meijiman] 09/7/2013 16:40

who from? they are market leader in Uk, so unlikely from that source. Cant see an overseas company looking to get into UK structural steel products. Yes Im aware of the India angle.

[william russell flint] 09/7/2013 16:13

maybe a bid

[meijiman] 09/7/2013 15:58

I hold mine in ISA. After taking up rights in full im not a million miles from breakeven. but dont kid yourself damanko you (and me)should have sold out near the top and banked a serious profit. however i think the next cycle is now underway and the market will be pricing this for 18 months forward.
The true story of what happened here will no doubt remain hidden but it is my take that the ceo who got booted out had way too much power and no one could stand up to him.Maybe his remuneration package was linked to revenues so short term it all looked good on the contracts till cost overruns hammered the margins.
Anyway its all water under the bridge now.
i think and hope that the Billington news will be a harbinger of better times ahead here. In fact thought about buying Billington but the spread is hardly conducive.

[damanko] 09/7/2013 13:09

As I've posted before on this thread - quality will out, the LSE is a short term barometer.

Let's face it - people are buying second hand shares that the seller believes have no further value. The same as any other trade - or any other company listed on any stock exchange.

My civil engineer mate tells me that despite the problems of the last year or so, 'Severs' is still the preferred supplier of steel on the majority of his company's projects - as he and his colleagues believe it is the best in the business.

As I bought the shares through a SIPP and received tax relief (as well as taking up all the rights) - I am in profit. I continue to regard SFR as a long term holding, 5 years down the line now, with the recent infrastructure witterings from politicians helping that case.

My main fear is that some vulture fund will pounce and buy SFR on the (very) cheap. In fact I'm surprised a holding hasn't been built by vultures in the last six months.

[william russell flint] 09/7/2013 10:20

Bowl-tastic

[meijiman] 09/7/2013 10:19

Was wondering why these were perky today. Think it relates to a read across from Billington which is one of the top risers today.Its not a company I know but is in the structural steel space.
They are talking about improving margins and much better market conditions due to capacity exiting the market.
All bodes well for Severfield IMHO.

[snatander] 04/7/2013 12:54

nice spike coming hopeful of bid from india

[gswredland] 04/6/2013 12:40

Agree Steve! Would not touch them at the moment

[stevemarkus] 04/6/2013 09:39

Still has debt of £41M even after the rescue rights issue. Not profitable. And the order book is down year on year. Doesn't excite me much.

Cheers,
Steve.

[dlku] 04/6/2013 08:12

can add to isa for tax free gains which is nice

[volvo] 04/6/2013 07:59

A 22m loss for company with a market cap of 44m is remarkable.

Like the position of this company but with these sorts of losses and the economy still going no where it has it all to do imo.

As as India goes, don't expect much there.

[steveo18] 04/6/2013 07:19

Should fly



India
Good production capability has now been established and the facility at Bellary is being expanded to increase overall capacity and flexibility. Senior management in India has been recently changed to provide a greater emphasis on cost control, estimating and risk management. The changes implemented in late 2012 to the business development management structure are being rewarded with an improved pipeline of opportunities. Our Indian business is now consistently performing at good operating margins, however overall profitability is being eroded by the interest burden from the current debt equity structure. As a result JSSL's overall result continues to fluctuate around the break-even level at this time.

The order book of £29m is satisfactory but is expected to grow as the additional capacity becomes available and the improving pipeline starts to convert to orders.

[skinny] 04/6/2013 07:02

Financial Highlights
· Rights Issue completed successfully on 5 April 2013 raising £44.8m of new funds (net of expenses)

· Revised revolving credit facility of £35m effective from completion of Rights Issue

· UK business reorganisation and operational improvements continuing under new Group leadership

· Underlying loss before tax of £21.5m (2011: £10.1m profit)

· Share of losses from Indian joint venture £0.3m (2011: £2.5m)

· Basic earnings per share of -25.91p (2011: 6.52p)

· No final dividend recommended (first interim dividend 1.50p)

· Period end net debt of £41.2m (31 December 2011: £31.3m)

· Solid UK order book of £197m (31 December 2012: £209m)

· Current JSSL (India) order book value £29m (31 December 2012: £29m)

[jadeticl] 01/6/2013 12:43

eshaw, clouds here have not needed too long to precipitate. Ask the treasurer of most County Cricket Clubs!

Not sure what point you are making, or of what use the point is. What I know just now is that since the rights issue the share has done quite well without any stated good news. We can debate whether ther is any good news, but it may be sensible to wait for the company to tell us--soon?

[edmundshaw] 30/5/2013 17:46

Clouds tend to cause precipitation given enough time too. Except when they get whisked off into outer space.

I think SFR is either a cloud that will hang around for some years, or of the astronautical persuasion.

Sadly.

[hyden] 30/5/2013 17:36

The reliability of gaps as chart BUY signals and the possibility of SFR reaching 70p. Gaps do tend to fill given enough time, imho.

[mayers] 30/5/2013 16:45

I wish some people would stick to the subject. Tiresome when one is uncertain of what is being talked about.

[skinny] 30/5/2013 14:50

The VLX 1 year chart shows the gaps in a better light - its been on my list for a while - more so if/when it tests the Feb high.

[sven2006] 30/5/2013 14:42

Im in for a spot of recovery !

[steveo18] 30/5/2013 14:37

Bid talks?

[steveo18] 30/5/2013 14:32

Skinny
look at the gapy chart on volex


Good gap up to 140p