Severfield Share Discussion Threads

[damanko] 13/12/2016 15:02

Peter, just a view is all. Many of the employees don't buy cars (especially newish ones) with cash. My point is that they believe in longer term income from where they're working, and the financial institutions that have lent the money believe likewise. As I said earlier, just a view. Steel stockholders unlike producers are not really subject to the daily commodity aspect of prices, as long as they've bought wisely.

Their job is to fabricate, & make the steel fit their client's requirements.

And make a profit on each project/job. As I mentioned earlier, I'm trusting that the new management is more successful than the previous one when it comes to tendering. I work in the civil engineering business, and believe me the competition is ferocious when steel stockholders tender.

[woodcutter] 12/12/2016 20:25

i've been accumulating regularly over the last week or so

woody

[greyingsurfer] 12/12/2016 17:14

I happened to be in the employee car park at Severs recently, in Bolton. I was impressed. Lots of new and quite new vehicles.

Of course it could just mean they are overpaid.

I've no issue with SFR being a good investment, but I'm not convinced that's a good indicator!

Peter

[damanko] 12/12/2016 15:54

Just a note, I happened to be in the employee car park at Severs recently, in Bolton. I was impressed. Lots of new and quite new vehicles. There is more to investment nous than simple financial data.

My concern as a long term holder is that Severs has so many projects on the go - see their recent update, I just hope they're not stretching their engineers too far, and diluting the expertise. This is what happened a few years ago, though with different (project) management in place now happen that problem has been sorted. We'll see.

Thanks to the rights issue I'm well in profit, but won't be selling anytime soon, I still see this as a very, very long term hold, steel stockholders should do quite well over the next few years.

[rivaldo] 12/12/2016 10:05

WCB, Singer go for 5.11p EPS this year to March'17 and 6p EPS to March'18.

Here's Gervais Williams talking about SFR as his best ever investment - another 55-bagger from my 49p in-price would do me :o))

[westcountryboy] 11/12/2016 19:36

Hi rivaldo

When you say '6p next year' for EPS do you mean 2018 rather than 2017? Is it still c 5p for 2017?

[owenski] 10/12/2016 16:55

Thanks Riv.

[miked500] 10/12/2016 14:48

Thanks Rivaldo, good bit of coverage.

[rivaldo] 09/12/2016 14:05

Nice spot miked500 - I can confirm N+1 Singer have initiated coverage with a 98p target.

They go for 6p EPS next year with a 2.4p dividend.

They summarise:

"Clear potential to outperform FY20 targets

Severfield is the UK market leader in the design, fabrication and construction of
structural steel, representing c.14% of total UK capacity. It has a strong management team whose turnaround plan is beginning to bear fruit. We believe that despite the recent jump in the share price, the current rating is undemanding and that the Group has the potential to achieve its FY20 target earlier than expected.

The order book provides a good level of revenue visibility and self help measures underpin a significant proportion of the Group’s profit target. Strong net cash (£24.4m in H117) leaves potential for significant cash returns to shareholders. With a market leading position, a solid order book and robust end markets, we initiate coverage with a Buy recommendation and target price of 98p (10.6x EV/EBITDA,16.4x FY18 P/E)."

[miked500] 08/12/2016 17:15

IN THE KNOW: Severfield May Hit 2020 Profit Target Early - N+1 Singer - Anyone got access to this?

[rhomboid] 07/12/2016 11:31

Thx rivaldo I've tweeted a link as it is a good summary IMHO

[rivaldo] 07/12/2016 11:13

Cheers - here's a link. I note they've increased their forecasts....looks pretty cheap, and when you strip out the cash pile it's even cheaper:



"Severfield’s (SFR’s) H117 results were well ahead of the previous year; margin performance and order book development cause us to raise our FY17 profit expectations. This combination has also proved to be a catalyst for share price outperformance following the results. Revenue growth and further margin development towards management’s stated aim of doubling FY16 PBT by 2020 can sustain further progress."

[diesel] 07/12/2016 10:04

Back to trend line, there's a new Edison report out, mostly reiterating positive progress.

[katie priceless] 05/12/2016 16:56

A retrace ready for take off again.

[che7win] 01/12/2016 10:42

I'm watching this one, interesting against the macro climate.

[luckymouse] 29/11/2016 19:42

free stock charts from uk.advfn.com

[bones] 27/11/2016 23:52

Cannot rule out being a bid target from overseas given current FX rate of GBP. Companies with either quality businesses on the one hand or in distress on the other are potential prey right now.

[rogerbridge] 25/11/2016 17:41

Held some years ago and back in now. If past is anything to go by, the dividend will be hiked as finances allow.

[hybrasil] 25/11/2016 17:21

Ok ok so based on cc2014s post we'll live with £3.50!

[rhomboid] 25/11/2016 13:05

Don't forget the shares in issue went from 171m to 298m as the rescue fund raising kicked in..

[cc2014] 25/11/2016 12:59

The thing is if you look at the 10 year chart with a high of 700, where on earth is a good exit point? Maybe sell half at 325?? roflmao

[hybrasil] 25/11/2016 12:26

Its very squeezy again. Very heavily bid for, very little available.

[rivaldo] 25/11/2016 12:25

Bit premature there Katie :o))