Shanks Share Discussion Threads

[evox] 02/11/2009 21:57

What did it say?

[choppa] 01/11/2009 17:07

A mention in the mail on sunday

[w.bramley] 16/9/2009 14:02

marbles1234

I have added a few times to this stock ordinary shsres and rights, and intend to stay with it for some time. 4/6/07 it reached 222p (adjusted for scrip). See no reason to sell until it gets back to those levels, and even then, only if it eased 5% then to be safe may sell 20%. I see SKS as a solid good long term hold. Buy on weakness may pay.

[marbles1234] 15/9/2009 11:00

Ive just bought a small holding, will keep for 6 months or so.

[priyagupta] 11/9/2009 15:32

I bought in at 98.28. So i am happy about it. Nice over 7% profit.

[moneybags] 11/9/2009 12:24

asparks.......It's sometimes the quiet boards where the share price quietly rises solidly.It seems so in the case of Shanks PLC

Regards , Moneybags

[the disciple] 11/9/2009 09:58

I've been in for a week now ..Nice. Not a trade for me i plan to hold for a while..

[asparks] 11/9/2009 09:52

I cant believe there is not more interest in this company. one of the quietist BBs on advfn!

[moneybags] 11/9/2009 09:49

The share has an air of having positive attention around it these days.
Well run little company this.
It will quietly grow in price as 2009 comes to it's close.Just give it time.

Regards , Moneybags

[mangal] 11/9/2009 09:33

Next stop 130 then... 145 & then... 200?

[broadwood] 11/9/2009 09:19

Nice tick up this morning.

Goldman's target is still 70% above current price. Not that that necessarily means a lot but Conviction Buy usually does.

[broadwood] 09/9/2009 22:04

More gains tomorrow?

Shanks makes its money from muck – and the amount produced in its markets is about to increase. As economic activity gathers pace, the amount of waste produced by industry rises.

On Friday last week, Goldman Sachs added the shares to its conviction buy list and issued a new target of 170p, up from 153p. Goldmans argued that the group was highly geared to a pick up in industrial activity.

The broker calculated the company's five-year average earnings multiple, which came in at 15.5 times. The shares are now trading on a March 2010 earnings multiple of 12 times, so the shares are still at a discount to their historical rating.

Questor also suspects that consensus earnings forecast are too low – so there is a good chance of upgrades in the future.

Although the group generates about 85pc of its business in the Benelux region of Europe, it has won some significant new contracts over the past few months here in the UK.

In the UK, it recently reached financial close on a contract with Cumbria County Council for a 25-year public-private partnership deal, which could be worth £720m over the contract lifetime.

The council has chosen Shanks to develop and manage new waste and recycling facilities along with Cumbria's existing household waste recycling centres. Shanks proposed to reduce the amount of waste to landfill by 80pc by development and improvements to existing facilities.

In June the group also won a three-year contract with Severnside Recycling to dispose of all of Marks & Spencer's waste.

In the UK, opportunities will continue, as landfill taxes are set to rise. They will increase to £56 per tonne in 2011, £64 in 2012 and £72 in 2013. The Government has been clear that disposal by landfill is now to be a last resort.

A recent report by the environmental charity Green Alliance for Defra noted that, despite an increase in recycling, 54pc of waste generated in the UK still goes into landfill. It also pointed out that in countries where landfill taxes had been increased, such as Austria, there had been a significant switch to environmentally damaging incineration, which it urged the Government is keen to avoid. This means increased regulation is likely – and this offers Shanks an opportunity.

The rights issue in May brought the group's balance sheet into a strong position and the company plans to fund any future growth opportunities through cashflow and funds from disposals.

This is reassuring, although should a good opportunity arise, Questor thinks that debt funding is still an option on the table. The company has not publicly stated which of its assets could be sold.

Questor recommended taking a position at 69p on April 9 this year – and then advised taking up the rights issue one month later. The theoretical ex-rights price was 72.9p and the shares are now 35pc ahead.

Despite recent gains, the shares are still yielding 3.2pc and the stance remains buy.

[moneybags] 09/9/2009 18:52

some nice news of a share holding from L & G after the close tonight.

Regards , Moneybags

[br0ker] 08/9/2009 15:13

Buy of the month? upgrade from GS to 170p from 153p. Conviction Buy. 15% discount to sector. Top pick in sector. Defensive. good visibility on earnings.

:-)

[broadwood] 07/9/2009 11:48

Bounce today because Goldmans' have uplifted their price target. To £1.70

[fillipe] 07/8/2009 11:28

Thanks pifedayo. I'd seen the IMS but hadn't appreciated its significance. Unfortunately some of the recent uptick has been short lived, but that should revert once the general market moves ahead again.

On the other hand I'm a bit disappointed with the bokers' forecasts for 2010 and 2011.

5/8 Investec have 2010 with 6.39p of eps and 2011 only 6.45p....both years a 3p div. I'd hoped for a bit better than that.

gl

m

[pifedayo] 07/8/2009 10:45

Filipe, see the Management statement made at the latest AGM - financial arrangements for the Cumbria PFI deal have been finalised which closes concerns over their debt levels. My recent postings 201/202 show that they are seeking more of the same. With regard to the MK/Northants deal, Shanks HQ is in MK which could give them a bit of an edge over the competition. Finally the recent share offering was widely accepted by shareholders, particularly the institutional holders. So there is faith in their future. Hope this helps.

[fillipe] 07/8/2009 08:30

Is there any particular reason for the strength of the share price in recent days?

Thanks

f

[pifedayo] 06/8/2009 15:01

Link to Northamptonshire CC website re future waster disposal:

[pifedayo] 06/8/2009 14:47

According to Milton Keynes local paper, SKS are included in a number of companies being asked to present their case for a PFI initiative that will be a joint venture with Northamptonshire County Council.

[w.bramley] 02/8/2009 11:38

Has any investor who's broker is T.D. Waterhouse had a problem with the Corporate Action page re the recent Shanks rights issue.

I had the normal allocation of NPR and bought more, and on the Corporate Action notice, the YES to take up all the rights appeared to be all that was needed and when I bought more these were added and the YES to take up the rights still showed.

However when the payment day arrived, they just paid my original allocation, and after complaining, they claim I should have informed them each time I added more NPR.

They admit other clients have complained but the underlying outcome is they still think they are right.

[ang5] 24/7/2009 10:34

today, all water and unit company shares all go downside,
so I think this company also will go down line at future.
but waiting for buy at 68-70p again..
2009-7-24

[hmkwan] 01/7/2009 09:50

maybe buy at 69-70p? any news?
( bacause trade line is support 66-70 p area.
up side is 80-85p area. )

[cobweb] 01/7/2009 01:22

All quiet here ?

[wig and peg appreciation club] 19/6/2009 09:04

I'm out!!!
ONO