Stagecoach Share Discussion Threads

[cwa1] 04/4/2019 14:31

Seemed like a reasonable trading update to me too, so I've hopped on board(sorry!) with a few at 147'ish. The Liberum downgrade this morning seems to be weighing heavily upon it at the moment but, like buses, I hope there will be another broker note along soon that, with any luck, will have a more positive narrative........

[pulsey] 04/4/2019 14:28

Liberum downgrade today. Just when things were turning an analyst lays the boot in.

[jeffian] 03/4/2019 11:34

Encouraging trading update from SGC this morning.

[wandano1] 22/3/2019 16:41

Has anybody received their latest share certificate when opting for shares instead of
cash due from the last dividend ?

[nod] 31/1/2019 09:42

This looks like sound advice in hindsight. Get out of public sector transport and stop waiting for your clients (councils) to behave reasonably.For the past five years or more, it's become increasingly difficult for a private operator to make a profit from delivering public services such as buses, trains and ferries. The Councils and Governments want to abdicate day-to-day responsibilities but believe they should totally control and squeeze the suppliers.It's the end of this game for this business model. Walk away and let the inefficient bureaucratic Councils see what they can offer customers for the same money.

[mongrels3] 05/12/2018 10:00

From BBC

Gerald Khoo, an analyst at Liberum, says the company's valuation is "attractive". "The lowly valuation reflects the challenges, but not the potential for management to address them," he says. He has kept his "buy" recommendation on the shares.

[adflan] 13/8/2018 17:17

I see no reason why SGC should not rise steadily to 230/250p
in the next year, and higher thereafter.

[neilyb675] 19/7/2018 10:55

Trending nicely upwards 😎

[jeffian] 05/7/2018 10:00

Looks like you were spot on, macthepak. This from today's Market Report in The Times -

"Stagecoach was back in favour after analysts at Liberum concluded that reduced rail risk supported an upgrade. The transport company slashed its dividend to shareholders by 35 per cent last week and announced a fall in profits after the government stripped it of its loss-making east coast rail line franchise. However, analysts said that the payout reduction perversely made a positive investment case because the group would be under less pressure to win franchises to support the payments.

“Having reset the dividend to a much more defendable level, covered by non-rail cash flows, the group is no longer reliant upon returning its bus operations to growth or winning profitable new rail franchises to sustain the payout,” Gerald Khoo, the transport analyst, said. “From here, the risks to the dividend ought to be firmly to the upside.”

Stagecoach operates in five areas — regional buses, megabus Europe, London buses, and North American and UK rail. Liberum upgraded the transport operator from “hold” to “buy” and raised its target price to 175p from 145p. Shares closed up 7½p at 157¾p."

[macthepak] 04/7/2018 21:44

The company is finding its correct market price after the Virgin Trains East Coast fiasco and the stupid dividend policy based on debt.

Now the Virgin Trains East Coast is no longer on the books and the cost now capped and in the past.

The dividend has been cut and now based on cash flow.

The company needs re-rating that's all.

[borderer2] 04/7/2018 18:10

Something going on

[jeffian] 04/7/2018 16:16

Been looking quite lively these past 3 days.

[hernando2] 28/6/2018 10:37

I guess that news was well circulated

[patdavey] 28/6/2018 08:35

Dividend cut from 11.9 pence per share (2017) to 7.7 pence per share (2018).

· Earnings per share 12.3 pence (2017: 5.5 pence)

· Adjusted earnings per share+ 22.3 pence (2017 restated++: 23.3 pence)

· £85.6m* net exceptional expenses in respect of Virgin Trains East Coast

· Profit before tax £95.3m (2017: £17.9m)

· Full year dividend rebased to 7.7 pence per share (2017: 11.9 pence per share)

· Maintaining our expectation of 2018/19 earnings per share

[waspfactory] 12/6/2018 13:55

Preliminary results announcement in a couple of weeks, 28th June. Will be interesting to see how this plays out given that the last update stated that earnings were in line with expectations, however since then the share price has slid down from 180p to 138p. I've added a few this morning, so that's the kiss of death then.

[neilyb675] 17/5/2018 19:31

Good riddance

[waspfactory] 17/5/2018 15:38

It's not a loss, it's a let off! A blessed relief hence the share price rise today.

[cl0ckw0rk0range] 16/5/2018 15:04

I wonder what impact this will have on the dividend moving forward with this loss?

[stephen1946] 16/5/2018 13:48

The decision to take away the latest Rail franchise opportunity highlights the inadequacies at Stagecoach. Quite unsuitable to run any public services, not that buses today represent a public service, just a cash cow.

[jeffian] 13/4/2018 22:24

I suppose if Private Equity think it worth bidding, they must think the sector's cheap!

[warranty] 13/4/2018 20:24

Thanks Jeffian, I hadn't seen that but it probably means SGC could go down again as quickly as it's gone up!!

[jeffian] 12/4/2018 19:16

Could be read-across from First Group which received a bid today. Sector ripe for t/o activity?

[warranty] 12/4/2018 17:52

Anybody know of a reason for the nice jump today? Can't see anything to prompt it but hopefully it's a start on the long road back up to 200p plus.