Travis Perkins Share Discussion Threads

[waldron] 23/11/2005 10:35

Broker snap: Travis turns lower
Wed 23 Nov 2005

LONDON (SHARECAST) - UBS turned more cautious on troubled builders merchant Travis Perkins, downgrading the shares to 'neutral' from 'buy'.

The Swiss broker also slashed its price target to 1,335p from 1,722p following the profit warning earlier this month, Travis' second this year.

UBS added that Travis is under increasing pressure as Wickes' faces tough competition from the likes of B&Q after the chain launched a range of price cuts and promotional initiatives.

[mickconn11] 21/11/2005 21:04

cashbunny. I forgot that was his trade. I was wondering who that geezer with the long hair was in the timber yard at the weekend. .. Must have been casing the joint. Looks like he was in the market today and bought a few.

[po0h ber] 20/11/2005 20:20

friggin hell, 800p shortly?

[elsworth] 18/11/2005 16:21

you don't really need to be a chartist to see the trend of TPK..........just another stock for the knackers yard!!

........drip.................drip.............BANG £9

[cashbunny] 16/11/2005 22:34

A second manager nade redundant form my local branch this week.

[jeffian] 15/11/2005 15:37

Wouldn't it be better the other way round?!

[elsworth] 15/11/2005 15:31

I'm gonna buy loads at £10/£10.50........and a bit more at £9

[bozzle2] 14/11/2005 14:37

mick, thanks. i thought you were suggesting something below the belt. i havent been playing TPK, but made money shorting KGF. my current big play is WOS short. thursday AGM will be very interesting over there

[lafiamma] 14/11/2005 14:19

Ladies just take a deep breathe and push the button!

laf :o)

[mzj71852] 14/11/2005 13:34

waiting to buy not sure when.... any ideas?

[madgooner] 11/11/2005 19:15

Been thining of a long. Not now. They've played up performance through the year, and now come clean for me. The last 4 weeks don't explain the profit shortfall. Further deterioration and the operational financial gearing make it vulnerable. No position for now..

[mickconn11] 11/11/2005 18:52

bozzle. Found it.

They bought Wickes for £950 million cash on a debt free basis.
Financed by a placing of 5 million new shares which raised £75.5 million.
The balance funded by a £1.2 billion facility from RBOS, Barclays Capital and Barclays Bank.

year end of 31 Oct. 2004

Wickes had sales of £911 million and profit before tax of £53.6 million.

That's the gist of it but for more details you'll have to get the Wickes offer document as I've only got a grubby old photocopy.

For the record I've got no position in TPK now apart from a small shareholding for historic reasons. I used to live near a Sandell Perkins before it become part of the larger group and I used to get bits and pieces there so have followed it over the years.

When they announced the Wickes purchase I thought it was the wrong time of the economic cycle because I have my own views about the housing market and when the old c.e. Frank McKay sold some shares at 17 quid I just waited for the charts to tell me what to do and then I watched in amazement and he probably did as well as it went up to nearly 20 quid. I've been short for most of the past year but haven't played for a while.

I watch their announcements because I consider them an excellent company and that is reflected in the clarity of their RNSs which are accurate and give details that other companies don't, and I'll buy when I feel like it but not for now.

Cheers. Mick.

[mickconn11] 11/11/2005 15:36

bozzle. They paid a very top price and most of it with debt.

Can't remember the exact details but will check.

From memory I think Wickes cost about a billion and they borrowed all of that apart from a placing of shares which raised £75 million.

I think they also paid about 20x historic earnings for Wickes but with trading going downhill that might be higher now. There will be synergies and TPK had an excellent record on acquisitions but this was the biggest.

Will try and find the exact details over the weekend and will update post if I can.

Anyway, the bit that caught my eye was showroom sales down 21.1 % in the last four months. I've added to shorts in plumbing and tiles. WOS and TPT.

[mzj71852] 11/11/2005 15:35

anyone buying could this head down further on monday

[lafiamma] 11/11/2005 14:29

I think so

[mzj71852] 11/11/2005 14:11

is this a good buying opp?

[bozzle2] 11/11/2005 13:54

mick, what are you suggesting?

[elsworth] 11/11/2005 13:46

How low is low??????????.......surely a bid at £17!!

[mickconn11] 11/11/2005 10:22

About a year since Wickes purchase. I wonder if some of the brokers who've been pumping this might now sit down and read the Wickes offer document.

[cashbunny] 11/11/2005 09:08

ouch. -10%!
charts are supersticious nonsense. TP sell stuff to a market in decline for the moment, so their shares follow the decline. There is no other logic other than straight supply/demand.

[elsworth] 11/11/2005 09:03

Yes definately a bit overdone, like always.........has started to recover and could see a bounce on Monday, i've seen that with many stocks.........overdropped and a rebound the next trading day!!