Weir Share Discussion Threads

[phillis] 11/3/2013 15:17

trust those that are short are watching anxiously!

[phillis] 07/3/2013 18:47

Aberdeen top slicing one of its Scottish brethren!!

[apad] 06/3/2013 10:16

P & b,
There must be something wrong with the logic of this narrative?
apad

[broadwood] 06/3/2013 10:12

I bet their eyes are watering then.

[phillis] 06/3/2013 09:44

still 30m+ on loan
coming down only slowly

-:)

[phil140158] 01/3/2013 09:34

GI - my family holding goes back to the 1990s. There were a couple of major purchases and then lots of certificates for small numbers of shares, so I guess they were dividends. If I find out how much was paid for them, I'll post it!

The share price is ticking up each day, presumiably a mixture of closing shorts and new purchases. The low volume must mean there are lots of short positions still to close. Of course, if you are closing a short position of 1 million shares, your total loss is unknown! (tee-hee!) We might expect a downturn this afternoon on profit taking, but if the shorters are still buying, presumiably that won't happen?

[greek islander] 01/3/2013 09:15

Just wish I had sat on the substantial holdings I bought eight years ago and the one I bought three years ago. Buffet is so right, when you have a solid profitable stock, lock it away no matter how good the short term profit - forget stop losses - and unless their is some really good reason for selling, just ignore the stock market prices. It's all about revenue performance nothing to do with market sentiment - is there anyone out there who has held for eight or more years without a break?

[rogerbridge] 28/2/2013 21:07

Excellent progress here.

[broadwood] 28/2/2013 10:16

For a time last year, Weir Group was the most shorted share in the FTSE 100. Yesterday's results showed that bears had it wrong, after the company posted record annual profit and margins. The news propelled its shares to a new all-time high.

Weir is a specialist pump and valve maker, servicing the oil and gas, mining and power generation industries.

Over the past few years, Weir has been increasingly providing pumping equipment used to hydraulically fracture rocks by the US shale gas industry and fears of a slowdown in that sector rose sharply as natural gas prices in America plunged.

Then there was the mining sector. As commodity prices plunged and costs rose for all the major players, miners started to rein in their capital expenditure. These companies are now focusing on maximising their current assets and getting them into production instead of investing in major new projects.


This should not hit Weir too much, as it makes equipment used in the processing of rock.

Miners install this equipment at the end of the mine commissioning process and it takes many years to develop a mine to the stage when it needs Weir's pumps and valves. So, orders for such projects would not materialise for many years anyway.

It seems the City's worries over Weir's exposure to the US shale gas were overcooked.

In the end, revenues in its oil and gas unit actually rose by 13pc to £844m. Orders of original equipment fell, but revenues in the aftermarket made up for this.

The aftermarket is something the bears appear to have failed to grasp. Rather like Rolls-Royce, as Weir's installed base of original equipment grows, the amount of revenue it receives for servicing and new parts rises. Indeed, in the mining unit, aftermarket revenues were 70pc of the total, in oil and gas they were 55pc of revenues and in power generation the figure was 47pc.

For the group as a whole, revenues rose 11pc to £2.54bn, with pre-tax profits up 8.7pc. The full-year dividend was increased by 15pc to 38p and the group said it also planned to increase the payment by another double-digit percentage in 2013.

This means the current year will be the eighth consecutive year that the payment has been increased by a double-digit amount and it will be the 30th year in a row t hat the dividend has been raised. The final payment of 30p will be made on May 31

[broadwood] 28/2/2013 07:35

TP increased.


JP Morgan Cazenove Weir Group PLC 28/02/2013
Retains
Overweight Overweight 0 2,500.00 2,600.00 2,322.00 100 2

[phil140158] 27/2/2013 18:08

Big price increase, but relative to the shares on loan, very little volume.

APAD - thanks for your reference to 'pa-in-law's' shares. Granny is fast approaching her CGT allowance if we sold them all, so maybe I'll hang on to some. Grandad was a civil engineer and never worked for Weir, so it's not clear why we hold them in the first place. Happy days and fond memories.

[thegameofmoney] 27/2/2013 18:07

Great results today. Holding in for the moment, but with a tighter stop now, what with the markets volatility at the moment.

[broadwood] 27/2/2013 17:11

Earnings drive prices. And as a result I guess many shorters got burned today.

Risky game.

[apad] 27/2/2013 17:07

WEIR now my 2nd largest holding.
Looking forward to SL% figures (SMD is a week in arrears) to see if the closing of short positions is driving the share price
Can't see why these results would drive such a change in sentiment on their own.
Is this 30 years of dividend growth?
Musn't complain :-)
apad

Phil, glad you didn't sell your pa-in-law's shares. If it is shorters driving the price I wonder how long the effect will last?

[broadwood] 27/2/2013 16:28

C'est magnifique.

[phil140158] 27/2/2013 16:20

Sell orders disappearing on the Level 2, looks like it might hold 'til 4.30 despite the profit taking? Unbridled joy! Tgom has probably closed his long bet and gone on holiday!

[broadwood] 27/2/2013 16:17

Memorable day. Still rising.

[broadwood] 27/2/2013 13:28

cushty Rodney.

[greek islander] 27/2/2013 13:16

Much better shorting opportunities out there where a number of stocks have PEs of 60-plus though to be realistic, the market looks very strong at the moment and is shrugging off most of the bad news that keeps popping up. Yesterdays drop in my portfolio has (partly because of Weir) been totally reversed today. Stocks like Wandisco are suddenly appearing, where the share price shoots up massively mainly on momentum. This one for instance might have a long way to go yet.
What this shows is that PIs are again entering the market perceiving opportunities in what is a clear bullish situation.
Some may say that the signs should not be supporting a bull run but the reality is that the market is showing clear signs of setting off upwards. People never believe it when the stock market starts to recover after a very bad run and my experience is that it takes two to three months of recovery before the situation really starts to motor. We have a lot of cash around and still it cannot find a rewarding home, so a booming stock market is ripe for much much more. I shall be cautious, but if this is the case I also want to cash in.

[phil140158] 27/2/2013 12:58

Sweet - just binned my 2300 sell order in time. I think I'll be smug and wait a while.

[hernando2] 27/2/2013 12:57

This move upwards , any views on shorts closing v's moving to a different price range?

I think it may be the former but hoping it is the latter.

[broadwood] 27/2/2013 12:01

Agree - good post.

[greek islander] 27/2/2013 11:53

Recent acquisitions will need time to kick in.

The divi shows a more than satisfactory 15% increase, with the promise of a similar increase next time to perhaps 43.5p a share or thereabouts.
This remains a solid long term investment with a reasonable PE still with room for improvement. One to just hang on to and throw away the keys.
It is a stock that I can see growing in value steadily over the next ten years and if we can increase the share price at a rate that even steadies over this period then we shall certainly be doing well enough. I topped up first thing today and will do so again on a dip.
Good luck to all shareholders. This is a good stock for your pension.

[broadwood] 27/2/2013 11:13

On the other hand.

Numis Weir Group PLC 27/02/2013
Retains
Buy Buy 0 2,600.00 2,600.00 2,164.00 0 2

[apad] 27/2/2013 10:56

from ft article:

But there was a cautious reaction to Weir's numbers from analysts. Thomas Rands at Investec said: "The outlook for 2013 is cautious, with guidance for low single-digit revenue growth and stable margins. As such we are likely to trim our operational forecasts by 2 to 3 per cent. We put our £22.50 target price and 'buy' recommendation under review.
"In our opinion, the stock has done enough for the time being until clear direction is seen."

apad