Weir Share Discussion Threads

[simon gordon] 01/11/2010 19:30

FT - 1/11/10:

Weir in for a good time

Stick or twist? Investors in industrial pumpmaker Weir face an enviable dilemma after the Glasgow-based company, which was promoted to the FTSE 100 index in September, ratcheted up full-year guidance yet again on Monday.

The update fits a pattern established among its UK-listed engineering peers during the recovery in global industrial demand – to underpromise but overdeliver. A policy of contained modesty on forward trading prospects, as demand has bounced back from the bottom, has improved sentiment towards Weir and its sectoral peers, as this year's trading updates have brought pleasant surprises and few disappointments. Weir, whose share price has more than doubled since last year, is the darling of the sector. But that revaluation is by no means untypical for companies who once considered themselves wallflowers at the stock exchange ball.

As one analyst recently suggested, some engineering groups have become adept at the trick of "keeping 10 per cent in the back pocket" as they romance newly enamoured investors and close in on final full-year profits guidance. Another points out that Weir's Monday update on second-half performance (expected to match the first-half rebound) would equate to a 9.9 per cent uplift in his earnings estimates.

There is still a danger that investors could fall out of love with the sector, despite the promise of positive updates in November from the likes of Cookson and Spirax-Sarco. Weir fell 21p to £15.37 on Monday in spite of the positive outlook. Progress on profits and sales are priced into many UK-listed engineers – though they enjoy the halo effect of limited exposure to UK consumer and government spending cuts.

Investors who choose to twist again may well reap further reward as UK engineers cement trading positions in key global end markets that continue to advance. But those that choose to stick can reasonably conclude that they have secured the bulk of the rewards from the post-crash bull run in engineering stocks.

[tratante] 01/11/2010 09:07

These have done extremely well over last few weeks/ months. due a little consolidation particularly since results are good but not spectacular.

[slogsweep] 01/11/2010 08:08

Good results from weir, so its a sell then!

[tratante] 07/10/2010 16:36

Qualifying date for divi tomorrow, might see some selling monday as people lock in gains, there again...!

[domtheone] 24/9/2010 14:22

Off to Thailand for a couple of weeks.

If this is below £13 when I get back then i'll dabble.

[broadwood] 17/9/2010 12:39

I'm out - hope not to regret it.

Thanks management.

[broadwood] 17/9/2010 12:33

They still like it and they're still buying. I may hop out of part holding in a while. But no rush I hope over the weekend.


Which fund managers profited from the new FTSE 100 constituents?FTSE 100



Fund managers who were long-term holders of Tomkins, Weir Group and Resolution have reason to cheer after the companies were promoted to the FTSE 100 last week.

Some of the best known UK investors have seen their portfolios receive a turbo boost from engineering group Weir in particular, with its share price having nearly doubled in the past 12 months.

Axa Framlington's Nigel Thomas (pictured) and Richard Watts of Old Mutual Asset Management have been among the biggest beneficiaries as Weir shares rose from around £7.50 to over £14.

Thomas's UK Select Opportunities fund holds 3.46% of the company, amounting to 7.3 million shares, while Watts has also held a significant stake for over a year.

Manager of the CIS UK Growth Trust, Joe Walters, who started buying at £8 and now owns 1.5 million shares, insists investors should stick with the stock.

He says: 'Weir Group has a strong position in the mining and oil industry, which is set to benefit from a significant recovery in capital expenditure. It's well positioned geographically with 45% of sales coming from the emerging markets, which is where we expect significant growth over the next few years.

'Its strong market position may result in the company being vulnerable to any industry consolidation, which may play out as corporates seek to increase exposure to some of the fastest growing areas of the world, notably Asia.'

Core holding

Walters says he has taken some profits after the recent surge, but the stock remains a large portfolio holding. 'It remains a core holding and it is vital to us in enacting our strategy of investing in those companies that are well placed to benefit from the structural growth potential of emerging markets.'

[apad] 13/9/2010 19:19

dom...
Averaging up is so hard to do.....
It's psychological.
Averaging down - that's easy...
It's a mistake.

[domtheone] 13/9/2010 15:09

Had them on the watch list.

Dithered what seems only a few days back at 1100 something pence (waiting for a bit more of a retrace)

Now look!

[jon827] 09/9/2010 20:48

lol, Been there done that! :)

[broadwood] 09/9/2010 20:47

The best performing stock in the FTSE over the past year - and the thread is deserted.

Funny that. Don't you just love talking to yourself at times like these.

[broadwood] 08/9/2010 07:31

Weir Group secures promotion to top-flight FTSE-100
Tim Sharp, City Editor



Weir Group chief executive Keith Cochrane can prepare for life in the FTSE-100 after the company cleared the crucial hurdle for entry to the top flight.

When markets closed last night, the Glasgow-based engineering company had a stock market worth of £2.8bn, after its shares gained 36p or 2.8% during the day to close at £13.19. This left it in 90th position in the league of the UK's biggest companies at the latest cut-off date for changes to the blue-chip index, and therefore eligible for promotion.

Financial services company Resolution and fellow engineer Tomkins, which has agreed to be bought by a Canadian consortium, also beat the standard.

Property company Segro, Argos-owner Home Retail Group and telecommunications operator Cable and Wireless Worldwide finished below 111th place and are poised to be relegated to the FTSE-250.

The FTSE Europe, Middle East and Africa committee will meet tomorrow to approve the changes. They will check the companies pencilled in for promotion meet minimum standards on issues like liquidity – how easy it is to buy and sell the stock.

The final decision will be announced after markets close this afternoon and implemented after markets close on September 17.

This means Weir will start trading as a FTSE-100 stock on Monday, September 20.

It will sit alongside other Scottish companies including Scottish & Southern Energy which owns Scottish Hydro-Electric, Royal Bank of Scotland, oil and gas company Cairn Energy, Dundee-based Alliance Trust, temporary power company Aggreko and pensions company Standard Life.

Mr Cochrane took the helm of the 138-year-old pumps-and-valves powerhouse in November 2009 and has presided over a 72.2% surge in its share price from 760p to £13.19.

He had been finance director under predecessor Mark Selway who revolutionised the business.

Weir now specialises in selling pumps, valves and related parts to industries that move raw materials such as metals and oil.

Mr Selway pulled it out of business with low margins, generally below 10%, including Weir Pumps in Glasgow. The company employs 9000 people worldwide.

Its Scottish operation consists of servicing and maintenance businesses in Aberdeen and Alloa and engineering design in East Kilbride.

[broadwood] 04/9/2010 16:19

Weir makes industrial pumps and valves for the minerals processing, oil and gas and power industries. Yesterday, the company said it had bought BDK Engineering Industries, which is based in the southern state of Karnataka. The company specialises in valve manufacturing for the energy sector. This is complementary with the company's other operations in the rapidly-developing country in the mining and power station sectors.

The acquisition is small, but strategically important. It generated sales of £20.9m in the year to March 31, manufacturing valves for the oil and gas, petrochemical and power markets.

The company is looking to move into commodity-rich emerging markets and earlier this year spent $172.5m buying Malaysian-based Linatex, which makes very hard-wearing rubber seals. Investors can expect more such purchases in the future.

The shares are trading on a December 2010 earnings multiple of 13.6 times, falling to 12.6 next year. They are up 16pc since they were recommended on June 17, compared with a market up 2pc. The shares remain a buy.

[nellie1973] 03/9/2010 18:08

Tipped in press

[broadwood] 03/9/2010 06:24

edit


Weir poised to join the elite with promotion to FTSE-100


FTSE Group has revealed Glasgow engineering company Weir is above 90th position in the size league of UK stock market-listed companies, the level required for promotion to the prestigious FTSE-100 index of leading shares.

Weir Group, which has since Thursday last week enjoyed a £297 million leap in its stock market worth to about £2.68 billion, will be elevated to the top flight if it is above 90th spot when the stock market closes on Tuesday next week.

Promotion for Weir Group, which yesterday announced an acquisition to double the size of its business in India, would increase the number of Scottish companies in the FTSE-100 to seven.

Scotland has in recent years lost several FTSE-100 spots, as a result of Spanish company Iberdrola's takeover of ScottishPower, the acquisition of brewer Scottish & Newcastle by Heineken and Carlsberg, Electricite de France's purchase of British Energy, and the rescue of banking group HBOS by Lloyds TSB.

Scottish & Southern Energy, Royal Bank of Scotland, Edinburgh-based oil and gas independent Cairn Energy, Dundee-based Alliance Trust, temporary power company Aggreko, and life and pensions company Standard Life are already in the FTSE-100. Aggreko, which like Weir Group has enjoyed a share price surge, was promoted to the FTSE-100 in December last year.

Referring to calculations made after Wednesday night's stock market close, a spokeswoman for global index provider FTSE Group told The Herald yesterday: "It (Weir Group) is currently above 90th position. That is the threshold for entry to the FTSE-100. They are above that threshold for market capitalisation in terms of eligibility to enter the FTSE-100."

FTSE Group will prepare its latest quarterly review of the FTSE-100 and its other UK indices based on the closing share prices of companies on Tuesday next week. This will then be presented for approval by the FTSE Europe, Middle East and Africa Regional Committee.

The spokeswoman said: "If they (Weir) are still at that above-90th position on Tuesday night, they will be considered (for promotion)."

The spokeswoman noted Weir Group met all of the other criteria, such as liquidity in the stock.

Weir Group shares added another 4p to 1271p yesterday, having touched a fresh all-time high of 1293p during the session, on a day on which the FTSE-100 index edged just 4.63 points higher to 5371.04.

Keith Cochrane has presided over a continuing surge in Weir Group's share price since he was promoted from the post of finance director to succeed Mark Selway as chief executive last November.

Cochrane had to endure a far more torrid time when he was chief executive of Perth-based bus and rail company Stagecoach, which has in the past figured in the FTSE-100. Cochrane offered his resignation as chief executive of Stagecoach in summer 2002, after a plunge in the company's share price linked to troubles with its acquisition of Coach USA, and this was accepted by the transport group's board.

Weir Group finance director Jon Stanton, asked about the prospect of the engineer's promotion to the FTSE-100, told The Herald yesterday: "We are not losing sleep about it. It would be nice in terms of the recognition it gives to our people, in terms of the progress the group has made over the last few years."

He added: "If we get in, we get in. If we don't, we will continue to execute the growth opportunities we have got out there."

Companies entering the FTSE-100 tend to attract funds which track this index. These funds have to hold shares in the FTSE-100's constituent companies.

Weir Group has agreed to buy family-owned Indian valves business BDK Engineering Industries. The price was not disclosed but City sources estimated it at £40m.

Stanton said: "It is only a small deal in terms of the scale of the business. What it does for us is fill one of the gaps we had strategically, which is our footprint in India. It will broadly double the size of our operations in India."

[broadwood] 01/9/2010 17:19

Sep 8. There'll be big buying after that from all the trackers.Not that managed funds havn't started already.

[tratante] 31/8/2010 12:18

Could be, but on the otherhand people have been a bit trigger happy on this one recently with talk of Ftse etc. Bit of herd mentality going on. MMs have to work hard to make money out of this one, so a few sudden movements are probably good for business!

[the heed] 31/8/2010 10:53

Bid action here?

[tratante] 24/8/2010 12:50

looking a bit toppy to me, a small correction would probably be for the good in the long term.

[broadwood] 24/8/2010 09:04

Tracker funds are ready to pump up the volume at Weir Group. Shares of the world's largest manufacturer of pumps for the mining industry touched 1189p before closing 11p cheaper at 1171p on profit-taking.




But they could soon be testing the year's high of 1275p.
Why? Because the group is hot favourite for promotion to the prestigious Footsie index for the first time ever when the FTSE Steering Committee holds its next quarterly meeting on 8th September.

Glasgow-based Weir, which was established in 1871 as a pump manufacturing business, has a market value of £2.5bn.

The share price has soared since Keith Cochrane took over as chief executive from Mark Selway, and has been boosted by its increasing involvement in the buoyant oil and gas and mining sectors.

In June, analysts at Investec forecast that Weir would experience a material re-rating over the next 18 months because the market had yet to recognise its status as one of the fastest-growing and highest quality stocks in the UK industrials space. Its target price is 1580p.

Weir recently reported a 58% leap in interim pre-tax profits to £96.1m, driven by 'strong demand' for commodities. Management aims to double profits by 2014, but Investec believes the group has the potential to beat Investec believes the group has the potential to beat this target by 2012.

[rampant debra] 21/8/2010 18:13

may enter the ftse 100 in september

[tratante] 10/8/2010 18:58

Ameriprise Financial sold a few.

[nellie1973] 06/8/2010 12:23

Tipped in press-Independent

[rampant debra] 06/8/2010 08:12

broadwood. his recommendation came after the results. more than likely a takeover target with continued growth.