Weir Share Discussion Threads

[tratante] 05/4/2012 10:16

I agree, no wonder we are in the current mess.

[lance corporal winstanley ash] 05/4/2012 10:13

Lets hope so tratante I am absolutely disgusted with what the financial service sector has turned into as a whole.

[tratante] 05/4/2012 10:11

Less than a month to the IMS, new ISA year begins next week. You would be brave to carry on shorting Weir given their record. The shale gas fear is overdone, companies switching to fracking oil instead - all business for Weir and there is much more to the company anyway.

[tratante] 04/4/2012 12:56

Absolutely, it's really frustrating, and taking advantage of the opportunity depends on having free cash. Back to where we were a year ago!!

[phil140158] 04/4/2012 12:37

tratante - your right, of course, but we tend to view the 'plunge' in price after a decent rise as a 'disaster' rather than an opportunity. I did drop the stop on my latest SB to make sure I didn't get closed out, because I think there is good news to come from WEIR and the update in early May will conform that, but I didn't think to buy some more!

[tratante] 04/4/2012 11:25

I agree, but you can't beat them. Best take the Buffet approach. If you really believe in them, buy when others are selling. Sooner or later the value (or bid) will out and the shorters will be gone in a flash -hopefully taking their losses with them!

[simon gordon] 01/4/2012 19:43

FT:

April 1, 2012 4:46 pm

Short selling of Weir shares doubles

By James Shotter

Short selling of shares in Weir Group has more than doubled since the start of the year, making the engineer's stock the most shorted in the FTSE 100, as investors bet that slumping US gas prices will hit demand for its specialist pumps and valves.

About 16 per cent of the company's shares were out on loan on March 28, according to Data Explorers. On January 4, the figure was 6.6 per cent. Over the same period, the average short position in the UK's blue-chip index has remained stable at just above 1 per cent.

Weir's shares significantly outperformed the FTSE 100 last year, thanks in large part to its exposure to the shale gas production boom in North America. One in every two of the high-pressure pumps used in the US and Canadian shale markets is supplied by Weir.

However, the new supplies unleashed by the boom have sent gas prices tumbling. In January US gas prices hit their lowest level for a decade, and as a result, some of Weir's customers have said that they will cut back on production.

These developments have weighed on Weir's shares. Worth £21.00 at the start of the year, they closed at £17.64 on Friday, leaving the company trading at around 11 times forward earnings, shy of the sectoral average of more than 12.

Weir declined to comment. However, analysts said that the stock was now mispriced.

Thomas Rands, of Peel Hunt, said the company "looks oversold", and pointed out that shorting Weir was not the most efficient way to bet against the shale market, since it accounts for less than half of Weir's £2.29bn revenues.

"Investors are ignoring the minerals part of the business, where Weir has very good market positions," he said.

Michael Blogg of Investec said that even though Weir was the largest and most liquid industrial engineering stock in the UK, shorting it was a "brave move".

"It is very naive to think that if activity in the shale gas sector falls, Weir's profits will automatically fall sharply too. First, because some of the equipment will be redeployed onto oil shale. And second, because the amount of installed capacity has risen, which will give Weir scope to make money from the after-market, which is what earns its best margins anyway," he said.

In 2009, investors who had built up an 18 per cent short position in Aggreko, the generator rental company, were caught out when the company announced a jump in profits, and Mr Blogg said that investors shorting Weir could suffer a similar fate.

[phil140158] 30/3/2012 12:52

Opened another long SB at 1734 this morning, missed the earlier rise. (work - argh!) Interim management statement on the 4th May, so much to look forwrd to. Hope it does better than my last one!

[greek islander] 29/3/2012 15:47

Yes, when to buy more?
Those of us who have been here for years have seen this share price movement over and over again. I really am holding a big level of stock and am here for the long term, so see it is, I am certain, a blip for a company with strong financials and an excellent business model with risks well spread across a wide ranging field of operations. The share price will have to drop to 1650 before I will buy in again - on principle, not one to jump on a falling blade, though 1600-1650 would be a real bargain and I'm sure would show a huge paper profit within 12 months. Hopefully that would be the bottom!

[tratante] 29/3/2012 15:36

You certainly did. Anyone want to guess where it's going to land?

[pictureframe] 27/3/2012 13:36

looks like I timed that right

[pictureframe] 27/3/2012 13:07

Closed out long for small loss - no support imo. Take a look at KAZ has triggered multiple buy signals today. aimho

[apad] 26/3/2012 17:16

The post results view:
"The numbers are ahead but there are niggles associated with lower margins and higher interest costs which serve to eliminate upward EPS revisions for 2012,"
has weighed heavily on WEIR.
PER now about 13.
Coming into the price range they were at the turn of 2010.
Trading statement due in May.
Paying down debt, so dividend rise was disappointing.
I'd like to see a bit more weakness here before being tempted to increase my holding.
The Tintins are looking elsewhere, so there might be an opportunity.
£17 would be nice, but even then the yield would be less than 2%.

apad

[bogg1e] 24/3/2012 22:19

Technically speaking this is a beautiful bounce point. Back in, target shorter term 2000 pps. FWIW i use vectorvest(which youve probably seen advertised on advfn) and it currently has weir undervalued by approx 20% ie their target is 2200-2300 pps. Good luck all.

[pictureframe] 23/3/2012 09:11

Forgot to add each time RSI has been this low is has bounced quickly. Not sure how to post a chart otherwise I would ;0)

[pictureframe] 23/3/2012 08:11

Worth a buy here imo....its right at the bottom bollinger band and over the past 2 years it always bounces up from the bottom. A strong bounce could be in the making due to the extremely oversold RSI position. The Macd ALMOST gave a buy signal and the sellers are running out of puff. If we get some buying pressure today the Stoch will hit the magic 20+ give a further buy signal. imo

[phil140158] 22/3/2012 17:04

Anyone see a support at 1800 and will it hold?

[wjccghcc] 21/3/2012 11:17

It's on the back of Baker Hughes warning of reduction in US gas drilling demand.

[brain smiley] 21/3/2012 10:49

big drop...bad news coming

[phil140158] 13/3/2012 12:33

The uncertainty about the bid has been removed. As you say GI, the focus is now on the results and the prospects for the rest of the year. Long WEIR now, short hedge at 2300? I always say that but never do it!!!!