Weir Share Discussion Threads

[phil140158] 04/5/2012 19:21

Nice to see WEIR moving against the market. Miners and oil down 4% or so. Bank Holiday on Monday, so only one day for 20 million or so 'borrowed' shares to be bought back before the IMS. That ain't going to happen. I wonder if the shorters know something we don't. Can't say I'm looking forward to Wednesday!

[phil140158] 04/5/2012 12:56

APAD - I'm not a trader either. I use long term spread bets to avoid any capital gains tax. Not that I've ever made enough to pay any! And I thought WEIR was going to be the big one. I hope we don't see 'challenging' in the statement, if we do and the price bombs, maybe £10k worth in an ISA would be a good long term play?

[tratante] 04/5/2012 11:39

- of course, the shorters instill panic that drives the price down further. This is a bear raid pure and simple.

[brain smiley] 04/5/2012 11:02

More than just shorters selling; "normal" investors are selling as well.

[apad] 04/5/2012 10:56

phil, I'm not a trader, so "challenging" simply heralds a possible future buying opportunity.
I'm also an engineer and I think this is a great engineering business.
My earlier point about the lack of job vacancies in all countries but the UK tells me that "challenging" will be the word.
apad

[phil140158] 04/5/2012 10:22

APAD - if you see the word 'challenging' in the IMS, get out quick! I'm looking for a chance Monday/Tuesday to close my long SBs, even at an acceptable loss. Luckily I don't need cash, so I won't be selling the shares.

[apad] 04/5/2012 10:17

t..
It was only last Oct. that the share price was below £15, it then bounced rapidly but there was no talk about their customers in 2 major areas cutting back on activity in them days.
9 May at 07:00, I will be surprised if there isn't some sort of statement about difficult times ahead, even if the financials are good.
apad

[tratante] 04/5/2012 10:01

APAD I suspect when they are bored and decided to go elsewhere. The more the share price falls the less favourable the risk/ reward ratio, particularly as the longs see a bargain price and start to buy; eventually they go off to look for easier pickings. In this case they are also looking over their shoulders at the impending IMS. If that's not what they expect the market could turn against them very quickly. Wouldn't be surprised to see them have another push though.

[tratante] 04/5/2012 09:52

Tipped in IC this am with long supportive write up. (not sure if that's good or bad!)

Bottom line - grossly oversold, threats overdone and misunderstand nature of business.

[apad] 04/5/2012 09:46

I think WEIR is a great business but I suspect the shorters have got it right - it's the lack of vacancies abroad that convinces me so I shall wait until the news is out before increasing.
When do shorters move out of a stock?
apad

[greek islander] 04/5/2012 09:03

If Weir were to do a share split so that the share price dropped overnight by nine tenths to 10% of its current value then I am convinced that the shorting would disappear. It remains at a price level where the share price movement is always exagerated and it appeals to spreadbetters and shorters. This was also the case with Abcam, but when its value per share was dramatically reduced so also was the manic movements up and down (mainly up) with which it had become known.
Worries about a reduction in market has hung over Weir and its share price for years. Part of the problem is its size and breadth of operations making it certain that some element of its business is always under threat.
The colly wobbles have been diffusing the share price for a while now. The sudden surge in value of the stock had to slow down at some stage. Maybe it is now ready to resume its rise up the charts.
One concern is that Weir avoids acquisitions at the moment and stabilises its current operations. I have every faith in management who clearly work and plan for the long term. This is of great credit to a company that I have no doubt will continue to grow in every way. Yes, I remain very bullish especially if we get an upturn in the market overall.

[nurdin] 04/5/2012 08:15

had some..this selling appears well overdone imo

[tratante] 03/5/2012 23:47

FT 2/5/2012

Goldman Sachs keep buy rating on Weir citing business weighted to after-market sales.

[simon gordon] 03/5/2012 22:07

FT - 3/5/12:

Weir faces threats from mining cutbacks

By Bryce Elder

Weir Group hit a seven-month low on Thursday on fears of reduced spending by mining companies.

The pumpmaker, which is London's most heavily shorted blue-chip stock, was under pressure after Rio Tinto and BHP Billiton indicated they were scaling back expansion. Mining equipment accounts for between 10 and 12 per cent of group earnings, according to Panmure Gordon.

"The unthinkable is happening and Weir may have to fight fires on two fronts," Panmure told clients. "The first is the imminent collapse in the pressure pump market in North America and the second looks to be the emerging threat of a freeze in miner capital expenditure."

Ahead of a trading update from Weir next week, there was also gossip circulating that the group may be considering a large acquisition. However, Weir's current debt load led analysts to doubt the speculation.

A sharp downturn in resources spending similar to that seen in 2009 would push Weir's 2013 net debt to 1.23 times operating earnings, said Panmure. "This looks manageable, so we do not expect the storm to rage on a third front," it said.

Weir closed 3.8 per cent lower at £16.16 as stock held by short sellers reached the highest on record. More than 20 per cent of the free float was out on loan, equivalent to 18 days' average volume, according to Data Explorers.

Fellow engineer Fenner , the conveyor belt maker, lost 3 per cent to 434.2p on a Credit Suisse downgrade to "neutral". It cited reduced spending among US coal miners, which provide 20 per cent of Fenner's sales.

[sanks] 03/5/2012 17:17

Majority of the rampant poodaays have been found wanting here.
Its a typical story of a bubble waiting to burst, and within that bubble, rampant poodaays continued to ramp and poodee and ramp and poodaa.

Several weeks ago, when the price was poodeeing at new highs, my level 4 alarm went off, and i subsequently posted on this bb telling you rampant poodaays of the impending poodee drip.

Infact its dripped well into level 4 prediction area and continues to poodee poodaa on a regular basis.

Like the rampant poodays on here, i have also told the rampant poodees on RB bb of the impending bubble that has a minj like whiff about it.
Hence that is also about to pop, but as always, like here, the rampant poodaays continue on their merry ways, till they have their pocket money pinched by Mrs Market.

I really hope i am helping
Sanks

[apad] 03/5/2012 17:09

Just checked career vacancies.
15 in UK and 2 in Middle East.
None in the rest of the world and no graduate opportunities anywhere.
Not encouraging.
apad

[apad] 03/5/2012 17:04

Interesting isn't it GI.
Short selling is still high, so you are against the trend.
PER is now low but it is a high capital expenditure company.
The yield is now breaching 2%. I suspect (by comparing with other out-of-favour, high-performing tech stocks the yield could reach 2.4% BEFORE IT PROVIDES SOMe support.

WEIR is a second rank company in my Stairway portfolio (3-5%) and I am interested in a good entry point to promote it to first rank. £15 would be awfully tempting.

The short selling is very determined. However, as a long-term holder I welcome a low share price price as an opportunity.
apad

[greek islander] 03/5/2012 14:26

It is interesting how Weir currently not a very popular stock - maybe down to the shale situation in the USA.
Clearly though as the PE and the share price drop steadily against all logic, one cannot get away from the financials for this company. The profit and loss, the cashflow, the asset value all make this an extremely cheap buy at the moment - even if the share price still has further to drop, WEIR will continue - as in the past - to be sensitive to the general state of the market. General concensus amongst most commentators is that the market is currently flattening out (bottoming) prior to a possibly sustained rise. Those fabled green shoots.
I have been steadily buying into the drop in price as I am convinced Weir will see £25-30 sometime within the next 12 months. The stunning results last time out failed to precipitate the expected rise, but the next set of superb figures will make many appreciate how undervalued this stock is.
I am happy to keep raising my holding while the stock price drops.

[tratante] 02/5/2012 15:53

ex divi today

[tratante] 30/4/2012 23:38

Shame they announced the date of the IMS. Would have been good to keep the shorters on tenterhooks!

[phil140158] 30/4/2012 18:34

tt - hopefully today's announcement and the IMS on 9th May will be enough to get the share price moving again. The market wasn't great today, so I'm not surprised the price finished red, but it would be interesting to hear how the products were received at the Oil and Gas Expro? Any first hand input would be appreciated. TIA

[tratante] 28/4/2012 15:32

£25M orders for Weir Valves & Controls UK Ltd part of the Weir Power & Industrial Division of The Weir Group plc



DB take holding above 3%

All helps

[gottlieb jeger] 28/4/2012 00:06

UBS makes my target 1885p look pretty undemanding!

[tratante] 27/4/2012 08:00

Positive mention in IC today in context of general article on engineers.

and comment in FT



UBS have £25 price target

Interesting to see how many shorts risk keeping them open into next week.