Wood Group (john) Share Discussion Threads

[philo124] 05/1/2009 12:05

At last a post. Was tempted to top up but stuffed out with oil stocks and call options.
Just sold Tullow, ENI to go next. Will hand on to WG, PATIENCE SHOULD BE REWARDED FROM HERE.

[spob] 05/1/2009 09:58

Barclays Share of the Week

22 Dec 08

Wood Group symbol: WG.

After a period of stunning performance in the first half of the year, oil prices have beaten a hasty retreat with the price of crude languishing at $44 a barrel. Of course, in years to come, consumers may well look back on the current price level with fond memories. But while OPEC has agreed a significant production cut to try and stabilise prices, a return to the heady days of the summer – when oil touched $147 a barrel – now seems a long way off.

This presents a conundrum for investors; oil is a finite resource and, by definition, demand should begin to outstrip supply once the global economy returns to a trend level of growth. In that sense, oil should rise as long-term fundamentals are supportive of prices; indeed, our longer-term fair value stands at $64 a barrel. But it's also undeniable that a price of $40-45 presents some headaches for the industry; complex projects such as oil sands are usually unprofitable at this level, while a continued downward trend in prices may prompt oil companies to postpone new projects or drop them altogether. Meanwhile, a global recession means weaker demand – both from motorists and industrial users.

For investors who want to maintain exposure to the oil sector or who want to diversify away from the traditional oil majors given the current economic environment, we would suggest Wood Group. The company should be partially insulated from the falling oil price by the fact that Production Facilities – Wood Group's largest division – benefits from having 75% of its activities based on long-term contracts (thus offering good earnings visibility). The Well Support business, on the other hand, is likely to see a slowdown in 2009, lagging the current decline in US oil rig count.

Broadly speaking however, Wood Group is one of the higher-quality oil services businesses and perhaps most crucially it is well funded – a significant plus given current financial conditions. It therefore remains a good way to add diversity outside the well-known oil majors. The stock trades on seven times next year's earnings and is a constituent of our UK portfolio.

[slim9] 03/1/2009 17:53

Could be the year of a merger. Begins with A

[aeros] 02/1/2009 13:42

harryg

I could earlier (before 9am) but have just tried again to add to check it out and I too have the 100 limit ......... so it's all of us. Pity I was intending to add if it went sub 190.

[jibba_jabba] 02/1/2009 12:19

Something holding this back today.

[harryg] 02/1/2009 12:07

Aeros
I am still receiving a max online trade of 100 from Selftrade- strange that you are able to deal in larger quantities!!!

[aeros] 02/1/2009 11:07

Selftrade? .......... No. I use and am finding OK.

[jibba_jabba] 02/1/2009 10:41

Been 100 since monday.

[chutes01] 02/1/2009 10:32

Expect a decent move above the 200p level, the mm's are messing at the moment.
Look at the recent Director purchases, contracts being won to the detriment of Petrofac etc.
WG are going to grow significantly.
Charts say up from here.

[harryg] 02/1/2009 10:04

Anyone else finding it difficult to buy or sell more than 100 shares at a time online? Selftrade have had this maximum amount for days.

[wendsworth] 01/1/2009 11:21

werock: 'Let the trend be your friend' ...still holds true.

Still reckon this will hit new lows in January/Febrary ...THEN WILL BE THE TIME TO BUY!!!

[werock] 31/12/2008 19:24

Oil raged more than $6 in less than five hours. The explanation is simple. Shorters closed for year end holiday and account. But one thing is certain oil at $40 or even below is simply unsustainable. We will see oil raging towards $60 very soon. And WG will be 200+ easily.

[chutes01] 30/12/2008 15:42

this doesn't know what to do today, the New Year will see this ludicrous price banished as the news filters through.
BUY.

[werock] 30/12/2008 14:33

Barclays also rated this one very highly. BP, Tullow and Wood Group are their core holdings.

[chutes01] 29/12/2008 10:19

Opportunity knocks, just a bit of patience required.

[miss womble] 23/12/2008 08:47

Very encouraging article by Questor in the daily Telegraph today. It was recommending it heavily again today having done so in November at a higher price. Happy hunting in this time of opportunity, MW

[wendsworth] 22/12/2008 16:39

dasv : I'm pleased you've done well .

jibba-jabba: Your post sums up the REALITY for private investors currently with this share. Thanks for your candour. I reckon there will be a number of 'bad days at black rock' for the market in general in the New YEAR which should give you the opportunity to get your £900 back!

[jibba_jabba] 18/12/2008 17:52

Aspers i bought a load to average down from 414, got more at on the way down 213, 209, 199, 195, 191, 182 and yesterday at 178 sold most today, was over 4k down now only £900 on paper, but got most of my stake money back, await the odd dive and buy..

[luckyvince] 18/12/2008 15:48

Independent goes with a negative, has wood as cautious hold - says impossible to tell which way it will go from here, quotes wood "Indications are that there will be a reduction of spending by clients, with a consequential impact on service company activity" Evolution says expects eps to fall by 20% next year but still expects share price to hit 325.

[dasv] 18/12/2008 10:27

Morgan Stanley upgrade to overweight.

[aspers] 18/12/2008 08:30

looking good today.....set a sell at 220p that will give me 20% over the last few weeks, must not get too greedy!!

[jibba_jabba] 17/12/2008 16:48

Opec to cut 4.2 million barrels per day, will filter through to the price...

[silverfern] 17/12/2008 15:32

it is all about sentiment, and at the moment whilst the bottom 'may' have been seen last month, what do I know, except that investors are now short-term gamblers and any small turn profit is being taken, THis will affect market prices for some time imho