Wood Group (john) Share Discussion Threads

[pogue] 16/12/2022 18:57

not flying to ABZ to meet you currently working elsewhere

[chutes01] 16/12/2022 18:18

pogue,

You have our meeting

[pogue] 16/12/2022 18:15

Chutes
got news for you the O&G business is not doing that well right now, there is a reluctance to invest in large projects from what I am seeing. PFC is a good example they are not getting the wins they should in a high oil price environment. Besides fixed price contracts are being abandoned by all the big players as not worth the risk.

[ashkv] 16/12/2022 11:37

A few days prior - Jefferies upgrades Wood Group to 'buy'

Mon, 12th Dec 2022 12:20

(Sharecast News) - Jefferies upgraded Wood Group on Monday to 'buy
' from 'hold' and hiked the price target to 190p from 150p.

[ashkv] 16/12/2022 11:36

127p as I type and even with downgrade still 42% upside - not to mention major catalyst of a likely takeover offer.

Barclays cuts John Wood to 'equal weight' (overweight) - price target 180 (250) pence

[elsa7878] 16/12/2022 08:15

Not a shareholder but to what out of interest? Seems an interesting case. Operationally challenged v activist shareholder.

[bigbigdave] 16/12/2022 08:07

Barclays downgrade not helping today

[pogue] 15/12/2022 16:26

Thought of this song when I saw you posting chutes, enjoy

[chutes01] 15/12/2022 13:25

Is share buy backs the right way to go at this time, is cash not better used to fund investment at this time, grow the business, pay down high interest debt, pay off fines, resume divi ?
They are more likely to issue more shares than cancel them due to incompetence embedded within the company
Huge fines need servicing due to legacy work, money with held in order to subsidise bonus payments over the years and fund high pension contributions.
Years of arrogance and failure have led to wood struggling to survive now

[ashkv] 15/12/2022 11:46

you are welcome - I added to my WG holdings as expect news on Buybacks and/or a takeover offer soon :)

bigbigdave
15 Dec '22 - 11:43 - 936 of 938
0 0 0
Thanks ashkv

[ashkv] 15/12/2022 11:44

he scene is set for Wood to show that it cares about its long-suffering shareholders

At the CMD you have set out a compelling case for the business. With this wealth of information now public, you have provided the perfect backdrop to reset your capital allocation priorities and deploy a buyback

As we advised in our discussions, we strongly believe that nothing will affirm your belief in "New Wood" and its ability to generate steady operating cash, more than putting some of that cash to work in buying back your own shares. We have shown that in our view, you generate over $270m of surplus capital by Dec-24; putting even a portion of this to work in short order via a buyback is highly accretive and makes good business sense. Furthermore, the signalling impact of any such action cannot be underestimated:

1) It robustly underscores your belief, evident at the CMD, that Wood is now operationally and financially on a strong footing;

2) You enjoy structural tailwinds in your business which along with your order book, de-risks your outlook;

3) With your shares trading at a c.50% discount to peers,[18] with your organic investment needs already prioritised, it is manifestly a highly accretive capital allocation course to pursue; and

4) It would return some stability to your share price reducing Wood's beta from its currently unwarranted 1.7.[19] Using a beta of 1.7x delivers a DCF fair value of c.235p, vs a fair value of c.330p using a beta of 1.3, an improvement of over 40%.[20]

We would like to continue our discussions with you, the CEO and the CFO at the earliest possible opportunity.

Above all, we strongly encourage you to expedite your capital allocation policy, signal the confidence you have in the cashflow generating qualities of your business and take advantage of the cheapness of your shares, creating value for all holders and closing the door to perhaps unwanted, opportunistic interest the share price under-performance will have undoubtedly garnered.

For our part, now that our views are in the public domain, we will use the next few weeks to canvass opinion from our fellow shareholders. To that end, we encourage shareholders and other stakeholders to reach out to us directly at [e-mail].

[bigbigdave] 15/12/2022 11:43

Thanks ashkv

[ashkv] 15/12/2022 11:41

hxxps://www.prnewswire.co.uk/news-releases/sparta-capital-sends-letter-to-board-of-directors-of-wood-group-301697697.htm

Undervalued in absolute terms

Taking your CMD assumptions about market growth, revenue growth and margins, and resetting your cost of capital on metrics appropriate to Wood with its much-reduced operational risk and its conservative balance sheet, delivers a DCF value of c.330p per share, some c.160% above the current price.

Undervalued according to research analysts

The average analyst price target (221.6p) represents some 71% upside,[3] with the highest target set at 285p (+124%).

[ashkv] 15/12/2022 11:39

I am surprised the following letter from an activist hedge fund wasn't published on this chat - hxxps://www.prnewswire.co.uk/news-releases/sparta-capital-sends-letter-to-board-of-directors-of-wood-group-301697697.html

[iconista] 05/12/2022 18:14

Blackrock still closing short herehttps://shorttracker.co.uk/company/GB00B5N0P849/

[chutes01] 04/12/2022 23:53

Death spiral remains intact here
A shorters wet dream
This won’t survive 2023
What a mess, £8 Billion wiped out

[iconista] 01/12/2022 07:30

Blackrock has reduced its short here again

[pogue] 29/11/2022 16:45

PFC taking a beating today as well obviously its going bankrupt too lol

[chutes01] 29/11/2022 15:08

more likely a sell from earlier, heading down again, abs shocking numbers to offer on CM day
shareholder funds have been treated with utter contempt here over the last few years, no word on divi resumption ? huge debt pile remains
Heading below 100p this time, the Q is, will the company survive in its current form, it may be finished now

[sbb1x] 29/11/2022 14:32

500,000 buy