nk1999
25 Nov 2017
Shore Capital From Citywire (on 24/11 yesterday):"Babcock attractively valued, says Shore Capital The current valuation of engineering support services company Babcock (BAB) does not take into account a number of long-term tailwinds, according to Shore Capital. Analyst Robin Speakman retained his ‘buy’ recommendation on the stock, which was trading down 3%, or 21p, at 682.5p at the time of writing. He believes the company looks cheaply valued, given its ‘sustained strong performance in tough markets’ and balance sheet strength. ‘The business appears stable to us, with positive long-term industry trend tailwinds delivering mid-single digit underlying growth,’ he said. ‘With material share price underperformance afflicting Babcock, the shares trade on a full-year 2019 price-to-earnings ratio of 7.9x with a free cashflow yield of 10%.’"
Kenj2
24 Nov 2017
Re: Black Friday 20% off Well they looked a bargain to me, so I've just bought 500 at a bit under 674p.
Hangover2
24 Nov 2017
Very good. I'm certainly hoping they put the price back up 20% on Monday morning.... I fear that like all these sales we may find an even larger discount in the NY!
Trapper Jim
24 Nov 2017
Black Friday 20% off Buy now at new low price, Sale must end today. (tongue firmly in cheek)
Hangover2
23 Nov 2017
Broker Prices In the last 2 days:Citi - Sell - 660pCredit Suisse - Neutral - 925pLiberum - Buy - 1100pJP Morgan Cazenove - Overweight - 1350pLots of agreement on price there then.......I'll buy more when Citi think they are good value in the morning!!
Rhigos
23 Nov 2017
Re: Hindsight Where is the bottom? Still falling. More uncertainty reported in news about future government spending on defence.
Ripley94
23 Nov 2017
Re: Hindsight ( D.. 1st ) Just topped again @ 687 .. recent low.
nk1999
22 Nov 2017
Shore Capital From Citywire:"Babcock set to perform long term, says Shore Capital Lower debt and more normal working capital means engineering support services company Babcock (BAB) is on track to perform well, says Shore Capital. Analyst Robin Speakman reiterated his ‘buy’ recommendation on the stock despite first-half results sending the shares 6.8% lower at 703.5p yesterday.‘Babcock continues to perform well, in our opinion, on an underlying level,’ he said. ‘This reflects its strong market position in essential, non-discretionary spend, services. We feel confident that the business trajectory is set to see net debt levels fall substantially over the next couple of years as working capital and capital expenditure tends to normalise. Contract performance appears high to us.’ "
Trapper Jim
22 Nov 2017
Why so volatile? This share up and down up and down today, all on small, 3 figure trades.Can anyone understand why?
Hangover2
22 Nov 2017
Well I did get some under 700p and hope that it was sensible in the long run.There are a couple of parties shorting but only circa 1.5% of stock is shorted so not heavily shorted
Ripley94
22 Nov 2017
Re: Hindsight This keeps on falling now 694p .Not seen it on short list is it heavily shorted ?
Russ Alan
22 Nov 2017
And another from today [link]
Ripley94
21 Nov 2017
Re: yes Ripley Ha ha axolotiYou in ? whats your view of BAB. I thought it might be more sensible choice for ISA.. ill have to revert to AIM picks lol
Rhigos
21 Nov 2017
Broker views bullish [link] Strong Buy
Hangover2
21 Nov 2017
It does not look like I've got long to wait to buy again!! It shows how poor my reading of a set of accounts is.....This seems to be the gist from an article on the Daily Mail:Babcock warned that British defence spending reviews could slow revenue growth as it derives three quarters of its revenue from the UK and its shares have come under sustained pressure from expectations that Brexit will delay customer decision-making.The stock is down 20 percent in the past 6 months, roughly in line with other British outsourcers, which broker Peel Hunt said reflects investor concern over pressures on the funding of UK defence programmes, the issues at other companies in the outsourcing sub-sector and increased political uncertainty.Babcock cautioned that UK government spending reviews could "delay the start of large new vehicle programmes" and weigh on organic revenue growth in its land division, which provides support for military vehicles, in the year to March 2019."The tone of the questions (by the investment community) is negative and the perception is that this is a company that is going to warn on profits. To my mind, it isn't," said Shore Capital analyst Robin Speakman.Unlike administrative service providers Capita, Serco and Carillion, Babcock's business model is not based on discretionary spending, he added.I'm with Robin Speakman.....
