Rhigos
21 Nov 2017
Still unsure about BAB BAB fairly high gearing of 58% and modest ROCE of only 9.0% worry me. They are also under-performing their sector index, which in turn is out of favour thanks to CLLN. The yield is above average but that is largely because of fall in SP. I have held BAB since Jan 2013 and am showing an overall return of about -12%. I am glad I sold sold 29% of my BAB shares at the end of Sept for 836.6. They are beginning to look oversold now, perhaps a buy below 700 as Hangover2 suggests.
Hangover2
21 Nov 2017
Obviously - I should have waited!! Sitting tight now but will buy more if it goes sub-700p over the coming days......lets see....I accept there is a lot of political uncertainty and also company's like this go from trading well to being locked into poor contracts from which they find it hard to recover. My gut feel this is more about a risk re-rating on this type of share than anything in these accounts..
Our Haven
21 Nov 2017
Update The market was expecting better figures obviously but increase to revenues, dividend and profits looks good to me. 92% revenues for next year in, what more can they do. I suspect that it has a good deal to do with sector sentiment. Good buy for the long term and I will be topping up at these prices.
Hangover2
21 Nov 2017
I'm in.... I think fears of Support Service comparisons are overdone in BAB's case and at this price I've bought. A rising dividend and chance of a drift up in share price are both things I like and they've transitioned to the new accounting rules too.
wangbaudan
16 Nov 2017
Re: Hindsight AT,I also held CLLN twice, once good, once bad. I also own quite a few shares in Kier, where performance is similar and it is difficult for me to get too excited in either case about good yield when it is partly as a result of plunging sp! Both look dire against the sector index.As you say, cover is OK though and I am not too bothered about the current situation, which I feel is a cyclical thing and I hold both in a SIPP in Drawdown which won't be touched until I have shuffled off this mortal coil!axilotl - mocking someone's grammar on a bb? tut tut.
Alan Tittymarsh
14 Nov 2017
Re: Hindsight kolwezimundele. I would say that CLLN has been a considerably more woeful investment than BAB. I've held CLLN on 2 occasions (before their collapse) and managed to make a decent profit for both periods, wary that their div was too high.BAB might be considered woeful if you bought them in Feb 2014 or Sept 2016, but now they've fallen to a level where they look like good value, with a div that's well covered and almost 4% yield. Unless there's some big skeleton hiding in the cupboard waiting to fall out and there is a risk here with defence spending cuts, BAB are probably worth investing in now.DYOR
kolwezimundele
14 Nov 2017
Re: Hindsight I am not suggesting the state of CLLN and BAB's operations and finances are similar - just saying their 3 year charts (pre CLLN's recent total collapse) are depressingly alike for investors. Both have been woeful investments. Hopefully, the similarity ends there......
axolotl
14 Nov 2017
yes Ripley you must of, mustn't you of?
Ripley94
14 Nov 2017
Re: Hindsight Had a little review of holding here can see a buy July 2010 @ 600pLooks like a rights 12 May 14 @ 790p.... well below that now.in Jan 15 paid 1021p !!!! ( X ).... must of had spare cash.Have no record of ever slicing .
Ripley94
13 Nov 2017
Re: Hindsight Topped in ( S ) ISA.774.79p
Alan Tittymarsh
13 Nov 2017
Re: Hindsight I don't think you can compare BAB to CLLN. Apart from the businesses being totally different, CLLN's eps has been flatlining for the last years, whereas BAB's eps has regularly increased over the past 5 years as have its divs. CLLN also had the largest pension deficit in the FTSE 250 as well as the biggest 'shorters' interest. BAB has only a tiny amount of shorter's interest.The fall today is very much associated with the profit warning today from ULE, a comparable business with BAB having more international exposure. The shares are now at a 5 1/2 year low and look decent value at this level over the medium term. Dipped my first toe in today and will add in small increments if they go sub £7.
Our Haven
13 Nov 2017
Re: Hindsight I thought that was old news, so it is making the rounds again, can see why that would impact Babcock.
kolwezimundele
13 Nov 2017
Re: Hindsight Three year chart is appalling and reminds me of that of CLLN (before the utter collapse). Ouch....As shown with CLLN and many other companies, analysts are generally clueless so I would put little faith in their positive claims for the company. I would have thought that a low sterling would help win contracts abroad, but seems I was very wrong on that.
Baker2005
13 Nov 2017
Re: Hindsight knock on from the fall in Ultra today"Ultra Electronics shares plunged 19% after it blamed a profit warning on the cancellation of UK defense programs."
Our Haven
13 Nov 2017
Re: Hindsight The fundamentals tell you that this is a great value buy so what is today's problem?Must be serious.
