Market Commentary - Housing, Infrastructure, Construction and Services
Rentokil’s strategic JV with Haniel and Loxam’s further increased offer for Lavendon at 250p a share grab the headlines this morning overshadowing Bilby’s poor half year numbers, Costain’s 50/50 JV with CH2M being re-awarded the maintenance contract from Highways England Area 14 and Balfour Beatty selling parts of its interests in five street lighting projects for £33m cash to Equitex. The moves yesterday were very interesting for investors. SIG sparked into life and was the best performer on the day, up 2.9% to 98.8p, its best level since 10 November when the proverbial hit the air conditioner.
Read more...Market Commentary - Housing, Infrastructure, Construction and Services
The main formal news this morning comes from the battle for Lavendon in which formal documents have been published. We know three things from the economic data today that we did not know yesterday. The conclusion from the above is not startling. The outlook for 2017 is uncertain and the trends in the data point to growth being weaker next year than in 2016 and the risk on the downside for current forecasts is increasing.
Read more...Airbus is cutting it fine
Record breaking December needed to meet guidance
I highlighted last month that Airbus had its work cut out to meet its 2016 delivery target of 670 aircraft, needing to deliver 154 in two months. Well the latest statistics show 61 aircraft were delivered in November, leaving 94 to be delivered in December. I previously said that “I am not generally predisposed to bet against Airbus when it comes to them achieving delivery targets” and I think I still feel the same as their track record is strong, but it feels as though the risk is increasing of Airbus not meeting FY16 guidance.
Read more...Market Commentary - Housing, Infrastructure, Construction and Services
News this morning comes from Lavendon and Severfield. Lavendon has received an offer from the French hire company Loxam of 220p a share which has been recommended by the board and tops the TVH offer by 10p.There was limited movement in sector stocks yesterday
Read more...Market Commentary - Housing, Infrastructure, Construction and Services
Balfour Beatty provided a trading update this morning which is short and sweet and Bellway has issued an update ahead of its AGM for the first 18 weeks of the year. The BBY update is a bit of a tease really as it tells us that it has achieved the phase one self help targets for the Build to Last programme (£200m cash, £100m cost saving and a positive net cash position) but provides few numbers about Phase Two. Bellway talks of its start to the year being encouraging and cites a 7% increase in the reservation rate so far this year and continued good market conditions (mortgage cost and availability, low cancellation rates and HTB)
Read more...China Ecosystems – All about vertical.
Greater verticalisation looks like it is coming to China.
Read more...Market Commentary - Housing, Infrastructure, Construction and Services - 9th December 2016
Marshalls and Waterman have provided trading updates this morning and Berendsen has announced a Competition and Markets Authority (CMA) investigation into a small part of its operations that is now discontinued.In the Capita “hiatus” yesterday the news that G4S and Serco had the extensions granted to the infamous Compass asylum seeker contracts to 2019. Is Capita worth buying at 485p with a dividend of 31.7p, a yield of 6.5%?
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