Market Commentary - Housing, Infrastructure, Construction and Services - 15th November 2016
Polypipe and Crest Nicholson have something to tell us this morning in positive trading updates and McCarthy and Stone has issued it finals. We also note news from Waterman and Costain. Capita was the leader of the pack yesterday, rising 4.1% to 573p. The main loser yesterday was Berendsen, down 1.8% to 933p, the lowest level since October 2012
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Forward guidance - Trump style
These are strange times in global markets. Trump’s election, previously feared as a universal negative for global markets, has been accompanied by remarkable strength in risk assets. We highlighted investor positioning as a factor last week but now question if there is there more to this rally? Could Trump’s fiscal policies represent a “whatever it takes” moment?
Read more...Market Commentary - Housing, Infrastructure, Construction and Services - 14th November 2016
Interserve has announced a £40m new contract with several government offices worth £40m over five years and Taylor Wimpey and Kingspan have updated the markets. Taylor Wimpey has announced a positive update saying things as it sees them. The news from the markets is that progress is volatile in the HICS areas, as expected by us. Profit warnings at one every few weeks are not helping of course when combined with swings in sentiment triggered by political changes
Read more...Tetragon Financial Group commences US$50m tender offer
Repurchase of TFG shares at below NAV will be accretive to NAV per share
The US$50m tender offer was initially announced by Tetragon Financial Group (TFG) on 31 October in its Q316 quarterly report. It will be conducted as a “modified Dutch auction” with shareholders able to tender their TFG non-voting shares at prices ranging from US$10.80 up to US$12.00 per share. The offer is expected to expire on 8 December 2016, with the determined purchase price and any proration factor announced on 13 December 2016 and the purchase of shares settled promptly thereafter. This offer for up to US$50m follows TFG’s US$100m tender offer in June 2016 under which 10m TFG non-voting shares were repurchased.
Read more...Market Commentary - Housing, Infrastructure, Construction and Services - 11th November 2016
Galliford Try and SIG have statements for us this morning. Galliford Try has its AGM today and in a short release this morning the management tell us so but add nothing about trading YTD since 1st July. SIG has more substantial news with its update, a profit warning, which shows sales down 0.8% L4L in the last four months and its CEO will leave (by mutual consent) to be replaced, on an interim basis, by Mel Ewell who left Amey as its CEO at the turn of the year.
Read more...Trump’s double surprise
It is quite clear that in the days leading up to the U.S. Presidential election, both markets and surveys got it wrong. Traditional polling once again failed to spot the depth of support for radical political change. This was after all the U.S., which has delivered the strongest post-crisis economic performance of any developed nation.
Read more...Market Commentary - Housing, Infrastructure, Construction and Services - 10th November 2016
Grafton has supplied revenue data for the ten months to end October and commented on operating margins this morning and Bovis Homes has supplied a trading update. Balfour Beatty stormed ahead as the leader yesterday, up 7.3% to 281p, as the prospects for infrastructure spend in the US improved and trumped the reversal of the impact of $ strength on its reported numbers. The losers yesterday were the stocks with limited or no US exposure.
Read more...Busy festive season at Airbus
154 aircraft due for delivery in 2 months
In my blog ‘August deliveries at Airbus’ I noted that during September and October we would be looking for demonstrable progress towards the 2016 annual delivery target of more than 670, given that at the end of August only 400 aircraft had been delivered.
Read more...Market Commentary - Housing, Infrastructure, Construction and Services - 9th November 2016
Mmmmmm. Clearly the Macro will dominate today and you will be deluged with facts and opinions about what may happen with Trump in charge. The essential nature of much of the output in the HICS area should make it a relatively safe haven. Redrow and Workspace have news this morning, the former an AGM update and the latter its interims. Both provide us with positive news and a rosy outlook, as they see it.
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