14:16 09/05/2012 Re: Lupo?
Yes, i saw part of it thanks but gave up as I realised that it was just a couple of total odd balls and not a demanding interview with those involved in shale oil/gas - or did that come later? By Lupo di mare
13:07 09/05/2012 Re: Lupo?
http://www.youtube.com/watch?v=xFeCX2A8bkM By GatorHex
9:30 09/05/2012 Re: Lupo?
Woops, yes I see you've got the link below. By Lupo di mare
9:29 09/05/2012 Re: Lupo?
Missed it m8. Got a link? By Lupo di mare
9:17 09/05/2012 Lupo?
Did you watch this week´s edition of Keiser? It´s all about fracking. Perhaps if you watch this week´s edition of Keiser, the fracking division should not be quite a shock. Fracking requires huge investment for only SR gain.

Weir´s debt as well, they certainly have been upping the debt to obtain these results, which is worrying. By Hardcore Uproar
8:27 09/05/2012 IMS
That was a big hit to upstream oil and gas; it must have been quite a shock to them, was to me anyway. That just shows the benefit of keeping Power and Industrial, unlike a certain pundit who thought that they might sell it.

Any guesses on where the sp's headed? Some who thought that Weir had magical properties will be disappointed and sell. BTW, 1must, I did not suggest that the sp would head down to 332p, I merely mused that it would be nice as it would be give-away time again.
By Lupo di mare
21:14 08/05/2012 Re: Investor's Chronicle
LDM,
Bought at the same time seeing this as a company with prospects but became beguiled with other shares and sold ( oil ); however, your point of the share going to 332p bears no relationship to the present company or the share price prior to the drop to 332p in 2009. If that were to happen now it would be catastrophic.
Bearing in mind the diversification and world wide interests of the company I cannot see this going below 1300p which would considerable undervalue what is an exceptional company and provide a very nice buy. IMVHO By 1mustjfdi
18:44 08/05/2012 Re: Investor's Chronicle
And, Hardcore, Turnover and Profit growth hardly faultered, and the yield zonked up to 7.5%. Woopee. Lupo added more on 27.1.09 @332p..... By Lupo di mare
17:51 08/05/2012 Re: Investor's Chronicle
Harcore - "Remember the last time oil went down in 2008, Weir fell to 250p"

Bring it on. Lupo's got some spare investment cash just waiting for the summer downturn. By Lupo di mare
16:58 08/05/2012 Re: Investor's Chronicle
It would be interesting to see the correlation the oil price & Weir. Out of the Middle & Russia the costs of extracting oil out the ground are between $90, $100 p/brl. What happens if the oil price falls back down to $60 p/brl? What effects does this have on Weir´s SP? The perils of fracking is discussed in this week´s edition of Keiser.

http://www.youtube.com/watch?feature=player_embedded&v=xFeCX2A8bkM
Remember the last time oil went down in 2008, Weir fell to 250p By Hardcore Uproar
15:23 08/05/2012 Re: Investor's Chronicle
Quite right, Seewolf. I note that 85% of London prime-property purchasers in London are foreign, a new influx of Greeks and Italians having started in 2010 to escape the Eurodebt debacle. This year the French no doubt. Meanwhile I see in the Times that the recent drop in Weir SP was because it has gone ex div...and the Titanic sank because the deckchairs were too heavy. Did expect better from the sp today and this week - not too late perhaps. By wangbaudan
20:18 06/05/2012 Re: Investor's Chronicle
Was thinking of having a quick in and out, but with Hollande in in France (?!), and Greeks voting against the austerity parties it doesn't look like a jolly week ahead of us.

Hollande wants to increase taxes on those earning more than E1m, employ more teachers, reduce the retirement age to 60 for some (who?), and whatnot. Yes, well, the ratings agencies will be sharpening their pencils. London property will probably be a good bet. By Lupo di mare
15:09 05/05/2012 Re: Investor's Chronicle
Not a bad write-up, Wang. Bit they missed-out is the ability to grow also by acquisition, and, if not, to throw us a special divi. By Lupo di mare
9:57 05/05/2012 Re: Investor's Chronicle
More of that item. Weir was one of only three FTSE100 shares to rise yesterday. Let's hope the shorters have indeed gone elsewhere! Given next week's update hopes, this is surely a good entry point.

Thu 03 May 2012
A A A
Recommendation type: Growth

Lee Wild
A plunging share price can imply a company in crisis, yet for Weir nothing could be further from the truth. Yes, the group faces headwinds, but the plunge in its share price is a bear raid, pure and simple, driven by a misunderstanding of the business. The shares look absurdly cheap and, with prospects intact, now looks like the right time to buy.

We thought that in February, too. Strong results for 2011 plus long-term structural drivers and an undemanding rating convinced us the shares were worth more. Since then, however, oversupply of shale gas has driven US natural gas prices to a decade low, threatening the economic viability of some fields and Weir's profits.

That's bad news for the Glasgow-based firm. It makes lots of money supplying hard-wearing high pressure pumps and valves to companies extracting shale gas using so-called "fracking" technology. Yet the number of rigs drilling for natural gas in the US has fallen to a 10-year low, according to oil services firm Baker Hughes.

Still, there is a silver lining. Low gas prices, however unsustainable, have caused a rush to ramp up oil production, a much more profitable enterprise at over $100 a barrel. The US oil rig count hit a 25-year high recently, up 45 per cent year on year, and an increasing number of producers choosing to switch focus should help keep Weir busy.

Perhaps because the shares are easy to borrow, Weir stock has become a favourite among short sellers. But even they have begun to realise the game is up. Short-covering in anticipation of a reassuring first-quarter update on Wednesday 9 May has put a floor under the share price. Yet it should never have come to this. Less than a third of Weir's revenue (£743m), but 44 per cent of underlying operating profit (£183m), came from the oil & gas division last year, and even less from shale gas. In fact, minerals generated well over half group sales and profits. That's lower-margin stuff, but returns are tipped to stabilise at a respectable 17.6 per cent of sales.


City analysts value Weir shares at around 1,500p (or £3.2bn) without SPM, the major part of Weir's US fracking operation. Incredible, then, that SPM, which has an order book of around £280m and is expected to generate more than £616m of revenue, should only be worth £450m. Moreover, a larger installed base, following rapid growth in equipment sales, will lead to a larger proportion of revenue from less cyclical, and more lucrative, after-market activity, such as repairs, spare parts and services.

Besides, President Obama has earmarked shale development as key to US energy policy. The US Energy Information Administration predicts that by 2035 shale gas will account for about half of all US dry gas production – big business for Weir – but Poland, Argentina, Australia and China are also keen. Even Blackpool has a fledgling fracking industry.


That potential is not reflected in the current rating. In 2011, Weir shares traded on a forward PE ratio between 14 and 15. It's now just 11. True, earnings growth may slow to around 7 per cent from 2013, but such a big discount to international peers looks odd, given Weir's medium-term growth prospects and operating margins consistently in the high teens. Based on current forecasts, a return to 2011-style multiples would propel the shares to over 2,200p, quite possible once the outlook for oil & gas exploration becomes clearer.

Meanwhile, the launch of five new products, including new frac and slurry pumps, increases Weir's addressable market by more than $500m. That should generate extra sales this year, plus after-market business when parts need replacing.

And there's money to be made at the smaller power and indust By wangbaudan
10:55 04/05/2012 Investor's Chronicle

'look too good to miss, both as a short-term volatility play and for investors more comfortable with a buy-and-hold strategy.'
'Buy' By optimistic john