CRH Hitting New Price Lows

Raskolnikov

Quoting €14.76 according to my source, that's near the lows reached during the crash back in March 2009. I have to say, it's starting to look kind of interesting at this price. Trading at a P/FCF of a little over 10, a dividend of 4.5%. Their biggest rival, Lafarge, are struggling under a weighty debt-load, so CRH could be in a position to take advantage as the stronger player. Construction will probably remain lousy in the short-term, but we will come out of it, and at that point CRH will probably be the big player in the industry.

If it somehow got to €13, I would have to consider backing the truck up :cool:

displaced dub

Raskolnikov wrote: »

Quoting €14.76 according to my source, that's near the lows reached during the crash back in March 2009. I have to say, it's starting to look kind of interesting at this price. Trading at a P/FCF of a little over 10, a dividend of 4.5%. Their biggest rival, Lafarge, are struggling under a weighty debt-load, so CRH could be in a position to take advantage as the stronger player. Construction will probably remain lousy in the short-term, but we will come out of it, and at that point CRH will probably be the big player in the industry.

If it somehow got to €13, I would have to consider backing the truck up :cool:

i backed the truck up at 16.00 thinking that was value now look at where it is

Raskolnikov

Well, I think the key here is that it's starting to look reasonably priced doing recession numbers. The recovery will come and when it does, CRH could easily do €2 a share in earnings, the question how long are you willing to wait until that time?

robmchl

this is a weekly chart of CRH. It has been in a range for a while now and had two failures above and below to break that range. Technically you need a break of the high or low of the range with a close outside and then price to test the demand or supply line from the otherside. I don't trade stocks personally but that would be my gameplan if looking at CRH. Getting close to very important levels for sure

delux

is it a conincidence that at the same time Irish state bonds are getting hit, CRH is making new lows? esp. since CRH has the biggest weighting on the ISEQ.

dunkamania

yes its a coincidence

Mr Marri

CRH is under serious pressure, there are some very serious slash and burn programmes underway at the moment. It really depends how/if these do the trick. but their hand appears to be being forced. I would look extremely closely for potential bananna skins before putting to much in this stock.

jonnybravo

Anyone think that CRH has the potential to go much lower?

• Projections are that Revenue and Profits will fall again this year
• Construction shows no major sign of improving. US figures look like they are weakening too.
• Price earnings at the moment based on prior year end profits are about 17 and this is likely to further deteriote if profits fall this year.
• Will dividends stay at the same high level given that Dividend cover was only 1.4 last year?
• Company is valued at over e10billion which still appears very high on prior year profits of e598m.

I just started researching stock and CRH was the first company I have researched so aplogies if I have made any mistakes.

MacStacked

jonnybravo wrote: »

... aplogies ...

Thats the only mistake I could see

jonnybravo

MacStacked wrote: »

Thats the only mistake I could see

Thanks!!! I've gotten too used to have auto-spell check on that my spelling is gone to the dogs!

Mr Marri

CRH on the skids again! looking at 1400 wouldn't be suprised if we see <1000. but this is a volitile stock, so not for the faint hearted*


*Ps bought in at 1520

Mr Marri

I read some interesting details in the Sunday time regarding top level management defections and a new american rival headed up by CRH presonal. I must admit I found it unnerving to see so many board members go.....maybe it not all rosey in the garden?

Raskolnikov

Went below €14.

Earnings call tomorrow. It will be interesting to see are revenue continuing to contract.

displaced dub

Down 13% so far today... What one could consider a good investment is not looking so good now.

Looks like I will be holding mine for awhile yet.

displaced dub

Raskolnikov wrote: »

Quoting €14.76 according to my source, that's near the lows reached during the crash back in March 2009. I have to say, it's starting to look kind of interesting at this price. Trading at a P/FCF of a little over 10, a dividend of 4.5%. Their biggest rival, Lafarge, are struggling under a weighty debt-load, so CRH could be in a position to take advantage as the stronger player. Construction will probably remain lousy in the short-term, but we will come out of it, and at that point CRH will probably be the big player in the industry.

If it somehow got to €13, I would have to consider backing the truck up :cool:

Time for that truck:D

Bill2673

Below the €12 now. Some question marks over divi.

Raskolnikov

Have decided to give this one a miss.

The only reason CRH have been able to pay the dividend was because they had a right issue. For ordinary shareholders, this is ridiculous, as you're essentially giving the company your own cash, only for CRH to give it back to you minus income tax. The dividend should have been cut, however, because there are big ego on the board, they have used this stupid measure to make shareholders feel wealthier than they really are. Can't say I was impressed by them increasing the debt load either, if the economy continues to be bad, they're getting close to violating their credit agreement (not saying this is likely).

With all that said, I still think CRH is decent enough value at these prices.

displaced dub

Think im going to climb into a cave for a few days to avoid pressing the sell button on everything......... Someone let me know when its safe to come back out.

RizzoJR

displaced dub wrote: »

Think im going to climb into a cave for a few days to avoid pressing the sell button on everything......... Someone let me know when its safe to come back out.

if you can stay in that cave for September, you'll be doing well.......

here comes REAL carnage

Bill2673

RizzoJR wrote: »

if you can stay in that cave for September, you'll be doing well.......

here comes REAL carnage

what ye referring to please? in other words, any chance of a specific and meaningful statement?

RR2026

CRH announced that it was intending to sell off its European insulation business. Will this effect shares value ?

RR2026

CRH announced that it was intending to sell off its European insulation business. Will this effect shares value ?

RizzoJR

Bill2673 wrote: »

what ye referring to please? in other words, any chance of a specific and meaningful statement?

what do you think it means?

I think the stock markets will drop EVEN MORE in September
and not just cause its a traditionally down month.

CRH still trading at over x12 projected earnings
it should be closer to 10, ie about e8 to e9.

Aint hit bottom yet

Raskolnikov

RR2026 wrote: »

CRH announced that it was intending to sell off its European insulation business. Will this effect shares value ?

This is why I hate CRH management.

Issuing shares to cover the dividend, selling businesses at what might be the bottom on the market, etc.

I still think if you buy CRH now with a long-term horizon, you'll do very well, you just have to hold your nose when they make stupid decisions.

delllat

Raskolnikov wrote: »

This is why I hate CRH management.

Issuing shares to cover the dividend, selling businesses at what might be the bottom on the market, etc.

I still think if you buy CRH now with a long-term horizon, you'll do very well, you just have to hold your nose when they make stupid decisions.

what kind of timeframe would you consider the long term horizon ?

delux

btw just to remind people there was a guy on this forum (who actually managed money for people as his job i believe) back in 2007 i think it was who was buying CRH at €30, €28, €25, as it was going down because he said it was a well run company. So the buy-and-hold strategy is probably ok as long as you're willing to tie your money up for 10 years or something.

thomasm

See Obama has announced 50 billion dollar infrastructure plan inc 150,000 miles of road upgrades. Wonder how that will impact price or is it already factored in

ixus

I doubt it was factored in before the announcement.

Careful though, there's no guarantee of this going through :

FT Article - you need to register (for free) to see it all.

Obama unveils infrastructure plan

By Anna Fifield in Washington

Published: September 6 2010 16:22 | Last updated: September 6 2010 20:19

President Barack Obama will on Monday unveil a $50bn infrastructure plan to build roads, railways and airport runways, in an effort to show his administration is tackling the US’s chronic unemployment ahead of the November mid-term elections.

But the president's plan is almost certain to fail to win Congressional approval, with many Democrats unwilling to support new spending programmes and Republicans loath to give the administration any legislative victories before the November 2 election.

Bill2673

RizzoJR wrote: »

what do you think it means?

I think the stock markets will drop EVEN MORE in September
and not just cause its a traditionally down month.

CRH still trading at over x12 projected earnings
it should be closer to 10, ie about e8 to e9.

Aint hit bottom yet

what do I think it means.....

to be honest, i had no idea......i thought you meant there had been some poor US economic figure out, or maybe a negative comment from Bernanke....

Stock is actually trading now closer to 13.5x projected earnings, due to be it being up 14% since you made your comment last week (as of yesterdays close).

Thats not a problem in itself.....people are allowed get it wrong. I just wanted to know if you were referring to something specific, or if it was a throwaway comment, which it was.

PS......if a stock has already fallen from €35 to €12......I wouldn't describe a further fall down to €8 or €9 as carnage, I'd describe it as bottoming out.

PPS a PE of 12x, or 13.5x may be cheap if one feels the stock is on a depressed earnings figure due to being on a weak point in the economic cycle, i.e. if you think earnings can recover sharply. If you don't think earnings can recover, then it may as you say be expensive. Therein lies the market.

PPS UK stock market is up in 5 out of past 6 Septembers.

mikerockfield

Im going to be a complete conspiracy theorist here and say:
Watch out for the Fianna Fail / Anglo / CRH love triangle, alot of political connections in there and alot of old pals protection going on in Irish politics at the moment,;) like I said just a conspiracy theory!:D

Jim2007

Anyone look at HeidelbergCement as an alternative to CRH???? I'm going to have a look this weekend....

Jim

Mr Marri

Just thought I'd dig this one up (sorry mods) as the share price is back up the 15's (and I'm in the black again ).

So what do you think. time to take my very small winnings and get out or do you think it will keep rising?

neris

was an article on the large cap companies on the iseq and the possibilities of delisting. CRH was mentioned as one that could be delisted because they could be sold off with Cemex as a possible buyer. Construction is still weak globally and even if you look around the roads here you dont see alot of yellow cement and brick lorries anymore.

Shauny2010

neris wrote: »

was an article on the large cap companies on the iseq and the possibilities of delisting. CRH was mentioned as one that could be delisted because they could be sold off with Cemex as a possible buyer. Construction is still weak globally and even if you look around the roads here you dont see alot of yellow cement and brick lorries anymore.

what drugs are you on?