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Re: LEI - Leighton Holdings

skc is right, fanger. LEI is facing headwinds at present, but it's still a top, well run company.
 
Re: LEI - Leighton Holdings

skc said:
I am afraid you are looking like a perfect contrarian indicator...

We've all done it at some point in your trading/investing life.
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You may be right but I don't care, there are much better stocks to have ones money in at the moment. LEI has let me down too many times in the past so I've moved on.
 
Re: LEI - Leighton Holdings

Expect a 22.25% sp drop here on the back of a cap raising at $22.50 plus no dividend this year. Ouch!

Anything more than 22% fall and maybe a short term opportunity to make a small gain but not for me. Bad news tends to follow bad news and Wal King saw the writing when he chose to take cash over shares when he left.

Plenty of press on this around and enough pain for now.
 
Re: LEI - Leighton Holdings

I bought in cheaply at $28 last year.. then topped up a bit higher... I'm leaning towards getting out, I've put up with too much guff.
 
Re: LEI - Leighton Holdings

I have been investing/trading in and out of this stock for 2-3 years. It always seems to get the better of me. I always pull out to early or to late and then a bomb hits like this.

They went into a trading halt on the 7th April. What they should've done is opened again on the the 7th or 8th announcing a profit downgrade then the shares would've dropped $2 max. That would of got me out losing a bit but not a shocking amount. By extending the trading halt and doing the capital raising they will cause it to drop substantially lower at the expense of retail investors who don't buy big into this stock.

Although I think Leighton is a solid company with work always coming in, it has some cowboys onboard who haven't properly estimated the risk and expenditure for certain projects.

The 1 in 9 share offer won't really help retail investers. A pittance really. 2 in 9 would be more acceptable but what they are offering is pathetic. Why can't they just do a normal captial raising where you can buy up to 15K worth of shares.

I just hope the stock doesn't drop and keep going like Nufarm did. It will be under pressure for a while until the bookbuilds are done, I remember RIO was under pressue when it did a rights issue. Maybe the traders will prop it up $4-5 the first day.
 
Re: LEI - Leighton Holdings

Nero64 said:
I have been investing/trading in and out of this stock for 2-3 years. It always seems to get the better of me. I always pull out to early or to late and then a bomb hits like this.

They went into a trading halt on the 7th April. What they should've done is opened again on the the 7th or 8th announcing a profit downgrade then the shares would've dropped $2 max. That would of got me out losing a bit but not a shocking amount. By extending the trading halt and doing the capital raising they will cause it to drop substantially lower at the expense of retail investors who don't buy big into this stock.

Although I think Leighton is a solid company with work always coming in, it has some cowboys onboard who haven't properly estimated the risk and expenditure for certain projects.

The 1 in 9 share offer won't really help retail investers. A pittance really. 2 in 9 would be more acceptable but what they are offering is pathetic. Why can't they just do a normal captial raising where you can buy up to 15K worth of shares.

I just hope the stock doesn't drop and keep going like Nufarm did. It will be under pressure for a while until the bookbuilds are done, I remember RIO was under pressue when it did a rights issue. Maybe the traders will prop it up $4-5 the first day.
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There was never a chance that they will resume trading after the profit downgrade. The market will trade un-informed while they sound out the capital raising, not to mentioned that the prospects of a capital raising (which all analysts would have worked out) will see the share price fall more than a couple of $$.

Rights issue, placement or SPP (where you buy $15K worth of stock) are all 'normal' capital raising methods.

I think sentiments will no doubt remain negative towards LEI for some time. LEI has always traded at a premium to other builders and this needs to come out first. Management forecast of $600m profit next year is ~ $2 per share (before capital raising). A more normal PE of 12-14 puts the share price at ~$25 range. Market scepticism of the $600m figure will see it trade lower than that imo.

Back in 2004 LEI stuffed up Southern Cross Station in Melbourne and Hilton Hotel upgrade in Sydney. They however recovered relatively quickly thanks to the mining boom. Will that history provide useful lesson for now?
 
Re: LEI - Leighton Holdings

This is an exciting situation for those of us who trade long and long-term.

The chart shows 2 points of potential support/resistance

$16.30 and $25.

Interesting times. Downtrends do present opportunities.

A monthly chart going back 10-11 years.

gg
 

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Re: LEI - Leighton Holdings

Well, i have just read that Leighton shares have been suspended from trading. What does this mean? Does this mean that the company has gone belly up and we've all lost our money?!
 
Re: LEI - Leighton Holdings

Aussiest said:
Well, i have just read that Leighton shares have been suspended from trading. What does this mean? Does this mean that the company has gone belly up and we've all lost our money?!
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Looks like it is in suspension due to a capital raising and will be trading again tomorrow. Suggest you read the company announcement for further info.
 
Re: LEI - Leighton Holdings

Aussiest said:
Well, i have just read that Leighton shares have been suspended from trading. What does this mean? Does this mean that the company has gone belly up and we've all lost our money?!
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Not all... it will probably fall 15-20% minimum upon reopen however.

You will have a chance to participate in the capital raising, which may or may not be a wise idea.

DYOR and start by reading announcements as 123567890 suggested.
 
Re: LEI - Leighton Holdings

:/

I was going to sell of my LEI holdings the day they went into a trading halt, and now it seems I've got my head kicked in.

What do we think people, that LEI might be able to trace back up a bit, or is SP only going to go down?
 
Re: LEI - Leighton Holdings

inq said:
:/

I was going to sell of my LEI holdings the day they went into a trading halt, and now it seems I've got my head kicked in.

What do we think people, that LEI might be able to trace back up a bit, or is SP only going to go down?
Click to expand...

I usually stick by a rule I have. I sell half my holdings when prices drop this far from my buying point - like I did today. It's possible the share price may not ever recover. The next thing you know you have Babcock and Brown on your hands. However with LEI I think it is a good company and in time it should recover. I made the mistake of investing after 2 profit downgrades and was in front for a while and I didn't use a stop loss.
 
Re: LEI - Leighton Holdings

Taking another beating today? at what price do you guys think it worthy to buy?
 
Re: LEI - Leighton Holdings

I bought a small parcel today at $24.10, it will now make up less than 3% of my portfolio. I believe it to be a good long term company to buy. No dividends + Cap Raising have seen it fall in value, and if our market on the whole continues to fall, LEI will most likely fall with it, but being a long term investor, Im OK to sit with the swings at the moment
 
Re: LEI - Leighton Holdings

Now there's talk of shareholder class actions being launched against Leighton Holdings. Who knows whether that will come to fruition but it will be a discration for the management.

Personally, I think anyone taking a position in Leighton Holdings now is being, in the words of Sir Humphrey Appleby, "courageous". Pessimistically, I don't think all the bad news is out in the open yet.
 
Re: LEI - Leighton Holdings

Good question, Julia. When I found out, I'll get back to you.

I meant "distraction". I was obviously distracted myself when I wrote that earlier post! :D
 
Re: LEI - Leighton Holdings

OK, McCoy. I guess I should have been able to figure that out myself.
 
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